Illinois Life Insurance
What is Life Insurance?
During your life you will contribute money, time and assets to your lifestyle and family. After your death, life insurance can step in to help replace this value. It can pay a death benefit to help your survivors get ahead personally and financially. They can move on from your loss without worrying about the future.
Your death will cause your loved ones to lose the income and support you once provided them. That could deal a blow to their long-term security. Instead, you might want to leave them life insurance to help them support themselves. Policies can provide financial help for the people and things dear to you, both during their bereavement and later.
Life insurance is regulated on a state-to-state level, so each state has its own unique laws. It is important to know the laws in each state so when you are purchasing a policy you know what to expect.
Rules and Regulations in Illinois
In Illinois, if you are a policy holder, you are entitled to a 30-day grace period. This means that during those 30 days, which starts after you have missed a premium payment, the you will still have coverage. If you pass away, and the payment was not made on the due date, then during the grace period the life insurance company is required to pay a death claim. This prevents insurance companies from denying claims for slightly overdue payments and keeps the policy in force.
Residents in Illinois are given a minimum free look period of 10 days, and the look period starts upon the delivery of the life insurance policy. During this time, you are able to look at and review the policy, and if you do not like it then you can be given a full refund by the insurance company.
It is required in Illinois that all settlements and claims are paid out quickly. To help make sure everything runs smoothly and there are no delays, if a claim takes more than 30 days to ben paid, the insurance company must pay the claim and pay interest on the claim as well. Interest will start accruing after the 30 days.
Lastly, Illinois cares deeply about making sure their residents are protected from fraud, which is why to help you from being defrauded by life insurance companies who are not practicing sound financial management, the Illinois Life and Health Insurance Guaranty Association will back the cash value of your policy up to $100,000, and the death benefit up to $300,000.
RWM Insurance Brokers is an award winning, independent life insurance brokerage firm, providing expert services for Illinois residents since 1970. We can help any resident of the Land of Lincoln get covered with exceptional protection. Get your free quote today – click here.