Florida Life Insurance

florida life insurance text overlaying image of miami skyline One of the best ways to protect your family’s financial security is to purchase a Florida life insurance policy. But buying a life insurance policy in Florida requires careful consideration of several factors. Since there are so many types of policy to choose from, and since policyholders in the Sunshine State are subject to a wide range of regulations. Before making a final decision on a policy, it’s in your best interest to educate yourself as much as possible about the life insurance market in Florida. To that end, we’ve provided a comprehensive guide below. Once you’ve read it, contact an EZ agent. We can help you find the best policy for you.

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How Life Insurance Works in Florida

A life insurance policy is a binding agreement between you and your chosen insurance company. As long as you pay the required premium payments, and as long as your policy is still active, your insurance company will pay out a lump-sum death benefit to your chosen beneficiaries after your death. This death benefit can be used for anything your beneficiaries want. Including things like mortgage payments, retirement or college savings, paying down other debts, or simply replacing your income

Those who have dependents, debts, or other financial obligations that will have to be met even after death should purchase life insurance. This is especially true if you are the breadwinner of your family. This will guarantee that your loved ones can continue living comfortably in the event of your passing. 


Types of Life Insurance in Florida

Today, there are so many different types of life insurance policies available that almost anyone can find one that suits them. Since there are so many options available, you’ll need to make a lot of decisions regarding what is right for you. The first decision you’ll need to make is between the two main types of life insurance:

  • Term life insurance
  • Permanent life insurance

When deciding whether to purchase term or permanent life insurance, you’ll need to think about how much you are willing to spend. As well as consider how long you think you’ll need the coverage for.


Term Life Insurance

Term life insurance is generally more popular than permanent life insurance because of its lower premiums. These policies tend to be cheaper because they will not cover you indefinitely. Instead, when you purchase term life insurance, you can specify how long you want to be covered. The term of a policy is typically 15 years, but it can be as little as one year or as long as 30 years. Your premium will remain the same for the duration of your policy, and if you die while the policy is still in effect, your beneficiaries will receive a tax-free death benefit.

There are several types of term policies:

Level Term Life Insurance

The death benefit and premiums for level term life insurance are predetermined at the time of purchase and will remain the same for the duration of the policy. When it comes to life insurance, the vast majority of people opt for level term policies.

Annual Renewable Term Life Insurance

Annual renewable life insurance is a one-year term life insurance policy. You will be able to renew your policy on an annual basis, but the premiums will rise with each passing year.

Increasing Term Life Insurance

Unlike with other types of term life, the death benefit of an increasing term life insurance policy will increase over time. Your benefit could, for example, increase by 5% annually. Also unlike other types of term life policies, your premium payments will most likely fluctuate.

Decreasing Term Life Insurance

The death benefit of decreasing term life insurance decreases over time, but the premium remains constant. It is common practice to use a policy like this to protect a loan or mortgage; the death benefit will be reduced as the loan is repaid.

Return-of-Premium Life Insurance

Return-of-premium (ROP) insurance is a type of term life insurance in which your premium payments are refunded if you do not die before the policy’s expiration date. ROP policies are significantly more expensive than most other policies, but many people find the return of premium feature attractive enough that it outweighs the extra cost.


Permanent Life Insurance

Unlike with term life insurance. As long as you pay your premiums on time, your permanent life insurance policy will remain in effect for the rest of your life. For this reason, premiums are usually higher than those for a term policy; these policies also tend to be more expensive because they usually include a type of savings account that accrues interest, known as cash value. 

There are numerous types of permanent life insurance policies to choose from, including:

Whole Life Insurance

Your whole life insurance policy will remain in effect for the rest of your life, and will pay out a predetermined, set benefit after your death. This type of policy also includes a cash value that accrues interest at a predetermined rate. Whole life is the most popular type of permanent life insurance.

Universal Life Insurance

If you choose universal life insurance, you will have a lot of flexibility when it comes to premiums and death benefits. You will be able to lower your premium payment amounts by using the cash value you accumulate, or by lowering your death benefit amount. 

Indexed Universal Life Insurance

Indexed universal life insurance (IUL) is another type of permanent life insurance that includes a cash value. But its cash value can accrue interest based on investment in a stock index, which is a predetermined grouping of various stocks. As the cash value of the policy increases, the premium for an IUL can be adjusted in the same way that it is for a universal life policy. It may one day become a no-premium policy, with the cash value covering the entire premium.

Variable Universal Life Insurance

The cash value of a variable universal life (VUL) policy, like the cash value of other permanent life insurance policies, can be invested. But this type of policy includes subaccounts, which are similar to mutual funds. In addition, the premiums, like those of traditional universal life insurance, can be changed based on how much cash value you accrue.

