Life Insurance in Michigan
You likely don’t want to think about your own death. It’s important, however, to consider how the people who depend on you will continue to survive financially after you’re gone.
As a Michigan resident, purchasing life insurance is one way you can help ensure that your loved ones will always be protected, even if you are not there to take care of them.
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.
Michigan was ranked 35th out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 78.26 years. With this in mind, people living in Michigan may want to consider their life insurance options.
Michigan life insurance specifics
Michigan regulates its insurance industry through The State Insurance Code of Michigan. Under the code, those purchasing life insurance in Michigan are afforded certain protections, such as:
- Free Look
According to the state code, a free look provision must be included in every individual Michigan 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 this period, you won’t face any financial penalty. The Michigan life insurance free look period can be anywhere from 10 to 30 days long, depending on your provider.
- Grace Period
The insurance code also requires that Michigan life insurance companies allow a grace period on late payments after your first policy year. If you miss a premium payment for any reason, you must be given one month to bring the account current before the insurer can cancel the policy for non-payment.
Michigan life insurance state resources
Michigan Department of Insurance and Financial Services
The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance customers and the Michigan life insurance industry.
Michigan Life & Health Insurance Guaranty Association
The state guaranty association is there to provide protection and continuing life insurance coverage in Michigan, even in the event that a life insurance company becomes insolvent.
Life Insurance Company Ratings From A.M. Best
A.M. Best provides ratings for life insurance companies based on financial strength and past performance.