If you are considering a life insurance policy in the state of Florida, there are some rules that you can put to work in your favor as long as you are aware of their advantages The sunshine state has strong regulations in place to protect their consumers and facilitate fair business practices by life insurance companies.
How do you buy life insurace in Florida? What are the laws regarding life insurance in Florida? Which companies in Florida are the best to purchase life insurance from? Below, we’re answering every question you might have about life insurance in Florida. Continue reading to learn about life insurance rules and regulations in Florida and then see what the top 10 life insurance companies in Florida are.
Florida Life Insurance Rules And Regulations
Florida protects life insurance consumers and insurance companies alike under Title 37 of its state statutes. This ensures conformity across the industry for a number of consumer protection-related practices.
Florida mandates that insurers provide at least a 10 day period when a consumer can “free look” their policy. This means that the policy can be returned to the insurance company within the first 10 days of it being delivered, and the insurance company is required to refund all premiums. If a death claim occurs during the free look period, the insurance company is still obligated to pay the claim to the beneficiary if all is in good order.
Florida has an industry-standard 30 day minimum grace period. This allows a beneficiary to file a death claim for at least a 30 day period after a missed premium payment without fear that the missed payment will prevent a death benefit payout. During the grace period, the policy remains in force and active, and an owner can still submit the late payment and bring the policy back into good standing. A grace period also prevents a policy from lapsing, which would require the insured to go through underwriting again for a new policy. These protections are good for owners and beneficiaries of life insurance contracts.
Florida has a clever rule to incentivize quick death claim payouts by insurers. Starting on the day the insurer receives the death certificate, interest on the claim will accrue until the death claim is paid. To save money that would otherwise be spent on interest, life insurance companies tend to pay out claims in Florida very quickly, usually within about a month. Aside from the interest requirement, Florida does not have any regulations stipulating how quickly claims must be paid.
Guarantee On Death Claims
Not all life insurance companies are prudent and responsible. On some rare occasions, a life insurance company may run into financial difficulties and be unable to make death claim payments. In Florida, the Florida Life and Health Insurance Guaranty Association will cover a life insurance policy for up to $300,000 in death benefits, and $100,000 in cash value. This helps consumers feel confident that no matter what happens to their insurance company, their beneficiaries will receive at least a portion of the death benefit due. This is a limit that applies per person, regardless of the number of policies outstanding or the size of the policies. Because the limit may be relatively low, always purchase insurance from a company that has a very strong financial rating.
Protection Of Private Information
Florida believes that consumers have a right to privacy. Insurance companies are not allowed to disclose any personal or private information about their clients without their client’s consent. Failure to abide by these privacy laws may result in fines levied against the companies.
Florida Office of Insurance Regulation
Florida Life & Health Insurance Guaranty Association
3740 Beach Boulevard, Suite 201-A
Jacksonville, FL 32207-3877
10 Best Life Insurance Companies in Florida
1. Bestow Life
Direct term life insurance is Bestow Life’s specialty. Direct term life insurance is where the consumer gets term life insurance directly from a company and does not go through an agent. Getting life insurance with Bestow can be done from the comfort of your house at any time, day or night. The application process is quick and easy. No medical exam is needed if you want a policy from Bestow Life and policies as low as $8 a month. If you are looking for the most affordable term life insurance in Florida, look no further than Bestow Life.
2. State Farm
If you want options, State Farm has them. Your options begin with quotes. You can either get a quote online or work with an agent to find your best fit policy. The next option you have is term options. They offer terms of 10-,20-, or 30-year spans. Finally, you have the opportunity to take your term life policy and convert it to a whole life policy. If you want a company that will give you plenty of options and support to help choose those options, State Farm is the best insurance company in Florida when it comes to options and support.
3. Banner Life
Banner Life is owned by Legal & General America. They are the best company for flexibility and customer support in Florida. They offer seven different terms for their term life insurance, and people up to 75-years-old can purchase a policy. Banner Life is flexible in its term limits, and you can convert your term life into a permanent policy. Another flexibility offered by Banner Life is adding a term rider or waiver of premium rider. Don’t know what you want or need? Banner Life’s fantastic customer service will help. Banner Life’s flexibility and customer support make them one of Florida’s best life insurance companies.
MetLife is one of the largest insurance companies in the country, including Florida. MetLife offers life insurance policies through financial professionals and as employee benefits. In 2017, MetLife established Brighthouse Financial to sell life insurance to individuals. Brighthouse is still working the kinks out, but MetLife is healthy and moving forward. Offering term life, group variable universal life, and universal group life, MetLife wants to help protect your family. If you have the opportunity to work for an employer that offers MetLife benefits, you won’t be disappointed. If you’re looking for life insurance to purchase on your own, check out Brighthouse; with a father company like MetLife, you shouldn’t be disappointed.
5. Haven Life
The top insurance company in Flordia for affordability AND quick coverage is Haven Life. A leading competitor in the direct-term life insurance market, Haven Life is one of Florida’s best insurance companies for several reasons. First is its speedy application and approval process, all done from the comfort of your favorite place. Next, when you become a policyholder with Haven Life, you get access to Haven Life Plus. Haven Life Plus provides you with services to help you live a healthier life and a more protected life for no additional cost. Just $15 a month can get you coverage starting at $50,000.
Everything about Ethos is easy. Ethos offers a calculator to help you figure out how much life insurance coverage you will need. It will also tell you what type of insurance is ideal for you. You can completely customize your policy’s length and the coverage amount, and the premium won’t change with age. If you change your mind and don’t want your policy, you can get your money back if you cancel within 30 days. Ethos is one of the easiest companies to purchase life insurance through, and that is why Ethos is one of the best life insurance companies in Florida.
Hands down, the best insurance company for tobacco users in Florida is Prudential. They offer some of the lowest premiums for both female and male tobacco users. Prudential’s website is full of materials to help you better understand life insurance, find a policy, get a quote, and be confident in your choices. You can talk to a person if you have questions. They will also offer guidance if you need it. If you are a tobacco user and live in Florida, Prudential is your life insurance company.
One of the largest life insurance companies in the country, AIG offers a wide variety of policy options. AIG has the policy to match every person, budget, and need. This comprehensive coverage is why AIG is one of the best insurance companies in Florida. No medical exams are required for specific policies as well as no waiting period policies. Term life insurance is available for up to 35 years. This spectrum of policies makes AIG one of the best.
9. Fabric Life
Fabric Life thinks about more than just the policyholder; they think about the family, too. Backed by Vantis Life, Fabric Life offers term life insurance for people between 25 and 50-years-old. They have a painless application process that could take as little as 10 minutes. You can apply online or through Fabric Life’s app, which is convenient for a busy family. For term life insurance, you can choose from 10, 15, or 20-year terms with coverage from $100,000 to $5,000,000. With the family in mind, Fabric Life is the best insurance company for Floridians.
10. AIG Direct
AIG Direct is a branch of AIG. AIG Direct only sells its policies online or through a call center. AIG sells its policies through an agent. AIG Direct is the most reliable insurance companies in Florida. For just $14 a month, you can get a $250,000 term life insurance policy. You do have to have a medical exam and submit a formal application to be approved for coverage. According to AIG Direct, you could save 70% on your premiums compared to other life insurance companies. These savings and their reliability make AIG Direct one of the best life insurance companies in Florida.