Best Life Insurance Companies in California for 2023

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

What is Life Insurance?

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 Life Insurance Do You Need in California?

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.


How to Determine How Much Life Insurance to Get?

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.


How to Get Life Insurance in California?

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.

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California Life Insurance Cost

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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Top 10 Life Insurance Companies in California

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. 


Fabric

Pros

  • Automated underwriting

  • Cancel your coverage anytime

  • Personalized policy

Cons

  • 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


The Hartford

Pros

  • Long–term options

  • Excellent customer service

  • Great discounts

Cons: 

  • 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


Legal & General

Pros

  • Easy to use

  • Great customer experience

  • Available in all 50 states

Cons

  • 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


Nationwide

Pros

  • Variety of options

  • Experience service agents

Cons

  • 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


Ethos

Pros

  • Family-focused

  • Fast online quotes

Cons

  • 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


Ladder

Pros

  • Adjust your premium 

  • Competitive price

  • More control

Cons

  • 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


Northwestern Mutual

Pros

  • Low complaints

  • Easy–to–use interface

  • Great options

Cons

  • 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


Amica

Pros

  • High customer satisfaction

  • Low volume of complaints

  • Online and call quotes

Cons

  • 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


Transamerica

Pros

  • No exam is needed for some policies

  • Appeals to foreign nationals

  • Specialized agents

Cons

  • 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


State Farm

Pros

  • Great coverage options

  • Low complaint volume

  • High satisfaction rating

Cons

  • 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

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