A Life policy at its most basic level is a contract between you and the insurance company to pay a sum of money to your beneficiaries in the event of your death, to cover expenses and make up for the lack of your income. There are basically two types of Illinois life insurance products: Term Life and Permanent Life. The Illinois State Department of Insurance oversees the sale of these plans, ensures that providers are properly licensed, and makes available certain guaranteed protections for consumers.

Why Do I It?

Take a look at these figures.

Illinois is ranked 33rd out of 50 states and the District of Columbia in Life Expectancy, with a life expectancy of 76.4 years.  For every 100,000 people in Illinois, almost 1,000 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that number more than doubles to nearly 2,500, and at 75 to 84 well over 5,000 Illinoisans die for every 100,000 residing in the state. More on mortality by age, sex and race, and the leading causes of death in Illinois can be found at: http://www.cdc.gov/nchs/pressroom/data/Illinois09.pdf

For more reasons why you should apply for a life insurance product whether it be a Term or Permanent product, and for help in finding the right plan for your needs, at the best value, take a look at our section called "Most Important Questions"

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Illinois Specifics

The insurance industry in Illinois is regulated by The State Insurance Code of Illinois. The state uses this code to regulate claims and provide certain provisions to protect consumers. Such as:

Grace Period: The Illinois State insurance code requires that all Insurance companies allow a 30-day grace period on late payments. If you miss a premium payment for any reason, you must be given 30 days to bring the account current before the insurer can cancel the policy for non-payment.

Death Benefit Processing: According to the State Code, insurance companies are required to process any death benefit claim as soon as possible. If all documentation is in order this usually means within 2 months.

Insurance companies are also protected to some degree by State Statutes. These regulations are put in place to prevent insurance fraud. Insurance fraud is a serious crime, and affects the rates of everyone paying for Illinois Life Insurance. Insurance companies can challenge any information you put on an application in the state of Illinois application for up to 2 years.

If any discrepancies or misinformation is discovered, the policy may be terminated immediately. Allowances for misstatement of age are given, and may be corrected without penalty at any time while the policy is in effect.

Illinois Life Insurance State Resources

Illinois 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 Illinois Life Insurance industry.
http://www.idfpr.com/DOI/default2.asp

Illinois Life & Health Insurance Protection Association - State guaranty associations are there to provide protection and continuing coverage, even in the event that the insurance company becomes insolvent.
http://www.ilhiga.org/

Illinois Company Ratings - These companies provide ratings for insurance companies based on financial strength and past performance
http://www.ambest.com/
http://www2.standardandpoors.com