Maine Life Insurance

Maine, like most states, does not regulate life insurance on the policy level the way that states Departments of Insurance regulate other insurance such as health insurance or car insurance. That means that there are few if any state regulations that mandate the amount of life insurance you must carry, or how a policy has to be worded or priced. Regulations regarding Maine Life Insurance usually come into play when a claim is filed, and have to do with payment terms and other issues surrounding the disbursement of death benefits.  

Why Do I Need Maine Life Insurance?

You may wonder why do I even need Maine Life Insurance? Take a look at these figures.

Maine is ranked 20th out of 51 States and The District of Columbia in Life expectancy with a life expectancy of 77.6 years.  For every 100,000 people in Maine over 900 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that more than doubles to around 2200, and at 75 to 84 well over 5000 Maine residents die for every 100,000 people in the state. More on mortality by age, sex and race, and the leading causes of death in Maine can be found at: http://www.cdc.gov/nchs/pressroom/data/Maine09.pdf

For more reasons why you should apply for Maine Life Insurance, and for help in finding the best kind of life insurance for your needs, at the best value, take a look at our Family Guide to Life Insurance.

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Maine Life Insurance Specifics

Maine regulates its insurance industry through The State Insurance Code of Maine. Under the code those purchasing Maine Life Insurance are afforded certain protections such as:
Free Look: Under State Code a “free look” means you are entitled to change your mind.
All sellers of Maine Life Insurance plans are obligated to include the Free Look provision. With Free Look, you can chose to cancel your life insurance policy for any reason, at any time, even after you have signed the contract with the insurance company and received all policy documents. In most cases the free look period is at least a 10-days without penalty - some Maine Life Insurance Companies give as much as 30 days to review a policy and cancel without penalty.
Grace Period: The Maine State insurance code also allows residents to be a little late with life insurance premiums and not face immediate cancellation of their coverage. A grace period of at least 30 days is required on late payments. If you miss a premium payment, regardless of the reason, the insurer must give you 30 days to bring the account current before they can cancel the policy for non-payment. 

Life insurance purchasers are not the only ones protected by state regulations. Maine Life Insurance sellers can also rely on the Code to protect them against consumer fraud.  Under these provisions, a Maine Life Insurance company can question any information you stated on your Maine Life Insurance application for up to two years from the purchase of the policy. Any discrepancies, especially those related to medications or tobacco use, can result in revocation of the policy. Allowances for misstatement of age are given. If age is found to be incorrect, the policy rate will likely be adjusted to reflect the accurate age, and not terminated entirely.

Maine Life Insurance State Resources

Maine 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 Maine Life Insurance industry.
http://www.maine.gov/pfr/insurance/

Maine Life & Disability Insurance Guaranty Association - State guaranty associations are there to provide protection and continuing Maine Life Insurance coverage, even in the event that a life insurance company becomes insolvent.
http://www.melifega.org/

Maine Life Insurance Company Ratings - These companies provide ratings for Maine Life Insurance Companies based on financial strength and past performance
http://www.ambest.com/
http://www2.standardandpoors.com
http://www.moodys.com/cust/default_alt.asp