Life insurance is an excellent way to protect your loved ones financially but buying it can be a stressful experience. You’ll need to learn as much as you can about the Oklahoma life insurance market before making a policy purchase. Researching the different policies available and learning about Oklahoma’s life insurance regulations can be a time-consuming and frustrating process. But don’t stress: EZ is here to help! After reading the following guide to life insurance in Oklahoma, get in touch with one of our agents so that they can assist you in finding the best policy for you.
How Life Insurance Works in Oklahoma
When you purchase life insurance, you and your chosen insurer enter into a legally binding contract. You agree to pay them premiums, and if you continue to do so, your loved ones (your beneficiaries) will receive a predetermined death benefit if you pass away while your policy is active. The death benefit is paid as a single lump sum that can be used for anything your beneficiary wishes. Such as paying off debts or paying for school.
Life insurance is a necessity if you have dependents, debts, or other financial commitments that will need to be paid after your death. And if you’re the sole provider for your family, this is especially true. You’ll need to safeguard their financial security in the event of your death.
Types of Life Insurance Available in Oklahoma
There are many options to choose from when it comes to life insurance policies, so you’re sure to be able to find one that works for you. But because there are so many different types, you’ll have to make a lot of decisions about what is right for you. The first decision you’ll have to make is between the two main types of life insurance: term life and permanent life.
When choosing between term and permanent life insurance, you’ll have to think about your budget, as well as how long you want your coverage to last. You should also consider if you want your policy to include any extra features or if a more basic policy works for you.
Term life insurance has become the more popular type of life insurance because of its low premiums. These policies are less expensive because they do not offer indefinite coverage. Instead, you decide how long the policy will be in effect. The term of a policy can range from one year to thirty years, but the average term length is fifteen years. If you die while the policy is active, your beneficiaries will receive a tax-free death benefit. In addition to being affordable, these policies are also fairly straightforward, since in most cases, the premiums for most types of term life insurance do not change over the policy’s term.
There are several types of term life policies available, including:
Level Term Life Insurance
Both the death benefit and the premiums for level term life insurance are locked in at the time of purchase. They will remain unchanged for the entire term of the policy. The vast majority of people choose level term policies when purchasing life insurance.
Annual Renewable Term Life Insurance
Annual renewable life insurance is a term life insurance policy that lasts for a year. Policies are renewable annually, but the premium increases with each passing year.
Increasing Term Life Insurance
If you have an increasing term life insurance policy, the death benefit will grow at regular intervals. For example, your benefit amount could rise by 5% per year. Increasing term insurance premiums, unlike other types of term life insurance, are likely to rise and fall over time.
Decreasing Term Life Insurance
The premium for decreasing term life insurance never changes, but the death benefit decreases over time. The typical reason for purchasing such a policy is to provide protection during the repayment of a loan or mortgage. The death benefit will decrease as the loan is repaid.
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. ROP policies are significantly more expensive than other types of term life insurance, but many people find the return of premiums feature very attractive.
Permanent Life Insurance
Permanent life insurance differs from term life insurance in that it will remain in effect for the rest of your life if you continue to pay your premiums. Because of this, permanent life insurance premiums are typically higher than term life insurance premiums. These policies also tend to be more expensive because permanent life insurance policies include a cash value component that accumulates over time and earns interest.
There are numerous types of permanent life insurance policies available, including:
Whole life insurance provides a guaranteed death benefit as well as the ability to accumulate cash value. For the duration of the policy’s life, interest accrues at a predetermined, tax-free rate.
A universal life insurance policy is unrivaled in its adaptability. With this type of policy, you can change both your premium payments and your death benefit. If you want, you can eventually use your cash value to pay your premiums, and/or you can lower your premiums by reducing the amount of your death benefit at any time.
Indexed Universal Life Insurance
This type of permanent life insurance has a cash value that is tied to a stock index. So, you can earn money if your stocks do well. The premiums for this policy can be adjusted in the same way that they can be for a universal life policy as the cash value of the policy increases. Your indexed universal life insurance (IUL) could eventually become a no-premium policy, with the cash value covering the entire premium.
