Arkansas Life Insurance

Arkansas Life Insurance at its most basic level is a contract between you and an insurance company to pay a sum of money to your beneficiaries in the event of your death, to cover expenses and make up for the lack of your income. There are basically two types of products most commonly known as Term Life and Permanent Life.

Why Do I Need Arkansas This Product?

You may wonder why do you need a policy. Take a look at these figures.

Arkansas is ranked 43 out of 50 states and the District of Columbia in Life Expectancy, with a life expectancy of 75.2 years.  For every 100,000 people in Arkansas, more than 1200 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that number more than doubles to over 2500, and at 75 to 84 nearly 6000 Arkansans die for every 100,000 residing in the state. More on mortality by age, sex and race, and the leading causes of death in Arkansas can be found at: http://www.cdc.gov/nchs/pressroom/data/Arkansas09.pdf

For more reasons why you should apply for a life insurance policy in the state of Arizona, and for help in finding the best type of coverage for your particular needs, at the best value, take a look at our section called questions to ask your family..

Arkansas Life Insurance Specifics

The State Insurance Code of Arkansas is in place to regulate the insurance industry, which includes all life products. Life insurance products are not as heavily regulated as health insurance, but the state uses this code to oversee claims and provide specific provisions to protect consumers in Arkansas such as:

Grace Period:  A 30-day grace period must be given by all Arkansas polices issued in the state of Arkansas on late payments, and policyholders must be given that amount of time to bring their premiums current before the insurer can cancel the policy for non-payment.

Death Benefit Processing: Death benefits in Arkansas must be paid in a reasonable amount of time according to the State Code. If all documentation is in order this usually means companies in Arkansas will pay death benefits within 2 months.


State insurance codes are designed to protect the state providers as well. All companies are entitled to protect themselves from consumer fraud by contesting any information you may have reported on your application for up to two years from the date of issue. If they find any misinformation, they can cancel the policy. A misstatement of age is an exception. Incorrect reporting of your age may not result in cancellation of the policy, but the policy rate will be adjusted to reflect the accurate age.

 

Arkansas State Resources

Arkansas Department of Insurance:  The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and the industry.
http://www.insurance.arkansas.gov/LH/divpage.htm

Arkansas Life & Health Insurance Guaranty Fund - State guaranty associations are there to provide protection and continuing coverage, even in the event that an insurance company becomes insolvent.
http://www.arlifega.org/

Arkansas Long-Term Care Ombudsman Program – Informs and protects consumers rights regarding Life Insurance and Long Term Carehttp://www.arombudsman.com/

Arkansas Company Ratings - These companies provide ratings for Arkansas Insurance Companies that sell life products based on financial strength and past performance.
http://www.ambest.com/