Posts tagged ‘Montana Term Life Insurance’

Montana Term Life Insurance Information

Life insurance policies and regulations are governed by each state so requirements can vary depending upon where a consumer lives. The differences may be slight, but they are nonetheless important to residents. Some of the differences between states may include the free-look period, the grace period and in Montana what the Montana Life and Health Insurance Guaranty Association will cover. Also, insurance companies can contest life insurance application answers and any fraudulent information found can lead to immediate policy cancelation.

Montana Free Look Period

The free-look period is the time frame that a policyholder has to cancel a new life insurance plan without repercussions. If an insured cancels a policy within the free-look period there are no penalties and any paid premiums must be refunded. Policyholders can cancel a life insurance during the free-look period for any reason. Montana does not have a specified state required minimum free-look period, but this can be verified with the company at the time of application.

Montana Grace Period

Life insurance companies in Montana provide life insurance policy holders with a 30 day grace period. The grace period provides protection to consumers against having their policies lapse and be canceled due to a late payment. A policyholder can make their premium payment up to 30 days after the premium due date and still maintain their life insurance policy as current.

Montana Disability and Life Insurance Guaranty Association

The Montana Life and Health Insurance Guaranty Association, in the unlikely event that an insurance company becomes insolvent and is unable to pay claims, will pay benefits up to a specified maximum amount.  The Montana Life and Health Insurance Guaranty Association will pay a maximum death benefit of $300,000 or a maximum cash surrender of $100,000. Insurance companies must contribute funds to this association to protect life insurance policies.

Montana Claims and Misrepresentations

Montana claims charge interest that the insurer must pay. Claims are typically paid within 60 days but the interest rate does increase after this. The interest accrued must be paid in full at the final payment. To counter consumer fraud insurance companies have the right to challenge any application answers found on the life insurance application for up to two years. Any misrepresentations or fraudulent information found can lead to immediate termination of the life insurance policy. If a policy is rescinded, the policy premiums that were already paid will be refunded. If there is a misstatement of age, the policy may not be canceled but it will be recalculated to the corrected age.

Montana life insurance policies are very similar to other life insurance products but some of the policies may vary between states. It is important to understand what the free-look period is for your state. In addition, in case of a late payment policy, owners should be familiar with the grace period. The plans are protected by the Montana Life and Health Insurance Guaranty Association, policyholders should know what the maximum allowances are for coverage. It is important to be honest on life insurance applications so that your policy is never rescinded.