Indiana Life Insurance

Deciding to invest in a life insurance policy is probably one of the most important purchases you’ll ever make. A good life insurance policy not only helps ensure that the loved ones you leave behind aren’t financially burdened with funeral costs, but it can also ensure that they are financially set for years to come. Even if you’re relatively young and healthy, accidents that can result in death do happen. Life insurance isn’t something you want to bypass. Most employers offer their employees life insurance, but if your employer does not or you’re interested in getting coverage from a private insurer, check out these facts, statistics, and resources to give you a better idea of how life insurance works in Indiana.

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Stats in Your State

Before you can recognize a quality and affordable life insurance policy, you need to learn how the life insurance industry works in your state. The Simple Dollar has provided charts and graphs below to help visually display how life insurance in Indiana compares other policies in the nation.

Life Insurance in Indiana

Believe it or not, life insurance actually assists in keeping Indiana’s economy afloat since it helps financially support families after a loved one moves on. That said, this chart is designed to help Indiana residents get a better feel for how many other residents have life insurance in the state as well as how much coverage they receive on average.

Number of Licensed Life Insurers 529
Total Life Insurance Coverage $473 billion
Average Policyholder Coverage $90,000 per life insurance policyholder*
Amount Paid Out in 2011 $7 billion**
Amount of Paid Annuity Benefits in 2011 $1 billion
Source: ACLI.com

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

Life Insurance Administered Programs

More than 13,000 Indiana residents have life insurance policies through federal and state administered programs, most of which are veterans and service-disabled men and women.

The Life Insurance Industry: Beyond Insuring You

Aside from providing financial support to family members even in death, life insurance policies also help beef up the economy by providing a substantial amount of employment opportunities. That said, below are the effects life insurance has had on the job market.

Job creator The life insurance industry is responsible for creating 36,000 jobs in Indiana
Invested in Indiana 's Economy Approximately $74 billion is pumped into Indiana’s economy thanks to life insurance companies
Source: ACLI.com

Rules in Your State

The primary regulating force behind life insurance policies is Indiana is the Title 27 Code, but other legal provisions also help protect consumers. Although there are many legal bulletins to address, below are some of the most important rules you need to know about.

Life Insurance Company Powers and Policy Requirements

  • There is no legally mandated Trial Period. Although most Indiana insurers do in fact offer their customers the option of receiving a full refund if they change their minds about purchasing life insurance within 30 days, they aren’t required to do so by law.
  • Customers are Entitled to a 30-Day Grace Payment Period. Customers have up to 30 days to pay a late payment before their policy is canceled.
  • Guaranteed Benefits Even if Insurer Closes Down. If your insurer is properly licensed and you are up-to-date on paying your premiums, you are still entitled to your benefits if the insurer goes out of business. However, benefits are limited to a maximum of $300,000 for death benefits and a maximum of $100,000 for cash surrender.
  • Beneficiaries Have the Right to Timely Claims. Last but surely not least, insurers are responsible for paying beneficiaries in a timely and fair manner once a claim has been filed. Typically, payments are made one month after showing the insured’s death certificate.

Source: Office of Code Revision Indiana Legislative Services Agency

Representatives & Resources in Your State

A smart consumer always knows who they can turn to when they have questions, concerns, or needs someone who can help them with their specific case. If you strive to be smart consumer, below is a list of representatives and resources that can get you out of a bind or answer confusing questions about life insurance:

Indiana Department of Insurance
311 West Washington Street, Suite 300,
Indianapolis, IN, 46204
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File a Complaint

Indiana Life and Health Insurance Guaranty Association
8777 Purdue Road , Suite 360
Indianapolis, IN 46268
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(317) 692-0574

Unclaimed Life Insurance Resources
If you’re unsure whether or not your recently deceased family member had a life insurance policy, check the following resources: MissingMoney.com, National Association of Unclaimed Property Administrators, or MIB Group, Inc.