California Life Insurance

Despite the sun, the mountains, the beach, and the easygoing lifestyle most Californians enjoy, it’s impossible to ignore the need for life insurance. Without it, your family could be stuck working to support themselves and make ends meet if catastrophe should strike. Preparing your family in case the unthinkable happens is actually a great way to give yourself peace of mind and live without worry. The Simple Dollar has compiled the crucial stats, info, regulations, and resources so California readers can be prepared and informed about different types of life insurance.

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Stats in Your State

To help readers compare life insurance rates and better understand the need for life insurance and how residents in the Golden State get coverage, The Simple Dollar presents the essential statistics and data about California life insurance policies.

Life Insurance in California

While it may seem like an unnecessary expense to some, life insurance benefits are a crucial part of California’s economy, keeping many families in good financial standing after their loved ones have passed.

Number of Licensed Life Insurers 446
Total Life Insurance Coverage $3.1 trillion
Average Policyholder Coverage $211,000 per life insurance policyholder*
Amount Paid Out in 2011 $35 billion**
Amount of Paid Annuity Benefits in 2011 $8 billion

*Based on individual life insurance policies
**Includes death benefits, matured endowments, policy dividends, surrender values, and other payments.

Life Insurance Administered Programs

More than 80,000 Californians have life insurance through state and federally administered programs, many of whom are veterans and retired servicemen and women.

The Life Insurance Industry: Beyond Insuring You

In addition to providing financial benefits for policyholders’ families, the life insurance industry provides a number of jobs and investment in the Californian economy, and its impact, while often overlooked, is essential to the the state’s economy.

Job creator 193,000 jobs created by the life insurance industry
Invested in California 's Economy $577 billion was invested by life insurance companies

Rules in Your State

Tight regulations govern the industry practices of insurers and consumer rights for California life insurance policyholders. Knowing your rights is the first step to becoming an effective consumer and protecting your interests.

Read California’s Insurance Code and Code of Regulations for the requirements that agents and insurers must abide to when replacements or changes are made toa life insurance policy or annuity. Some of the rules include:

  • The agent is required to provide an original or copy of all printed materials presented to the applicant.
  • The agent is not allowed to recommend changes to a life insurance policy with inaccurate or misleading information
  • The agent may not recommend insurers over the age of 65 to purchase unnecessary replacement annuity

Read more of the details at here.

Representatives & Resources in Your State

When dealing with something as serious as life insurance, it pays to know who to look to when you have a question, an issue, or need more information on industry practices and regulations. The following resources and representatives are great starting points to learn more about life insurance and to further pursue your questions.

California Health and Human Services
1600 Ninth Street, Room 460
Sacramento, CA 95814
(916) 654-3454
Get Directions

California Department of Insurance
Consumer Services Division
300 South Spring Street, South Tower
Los Angeles, CA 90013
Get Directions
Consumers: Life Series

California Life & Health Insurance Guarantee Association
10780 Santa Monica Blvd. Suite 401
Los Angeles, CA 90025
Fax: (323) 988-7171
Phone: (323) 782-0182
Get Directions

Insurance Commissioner
Sacramento Office
300 Capitol Mall, Suite 1700
Sacramento, CA 95814
Fax: 916-445-5280
Get Directions

California Department of Aging (Resources for Seniors)
Health Insurance Counseling and Advocacy program (HICAP)
Getting older puts limitations on one’s ability to get by in day to day life, not to mention the financial strains associated with the increased need for health care and assistance. The Department of Aging is a great resource for seniors and their families to help during your golden years.

Unclaimed Life Insurance Resources
Use the following resources to track down unclaimed life insurance benefits. If you suspect one of your recently deceased relatives may have had a life insurance policy, check with these agencies and with your state’s insurance regulatory body to learn more about claiming such benefits.