Life Insurance in Louisiana
How will your family provide for themselves financially without your income if you were to pass away? One way Louisiana residents can help protect their loved ones is by purchasing life insurance.
When shopping for life insurance, you need to be aware that there are certain provisions that vary from state to state. The Louisiana State Department of Insurance issues regulations for life insurance policies in Louisiana. Learn more about these requirements as you shop for a policy.
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.
Louisiana was ranked 48th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 75.82 years. With this in mind, people living in Louisiana may want to consider their life insurance options.
Louisiana life insurance Specifics
The State Insurance Code of Louisiana regulates the life insurance industry in the state. Life insurance is not as heavily regulated as health insurance, but the state uses this code to oversee claims and provide specific provisions to protect life insurance customers in Louisiana. Some of these provisions include:
- Free Look
According to the state code, a free look provision must be included in every Louisiana life insurance policy. This period allows you to change your mind even after you have signed the contract with the insurance company and received all policy documents. If you return the policy within 10 days of the policy issue date, you won’t face any financial penalty.
- Grace Period
The insurance code also requires that Louisiana life insurance companies allow a grace period on late payments. If you miss a premium payment for any reason, you must be given one month or 30 days to bring the account current before the insurer can cancel the policy for non-payment.
Louisiana life insurance state resources
Louisiana 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 Louisiana life insurance industry.
Louisiana Life & Health Insurance Protection Association
State guaranty associations are there to provide protection and continuing life insurance coverage, even in the event that a life insurance 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.