Life insurance is more than just a luxury - it is a substantial investment that helps to protect your family and provides it with financial security. Each state has its own rules and regulations regarding this type of insurance. If you are a resident of Pennsylvania and you are shopping for life insurance in the Keystone State, Drazick insurance has prepared the list of things that you should know.
Regulations and Rules in Pennsylvania
- The Keystone state has Title 40 - the set of laws that regulates life insurance. They describe the specific rights of policyholders and conduct for insurance companies that operate in the state.
- 10-day free look period. Within ten days after purchasing life insurance, a policyholder has the right to return the policy for a full refund. Insurance companies cannot charge any fees or penalties during the free look period. The 10-day period is the minimum, while insurance companies might have more extended periods.
- Grace period. It is a period that starts after the payment was missed. The duration of the grace period is 30 days, during which an insurance company will still pay a death claim if a policyholder die. Even though the payment is missed, the policy will remain valid until the grace period is over.
- If an insurance company becomes insolvent or it is not financially responsible, the Life & Health Insurance Guaranty Association will compensate for your policy. The maximum payment for lost death benefits is $300,000, and for lost cash surrender - $100,000.
A Trustful Company to Rely On
If you are shopping for life insurance in Pennsylvania, Drazick Insurance is the company you can trust. Our goal is to make life insurance as simple and affordable for you as possible. Give us a call today to get more information on the options and policies available.