Final Expense Life Insurance

Final expense insurance is a type of whole life insurance policy that is popular among people who are older or in poor health. Since it does not require a medical exam. In exchange, though, these policies tend to be a bit more expensive than other comparable policies and only pay out a small benefit. Typically between $2,000 and $35,000. The final expense insurance death benefit is intended to cover final expenses such as a burial, cremation, or funeral services. But your beneficiary can use the death benefit for whatever they want, such as a vacation or property taxes.


Florida Life Insurance Laws

When it comes to life insurance, the federal government generally leaves consumer protection and insurance industry regulation up to the individual states. Florida has consumer protections in place, including life insurance laws. While Chapters 624-651 of Title 37 of the Florida Statutes serve as the backbone of insurance regulation in Florida, other provisions have been adopted as consumer protection laws. The state of Florida’s insurance industry is monitored by the Office of Insurance Regulation.

Free Look Period

In Florida, consumers have 10 days from the date their policy goes into effect to test drive it, known as a free look period. This means that the policy can be refunded within the first 10 days of it being purchased. Your insurance company will still have to pay any claim to your beneficiary during this 10-day period.

Grace Period

The standard grace period in Florida is 30 days. This means you’ll have at least 30 days after a missed premium payment to make a payment and keep your policy active. Your policy will not lapse during the grace period. So, you won’t have to reapply for coverage and undergo underwriting. Additionally, if you pass away, your beneficiaries will still be able to make a payment and receive the death benefit. 

Benefit Guarantee

In extremely unusual cases, a life insurance company may be unable to pay out death benefits due to financial difficulties. If this happens to you, the Florida Life and Health Insurance Guaranty Association will compensate you up to $300,000 for your death benefit. Ensuring that your beneficiaries will receive at least some of the death benefit even if the insurance company goes bankrupt. This cap applies to each individual, regardless of how many policies they have or how much coverage each one provides. This means it’s important to buy insurance from a financially stable company.

Contestability Limit

If a life insurance policy in Florida has been in effect for at least two years from the date it was issued, the policy is considered incontestable. This means that your insurance company has no right to contest your policy or claim on the grounds of errors or irregularities in your application. The only exceptions to this rule are life insurance policies with outstanding premiums.

Settlement Timelines

It’s important to note that Florida law mandates prompt payment of death benefit claims by all insurers. Interest on the policy will begin to accrue as soon as the insurer receives the death certificate. The interest will continue to accrue until the claim is paid in full. Therefore, most insurance companies promptly and fairly settle life insurance claims.


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The Cost

The amount you pay for your premium will be affected by factors such as your age, health, and even your gender. The quickest way to learn about potential costs is to get in touch with one of our EZ agents. If you give them some details about what you need, they can use that information to find you free quotes that are tailored to you. As an example though, a healthy 34-year-old man who does not smoke could pay anywhere from $19 to $57 per month for a 20-year $736,000 policy in Florida.


Florida Life Insurance Resources

In Florida there are several state and federal resources available to you to help with any problems with your insurer or policy. These resources include:

  • Florida Office of Insurance Regulation – This office is a good place to learn about Florida’s life insurance regulations. Legislation updates and learning materials are both easily accessible on their site.
  • Florida Life and Health Insurance Guaranty Association – The Florida Life & Health Insurance Guaranty Association is made up of licensed insurers and annuity providers from across the state. The guaranty association is responsible under Florida law for servicing policies from member organizations that have gone out of business. Policyholders and beneficiaries with policies from bankrupt providers can contact the association for more information.



  • Does Florida require life insurance?

No, there are no state or federal laws requiring life insurance.

  • What are the best life insurance companies in Florida?

There are a lot of good ways to get life insurance in Florida. At the top of the list are Allstate Corp, Nationwide, Liberty Mutual, NorthWestern Mutual, and Transamerica.

  • How much does life insurance cost in Florida?

There are many things that can affect how much life insurance costs, but here’s an example. A healthy 34-year-old woman in Florida who buys a $736,000 20-year term policy will pay an average of $25.30 per month. A healthy 34-year-old man, on the other hand, will pay about $29.84 for the same policy.


EZ Can Help!

At EZ, we know that everyone has unique requirements, priorities, and financial constraints, and we also understand that you want the best financial security for yourself and your family without depleting your savings account. So we make every effort to simplify the process of purchasing life insurance for you. And we do it all for free. You will not be charged any additional fees for assistance with anything. From answering basic questions to navigating policy selection to the enrollment process and beyond. Simply enter your zip code in the space below or call us at 877-670-3560 to get started.

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About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.