New to life insurance? Start with Life Insurance 101.
Client Benefit Insurance Services, Inc. (CBIS) works with 80+ life insurance carriers. All are rated A or better for financial strength by AM Best.
Below are the main types of life insurance sold in California. Read through them first, and you’ll know which kind suits your stage of life before you start comparing quotes.
Ready to see real quotes? Talk with a life insurance agent in San Diego. We’re an independent agency in Santee, and we compare life insurance for people all over California by phone or video. It costs you nothing extra to work with us.
What is life insurance?
Life insurance is an agreement between you and an insurance company. You make regular payments to keep the policy active. If something happens to you while it’s active, the company pays a lump sum, called the death benefit, to the people you named.
They can spend it as they need to. Some will cover the mortgage or rent, others daily bills or loans, a child’s education, or a funeral and other final expenses.
What are the types of life insurance?
Life insurance comes in two main types: term and permanent. Whole life, universal life, IUL and final expense are all kinds of permanent coverage. If you’re weighing them, here is how term vs whole life compare.
Term life insurance
- Pays the people you named if you die during the term. The term is a set stretch of years, often 10 to 35, and the policy shows the date it ends.
- Once the term is over, the rate goes up. You can usually keep the policy at the higher rate, or shop for a new one.
A standard term policy pays nothing and returns no payments if you outlive the coverage. Some can be converted to lifelong coverage later.
Whole life insurance
- Covers you for life. It stays in force as long as you keep paying.
- Builds cash value over the years, and you may be able to borrow against it or withdraw some.
Loans and withdrawals reduce what the people you named receive.
Wondering what coverage costs? Your age, your health and the amount of coverage you pick all move the price.
Pick a type by where you are in life
Each type suits a different situation. Find the one that sounds like yours, or talk it over with one of our licensed agents.
Term life insurance
Coverage for a set number of years, often 10 to 35, while others rely on your paycheck.
Term is the usual choice when someone depends on your income, when you’re paying down a mortgage, or when you only need coverage through your working years.
No-exam life insurance
Term, whole life, final expense and IUL policies where you answer health questions and skip the medical exam.
People pick it when they want an easier application and their health is mostly good. The carrier still makes the decision.
Learn about no-exam life insurance →
Mortgage protection
Life insurance sized to your home loan. The money goes to the people you choose, not the lender.
It’s common right after you buy or refinance a home, particularly if your household couldn’t keep up the payments on one income.
Learn about mortgage protection →
Whole life insurance
Lifelong coverage with a fixed payment and cash value that builds slowly.
People often choose whole life to leave money to a spouse, children or grandchildren. The coverage never runs out, and the payment stays the same.
Universal life insurance
Lifelong coverage with payments you can adjust within the policy’s limits. The cash value earns interest at a rate the insurance company sets.
Universal life tends to fit people who want coverage for life with room to change what they pay, and who will go over the policy with an agent every year or two to keep it funded.
Indexed universal life (IUL)
Lifelong coverage with flexible payments. Interest is linked to a market index, within limits the insurance company sets. IUL is life insurance, not an investment account.
IUL tends to fit people whose income swings from year to year, who want coverage for life, and who will sit down with an agent every year or two to review the policy.
Final expense insurance
A small lifelong policy for funeral costs and last bills. It usually asks health questions rather than requiring an exam.
Many people look at final expense as their term coverage is running out, or when they don’t want the people close to them paying for a funeral out of pocket.
Living benefits
A feature on some policies that lets you use part of your coverage early if you’re diagnosed with a qualifying serious illness.
It matters most when your household relies on your paycheck and a serious illness would make the bills hard to cover.
Need life insurance for a business? We help you compare and set up key person coverage, buy-sell funding and more. See business life insurance →
Life insurance with living benefits
Some policies let you use part of the death benefit while you’re still alive if you’re diagnosed with a qualifying illness. The money can go toward medical bills, lost income or everyday costs while you focus on getting better.
- Critical illness: a heart attack, stroke or cancer, for example
- Chronic illness: a long-term condition that limits everyday activities
- Terminal illness: a diagnosis with a limited life expectancy
Whatever you use lowers what the people you named receive later. Whether a policy offers living benefits, how much you can use and what it costs varies by policy and state, so ask one of our licensed agents what a policy includes before you apply.
Not sure which type fits? One of our licensed life insurance agents can line them up side by side for you.
Call or text CBIS and a licensed agent will go over your options with you.
How to get life insurance
No payment required to apply.
You pay nothing until you accept an offer.
- Apply: One of our licensed agents helps you fill out a short application, by phone or video call.
- The insurance company reviews your application: They look over your information, and your agent keeps you posted along the way. Each carrier places you in a health class from your application, prescription history and MIB record.
- Get your offer: If you’re approved, the insurance company sends an offer with your price.
- Adjust it to your budget: You can change the coverage amount and the length of coverage until the numbers work for you.
- Accept, then pay: You pay only after you accept the offer. Nothing is paid up front.
Want more detail on each step? See the full steps on our quote page.
Already have life insurance?
One of our licensed agents will look over any life insurance policy you already have, whether it’s term, whole or universal life, and whether you bought it yourself or got it through work. We go through it with you on a short phone call and send you a written summary to keep. It’s free, and if your current policy suits you, we’ll say so.
- Whether your coverage amount matches what you need today
- When your term ends and what the price would be after that
- Your beneficiaries, any living benefits, and what you have through work
- On whole life, the cash value and any loans taken against it
Keep your current policy active while we review it.
