Alabama Life Insurance Quotes
Nobody really wants to think about their own death or the death of a loved one, which is generally why purchasing life insurance can be so awkward. However, the whole point of life insurance is to provide peace of mind for the policyholder and financial protection for their loved ones in the event of their death. Therefore, purchasing life insurance is an extremely smart move and can be considered a necessity by those who wish to ensure that their loved ones are always protected.
Life insurance quotes and rates will vary for many different reasons, and one of these reasons is where a policyholder resides. Alabama is currently ranked 43rd out of 50 states and the District of Columbia in terms of life expectancy, and this is one of the many considerations for a life insurance company. In fact, the life expectancy in Alabama is currently 74.4 years.
It is also estimated that approximately 1% of all people in Alabama, aged from 55 to 64, will die every year. The rate of deaths per year more than doubles for Alabama residents aged between 65 and 74, and is at 5% for people aged between 75 and 84. As mentioned, life expectancy is simply one of the many factors used by life insurance companies when determining insurance rates, but it is very much near the top of their list.
The Alabama insurance industry is regulated by the State Insurance Code of Alabama, and it is this code that will regulate claims and provide various provisions which are intended to protect life insurance customers in Alabama. These provisions include:
The state code specifies that a “free look” provision must be included in every single Alabama life insurance plan. The free look provision allows consumers the ability to change their mind even after they have signed a contract with an insurance company and received their policy documents. The vast majority of insurance companies will allow a 10-day cancellation period without penalty, although this can be as much as 30 days in some cases.
There is a 30-day grace period on late payments according to the Alabama state insurance code. Therefore, if a customer misses a premium payment for any reason, they will still have 30 days within which to bring their account current before an insurer can take action such as cancelling the policy for non-payment.
There are also certain state life insurance regulations that provide life insurance companies with protection against consumer fraud. A prime example of this is an Alabama insurance company can challenge any information reported on a customer’s application for up to two years after the policy has taken effect. If any discrepancies or misinformation is found, the insurance company is perfectly within their rights to terminate the policy immediately.
There are various websites from which residents of Alabama can receive a free life insurance quote. This will typically involve the consumer having to provide basic information about themselves and the state of their health. An interim quote will generally be provided against this basic information, although an insurance agent will usually contact the customer to discuss their needs further. This will usually involve a far more extensive look into a person and their family’s medical history.
There will be a number of options available to consumers in term of life insurance, such as term life insurance, whole life insurance, and universal life insurance. Term life insurance is the most basic and cheapest coverage, and will only cover a policyholder for a predetermined period of time. Term life insurance policies typically run for 5, 10, 15, 20 or 30 years and can be renewed once they have run the full term. It is important to remember that a policy that has been renewed is likely to be far more expensive than the original policy, as the customer will be far older.
Whole life insurance, as the name implies, will provide coverage until the day the policyholder dies. As the policy has no set maturity date, whole life insurance will usually be far more expensive than term life insurance. Finally, universal life insurance is the most expensive of all life insurance options. Once again this policy will provide coverage for a customer until the day they die, but it will also have a cash value amount. The premiums are typically invested into low-risk investment vehicles to produce this cash value. Policyholders have the option to borrow against this cash value, and can also be safe in the knowledge that their life insurance policy will provide both a death benefit and cash lump sum for their family, if they were to pass away.