California Life Insurance

Last Updated on September 17, 2020 by Andrew Lee

In California, the average life expectancy is rated at 80.8 years, with Asian Americans living the longest, averaging at 86.3 years. All in all, The Golden State places third, alongside Connecticut, in the Measure of America 2013-2014 study’s life expectancy ranking. This is something you should know, as it’s one of the major factors that can influence your California life insurance premiums. Remember: life cover becomes more expensive as you age, so purchasing a policy as early as possible can be your ticket to a low-cost plan. This guide will help you understand how this type of product works.

Changing insurance needs

Your life insurance needs change as you get older. It also influences your overall coverage-related expenses.

Consider this: parents who purchase a life insurance policy for their children under the age of 18 do so not just because of its risk management component, but also because they want to give their kids an investment tool. A whole life insurance policy can provide both benefits.

As a young adult, you should also think about getting insured as early as you hit your early 20s. The type of insurance you should purchase will depend on your current and future needs. If you simply want to protect your loved ones from the high costs of burial services, then a term life insurance may be a good option. On the other hand, if you want a policy that serves both the function of a risk management tool and an asset, go for a whole life insurance policy.

Keep in mind that premiums vary widely based on age, among several other factors, but in general, the younger you are, the lower your expenses.

How your premiums will look

Although you may want to obtain insurance as soon as possible, you should first have some prior knowledge of what your premiums will look like. This way, you can set realistic expectations for the expenditures associated with your life cover. Here are some estimates for someone living in the capital city, Sacramento.

Estimated Monthly Premiums
Sacramento, CA 94203
Policy: $200K
Duration: 30 Years

Age & Gender Smokers  Non-Smokers
 30 Yr Old Male  $55.65 – $91.53 $19.17 – $45.45
45 Yr Old Male $167.65 – $230.87 $39.36 – $125.94
 30 Yr Old Female $40.42 – $72.88 $16.35 – $35.34
 45 Yr Old Female $117.34 – $176.49 $30.89 – $82.53


These numbers show just how big of a difference smoking can do to your premiums. Smokers pay more than double than those who don’t, and it applies to all methodologies, regardless of age and gender. And while you can expect women to have lower premiums than men, this habit drastically raises insurance costs. On the other hand, non-smokers don’t just enjoy much cheaper premiums; they also live a better quality of life.

Estimated Monthly Premiums
Sacramento, CA 94203
Policy: $500K
Duration: 20 Years

Age & Gender Smokers  Non-Smokers
 30 Yr Old Male  $72.62 – $133 $20.36 – $58.05
45 Yr Old Male $213.94 – $430.30 $50.06 – $138.95
 30 Yr Old Female $59.50 – $115.40 $17.93 – $44.90
 45 Yr Old Female $154.32 – $296 $39.48 – $116.10


What happens if you make lifestyle changes

Making healthier life choices will improve many aspects of your life. Yes, this is one of the most effective strategies to reduce the costs of maintaining life cover, as the tables above indicate. However, it also makes the overall quality of your life better. In fact, this doesn’t just impact your life insurance; it also drastically affects your health insurance. Remember: the healthier you are, the lower your risk level is in the eyes of insurance companies.

Save money with these tactics

Aside from improving your health, there are several other strategies that can make insurance more affordable.

One is to purchase life insurance while you’re still young. Premiums go up as one gets older, since statistically, the older a person is, the closer he/she to dying is. So when you arrange coverage in your 20s or 30s, you can already save a lot of money. And if you start your whole life insurance with a cash value component earlier, you can borrow a greater amount of money in the future.

And to ensure that you don’t waste money, verify the licensure of the insurance company you’d want to work with. The California Insurance Department is the organization that can help you with this.

Find the Best Life Insurance

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