State Life Insurance
With the recent economic market turmoil of 2008 to 2009 fresh in everyone's minds, financial management and conservative risk appetites are becoming the centerpiece of investor action and decision-making. Where stock markets and property investments used to be the ultimate key to success, other types of investments are now coming to the forefront of prudent consideration. Included in this bunch of new, risk-averse tools is state life insurance – something which was considered more of an optional extra just a few years back.
We've all heard of life insurance. It's the traditional way to provide for your loved ones when you finally depart. State life insurance is simply a term used to distinguish between the different life insurance policies available in each state.
Why do life insurance policies vary by state?
Whilst it is a rather simple mission to venture from one state to the next in your vehicle, transferring an entire company with its accompanying policies are protocols across the state line is another story. The reason for the apparent differences in life insurance policies by state comes down to just one thing: regulation. Each state has differing laws when it comes to insurance, meaning that even life insurance policies must be handled cautiously to ensure all aspects adhere to the legal framework. That being said, life insurance is unique among other insurance products, because policyholders are able to purchase a policy from a company that is headquartered outside of the policyholder's home state.
Elements of life insurance affected by state laws
In case you were wondering what we're talking about – here is a list of policy elements which may be influenced by rules on a state government level:
- Policy limits (i.e. Maximum / minimum coverage).
- Deductible allowances (as a percentage of the total coverage amount).
- STILO's (stranger initiated life insurance policies).
- Life Insurance for estate planning purposes.
Still not sure about state life insurance? To solve any confusion, simply request a free quote through this website and we will be able to provide you with a detailed overview of the life insurance options available in your state.