Are you in the market for a new life insurance policy?  Are you adding to your coverage, or maybe trying to reduce your costs with a better replacement policy?  Well fear not Bay State residents, Life Ant is here to let you know the rights of policy holders in your state, so you can get the most out of your life insurance policy and avoid being swindled.

Life Insurance Rights and Regulations In Massachusetts

In Massachusetts state statute Chapter 175 spells out the dos and don’ts for insurance companies.  As a service to our clients we won’t make you read the whole chapter to learn the basics of life insurance policy holder rights.  Read on for important information that is sure to pertain to any life insurance buyer in the state.

Free LookMassachusetts

Owning a policy starts here.  Immediately upon policy delivery, you will be asked to sign a policy delivery receipt, acknowledging that you have received your new life insurance policy.  From this moment onward, you have 10 days in which to return your policy for a full refund, no questions asked.  This free look period is given to policy holders because life insurance contracts may be long documents, which are not easy to read and understand in a short time period.  The great state of Massachusetts, in all their wisdom, has decided that policy owners need a little more time to fully digest the meaning of their life insurance.  The insurance companies can never charge fees or penalties for returning a policy, and the insurance company is obligated to pay a death claim payout if an insured dies during this period.

Grace Period

The grace period in Massachusetts is a respectable 30 days.  This is very standard nationwide, and sets a minimum amount of time that a life insurance company must still pay a death claim after a missed premium payment.  Grace period laws were put in place to prevent insurance companies from claiming that death benefits did not need to be made to beneficiaries for slightly past due premiums.  The grace period also benefits the insured person, because it keeps the policy active and prevents him from having to go through the underwriting process again, as long as the missed premium is made up.

Guarantee Of Benefits

Massachusetts has the well being of its residents in mind when it formed the Massachusetts Life and Health Insurance Guaranty Association.  This association is tasked with providing insurance for the insurance companies in a way, by guaranteeing that death benefit claims are paid out even in the event an insurance company becomes insolvent.  The death claims are limited to a maximum of $300,000 per insured person regardless of the size of policies outstanding or number of policies.  The Massachusetts Life and Health Insurance Guaranty Association also backs the cash value of life insurance policies for policy owners up to $100,000 in lost surrender value.

Timely Payment of Death Claims

Massachusetts encourages life insurance companies to pay claims quickly be making them pay interest on any claim outstanding longer than 30 days. They also require that companies make payments with an unreasonable delay, and as a result most claims in Massachusetts are handled in a expeditious manner.

Massachusetts Division of Insurance

Telephone:  800-272-4232


Massachusetts Life & Health Insurance Guaranty Association

PO Box 3171

Springfield, MA  01101-3171

Telephone:  413-744-8483