Life Insurance in Arkansas
Life insurance is essentially a contract between you and an insurance company to pay a sum of money to your beneficiaries in the event of your death. This payment can help them cover your final expenses and help make up for the lack of your income.
The two most common types of life insurance policies are known as term life and permanent life. As an Arkansas resident, purchasing life insurance today is a great way to help ensure your loved ones are protected financially after you’re gone.
Why do I need life insurance?
With life insurance coverage, you can feel secure knowing that your beneficiaries will have some help covering your final expenses and other financial needs they’ll face without you.
Arkansas was ranked 45th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 76.19 years. With this in mind, people living in Arkansas may want to consider their life insurance options.
Arkansas life insurance specifics
The State Insurance Code of Arkansas is in place to regulate the insurance industry, which includes all life products. Life insurance products are not as heavily regulated as health insurance, but the state uses this code to oversee claims and provide specific provisions to protect consumers in Arkansas, such as:
- Grace Period
A 30-day grace period must be given by all Arkansas policies issued in the state of Arkansas on late payments, and policyholders must be given that amount of time to bring their premiums current before the insurer can cancel the policy for non-payment.
According to the state code, all Arkansas life insurance policies are considered incontestable after the policy has been in place for at least two years, except for in cases of non-payment of premiums.
Arkansas life insurance state resources
Arkansas 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 Arkansas life insurance industry.
Arkansas Life and Health Insurance Guaranty Fund
State guaranty associations are there to provide protection and continuing coverage, even in the event that an insurance company becomes insolvent.
Arkansas Long-Term Care Ombudsman Program
Informs and protects consumers rights regarding Life Insurance and Long Term Care
Life Insurance Company Ratings From A.M. Best
A.M. Best provides ratings for life insurance companies based on financial strength and past performance.