Alabama Life Insurance

A difficult job market and a large segment of industrial and farming jobs make life insurance a must for many Alabama families. If the sole breadwinner of the family is unable to provide for his or her family, it could mean disaster for their spouse or children. To protect your loved ones against the possibility of financial hardship, life insurance policies are crucial to any family’s well being and peace of mind. To make things easy for readers who might be new to the subject or are looking to refresh themselves on Alabama life insurance, The Simple Dollar has distilled the necessary resources and information for consumers to make sound decisions for their family’s future.

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Stats in Your State

Below readers will find information and stats about the life insurance industry in Alabama, as well as average statistics for consumers across the state. To better understand how the industry functions in the Cotton State, read through the graphs and stats below.

Life Insurance in Alabama

While it may seem like an unnecessary expense to some, life insurance benefits are a crucial part of Alabama’s economy, keeping many families in good financial standing after their loved ones have passed.

Number of Licensed Life Insurers 446
Total Life Insurance Coverage $365 billion
Average Policyholder Coverage $46,000 per life insurance policyholder*
Amount Paid Out in 2011 $4 billion**
Amount of Paid Annuity Benefits in 2011 $732 million

*Based on individual life insurance policies
**Includes death benefits, matured endowments, policy dividends, surrender values, and other payments.

Life Insurance Administered Programs

As of Oct. 31, 2012, 12,935 Alabama residents were enrolled in government administered life insurance programs. Many of the users of these programs are veterans and retired servicemen and women.

The Life Insurance Industry: Beyond Insuring You

In addition to providing financial benefits for policyholders’ families, the life insurance industry provides a number of jobs and investment in the Alabama economy, and its impact, while often overlooked, is essential to the Alabama economy.

Job creator Roughly 22,000 jobs are generated by life insurers in Alabama
Invested in Alabama 's Economy Approximately $49 billion is invested by life insurers in Alabama’s economy.

Rules in Your State

Many life insurance beneficiaries must navigate the territory of Alabama life insurance claims without the help of their spouse or loved one, and often in times of grief or mourning. The Code of Alabama sets forth the regulations by which insurers must operate and honor life insurance contracts.

Code of Alabama: Life Insurance & Annuity Contracts: The Code of Alabama addresses the functions of life insurers, their handling of claims, and the standards for how they must treat consumers and beneficiaries. The above link provides the Code of Alabama sections specific to life insurance and annuity contracts.

Representatives & Resources in Your State

Numerous public resources are available to Alabama residents to help with life insurance claims and annuity contracts, and The Simple Dollar has compiled the major resources and links below.

Alabama Life & Disability Insurance Guaranty Association
6 Office Park Circle, Suite 200
Birmingham, AL 35223
(205) 879-2202
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The Alabama Life & Disability Guaranty Association is part of the National Organization of Life and Health Guaranty Associations, and provides consumers with a resource to guarantee their policy in case their insurer becomes financially unstable.

Alabama Department of Insurance (ADOI)
P O Box 303351
Montgomery, AL 36130-3351
(334) 269-3550
Contact Information for ADOI
ADOI Consumer Complaint Resource
Consumers who need help with a life insurance claim in Alabama can find assistance through the Department of Insurance complaint page, which guides consumers to filing a complaint against their insurer and seeking government assistance with their claim.
ADOI Consumer’s Guide to Life Insurance
The Department of Insurance has put together a useful guide for consumers to shop for, understand, and maintain their life insurance policy.
ADOI: Consumer’s Guide to Annuities
Life insurance annuities provide a reliable source of post retirement income for Alabama seniors, and are a crucial part of Alabama’s economy. The Department of Insurance has put together a guide to annuities so consumers can understand how this type of investment could benefit them.
ADOI General Tips When Shopping For Insurance
These general strategies and tips for choosing an insurance policy in Alabama apply to all different types of insurance plans in Alabama, ranging from life to health to home and beyond. For more specific information on life insurance and annuities, use the links immediately above.

Unclaimed Life Insurance Resources
If you believe a family member carried a life insurance policy, but you cannot find a policy contract or paperwork to be sure, you’re not out of luck. These resources will help you track down unclaimed life insurance benefits:
Alabama Department of Insurance Life and Annuity Policy Search
National Association of Unclaimed Property Administrators
MIB Group, Inc.