“Life insurance can help alleviate these financial burdens and provide peace of mind for families.” - Monica Thurman

Life insurance is an essential part of financial planning, yet many Californians overlook its importance. According to a recent survey, only 57% of adults in California have life insurance, compared to the national average of 60%. This means that more than 10 million Californians are without life insurance protection.

The lack of life insurance can have devastating consequences for families. In California alone, 8,000 people die each year due to accidents or injuries. Additionally, nearly 30% of Californians report that they would experience financial hardship within six months of the primary wage earner's death. This highlights the need for life insurance to protect families from financial strain in the event of an unexpected death.

But what is life insurance, and how does it work?

Life insurance is a contract between an individual and an insurance company. The individual pays a premium in exchange for a death benefit paid out to their beneficiaries upon their death. There are two main types of life insurance: term and permanent.

Term life insurance provides coverage for a set period, typically 10 to 30 years. It is usually the most affordable option and can be a good choice for those who want coverage for a specific period, such as until their children are grown or until a mortgage is paid off.

Permanent life insurance provides lifelong coverage and includes a savings component called cash value. This type of insurance is typically more expensive than term life insurance but can be a good choice for those who want lifelong coverage and a savings component.

Now that we know what life insurance is and how it works, let's take a look at some statistics that highlight the importance of having life insurance in California.

• The average funeral cost in California is $7,500 to $10,000.

• The average student loan debt for Californians is $22,785.

• The average credit card debt for Californians is $7,439.

These statistics illustrate the financial burden that can be left behind for loved ones in the event of an unexpected death. Life insurance can help alleviate these financial burdens and provide peace of mind for families.

In addition to providing financial protection for families, life insurance can also have tax benefits. In California, life insurance death benefits are generally income tax-free for the beneficiary. Additionally, some permanent life insurance policies can accumulate cash value on a tax-deferred basis, meaning that taxes on the cash value are not paid until the policy is surrendered or the death benefit is paid out.

In conclusion, life insurance is an essential part of financial planning for Californians. With so many families at risk of experiencing financial hardship due to unexpected deaths, it's important to ensure that loved ones are protected. By understanding the different types of life insurance and the benefits they provide, Californians can make informed decisions about their life insurance coverage and protect their families' financial futures.