Best States For Life Insurance On The Basis of the Cost in 2022

The area where you reside strongly affects the life insurance policies you purchase, maintain, or place your claim on. reside. Before you purchase a policy, you should know the costs, coverage required, and rules and regulations regarding life insurance in your particular state to have a better understanding about the best states for life insurance. 

Below, we concisely explain the factors that shape the life insurance purchase and claim process in Texas, Florida, Georgia, and New York. This is valuable information if you come from one of these states or are planning to move to one. 

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Life Insurance Cost in Texas 

S&P Global Market Intelligence data show that the average Texas life insurance premium is $633, or $52 per month. 

State  Average Annual Life Insurance Premium  Average Monthly Life Insurance Premium  National Average Life Insurance Premium  
Texas  $633  $52  $631 

 

Top Life Insurance Companies in Texas  

You want to pick a life insurance company that’s able to cover insurance claims when needed. You can often evaluate a company’s general stability by looking at its market share, as the two characteristics tend to go hand in hand. About 35% of the market share in Texas is held by the top seven life insurance carriers. The top life insurance company in Texas is Northwestern Mutual, which holds a 7.0% market share. Refer to the table below for the top insurance carriers in Texas. 

Company  Market Share 
Northwestern Mutual  7.02% 
New York Life  6.41% 
Lincoln Financial  5.57% 
State Farm  4.41% 
Pacific Life  4.26% 
MassMutual  3.93% 
Transamerica  3.52% 

 

Life Insurance Laws in Texas 

Life insurance laws in Texas are governed by the 2005 Texas Insurance Code and Title 28 of Texas Administrative Code. Notable laws regarding life insurance in Texas include: 

  • A 30-day payment grace period for a Texas policyholder to prevent insurance companies from canceling the policy during that time frame. 
  • Insurance providers in Texas must pay death benefits to beneficiaries in a timely manner—usually within a month of the claim. If a company takes more than 60 days to process and settle claims, they will be charged accrued interest on the proceeds. 
  • As an insured, your beneficiaries can claim death benefits, even if the insurance company goes bankrupt. This is backed up by the Texas Life, Accident, Health & Hospital Service Insurance Guarantee Association. 
  • There are guarantees of up to $300,000 for death benefits that are lost, and $100,000 for lost cash surrender value under the Texas Life, Accident, Health & Hospital Service Insurance Guaranty Association. 
  • Most of the insurance companies in Texas provide seven to 30 days for a person who has recently bought life insurance. This gives enough time for the insured to make changes if required. If a person cancels their policy within this time period, you can get a full refund of any premiums you have paid so far. 

FAQ

How long does life insurance take to pay out in Texas?

Companies are required to pay death benefits within two months of receiving the death certificate and validating the beneficiary. In the case of an individual life insurance policy, the business is also required to pay interest on the death benefit from the time it received the death certificate until the time it agreed to pay the death benefit. 

 

Does life insurance pay for suicidal death in Texas?

Companies refuse to pay the death benefit in the first two years of a policy if the cause of death is suicide. The premiums must be returned to the beneficiary if the company fails to pay the benefit.  

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Life Insurance Cost in Florida 

The average life insurance cost in Florida is about $627 per year, or $52 per month. 

State  Average Annual Life Insurance Premium  Average Monthly Life Insurance Premium  National Average Life Insurance Premium  
Florida  $627  $52  $631 

 

Top Life Insurance Companies in Florida 

When choosing a life insurance company in Florida, as in other states, it’s important to understand its financial strength and where it stands in the market. The market share of a life insurance carrier in Florida is calculated by dividing the amount of premiums it writes by the total number of policies sold in the state. In Florida, the top seven life insurance providers hold close to 37% of the market. Have a look at how the top Florida insurance companies compare below.  

Company  Market Share 
Northwestern Mutual  8.45% 
Lincoln Financia  5.74% 
MassMutual  5.17% 
Transamerica  5.10% 
John Hancock  4.33% 
New York Life  4.14% 
Pacific Life  3.77% 

 

Florida Life Insurance Laws  

Similar to Texas, Florida life insurance laws are regulated by Title 37 of the Florida Statutes.  Insurance companies in Florida are also required to have anti-fraud departments.  If you’re purchasing life insurance in Florida, here are some things you need to know: 

  • Florida law requires insurance carriers to find and notify any of the beneficiaries within 120 days of acknowledging the death of the insured. If they aren’t able to locate any of the beneficiaries, then the proceeds go to the Florida state government until the required beneficiary is found. 
  • A 10-day free-look period is provided by most life insurance companies in Florida. This gives the potential policyholder time to cancel their coverage/get a refund of the premiums paid. 
  • A 30-day payment grace period for a policyholder in Florida ensures that the insurance company does not cancel the policy during that time frame.  
  • If the death benefits aren’t paid by the company to the beneficiary within 30 days, then the amount goes to accrued interest from the date of death. 
  • As an insured, your beneficiaries can claim death benefits, even if the insurance company goes bankrupt. This is backed up by the Florida Life & Health Insurance Guaranty Association. 
  • There will be guarantees of up to $300,000 for death benefits that are lost, and $100,000 for lost cash surrender value under the Florida Life & Health Insurance Guaranty Association.  

