Hawaii Life Insurance

Hawaii, like most states, does not regulate life insurance on the policy level the way that states Departments of Insurance regulate other insurances. However, there are certain provisions that do vary from state to state regarding regulations pertaining to free-look time frames, illustration requirements, underwriting, and medical exam requirements. You should be aware of these rules as you shop for a life insurance policy in the state of Hawaii.    

Why Do I Need It?

Take a look at these figures.

Hawaii may be ranked number 1 out of 50 states and the District of Columbia in Life Expectancy, with an average life expectancy of 80 years, but that does not mean Hawaiians should forego purchasing a life product.  For every 100,000 people in Hawaii, almost 750 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that number nearly triples to 2,000, and at 75 to 84 well over 5,000 Hawaiians die for every 100,000 residing in the state. More on mortality by age, sex and race, and the leading causes of death in Hawaii can be found at: http://www.cdc.gov/nchs/pressroom/data/Hawaii09.pdf

For more reasons why you should purchase a life insurance policy, and for help finding the right product for your needs, at the best value, take a look at our section called "Most Important Questions".

Hawaii Specifics

The insurance industry in Hawaii is regulated by specified title of The State Insurance Code of Hawaii. The state uses this code to regulate claims and provide certain provisions to protect consumers, such as:

Death Benefit Processing: As a resident of the State of Hawaii and beneficiary of a Life plan, it is your right as recognized by the State Code to a swift and reasonable payment of death benefits. Insurance companies are required to process any claim as soon as possible, and that should never be longer than 30 days – so long as all documentation is in order.

Grace Period: You have 30 days to bring your premiums current if you have missed a payment, and not lose your benefits. This is known as a Grace Period and is a provision of The Hawaii State insurance code.

The state regulations have also been designed to protect Hawaiian companies against obvious cases of consumer or insurance fraud. You cannot knowingly make misstatements on your application. Insurance Companies have up to 2 years to dispute such statements. If they find any discrepancies or misinformation, they can terminate the policy immediately, and you may be subject to criminal charges or other penalties.

Hawaii State Resources

Hawaii 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 Hawaii Insurance industry.
http://insurance.state.al.us/ 
http://hawaii.gov/dcca/areas/ins

Hawaii Life & Health Insurance Protection Association - State guaranty associations are there to provide protection and continuing coverage, even in the event that an life insurance company becomes insolvent.
http://www.hilifega.org/

Hawaii Company Ratings - These companies provide ratings based on financial strength and past performance
http://www.ambest.com/
http://www2.standardandpoors.com