Common questions about life insurance
Thinking about skipping the medical exam? The no-exam life insurance page answers questions on qualifying, approval and cost.
How much life insurance do I need?
It comes down to what you want the policy to do. Many people add up the income the people who count on them would need, the mortgage and other debts, future costs and final expenses. Then they subtract savings and any coverage they already have. Our life insurance calculator gives you a starting number, and one of our licensed agents can go through the math with you.
What type of life insurance do I need?
Start with what you want the money to do. Term covers a set number of years. Whole life, universal life, IUL and final expense last for life. A licensed CBIS agent can help you match the type to your goals.
Is term life better than whole life?
For most people, term comes first. It covers the years when others rely on your income, and it costs less. Whole life and IUL fit narrower needs, such as lifelong coverage, final costs, or cash value you want to keep for life. A licensed CBIS agent can help you weigh them.
What is cash value?
Cash value is money that builds up inside many lifelong policies, such as whole life. Term policies usually don’t have it. While you’re alive you may be able to borrow against it or take some out. Loans usually charge interest, and any amount you take out and don’t repay lowers what the people you named receive. An unpaid loan can also end the policy if it isn’t managed carefully. Living benefits are a separate thing: they may let you use part of the death benefit if you’re diagnosed with a qualifying serious illness, and that also lowers the death benefit paid later.
Can I withdraw cash from a life insurance policy?
Only from a policy that has cash value, such as whole life or IUL. Term has none. Taking money out can lower both the cash value and the death benefit, so read the policy’s rules first.
Is life insurance taxable?
In most cases, no. The death benefit your beneficiaries receive is generally free of federal income tax. There are exceptions. If the payout is spread over time, the interest it earns may be taxed, and very large estates may owe estate tax. A tax professional can tell you how the rules apply to you.
I have life insurance through work. Do I still need my own policy?
Maybe. Group coverage from an employer is a good benefit, but the amount is often limited and it may end or change if you leave the job. A policy you own goes with you. We can review what you have and help you decide.
What information do I need to apply for life insurance?
Have your basic details handy, plus your height and weight, your doctors and medications, and any health conditions. You’ll also name your beneficiaries. A licensed CBIS agent will walk you through it by phone or video.
Will I need a medical exam?
Not always. Many policies are decided from your answers to health questions and records the insurance company can check, such as prescription history. A larger coverage amount or certain health histories may call for a short exam, and that can often be done at your home or office. One of our licensed agents can tell you what to expect before you apply.
Can I get life insurance with a health condition?
Many people can. High blood pressure, diabetes or a past illness doesn’t rule out coverage. Insurance companies weigh health differently, so one of our licensed agents can look for the ones that may be a good match for your history.
Can I get life insurance if I have cancer?
Sometimes. It turns on the type of cancer, how long ago treatment ended, and the carrier. Some carriers will consider an application, and some policies ask no health questions at all. A licensed CBIS agent can look at what may be open to you.
I’ve been turned down before. Can I still get coverage?
You may. Each insurance company judges health and history its own way, so a no from one doesn’t mean a no from all of them. We compare options from 80+ life insurance carriers, which gives a licensed agent more places to look. The insurance company makes the final decision, so approval isn’t promised. Another look is often worthwhile, especially if your health has improved or time has passed.
What happens if I lie on a life insurance application?
It can cause serious trouble. Carriers can check your prescriptions and records. If a claim is made during the contestability period, the carrier can review the application, and if it finds false answers it may reduce or deny the claim. Answer truthfully.
What is the contestability period?
It’s an early stretch of the policy when the carrier can look closely at the application if a claim is made. If something was left out or wrong, the carrier may adjust or deny the claim. The policy states its own period.
Who should I name as my beneficiary?
Most people name a primary beneficiary, such as a spouse or partner, and a contingent (backup) beneficiary who gets the money if the primary can’t. You can name several people and split the amount. A minor under 18 can’t receive the money directly, and without a plan a court may have to appoint someone to manage it. Many parents name a trust or a custodian under California’s Uniform Transfers to Minors Act instead. Review your beneficiaries after a marriage, a divorce or a new baby.
Who is the beneficiary and who is the policyholder?
The policyholder owns the policy and makes the payments. The beneficiary is the person or group the policyholder names to receive the death benefit. They’re often different people, though you can be both the policyholder and the insured.
How long do you have to file a life insurance claim?
Beneficiaries should contact the carrier as soon as they can, since starting early helps the claim move along. The carrier can explain what it needs and any deadlines that apply to the policy.
What are riders?
Riders are optional add-ons that change what a policy does. A waiver of premium rider can cover your payments if you become disabled and can’t work, under the rider’s rules. A child rider adds a set amount of coverage for your children. A return of premium rider refunds some or all of your payments if you outlive a term policy, but it raises the price. Living benefits may come as a rider or be built into the policy, and using them lowers the death benefit. Ask your agent which riders a given policy offers and what they cost.
What happens if I miss a payment?
Most policies give you a grace period to catch up, and the policy spells out how long it is. One of our licensed agents can check yours. If the premium still isn’t paid after that, the policy can lapse, which means it ends. Permanent policies with cash value may have other options, so call the insurance company or your agent right away.
Does it cost more to use an independent agent like CBIS?
You don’t pay us a fee for quotes or advice. The insurance company sets the premium, and if you buy a policy, it pays us a commission. We meet by phone or video, so you can do it all from home.
Talk with a licensed agent
Call or text CBIS, and one of our licensed agents will compare options with you by phone or video call. Family members are welcome to join.
Other questions? Contact us.
Get a free life insurance quote
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