The best life insurance companies in California for 2023 have more competition than ever before because there is a race to insure the uninsured in California such as young individuals and people ages 60 and above. Healthcare analysts have speculated that nearly 7 million people in California are uninsured. California has a lower per capita spending average of $500 lower than the national US average.
In Los Angeles, 6.5% of annual consumer spending is focused on healthcare, according to the US Bureau of Labor Statistics. This is well below what the average person spends on healthcare in the United States, which is around 8.5%.
Life insurance companies in Los Angeles take advantage of the higher rates of medical spending to offer better products. The life insurance companies in San Diego have a similar story, where 5.7% of annual of their total expenditures are on healthcare.
A lot of companies in California offer hundreds to millions worth of life insurance. This article will answer questions about the best life insurance in California, including:
What is Life Insurance?
How Much Life Insurance Do You Need in California?
How to Determine How Much Life Insurance to Get?
How to Get Life Insurance in California?
California Life Insurance Cost
Top 10 Life Insurance Companies in California
Life insurance is an agreement between a life insurance company and a policyholder where the carrier will pay out money to beneficiaries when the policyholder dies. In exchange, the policyholder pays the life insurance company through a premium.
The payouts available differ based on the type of policy. Below is a breakdown of some of the different policy payouts:
| Payout Type | Characteristics |
|---|---|
| Lump sum payout | The payout to the beneficiary is paid out in one whole portion |
| Annuity payout | The insurance sum is paid out in a steady income stream over a set timeframe. The sum collects interest as well while waiting to be paid out. |
| Retained asset account | The payout sum is held in an account that acts like a bank checking account. The beneficiary can withdraw the funds when needed, and it accumulates interest while sitting in the account. |
In connection, life insurance companies in California offer the following types of life insurance policy:
Term life–Your policy lasts only a fixed term, typically 10-30 years. If you die within that time, a beneficiary gets the cash benefit. The best term life insurance companies in California offer policies that are convenient and simple, sometimes not even requiring a medical exam
Whole life–A permanent policy that lasts for your lifetime as long as premiums are paid, it builds cash value over time
Universal life–Another permanent type of insurance that also allows you to build cash value. It is more flexible than whole life insurance, allowing you to raise and lower your premium.
Variable life–A permanent life insurance policy that uses cash investments to build value through investments like mutual funds. Mutual funds are professionally managed investment programs that make money through trade holdings
Mortgage life–This policy makes your mortgage lender the beneficiary and will pay your mortgage in the event of your death, which will lessen the burden on loved ones and other beneficiaries
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How much California life insurance you need will depend on the needs of your dependents and how long they need financial support. You must also consider financial obligations like your mortgage, income, and debts.
A person needs a $250,000 policy in California, but the amount you can get will vary based on your age, health, and policy length. For example, whole life insurance typically will cost several times more than a term life insurance policy.
When determining how much life insurance to get, you can take advantage of a life insurance calculator that makes the process simple and easy.
The general rule is that you should get a life insurance policy that is between 6-10 times your average annual salary. You will also want to consider the costs of your outstanding debts and any investment you want to make in the future when making this determination.
| Annual income | How much life insurance to get? |
|---|---|
| $25,000 | $150,000-$250,000 |
| $50,000 | $300,000-$500,000 |
| $75,000 | $450,000-$750,000 |
| $100,000 | $600,000-$1 million |
The reason for the increased amount of life insurance for higher income levels is that it helps your beneficiaries maintain the same standard of living as they had before you died. You should also factor in any outstanding debts and expenses that your beneficiaries may have to pay, like college tuition or a mortgage.
You can get life insurance in California by getting an online quote from a top insurance company. Many companies also have the option to talk to an agent that can help you craft the perfect policy.Many workplaces offer life insurance packages tied to your employer in California. With this system, workers pay a contribution to the overall policy as part of a group.
The average California life insurance cost is $56 per month or $432 per year for a $1 million 15-year term life insurance policy. The price of a life insurance package in California will differ depending on the insurance company, the coverage, your profession, gender, health history, length of coverage, coverage amount, and other factors. Here is an estimated breakdown of the costs of a few different top California insurance companies:
| Company | Cost per Month | Cost per Year | Best for |
|---|---|---|---|
| Fabric | $10 | $120 | Term life insurance |
| Legal & General | $10 | $120 | Overall customer experience |
| State Farm | $15 | $180 | Generous coverage |
| Amica | $17 | $204 | Customization |
| Northwestern Mutual | $24 | $288 | Discounts |
| Ethos | $25 | $300 | Fast quotes |
| Nationwide | $26 | $312 | Customer specialists |
| Ladder | $29 | $348 | Adjusting premiums and making changes to a life insurance policy |
| The Hartford | $30 | $360 | Business life insurance |
| Transamerica | $52 | $624 | Life insurance with terminal illness options |
Be sure to check out our life insurance policy locator for California. Click the “Get Quotes” button on this page and discover which companies can cater to your needs.
