Purchasing life insurance is one of the best things you can do to protect your family’s financial security. But if you’re looking for a policy in Georgia, you’ll have to thoroughly consider a number of factors. Including all the types of policies available and the regulations that you and your insurance company are subject to. Before making a final decision, it’s in your best interest to learn everything you can about the Georgia life insurance market. This might seem like an overwhelming task. But EZ is here to help! First read our comprehensive guide below. Then contact an EZ agent for help finding the life insurance policy that’s right for you.
How Life Insurance Works in Georgia
If you decide to purchase life insurance, you will essentially be entering into a legally binding contract with your chosen insurance provider. You commit to making the necessary premium payments to the company. And in exchange, your loved ones will be given an agreed-upon lump-sum payment if you pass away while your policy is still in effect. Your beneficiaries can use this death benefit for anything they wish. From mortgage payments to retirement or college savings to simply replacing your income.
It is wise to invest in life insurance if you have dependents, debts, or other financial responsibilities that will have to be met even after your death. But if you are the primary or sole provider for your family, it is especially critical that you have life insurance. If you pass away unexpectedly, your policy will ensure that your loved ones can maintain their current standard of living.
Types of Life Insurance in Georgia
There are so many different kinds of life insurance policies on the market today that it is possible for almost anyone to find one that is right for them.
There will be a lot of decisions to make when it comes to your policy. But the first one you’ll have to make is between the two main types of policies:
- Term life insurance
- Permanent life insurance
To make this decision, consider how soon or how far in the future you anticipate needing the coverage. As well as how much you’re willing to spend.
Term life insurance tends to be more popular than permanent life insurance because of its more affordable premiums. Premiums for term life tend to be cheaper because this type of policy will not remain in effect indefinitely. Instead, when you buy term life insurance, you choose the length of time you want to be covered for. A policy’s term typically lasts for 15 years. But you can find policies with terms as short as one year or as long as 30 years. The amount that you pay monthly for your premium won’t change for the duration of your policy. In the event that you pass away while the policy is still active, your beneficiaries will receive a tax-free death benefit.
There are several types of term life policies available, including:
Level Term Life Insurance
Both the amount of the death benefit and the amount of the premium payments for level term life insurance are set at the time of purchase. They won’t change at any point throughout the duration of the policy. This is the most popular type of term life insurance policy.
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
The death benefit of an increasing term life insurance policy will increase over the course of the policy’s term. For example, your benefit might go up by 5% each year. Unlike with other types of term life policies, the premiums for increasing term insurance will change over time.
Decreasing Term Life Insurance
The death benefit associated with decreasing term life insurance decreases over the course of the policy’s duration, while the premium stays the same. These types of policies are usually purchased for protection while paying off a loan or mortgage. The death benefit will decrease in value as the loan is paid back.
Return-of-Premium Life Insurance
Return-of-premium (ROP) insurance is a form of term life insurance that reimburses your premium payments if you don’t pass away prior to the expiration of the policy. The cost of ROP policies is significantly higher than that of other types of term life policies. But many people find the prospect of getting their premiums back appealing enough that it outweighs the extra cost.
Permanent Life Insurance
Unlike with term life, your permanent life insurance policy will remain in effect for the rest of your life. As long as you continue to make your premium payments. Because of this, and because permanent life insurance policies usually include a type of savings account that accrues interest (known as cash value), premiums are usually higher for permanent life than for term life.
There are numerous permanent life insurance policies to choose from, including:
Whole life insurance not only provides a death benefit to beneficiaries, but it also includes a savings component. Meaning you will accrue a cash value when you pay your premiums. Interest will also be accrued on a tax-deferred basis at a predetermined rate throughout the term of the investment with these policies.
This type of policy is very flexible. Because you’ll have the ability to adjust both the amount of the death benefit and the amount of the premium payments. Your premium payments will go toward both the cost of insurance (COI) and the cash value. And eventually, as your cash value builds up, you’ll be able to use it to pay your premiums.
Indexed Universal Life Insurance
The cash value of an indexed universal life insurance (IUL) policy can grow based on investments tied to a stock index. The premium for an IUL can be adjusted in the same way that a universal life policy’s premium can be adjusted. It rises and falls with the cash value of the policy. It’s possible that one day you won’t have to pay a premium at all. Because the cash value will pay for the whole thing.
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 VUL policies include investment subaccounts that are similar to mutual funds. And, as with traditional universal life insurance, you’ll be able to adjust your premium payments based on how much cash value you have accrued.
