If you are planning on purchasing a life insurance policy in the state of Alabama, there are some things you should consider. Alabama, like every other state, has it’s own laws that affect policyholders in different ways. Because of this, it’s good to familiarize yourself with the life insurance situation in the state of Alabama so that you can make informed decisions when buying a life insurance policy.
Alabama Life Insurance Rules And Regulations
Alabama life insurance companies are regulated under Title 27 of the Code of Alabama. The laws outlined in this code were created to help you, the consumer.
Free Look Period
One such law is the free-look provision. “Free looks” are included in all insurance policies and basically allow you to test-drive a policy to see if you like it before you commit to it. In Alabama, all residents have at least 10 days to back out of their life insurance policy and still get their money back.
Grace Period
Another law in Alabama deals with a grace period included in all life insurance policies. All Alabama policy holders have 30 days to make good on a missed payment without having their life insurance policy cancelled.
Alabama State Insurance Department
The state insurance department can be contacted at:
Alabama Department of Insurance
Telephone: 334-269-3550
Website: http://www.aldoi.gov/
Alabama Life Insurance Guaranty
Even if the life insurance company that writes your policy in the state of Alabama goes out of business, your benefits are still guaranteed. All life insurance policies in the state are backed and insured by the Alabama Life and Disability Insurance Guaranty Association.
In Alabama, the state guarantees you will be paid $100,000 per individual for lost cash value or $300,000 per individual for all lost benefits. This is guaranteed even if the policy holder was insured for a larger amount or took out multiple life insurance policies.
The Alabama Life and Disability Insurance Guaranty Association can be contacted at:
6 Office Park Circle, Suite 200
Birmingham, AL 35223
Telephone: 205-879-2202
Website: http://www.allifega.org/
