Vermont Life Insurance

There are basically two types of Vermont Life Insurance: Term Life insurance and Permanent Life insurance. See our Guides for detailed information about the differences between Vermont Term Life Insurance, and Vermont Permanent Life insurance. Whichever you choose, Vermont Life insurance is meant to provide your beneficiaries with the means to cover expenses and make up for the lack of your income. The State Department of Insurance oversees the sale of Vermont Life Insurance, ensures that providers are properly licensed, and makes available certain guaranteed protections for Vermont Life Insurance consumers.     

Why Do I Need Vermont Life Insurance?

You may wonder why you even need Vermont Life Insurance. Take a look at these figures.

Vermont is ranked 11th out of 50 states and the District of Columbia in Life Expectancy, with a life expectancy of 78.2 years. Now just because Vermont almost makes the Top Ten, that is no reason to believe you can do without Vermont Life Insurance. Despite the high life expectancy, for every 100,000 people in Vermont, over 600 between the ages of 55 and 64 still pass away every year. Between the ages of 65 and 74, that number more than triples to nearly 1,900, and at 75 to 84 well over 6,000 of Vermont’s residents die for every 100,000 residing in the state. More on mortality by age, sex and race, and the leading causes of death in Vermont can be found at: http://www.cdc.gov/nchs/pressroom/data/Vermont09.pdf

For more reasons why you should apply for Vermont Life Insurance, and for help in finding the best kind of life insurance for your needs, at the best value, take a look at our Family Guide to Life Insurance.

Vermont Life Insurance Specifics

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

Grace Period: Grace periods are provided to allow for some latitude when making monthly obligations such as an Vermont Life Insurance premium. The Vermont State insurance code requires that all Vermont Life Insurance companies allow a 30-day grace period on late payments. If you miss a premium payment for any reason, you must be given 30 days to bring the account current before the insurer can cancel the policy for non-payment.

Free Look: If after further review you feel you have not purchased the life insurance plan that was best for your needs, a free look provision allows you to rethink your Vermont Life Insurance requirements, and cancel a policy even after you have signed the contract.
In most cases, you will have at least 10 days to cancel without penalty. Some Vermont Life Insurance Companies will give you as many as 30 days to turn in a policy and receive a full refund. 

Death Benefit Processing: According to the State Code, Vermont Life Insurance companies are required to process any death benefit claim as soon as possible. If all documentation is in order this usually means within 60 days. Late settlements may be subject to an interest rate of 12% from the time death claim was made.

Life insurance purchasers are not the only ones protected by state regulations. Vermont Life Insurance sellers can also rely on the Code to protect them against consumer fraud.  Under these provisions, a Vermont Life Insurance company can question any information you stated on your Vermont Life Insurance application for up to two years from the purchase of the policy. Any discrepancies, especially those related to medications or tobacco use, can result in revocation of the policy. Allowances for misstatement of age are given. If age is found to be incorrect, the policy rate will likely be adjusted to reflect the accurate age, but not terminated entirely.

Vermont Life Insurance State Resources

Vermont 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 Vermont Life Insurance industry. 
http://www.bishca.state.vt.us/

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

Vermont Life Insurance Company Ratings - These companies provide ratings for Vermont Life Insurance Companies based on financial strength and past performance.
http://www.ambest.com/
http://www2.standardandpoors.com

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