Michigan Life Insurance

michigan life insurance text overlaying image of detroit Purchasing a life insurance policy is one of the best things you can do to protect your family’s financial future. But finding the right policy for you can feel like an overwhelming task. Since there are numerous factors to consider when purchasing life insurance in Michigan. Not only will you see that there are a wide variety of policies to choose from, but there are also a slew of rules and regulations surrounding insurers and policies. So, before making a purchase, you’ll need to do some research on the Michigan life insurance market. But don’t worry: EZ is here to help! First, read our comprehensive guide below, then speak to an EZ agent about finding the perfect policy for you.

Jump To:

Compare Life Insurance Plans

  • Let us help you choose the right Life Insurance Plan for you & your family.


How Life Insurance Works in Michigan

A life insurance policy is, at its core, a contract between you and your chosen insurer. You agree to make timely premium payments to your insurance company. And if you die while the policy is still in effect, your loved ones will be entitled to a lump-sum death benefit. Your chosen beneficiaries will be able to use this money however they choose. Such as mortgage repayments, debt relief, retirement or college savings, or simple income replacement. This tax-free benefit will ensure that your loved ones will not financially struggle after you are gone.


Types of Life Insurance Available in Michigan

Because there are so many options when it comes to life insurance policies, almost anyone can find one that is right for them and their budget. There is definitely a policy out there for you. But you’ll need to make some decisions regarding what you expect from your policy. The first thing you’ll have to decide is which of the two main types of life insurance is best for you:

  • Term life insurance
  • Permanent life insurance

One of the most important factors to consider when deciding between term and permanent life insurance is how long you want your policy to cover you for. You’ll also need to think about how much you’re willing to pay in premiums. As well as what features you want your policy to include. 


Term Life Insurance

Term life tends to be the more popular type of life insurance because it is generally the cheaper of the two. The premiums for term life are generally more affordable because one of these policies will not cover you indefinitely. Instead, when you purchase term life, you will choose the amount of time you will be covered for – or your “term.” A term is typically 15, 20, 25, or 30 years. 

Term life insurance policies are also popular because they are relatively straightforward. For example, your monthly premiums are guaranteed to remain the same for the entirety of your term, in most cases. 

If you die while the policy is still in effect, your beneficiaries will receive a tax-free death benefit. If your term has ended, and you have not renewed your policy, your beneficiaries will not receive any money.

There are several types of term life insurance policies available, including:

Level Term Life Insurance

The death benefit and premiums for level term policies are fixed for the duration of your policy’s term. Level term life insurance is the most popular type of term life.

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 your premiums will increase each year.

Increasing Term Life Insurance

The death benefit of an increasing term life insurance policy will gradually increase over the policy’s term. For example, the death benefit might increase by 5% each year. Unlike with other types of term life, premiums for increasing term life insurance can fluctuate over the course of the policy.

Decreasing Term Life Insurance

On the other hand, the death benefit of a decreasing term policy gradually decreases over the course of the policy. While the premiums stay the same. This type of policy is typically for repaying a mortgage or loan, and the death benefit decreases as you repay the loan. 

Return-of-Premium Life Insurance

With return-of-premium (ROP) term life insurance, your premium payments will be refunded if you don’t die before the policy’s expiration date. While many people find the return of premiums feature appealing, it’s important to note that the cost of ROP policies is significantly higher than that of other types of term life policies.


Permanent Life Insurance

Term life and permanent life insurance differ in a few significant ways. First, with permanent life insurance, your policy will remain in effect for the rest of your life as long as you continue to pay your premiums. Next, permanent life policies usually include a cash value. Which is a type of savings account that accrues interest. You can use your cash value to borrow against or even to pay your premiums. Finally, because of the above features, premiums are usually higher for permanent life policies than they are for term life policies. 

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

Whole Life Insurance

Whole life insurance includes a guaranteed death benefit and set premiums. A whole life insurance policy can accumulate cash value that accrues interest at a predetermined, tax-free rate, in addition to providing a death benefit.

Universal Life Insurance

With universal life insurance, you can change the amount of the death benefit, as well as your premium payments. You can choose to lower your death benefit amount, which will lower your premium payments, or, once you’ve accumulated enough cash value, you can use that to help pay your premiums.

Indexed Universal Life Insurance

Indexed universal life, or IUL, insurance is another type of permanent life insurance with a cash value. But unlike policies with a set interest rate, the cash value of an IUL can be invested in a stock index, or a predetermined grouping of various stocks, and so you have the possibility of making more money. IUL premiums, like universal life premiums, can be changed; they can increase and decrease in proportion to the cash value of the policy. Eventually, the cash value may be sufficient to cover everything, and you will no longer be required to pay the premium.