Variable Universal Life Insurance
A variable universal life (VUL) policy’s cash value, like the cash value of other universal life insurance policies, can be invested, but with VUL you can invest in subaccounts, which are similar to mutual funds. And like traditional universal life insurance, the premiums of VUL policies can be adjusted.
Final expense insurance may be a good option if you are older or have health issues that make it difficult to obtain a standard policy. These policies do not require a medical exam, but they can be expensive. The death benefit is also usually small, ranging from $2,000 to $35,000. The death benefit from final expense insurance is intended to cover the costs of the insured’s funeral, burial, or cremation. But your beneficiaries will be free to spend the money from the death benefit however they see fit, such as on a vacation or to pay off some debts.
Oklahoma Life Insurance Laws
In the case of life insurance policies, the federal government has largely delegated the responsibility of regulating the insurance industries and protecting consumers to the states. The primary regulating force for the insurance industry in Oklahoma is Title 36 of the Oklahoma Statutes, but other legal provisions have also been adopted as consumer protection laws. The Oklahoma Insurance Department regulates the state’s insurance industry.
The following are the most important rules that may apply in your situation:
Free Look Period
A free look period, which is a short period of time (usually a week or two) after you purchase your policy. It allows you to carefully consider your new policy and determine whether it truly meets your needs and expectations. If you find that the insurance policy does not meet your needs, or if you decide that you do not want the policy for any reason, the policy can be returned for a full refund of all premiums paid during the free look period. The state government does not mandate a free look period in Oklahoma. However, most life insurance companies will provide one to their clients. The length of the free look period varies by insurer. So, you should always inquire about the length of the free look period before submitting payment to the company.
In Oklahoma, you have the right to a 31-day grace period if you miss a premium payment. This means that your policy cannot be canceled as long as you make up your missed payment within these 31 days. It also means that your life insurance company cannot deny an insurance claim if you die during this period. There is no limit on how many grace periods you will be allowed.
If an insurance company is unable to make claim payments due to bankruptcy or insolvency, the Oklahoma Life and Health Insurance Guaranty Association will cover up to $300,000 in death benefits and up to $100,000 in cash value.
In Oklahoma, life insurance claims must be paid within two months of being received by the insurance company. This statute was enacted to ensure that policyholders receive their benefits in a timely manner. If the insurer fails to pay the claim within this time frame, the death benefit will begin to accrue interest.
The cost of your premiums will be affected by factors such as your age, health, and even your gender. The quickest way to find out what you can expect to pay for a policy is to get in touch with one of our EZ agents. They will be able to use the information you give them to find you free quotes that are tailored to you. But to give you an example of prices, a healthy 30-year-old man who does not smoke could pay anywhere from $15 to $59 per month for a 20-year $602,000 policy in Oklahoma.
Oklahoma Life Insurance Resources
In Oklahoma, there are several resources in place to help you if you have any problems with your insurer or policy. These resources include:
- Oklahoma Life & Health Insurance Guaranty Association – In the event that a life or health insurance company authorized to do business in Oklahoma goes bankrupt, OLHIGA will step in to cover policyholders. In such an event, the Association will pay up to $300,000 in death benefits on your life insurance policy.
- AM Best – AM Best offers credit ratings and other financial information about life insurance companies so that customers can make informed decisions.
- American Council of Life Insurers – A glossary of life insurance terms, an explanation of policy risk classifications, and information on unclaimed life insurance benefits are all available on the ACLI’s consumer page.
Does Oklahoma 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 Oklahoma?
There are a lot of good ways to get life insurance in Oklahoma. At the top of the list are Northwestern Mutual, MassMutual, New York Life, State Farm, and Lincoln Financial.
How much does life insurance cost in Oklahoma?
There are many things that can affect how much life insurance costs, but here’s an example. A healthy 30-year-old woman in Oklahoma will pay an average of $25.20 per month for a 20-year term policy that costs $602,000 and lasts for 20 years. A healthy 30-year-old man, on the other hand, will pay about $31.70 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 for your family without breaking the bank. Our agents know that finding the right life insurance policy can be tough. So, we make every effort to simplify the process, and offer all of our services for free. You won’t have to pay a dime 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.