Life Insurance in Iowa
Iowa, like most states, does not regulate on the life insurance policy level the way that state Departments of Insurance regulate other insurance such as health or auto. There are few, if any, state regulations that mandate life insurance coverages or how a policy has to be worded or priced.
Regulations regarding Iowa life insurance usually come into play when a claim is filed. These rules typically have to do with payment terms and other issues surrounding the disbursement of death benefits.
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.
Iowa was ranked 16th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 79.73 years. With this in mind, people living in Iowa may want to consider their life insurance options.
Iowa life insurance specifics
Iowa’s insurance industry is regulated by the Iowa Insurance Division, which provides oversight for certain provisions that protect Iowa consumers. Some of these provisions include:
- 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.
- Grace Period: You have 30 days to bring your premiums current if you have missed a payment, without losing your benefits. This is known as a grace period.
Iowa life insurance state resources
Iowa 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 Iowa life insurance industry.
Iowa Life & Health Insurance Protection Association
State guaranty associations are there to provide protection and continuing coverage, even in the event that a company becomes insolvent.
Life Insurance Company Ratings From A.M. Best, Standard and Poors and Moody’s
A.M. Best and Standard and Poors provide ratings for life insurance companies based on financial strength and past performance.