Washington State Life Insurance
What is Life Insurance?
If you carry life insurance on your own life, your death will trigger the policy’s death benefit. The benefit is a sum of money that you will leave to another person or party. With that money, they can afford to support themselves, rather than lose the source of income you otherwise might have provided.
Your death will cause your income to dry up. Still, others who rely on that income will remain behind. If you are concerned about how loved ones will manage without you, then turn to life insurance. It will help your survivors replace the value, assets and opportunities your death might cause to disappear.
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 Washington
There is no free look period in the state of Washington. Free look periods allow new policyholders to review their new policy for a couple weeks and if they decide they do not want it during that time they have the option to cancel and get a full refund. This means that in Washington, once you sign the life insurance policy you are legally bound to it.
Also, Washington does not set a limit on when claims need to be made. However, they do make sure the claims will be paid out in a timely fashion. All benefits are typically paid out within a month.
Lastly, if you lie or make a mistake on your application, then your life insurance carrier is allowed to cancel the policy, as long as it is discovered within two years of signing. This law is in place to protect insurance companies from making payments on policies that were obtained in an illegal way.
Washington Life Insurance Guarantee
If for some reason your life insurance company goes out of business during your term, then in the state of Washington you will still be protected for life insurance. You can be protected for up to $500,000 in lost death benefits from The Washington Life and Disability Insurance Guaranty Association. $500,000 is the max amount that will be paid, even if the person deceased had policies that totaled a greater amount. If this does happen to you, in order to qualify, your insurer must be legally licensed to practice business in the state of Washington and you must be up to date on your premium payments.
RWM Insurance Brokers is an industry award winning, independent life insurance brokerage firm, providing expert services for Washingtonians since 1970. We can help anyone get covered with exceptional, dare we say “Evergreen” protection. Get your free quote today – click here.