Stats in Your State
While it may seem like an afterthought, life insurance plays an important role in the Michigan economy, and a number of residents get their life insurance policies through government resources. You may be surprised what you’ll learn, so read on to get the full education.
Life Insurance in Michigan
Most residents are unlikely to realize that roughly $15 billion was paid to Michigan residents in 2011 as direct benefits of life insurance policies and annuities. With over $750 billion in coverage, Michigan residents have a great deal invested in the life insurance industry, and it plays a pivotal role in the state’s economy.
|Number of Licensed Life Insurers||472|
|Total Life Insurance Coverage||$761 billion|
|Average Policyholder Coverage||$106,000 per life insurance policy holder*|
|Amount Paid Out in 2011||$12 billion**|
|Amount of Paid Annuity Benefits in 2011||$3 billion|
*Based on individual life insurance policies
**Includes death benefits, matured endowments, policy dividends, surrender values, and other payments.
Life Insurance Administered Programs
Tens of thousands of Michigan residents have life insurance policies through government entities, and most of them are active or retired servicemen and women, and veterans. Nearly 15,000 residents have their policies through National Service Life Insurance, a government-run program.
The Life Insurance Industry: Beyond Insuring You
Beyond benefits and annuities payouts, the life insurance industry accounts for tens of thousands of jobs in Michigan, as well as a sizable investment in the state’s economy, to the tune of over $100 billion.
|Job creator||Life insurance companies in Michigan employ 17,000 direct employees and create 22,000 non-insurance jobs|
|Invested in Michigan 's Economy||Life insurers invest roughly $107 billion in the Michigan economy.|
Rules in Your State
Certain Michigan statutes and regulations address life insurance policies, though many of them have not been updated or amended in decades. The following links direct to the technical statutes and regulations for the industry, but they are definitely not light reading. For detailed information on life insurance and to understand the basics of how it works, check out the DIFS website linked in the following Representatives and Resources section.
Michigan Insurance Code: Life Insurance Policies: The Michigan Insurance Code was conceived in 1956 and set forth the basics of how insurers must conduct their business. This section addresses life insurance policies and required provisions. Chances are, your insurer is obeying all parts of the code, so unless you’re working with a small-time fraudster, you shouldn’t have to worry about your insurer being in compliance.>
Michigan Insurance Code: Unfair and Prohibited Trade Practices: This section of the insurance code sets out unfair and prohibited trade practices and acts, as well as frauds and deceptions for both insurers and consumers.
Representatives & Resources in Your State
Whether you’re looking to understand the whole concept of life insurance as a newcomer to the topic, or whether you’re just looking to get in touch with your local representative for support on an issue, you’ll find the information (and then some) you need at the following resources.
Michigan Department of Insurance and Financial Services (DIFS)
PO Box 30220
Lansing, MI 48909-7720
Contact Information for DIFS
DIFS Consumer complaint resource
DIFS Information on Life Insurance: Should you change or cancel your policy?
This brief pamphlet outlines some reasons you may want to change or cancel your life insurance policy. Life insurance policies aren’t a “one size fits all” product, and you may need a different policy at different stages of life, so consult the above link for more information on the topic.
DIFS Guide to Insurance
This section of the DIFS website lists guides to home insurance, as well as most other types of insurance, and goes into detail on most consumer concerns. If you’re looking for guidance on a particular issue regarding home insurance, you’re likely to find it here.
DIFS Consumer Guides
The DIFS consumer guides cover all topics from auto, home, health, and life insurance, and provide a wealth of information and address common questions and concerns.
Michigan Life & Health Insurance Guaranty Association
1640 Haslett Road, Suite 160
Haslett, MI 48840-8683