Posts tagged ‘Delaware Term Life Insurance’

Delaware Term Life Insurance Information

The Department of Insurance for each state is responsible for their own state insurance regulation; as a result, they create their own insurance requirements so each state can be a little different from one another. Life insurance is an important product that can be purchased in every state across the nation. Delaware term life insurance provides policyholders with the mandatory free-look period and a grace period for premium payments. In addition, policy owners have protection against insurance company insolvency through the Delaware Life and Health Insurance Guaranty Association.

Delaware Free Look Period

All life insurance policies have a free-look period. The free-look period allows the policyholder to cancel the new life insurance policy within a certain amount of time, even after purchasing it, with no penalties and to receive a full refund of all premiums. Delaware does not have a state specified required free-look period so an applicant should double check the free-look period at the time of applying by asking the insurance company or the insurance agent.

Delaware Grace Period

The grace period for life insurance plans in Delaware is 30 days. The grace period is a time frame from the date that the policy payment is due to the last possible date that it can be paid and still be considered current, preventing the plan from lapsing and canceling. Delaware provides consumers with nearly one month to make a payment, past the due date, to protect them from unintentionally lapsing on their policy payment and keeping their payment up to date.

Delaware Life and Health Insurance Guaranty Association

The Delaware Life and Health Insurance Guaranty Association provide even more protection for life insurance policyholders. This association guarantees funds to be paid, up to a maximum benefit, should an insurance company become insolvent and unable to pay claims. In the state of Delaware the Life and Health Insurance Guaranty Association pay a maximum death benefit of $300,000 and a maximum cash surrender of $100,000.

Delaware Claims and Misrepresentations

In Delaware claims should be processed and paid in no longer than 2 months from receiving all necessary documentation. The Department of Insurance must provide insurance companies with the ability to protect themselves as well. Insurance companies have up two years to prove fraudulent statements on an application and to question any answers on a life insurance application. Any age misrepresentations at any point for the life of the policy will result in an adjustment to the death benefit to reflect the correct age.

While most life insurance companies offer similar plans with similar requirements, each state may have different regulations. It is important to understand your states free-look period as well as your grace period for any late payments. Also, each state has an association that protects consumers against insolvency of an insurance company and it is important to understand your state specific restrictions for the amount that will be covered in such a situation. Claims must be processed within 2 months and insurance companies have two years to challenge any application answers.