Life Insurance in Illinois
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. 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 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.
Illinois was ranked 26th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 79.02 years. With this in mind, people living in Illinois may want to consider their life insurance options.
Illinois life insurance 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 life insurance customers. These provisions include:
- 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.
- Free Look Period
According to the State Code, life insurance companies are required to give you a 10-day Free Look Period to review your policy and decide if you want to keep it. If you decide during this period (within 10 days of the issuance of the policy) that you don’t want to keep it, you can cancel the policy for a full refund.
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 customers and the Illinois life insurance industry.
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.
Life Insurance Company Ratings From A.M. Best and Standard and Poors
A.M. Best and Standard and Poors provide ratings for life insurance companies based on financial strength and past performance.