While all states have similar term life insurances laws, determining the slight differences in New Hampshire is important for residents. For example, every state requires a free-look period to give policy holders time to review the documents, this time period can be different state by state. The payment grace period before a policy can lapse can also be different for each state. Additionally, the New Hampshire Life and Disability Guaranty Association gives policy holders a limited guarantee that their policies will be paid.
New Hampshire Free Look Period
The free-look policy period is put in place for New Hampshire term life insurance policies to protect the consumer. This provides time to review the policy and to make sure that the terms of the policy are what were initially agreed upon. In New Hampshire term life insurance, the free-look policy is 10 days. If within those ten days, the consumer decides the policy is not what they wanted for any reason, the full amount of the premium and any application fees are completely refunded with no penalties.
New Hampshire Grace Period
State laws also differ on the required grace period insurance companies must provide. New Hampshire term life insurance, by law must give policy holders 30 days after the due date to bring their policy current. If the account is not brought current, the policy may be terminated. After the 30 days, an insurance policy may be renewed, but there may be additional requirements of medical exams or higher premiums. An insurance company may also choose to not renew the policy.
New Hampshire Life and Disability Insurance Guaranty Association
New Hampshire term life insurance laws also protect consumers through the New Hampshire Life and Health Insurance Guaranty Association. The Guaranty Association helps compensate consumers by providing a guarantee on some funds if the insurance company is unable to pay for any reason. There are restrictions on this guarantee though. A death benefit cannot exceed $300,000 and cash surrender value is limited to $100,000. The insurance company must be licensed in the state of New Hampshire to qualify and all insurance premiums must be current.
New Hampshire Term Life Insurance Laws and Regulations
New Hampshire term life insurance companies are required by law to settle claims within 30 days of accepting proof of death. If after 30 days, the insurance company has not provided payment, interest begins to accrue. The interest must be payable in the final settlement. This rule allows beneficiaries to pay for funeral costs, pay off any financial debts or obligations and settle any buyout agreements. In order to qualify for this law though, all paperwork must be filed properly in a timely manner.
Being aware of New Hampshire term life insurance law differences helps consumers be better informed. By knowing the differences, residents are protected. With the free-look policy, consumers are given the chance to review documentation. During this period they can cancel them for any reason with no penalties. Grace periods also give policy holders extra time to bring their account current before cancellation. In addition, the Guaranty Association of New Hampshire protects policy holder’s investments.