Keystone State residents who are about to purchase new life insurance policies may not know all the rules, but lucky for you Life Ant does. We have sorted through the minutia of state charters so you don’t have to. Below are the Pennsylvania specific laws and regulations pertaining to your rights as a policyholder in the state of Pennsylvania. We have also compiled a list of the best life insurance companies in the state for when you are ready to make your purchase.
Skip below to:
- Pennsylvania’s Life Insurance Laws
- Guaranteed Benefits and Cash Value
- The Top 10 Best Life Insurance Companies in Pennsylvania
Pennsylvania Life Insurance Rules and Regulations
Life Insurance in Pennsylvania is regulated under Title 40 of the state statutes. These laws describe proper conduct for life insurance companies operating in the state and spell out certain rights that all policyholders are entitled to.
In Pennsylvania, an owner of a new policy is entitled to a 10 day free look period. The free look period is in place so owners can consider every detail of their policy carefully, and decide if the life insurance really is for them. During the free look period, insurance companies must accept returns of policies in exchange for a full refund. It is illegal to charge any penalties or fees during the free look period. Not all states provide a free look period, but most do. Some types of policies may have longer free look periods than 10 days.
The time after a missed payment begins the grace period. During the grace period, an insurance company must still pay a death claim payout if an insured dies. Even though a premium payment is late, the policy must remain in force during this time. If payment is made by the owner, the insurance company must restore the policy to good standing, and any subsequent late payments will start a new grace period. The grace period in Pennsylvania is 30 days long.
Guaranteed Benefits and Cash Value
The sage lawmakers of Pennsylvania realize that not all insurance companies are as financially responsible as Life Ant. Because policyholders can not control how financially responsible their company is, a certain level of benefits are guaranteed by the Life & Health Insurance Guaranty Association of Pennsylvania. They will not cover an unlimited amount, however, and the maximum death benefit coverage is $300,000 and the maximum amount of cash surrender value protected is $100,000.
Pennsylvania Life & Health Insurance Guaranty Association
290 King of Prussia Road
Radnor, PA 19087
Timely Payments Or Interest
Any insurance claim in Pennsylvania that is not paid in a timely manner may cause the insurance company to owe interest payments on top of the claim amount to the policy beneficiaries. The time period that causes interest to begin accruing can vary depending on the exact policy, but most claims in Pennsylvania are settled within about 2 months.
Pennsylvania Department of Insurance
The 10 Best Life Insurance Companies in Pennsylvania
Twenty-two companies offer life insurance in Pennsylvania, and the best insurance company for life insurance in Pennsylvania is State Farm. State Farm has exceptional coverage for non-smoking individuals. On average, a single 25-year old male will pay an annual premium of only $164. A 65-year old male will pay, on average, $955 a year. This is almost $100 cheaper than the next most affordable company. State Farm has the “Calculate My Life” tool to help you figure out how much life insurance coverage you need. They offer term life, whole life, and universal life insurance.
Erie Insurance was founded in 1925 by H.O. Hirt and O.G. Crawford. Mr. Hirt and Mr. Crawford wanted to create an insurance company where customer satisfaction and service were important. Founded in Pennsylvania, Erie Life Insurance is ranked number one by A.M. Best with a rating of an A (Excellent). It offers term life, whole life, and universal life. Erie Insurance has a unique policy called ERIExpress Life. This policy is easy to get and easy to afford. The application process is simple and Erie Insurance has a fast approval time for its ERIExpress Life.
Lincoln Financial Group
Lincoln Financial Group has a long history of excellent customer satisfaction. This outstanding customer service makes it one of the best life insurance companies in Pennsylvania. They have a strong financial foundation and are committed to helping their customers find the right life insurance policy to protect their loved ones. Lincoln Financial Group gives you the opportunity to compare the types of life insurance they offer side-by-side to see all your options. Lincoln Financial Group offers term life and universal life. They believe getting coverage should be easy. They provide a streamlined process with excellent customer service. Lincoln National Corporation backs Lincoln Financial; it’s parent company.
New York Life
Founded 175 years ago, New York Life Insurance Company is one of Pennsylvania’s best life insurance companies because of its dependability. New York Life is available during the most challenging times in your life, and as you work to protect your loved ones and families. New York Life offers term life insurance, whole life insurance, universal insurance, and variable universal life insurance. New York Life encourages individuals to connect to one of their financial professionals to get a customized plan, so you aren’t paying for more coverage than you need.
Prudential Financial is one of the largest life insurance companies in the United States. This is true for Pennsylvania as well. They offer a broad range of life insurance coverage, including universal and term life insurance. Prudential allows you to customize your coverage to meet your needs. Our favorite aspect of Prudential life insurance is its SimplyTerm insurance. This insurance is conveniently sold online with policy approval in just a few days. There is no medical exam needed for this policy for most applicants. The available terms are 10, 20, or 30 years. In J.D. Power’s 2019 life insurance customer satisfaction study, Prudential scored above average in overall customer satisfaction.
MassMutual is another one of the largest life insurance companies in the U.S. It is one of the best life insurance companies in Pennsylvania because of the full range of financial products and services. Owned by the policyholders, MassMutual pays dividends to eligible policyholders. Much like Prudential, MassMutual received an above-average rating in overall customer satisfaction in the 2019 J.D. Power Life Insurance Study. They scored above average in their wide range of policy offerings. There is something for everyone at MassMutual.
Transamerica wants to help individuals build a better tomorrow. If you are a smoker, you should look into TransAmerica. Many life insurance companies exclude smokers, but Transamerica does not exclude them. They may have to pay higher premiums, but Transamerica includes them and provides coverage. This commitment to inclusion and diversity makes it one of the best life insurance companies in Pennsylvania. Transamerica offers life insurance coverage up to $50,000 without a medical exam and even gives online quotes for some policies. Founded in 1904, Transamerica offers whole, term, universal, and index universal life insurance policies.
John Hancock Financial
John Hancock Financial cares about its policyholders and potential customers. This caring attitude makes John Hancock one of the best life insurance companies in Pennsylvania. John Hancock offers term life or permanent life coverage for people who have diabetes. This coverage is very uncommon. Not only does John Hancock provide coverage for Type 1 and Type 2 diabetics, but it also provides a diabetes management app and health coaching. John Hancock provides all policyholders with their Vitality Program. This wellness program rewards customers for the simple steps they take to live a longer, healthier life. Healthy activities earn points to spend on rewards. John Hancock goes the extra mile for its customers, making it one of Pennsylvania’s best life insurance companies.
Much like MassMutual, Northwestern Mutual pays eligible customers dividends at the end of the fiscal year. This payout is because the policyholders own the company. It is projected that policyholders will receive a portion of $6 billion in 2020. This is the highest payout in company history. Northwestern Mutual had some of the highest rankings in J.D. Power’s 2019 U.S. Life Insurance Study. It is one of the best life insurance companies in Pennsylvania because of the great prices for their term life, whole life, and universal life insurance policies.
Founded in Philidelphia, Pennsylvania, in 1847, Penn Mutual was the 7th Mutual company in the U.S. Although Penn Mutual does not offer quotes online, it does provide a knowledgeable network of financial advisors to help customers purchase the coverage they need. Penn Mutual offers a broad range of policies, including term, universal, variable universal, whole life, and survivorship life insurance. Penn Mutual’s customer communication and interaction make it one of the best life insurance companies in Pennsylvania. It is estimated Penn Mutual will payout $100 million to eligible policyholders in 2020.