FAQ

What is Florida's definition of life insurance replacement?

A contract that increases coverage under existing insurance. A transaction for changing group life insurance into a personal policy is called life insurance replacement in Florida. 

Is life insurance taxable in Florida?

No, income taxes are not applied to the sum of money that a life insurance policy provides to a beneficiary. 

best states for life insurance

Life Insurance Cost in Georgia 

The level of coverage you get is one of the main variables influencing the price of life insurance in Georgia. Georgia’s average annual life insurance premium is about $630.  

Although a minimum coverage amount may result in lower premium costs, it might not be enough to pay for all the expenses of your dependents. Therefore, it’s essential to consider what amount of insurance would be sufficient to ensure that your family or dependents are entirely covered. 

State  Average Annual Life Insurance Premium  Average Monthly Life Insurance Premium  National Average Life Insurance Premium  
Georgia  $630  $52  $631 

 

Top Life Insurance Companies in Georgia 

It can be challenging to choose the best life insurance provider among the many in Georgia. Let’s take a look at some factors that can help you decide which one to go with. 

When looking for life insurance in Georgia, it’s important to take an insurer’s market share into account since it reflects on the insurer’s credibility. The top seven life insurance companies in Georgia account for 36.84 % of the state’s entire life insurance market. 

Company  Market Share 
Northwestern Mutual  10.84% 
Lincoln Financial  5.05% 
State Farm  4.76% 
MassMutual  4.68% 
New York Life  4.29% 
AIG  3.45% 
Transamerica  3.39% 

 

Georgia Life Insurance Laws 

In Georgia, the life insurance laws are governed by Title 33 of the Georgia Code, which is a part of the 2006 Georgia Code. The laws are quite similar to those in the states mentioned above.  

  • Under the Georgia Life & Health Insurance Guaranty Association, there are guarantees of up to $300,000 for death benefits that are lost. 
  • If the death benefits aren’t paid by the company to the beneficiary within 30 days, then the amount goes to accrued interest from the date of death. 
  • A 30-day payment grace period for a policyholder in Georgia ensures that the insurance company does not cancel the policy during that time frame.  
  • A 10-day “free-look” period is provided by most life insurance companies in Georgia. This gives the potential policyholder time to cancel their coverage/get a refund of the premiums paid. 

FAQ

Do I need life insurance in Georgia?

Even though life insurance is not required in every estate plan, it can be beneficial, particularly for parents of small children and those who support a spouse or an adult or child who is disabled. 

What is the minimum age to purchase a life insurance policy in Georgia?

A 15-year-old is able to contract for annuities, endowments, life insurance, and accident and sickness insurance on their own life or body or the life or body of anyone in whom they have an insurable interest in Georgia. 

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Life Insurance Cost in New York 

The cost of life insurance depends on the length and value of your policy, as well as your age and general health. New York has a higher average annual life insurance premium than the rest of the U.S., at around $675 per year, or $56 per month. 

State  Average Annual Life Insurance Premium  Average Monthly Life Insurance Premium  National Average Life Insurance Premium  
New York  $675  $56  $631 

 

Top Life Insurance Companies in New York 

When looking for life insurance, it’s crucial to understand a company’s market share or the number of policies it has written relative to the overall number of policies written by the state.  Companies with sizable market shares typically have more financial stability and will pay claims promptly and fairly. 

We have made it easy for you by analyzing the seven most popular life insurance companies in New York, which cover about 53.99% of the overall market. Take a look at the table below.  

Company  Market Share 
MassMutual  10.79% 
New York Life  9.64% 
Guardian  8.12% 
Northwestern Mutual  7.89% 
MetLife  7.57% 
Prudential Financial Inc.  5.65% 
Lincoln Financial  4.33% 

 

New York Life Insurance Laws  

Life insurance regulations in New York are settled by Article 32 of New York Consolidated Law. The laws, although quite similar to those of Texas, Florida, and Georgia, do have varying conditions when it comes to claim settlements.  

  • Under the Life Insurance Company Guaranty Corporation of New York, there are guarantees of up to $500,000 for lost death benefits. 
  • If the death benefits aren’t paid by the company to the beneficiary within 30 days, the amount goes to accrued interest from the date of death. 
  • A 61-day payment grace period for a policyholder in New York ensures that the insurance company does not cancel the policy during that time frame. 
  • A 10-day “free-look” period is provided by most life insurance companies in New York. This gives the potential policyholder time to cancel their coverage/get a refund of the premiums paid. 

FAQ

How does life insurance work in New York?

Regular payments are made in the form of premiums, and the company pays your beneficiaries a tax-free amount. 

How much life insurance should you have in New York?

Most financial experts advise setting up 10–15 times your current income. Many variables affect life insurance costs, but your health has the most bearing on the total price.   

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