Life Insurance in Maine
Maine, 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 Maine 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.
Maine was ranked 23rd out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 79.32 years. With this in mind, people living in Maine may want to consider their life insurance options.
Maine life insurance specifics
Maine regulates its insurance industry through The State Insurance Code of Maine. Under the code, those purchasing life insurance in Maine are afforded certain protections, such as:
- Free Look
According to the state code, a free look provision must be included in every individual Maine 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 Maine 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.
Maine life insurance state resources
Maine Bureau 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 Maine life insurance industry.
Maine Life & Disability Insurance Guaranty Association
The state guaranty association is there to provide protection and continuing life insurance coverage in Maine, 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.