Variable Universal Life Insurance

Like the cash value of other types of universal life insurance policies, the cash value of a variable universal life (VUL) policy can be used to make investments. With VUL, though, you can invest your money using the policy’s investment subaccounts, which are similar to mutual funds. Premium changes are possible, just like with traditional universal life insurance. 

Final Expense Life Insurance

A final expense life insurance policy is a type of whole life insurance that pays out a small death benefit, typically $2,000 to $35,000. This death benefit is intended to pay for final expenses such as a burial, cremation, or funeral services, but your beneficiary will have complete control over how the death benefit funds are spent. The funds could, for example, be used to pay the beneficiary’s taxes or to take a vacation.

One of these policies might be a good option for you if you are older or in poor health. This is because you will not be required to undergo a medical exam to get immediate coverage. But it’s important to note that these policies don’t pay out very much when compared to other types of policies. Which can even be cheaper than final expense life policies.


Michigan 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. So that means that Michigan has state-based consumer protections in place, including life insurance laws. Although other legal provisions have been adopted for the purpose of consumer protection, the Michigan Insurance Code (Act 218 of 1956) is the primary regulating force behind the insurance industry in Michigan. The new Michigan Department of Licensing and Regulatory Affairs has a division dedicated to overseeing the insurance industry called the Office of Financial and Insurance Regulation. 

Because of all this, you have the following rights when you purchase a life insurance policy in Michigan:

Free Look Period

A free look period is a short period of time (typically a week or two) given to a new life insurance policyholder during which they may cancel their policy without penalty. If you are given a free look period when you purchase your policy, and then choose to cancel within that time, you will receive a full refund. Unlike in many states, life insurance companies in the state of Michigan are not required by law to provide customers with a free look period. Nonetheless, it remains standard practice for insurance providers in the state of Michigan to do so.

Grace Period

If you have a life insurance policy in the state of Michigan, and you fall behind on a payment, you will be given a 30-day grace period to make up for your missed payment. During these 30 days, your policy cannot be terminated. And your insurer will have to pay out your death benefit if you pass during this grace period. 

Benefit Guarantee

The Michigan Life and Health Insurance Guaranty Association guarantees all life insurance policies sold in the state. This ensures that you will continue to be protected even if your insurance company goes out of business. As long as your premiums are paid in full and your prior insurer was authorized to do business in the state, this organization will cover your benefits. Coverage includes death benefits up to $300,000 and cash value up to $100,000.


Compare Life Insurance Plans In 3 Easy Steps

  • Let us help you find the right Life Insurance policy to protect your family.


The Cost

The cost of your premiums will be affected by factors such as your age, health, and even your gender. Get in touch with one of our EZ agents for the quickest and most precise information on possible prices. Simply answer a few questions, and they will find you no-obligation quotes for policies that work for you. But to give you an idea of what life insurance premium prices look like, a healthy 32-year-old man who does not smoke could pay anywhere from $16 to $65 per month for a 20-year $628,000 in Michigan. 


Michigan Life Insurance Resources

In Michigan, there are several resources in place to help you if you have any problems with your insurer or policy. These resources include:

  • Michigan Department of Insurance and Financial Services (DIFS) – DIFS provides access to many useful consumer resources. You can also call the department to make sure your agent and business are properly registered and licensed in Michigan. 
  • Michigan Life & Health Insurance Guaranty Association – Any company offering life insurance or annuities in Michigan must be a member of the Michigan Life & Health Insurance Guaranty Association. The policyholders of a guaranty association member company will be safeguarded in the event that a member company goes out of business.



  • Does Michigan require life insurance?

No, you will never be forced to get life insurance. It is always your choice.

  • What are the best life insurance companies in Michigan?

In Michigan, there are many good ways to get life insurance. MetLife, Haven Life, Banner Life, Guardian Life, and Prudential are at the top of the list.

  • How much does life insurance cost in Michigan?

There are many things that can change how much life insurance costs, but here’s an example. A healthy 32-year-old woman in Michigan will pay an average of $22.17 per month for a 20-year term policy that costs $628,000 and lasts for 20 years. On the other hand, a healthy 32-year-old man will pay about $33.78 for the same policy.


EZ Can Help!

At EZ, we get that everyone has unique requirements, priorities, and financial constraints. And we understand that you want the best life insurance policy for you and your family, without breaking the bank. But we also know that finding that policy takes time and effort and can be frustrating. So, we make every effort to simplify the process of purchasing life insurance. Plus, every service we offer is 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.

Compare Life Insurance Plans

  • Let us help you choose the right Life Insurance Plan for you & your family.

Looking For A Different Type Of Insurance In Michigan?

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.