Colorado Life Insurance

Buying a Colorado life insurance policy can be a little awkward. Nobody wants to think of his or her own death, or the death of a loved one. But just take a moment to think, “How would I provide for my family if I was out of the picture?” . Purchasing a life insurance policy in the state of Colorado today is the smartest move you can make to be sure that your loved ones will always be protected, even if you are not there to take care of them.

There are certain provisions that do vary from state to state regarding regulations. You should be aware of these rules as you shop for Colorado Life Insurance.    

Why Do I Need A Policy In The State of Colorado?

You may wonder 'why do I even need a life insurance policy'? Take a look at these figures.

Colorado is ranked 12th out of 50 states and the District of Columbia in Life Expectancy, with a life expectancy of 78.2 years.  For every 100,000 people in Colorado, almost 800 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that number more than doubles to 1,800, and at 75 to 84 well over 5,000 Coloradoans die for every 100,000 residing in the state. More on mortality by age, sex and race, and the leading causes of death in Colorado can be found at: http://www.cdc.gov/nchs/pressroom/data/Colorado09.pdf

For more reasons why you should get a policy, and for help in finding the best kind of life insurance for your needs, at the best value, take a look at our section called Most Important Questions to Ask..

Colorado Specifics

Like most states, Colorado’s Department of Insurance relies on The State Insurance Code of Colorado to standardize Life policies to some degree. The state uses this code to regulate claims and provide certain provisions to protect consumers, such as:

Death Benefit Processing: In Colorado, beneficiaries are entitled to swift and efficient payment of death benefits. If all documentation is in order the norm is within 30 days. The State Code also provides for Insurance companies in the state of Colorado to pay interest on death benefits. With a life policy, interest begins to be applied to a death benefit as soon as a claim is filed. If the company pays the claim within 30 days, the interest rate increases on the 31st day. 

Grace Period: The Colorado State insurance code also requires that all companies allow a 30-day grace period on late payments. You can be confident that no matter why you are late, the insurance company must give you 30 days, by law, to bring the account current before the insurer can cancel the policy for non-payment.


State regulations also provide some protections to the companies that sell life products against potential insurance fraud. A Colorado insurance company may dispute any information you may have put on your application for up to two years from issuance of the policy. If they find any discrepancies, especially as it relates to medical conditions, dangerous lifestyles, job related activities, or tobacco use, they can terminate the policy immediately.

Colorado Life Insurance State Resources

Colorado Department of Insurance  - The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and the insurance company.
http://www.dora.state.co.us/Insurance/

Colorado Life & Health Insurance Protection Association - State guaranty associations are there to provide protection and continuing coverage, even in the event that a company selling life products becomes insolvent.
http://www.lhipa.org/

Colorado Company Ratings - These companies provide ratings for Insurance Companies based on financial strength and past performance
http://www.ambest.com/

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