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These are the top 10 life insurance companies in California that stand head and shoulders above the competition. Read some of the reviews below to know their pros, cons, and average cost.
Automated underwriting
Cancel your coverage anytime
Personalized policy
Not available in every US state
First on our list of the top life insurance companies in California is Fabric. Fabric insurance stands out for its low premium price and hassle-free digital experience. Their digital underwriting system cuts time from getting your policy started and is convenient, thanks to their mobile app. They specialize in term life insurance with terms between 10 and 30 years. Fabric partners with Gerber Life Insurance for their policies.
Best for: Term life insurance
Average cost: $10/mo
Our rating: 10/10
Long–term options
Excellent customer service
Great discounts
Purchases require talking to an agent
Hartford is one of the top choices for life insurance in California. They offer many long–term care options and boast a fantastic customer experience. They are one of the best life insurance companies operating in Los Angeles and have several locations based there.
Best for: Business life insurance
Average cost: $30 per month
Our rating: 10/10
Easy to use
Great customer experience
Available in all 50 states
Fewer options
Legal & General life insurance offers lower-than-average premiums compared to many other top companies. It has unique policies like its critical illness cover that makes it stand out as well. The customer experience is top-notch, making it an excellent choice for newer life insurance consumers.
Best for: Overall customer experience
Average cost: $10 per month
Our rating: 10/10
Variety of options
Experience service agents
Some policies can only be purchased through a service agent
Nationwide receives high marks on this list for its high customer satisfaction and low complaint volume. It offers a substantial variety of life insurance packages that offer more value than most.
Best for: Customer specialists
Average cost: $26 per month
Our rating: 10/10
Family-focused
Fast online quotes
Fewer options
Ethos is another spectacular California life insurance company on the market. It hones on a niche of serving families as a whole rather than just individuals. The company benefits from a speedy online interface that makes getting a quote simple. They are one of the life insurance companies serving San Diego, San Francisco, and many other locations in California.
Best for: Fast quotes
Average cost: $25 per month
Our rating: 10/10
Adjust your premium
Competitive price
More control
Fewer options
Ladder is a unique life insurance company that offers its customers the ability to control more aspects of its policies. Through a process called laddering, you can increase or decrease your monthly payments at any time based on your needs. This way, you aren't locked into a strict policy as easily.
Best for: Adjusting premiums and making changes to a life insurance policy
Average cost: $29 per month
Our rating: 10/10
Low complaints
Easy–to–use interface
Great options
No online quotes
Northwestern Mutual is an insurance company that offers value in its insurance packages. They allow you to build cash value just by paying your premiums over time.
Best for: Discounts
Average cost: $24 per month
Our rating: 8/10
High customer satisfaction
Low volume of complaints
Online and call quotes
The interface isn’t as simple to use
Amica offers fewer life insurance products, but they make up for it with the customization levels available. They have budget-friendly versions of the common life insurance packages that make it easy to tailor your coverage and how much you pay.
Best for: Customization
Average cost: $17 per month
Our rating: 8/10
No exam is needed for some policies
Appeals to foreign nationals
Specialized agents
Customer service is not the best
Transamerica has great insurance options that are held back by its lower-performing customer service reviews. They offer terminal illness options and have an easy-to-understand purchasing process.
Best for: Life insurance with terminal illness options
Average cost: $52 per month
Our rating: 8/10
Great coverage options
Low complaint volume
High satisfaction rating
The customer user interface could be better
State Farm delivers a plethora of additional options for your life insurance packages that make it the ideal choice for someone who likes to take their time-making selections. They boast a high satisfaction rating, though choosing between all the policy options can be difficult with their web interface.
Best for: Generous coverage
Average cost: $15 per month
Our rating: 8/10
They offer Apple care plus as well and they are the worst ever , total scam folks ..
AIG worst nightmare ever do not purchased anything from this company they will deny your policy and still take money out of your account causing overdraft fees to your account and replying well you need to send proof of fees we don’t see anything on your account it’s closed . I can imagine if I had died I’m sure my daughter would have been disappointed because she would not have received a Dime . Theses people are just like the thieves in the streets just not using a weapon. Professional Thieves
Excellent prices and customer service, and a very straightforward online shopping experience.
Incredible experience from quote to claims!
You wouldn't find such life insurance coverage, such excellent experience online, service and rock bottom rates elsewhere! That's my experience however. Don't think twice.
Not all those who wander are lost.
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