Consumers of Life insurance in Tennessee, please be aware of your rights as policy holders and beneficiaries.  Each state in the country has it’s own life insurance regulations, and each state has laws that differ from the others.  Here are the most relevant rules in the state of Tennessee that every buyer and prospective buyer will have affect their policy ownership experience.

Life Insurance Rules and Regulations In Tennessee

Life insurance laws in Tennessee are regulated by Title 56 of the State Statutes.  If you do not want to read the entirety of Title 56, we don’t blame you.  That’s why we have included this handy guide of the most important points that are likely to influence your experience as a consumer of life insurance.

Free Look Period

In Tennessee, lawmakers know that life insurance policies can be difficult to comprehend in full at first glance, and impossible to consider each and every clause without a thorough review.  That is why when you purchase a new policy in Tennessee, you have 10 days to decide if the policy fits your needs, and if you would like to keep it.  If you decide to return the policy, you may do so for a full refund, without any fees or penalties.  This also will not affect your ability to qualify for life insurance in the future.  The period of time when you may return a policy for a full refund is known as the free look period.

Grace PeriodTennessee

In Tennessee, the grace period is 30 days in length.  This means that if you miss a premium payment, the insured will remain covered for 30 days even if the missed payment is not made up.  If the missed payment is made during this period, the policy will return to active status with the insurer, and any subsequent missed payment will cause a new grace period to begin.  There is no limit to the number of grace periods that a policy may enter.  If an insured dies during the grace period, the insurance company must make a full payment of the death claim to the beneficiaries, if the claim is valid.  The grace period also prevents policies from lapsing easily, which would require future underwriting for the insured.

Guarantee of Death Benefit and Cash Value

The Tennessee Life and Health Insurance Guaranty Association exists to help beneficiaries and policy owners in case a life insurance company becomes insolvent and is unable to make payments.  The maximum amount protected by the associate is $300,000 in missed death benefit payments, and $100,000 of lost cash surrender value.  These are limits per person, and are regardless of the size or number of insurance policies owned.

Tennessee Life & Health Insurance Guaranty Association

150 Third Avenue South, Suite 1600

Nashville, TN  37201

Telephone:  615-242-8758


Timely Payments Or Interest Accrues

In Tennessee, an insurance company has 60 days to pay a death claim to beneficiaries.  If a claim takes longer, the company must pay interest as well as the death claim.

Tennessee Department of Commerce and Insurance

Telephone:  615-741-2218