Tennessee Life Insurance

tennessee life insurance text overlaying image of nashville Are you looking for the peace of mind that comes with knowing your family will be financially protected in the future? Then you should be looking for a life insurance policy! But we get it, this search can feel overwhelming. Since there are so many policies out there. As well as a wide range of laws that affect Tennessee life insurance policyholders. You’ll need to learn as much as possible about the Tennessee life insurance market before committing to a policy in Tennessee. But EZ is here to help. Read our guide to life insurance policies in Tennessee below. Then speak to an EZ agent to find the right policy for you and your family.

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How Life Insurance Works in Tennessee

Simply put, life insurance is an agreement between you and an insurance provider.  You agree to make periodic payments (your premiums) in exchange for a lump-sum payment to your chosen beneficiary (or beneficiaries) in the event of your death. After your passing, the lump sum your designated beneficiary will receive is known as a death benefit. They will be able to put this death benefit toward anything they choose. Including retirement, mortgage payments, the cost of tuition, or other debts. Or they can simply use it as a replacement for your salary.

Those who have debts, dependents, or other financial obligations that would need to be met even after death should seriously consider purchasing life insurance. If you are the sole breadwinner in your family, purchasing life insurance is especially crucial to ensuring your loved ones are provided for financially in the event of your passing. 


Types of Life Insurance In Tennessee

Life insurance policies come in a wide variety of forms. Making it possible for virtually anyone to find one that suits their needs and preferences. But because there are so many types of policies available, you’ll have to make a lot of decisions about what you want out of your policy. The first decision you’ll have to make is between the two main types of life insurance:

  • Term life insurance
  • Permanent life insurance 

This decision will be highly influenced by the specific needs you have, especially whether you’re looking for a policy for the long term, and what your budget looks like.


Term Life Insurance

Term life insurance is the most popular type of policy, and for good reason. It has exceptionally low premiums when compared with permanent life insurance. This is because term insurance doesn’t cover you for your entire life. Rather you will be able to choose the length (or “term”) of your policy. The typical length of a policy’s term is 10–15 years. But it can also be 20, 25, or 30 years. If you pass away while the policy is still in effect, your beneficiaries will be eligible to receive a tax-free death benefit.

Another advantage of term life is that your premium payments are generally guaranteed to remain the same throughout the duration of your policy. 

There are several types of term life policies, including:

Level Term Life Insurance

The death benefit and premiums for level term life insurance are fixed at the time of purchase and do not change throughout the policy’s term. The vast majority of term life insurance policyholders select level term policies.

Annual Renewable Term Life Insurance

This type of policy covers you for one year. You can renew your policy every year, but the cost rises as you get older.

Increasing Term Life Insurance

Your increasing term life insurance policy’s death benefit will increase in value over time at regular intervals. For example, your benefit amount could increase by 5% each year. You should be aware, though, that increasing term insurance premiums are more expensive than those of other types of term life policies, and may fluctuate over time.

Decreasing Term Life Insurance

With this type of policy, the death benefit gradually decreases while the premiums stay the same. Decreasing term life insurance generally offers coverage while you repay a loan or mortgage, with the death benefit decreasing over time as the loan is repaid.

Return-of-Premium Life Insurance

Return-of-premium (ROP) insurance is a type of term life insurance that allows you to receive a refund of your premium payments if you don’t die before your policy expires. ROP policies are significantly more expensive than other types of term policies, but you might find that the prospect of getting your premiums returned to you outweighs the extra cost.


Permanent Life Insurance

Permanent life insurance is different from term life in a number of ways. First, this type of policy will remain in effect for the rest of your life, as long as you pay your premiums.These policies also usually include a cash value component, or a type of savings account that earns interest, and from which you can borrow against, or even sometimes use to pay your premiums. Finally, because of these features, the premiums for these policies tend to be higher than those of term policies.

There are various types of permanent life insurance policies available, including:

Whole Life Insurance

The death benefit of whole life insurance is guaranteed, and the premiums remain fixed. A whole life insurance policy can accumulate cash value in addition to providing a death benefit to your loved ones. Your cash value account will accrue interest at a tax-free, predetermined rate.

Universal Life Insurance

This type of policy is one of the most flexible types of life insurance policy, since you’ll be able to adjust both the premium and death benefit amounts. Your premiums for UL policies will not only go toward the cost of insurance (COI), but also toward a cash value, which you might eventually be able to use toward paying your premiums. You can also adjust your death benefit, lowering it for lower premiums, or increasing it if you feel your beneficiaries need more.

Indexed Universal Life Insurance

Indexed universal life insurance (IUL) is another type of permanent life insurance with a cash value, but its cash value can increase based on investment in a stock index, which is a predetermined grouping of different stocks. And, as with other types of universal life, as the cash value of the policy increases, the premium for an IUL can be adjusted. It may eventually become a zero-premium policy, with the cash value covering all of your premiums.