A final expense life insurance policy is a type of whole life insurance that pays out a modest benefit upon the policyholder’s passing. Usually between $2,000 and $35,000. The death benefit from final expense insurance is meant to cover final expenses. Such as a burial, cremation, or funeral service after the insured person has passed away. But your beneficiary will be free to spend the money from the death benefit however they see fit. Such as on a trip or the payment of their taxes.
This type of policy is often a good choice for those who are older or in poor health. Because you will not be required to undergo a medical exam to get a policy or wait for coverage to begin. Be aware, though, that these policies are often more expensive than comparable policies. And, again, the death benefit tends to be relatively small.
Georgia Life Insurance Laws
When it comes to life insurance policies, the federal government has, for the most part, delegated the responsibility of regulating the insurance industry and protecting consumers to the states. So, there are state laws in place in Georgia that help to protect you when you purchase life insurance. Title 33 of the Georgia Code is the primary regulatory force behind the insurance industry within the state of Georgia. Though other legal provisions have also been adopted as consumer protection laws. The regulation and supervision of the insurance industry in the state are the responsibilities of the Office of the Insurance and Safety Commissioner.
In Georgia, you will have the following rights when you purchase life insurance:
Free Look Period
If you purchase a life insurance policy in Georgia, you’ll have the right to change your mind and cancel your policy within the first 10 days after purchasing it. If you cancel your policy during this “free look” period, you will be given a full refund with no questions asked. The state requires that the free look period last at least 10 days. But insurers can choose to offer longer free look periods.
The state also requires that insurance companies allow policyholders a grace period of 30 days if they miss a payment. This means that if you are late paying your life insurance premium, you have 30 days to make up for your late payment before your policy is terminated. If you do not pay your premium by the time the 30 days are up, your policy will be terminated.
Your life insurance policy is safeguarded in the state of Georgia, even in the event that your insurance provider goes out of business. The Georgia Life and Health Insurance Guaranty Association is the organization that ensures benefits will be paid out. If your insurer goes bankrupt, this association will compensate you for up to $300,000 in lost death benefits per individual in the event that you have to make a claim. Be aware that you will only be covered for up to $300,000. Even if you had a larger policy, or multiple policies.
Following the submission of a claim for life insurance in the state of Georgia, an insurer has a period of only 30 days to make the payment to the beneficiary. The insurer will be fined if the payment is not made within the first 30 days after the date of the claim. In addition to this, the beneficiary’s account balance will earn interest on a daily basis until the payment is made to them.
There are a number of variables that can impact the price of your premiums, including your age, current health, and even your gender. Get in touch with one of our EZ agents to receive the quickest and most accurate information regarding potential costs. If you provide them with some information, they will be able to use that information to find you free quotes that are tailored to you. But to give you an example of how much you might pay. A 30-year-old non-smoking man in good health could pay anywhere from $17 to $52 per month for a 20-year $680,000 policy in Georgia.
Georgia Life Insurance Resources
In Georgia, there are several state and federal resources available that can help you if you have any problems with your insurer or policy. These resources include:
- Office of the Insurance and Safety Fire Commissioner – The OCI has a specialized consumer services division that fields questions and grievances from the general public. Policyholders can contact the OCI for assistance in resolving disputes with insurance companies or agents. As well as to report activities that may constitute fraudulent activity.
- Georgia Life & Health Insurance Guaranty Association – The Georgia Life & Health Insurance Guaranty Association is a private organization that offers protections to Georgia policyholders in the event that the issuing company has been liquidated. All of the life insurance companies that are licensed by the state are members of this association. In most cases, the guaranty association will maintain coverage according to the requirements of Georgia law so long as your premiums have been paid in accordance with the terms of your contract.
Does Georgia require life insurance?
No, there are no state or federal laws requiring life insurance.
What are the best life insurance companies in Georgia?
There are a lot of good ways to get life insurance in Georgia. At the top of the list are Mutual of Omaha, Northwestern Mutual, StateFarm, MassMutual, and New York Life Insurance.
How much does life insurance cost in Georgia?
There are many things that can change how much life insurance costs, but here’s an example. A healthy 30-year-old woman in Georgia who buys a $680,000 20-year term policy will pay an average of $20.93 a month. On the other hand, a healthy 30-year-old man will pay about $28.52 for the same policy.
EZ Can Help!
We at EZ know that everyone has unique requirements, priorities, and financial constraints. 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 and guarantee that all of our services will always be completely 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 provided below or call us at 877-670-3560 to get started.