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, and the premium can be adjusted in the same way that traditional universal life insurance premiums can. The difference is that variable universal life insurance policies include investment subaccounts to put the cash value to work. The subaccount structure is similar to that of a mutual fund, so you can end up either making or losing money, depending on market fluctuations.

Final Expense Life Insurance

Another type of whole life insurance that might interest you. Especially if you are older or not in the best of health, is known as final expense insurance. This type of policy is simple to obtain and pays a small benefit, usually between $2,000 and $35,000. The death benefit of final expense insurance is intended to cover final expenses such as a burial, cremation, or funeral services, but your beneficiaries will be free to spend the death benefit on whatever they want, including a vacation or the payment of property taxes. It’s important to note that, because you will not be required to undergo a medical exam to get one of these policies, premiums for final expense might be a bit more expensive than for other policies.


Tennessee 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. Title 56 of the Tennessee Code is the primary regulating force in Tennessee’s insurance industry. But other legal provisions have also been adopted as consumer protection laws. The Tennessee Department of Commerce and Insurance regulates the state’s insurance industry.

The following are the most important rules that may apply in your situation:

Free Look Period

Tennessee lawmakers understand that life insurance policies can be difficult to understand in their entirety at first glance. So, when you buy a new policy in Tennessee, you have 10 days to decide if it meets your needs and if you want to keep it. If you choose to cancel the policy, you will receive a full refund with no fees or penalties. This will also not affect your future eligibility for life insurance. 

Grace Period

In Tennessee, life insurance companies are required to give you a 30-day grace period if you miss a premium payment. As long as your missed payment is made during this time period, your policy will remain in effect. If you die during the grace period, your insurance company is required to pay the full amount of the claim to your beneficiaries. Assuming the claim is valid. This grace period keeps policies from lapsing, which could mean you’d have to go through the underwriting process again. There is no limit to the number of grace periods you can be granted.

Benefit Guarantee

The Tennessee Life and Health Insurance Guaranty Association exists to assist beneficiaries and policyholders in the event that a life insurance company goes bankrupt and is unable to make payments. This organization will cover up to $300,000 in death benefit payments and $100,000 in lost cash value. These are individual limits that apply regardless of the size or number of insurance policies held.

Settlement Timelines

In the state of Tennessee, insurance companies are required to pay claims to beneficiaries within 60 days. If a claim is delayed for an extended period of time, the company will be obligated to pay interest in addition to the death benefit.


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The Cost

Your life insurance premiums can be significantly impacted by a variety of factors. Including but not limited to your age, your overall health, and even your gender. To find out how much you might pay for a policy, contact an EZ agent. They will be able to make use of the information you provide to locate free quotes that are tailored to you. 

To give you an idea of the range of possible costs, a man in Tennessee who is 31 years old, does not smoke, and maintains a healthy lifestyle could pay anywhere from $16 to $66 per month for a $652,000 policy with a 20-year term.


Tennessee Life Insurance Resources

In Tennessee, there are several resources you can use to help you if you have any problems with your insurer or policy. These resources include:

  • The Tennessee Life and Health Insurance Guaranty Association – Residents of the state who have been adversely affected by the insolvency of an insurance provider can get information and assistance by getting in touch with Tennessee’s guaranty association.
  • The National Association of Insurance Commissioners – The NAIC’s consumer division provides shoppers looking for life insurance with guidance, assists interested parties in locating lost policies, and gathers information about complaints lodged against insurance companies.
  • AM Best – AM Best equips customers with financial information, creditworthiness ratings, and industry analysis. Giving them the ability to make more informed choices regarding their insurance policies.



  • Does Tennessee 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 Tennessee?

There are a lot of good ways to get life insurance in Tennessee. At the top of the list are Northwestern Mutual, Tennessee Farmers Life Insurance Co., State Farm, Lincoln Financial, and New York Life.

  • How much does life insurance cost in Tennessee?

There are many things that can affect how much life insurance costs, but here’s an example. A 31-year-old woman in Tennessee who is in good health and wants a 20-year term policy that costs $652,000 and lasts for 20 years will pay an average of $26.37 a month for it. A healthy 31-year-old man, on the other hand, will pay about $34.31 for the same policy.


EZ Can Help!

We at EZ know that everyone has their own set of needs, priorities, and financial constraints. We also understand that you are looking for the best policy for you. So, you can secure your loved ones’ financial future without breaking the bank. So, we make every effort to make the process of purchasing life insurance as simple as possible for you. Not only that, but every single one of our services is free of charge. You won’t have to pay anything extra to get help with anything. From answering basic questions to navigating policy selection to the enrollment process and beyond. To get started, simply enter your zip code in the space below or call us at 877-670-3560.

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

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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.