UPDATED: Mar 26, 2020
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Term life insurance pricing is based on several factors such as age, gender, nicotine use and health status, among others. You may have noticed one thing missing from this list – state of residence. Term life insurance is unique in that where you live does not influence the amount you will pay for a policy.
Other types of insurance such as auto, homeowners, and health vary in cost depending on where you live. Not only can these policies differ from state to state, they often vary from county to county, zip code to zip code and city to city.
For instance, let’s look at homeowners insurance. Say you live in a hurricane-prone area such as the Gulf Coast. Homeowners in Florida will pay more for their coverage because of increased risk of damage to their homes from hurricanes.
Health insurance rates often vary from city to city, based on factors such as Availability of services, utilization, and local health care costs. For example, Sam is a 43-yr old male living in Anaheim, CA (Orange County). He can buy a health insurance policy from Anthem Blue Cross for $270 per month. However, if Sam moves north to Auburn, CA (Placer County), that same policy will cost him $373 per month, over $100 more!
But what about term life insurance? Well, you’re in luck. No matter what city, county or state you live in your cost will be the same. So why do we ask for your zip code on our home page and what state you live in on our quote questionnaire? It’s because life insurance forms differ by state, so we need to make sure we fill the correct ones out for you.
What Differs by State?
There are a few things about term life insurance that do vary by state.
You may notice we ask for your zip code on our home page and the state you live in on our quote questionnaire. Why would we want that information? It’s because life insurance forms differ by state, so we need to make sure we fill the correct ones out for you. State regulations also require that you sign your application in the state you reside in, as well as accept delivery of your policy in your resident state.
Insurance Guaranty Associations
The National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) is an organization of state guaranty associations that protects consumers in the event a life or health insurance company collapses financially. Each state has an association, and state laws determine the types of insurance covered and the dollar amount of protection.
You can find your state guaranty association here.
State Insurance Departments
Life insurance is regulated at the state level in the U.S. Therefore; each state has an insurance department in place to administer and regulate coverage. State insurance departments have multiple roles such as licensing insurance companies, agents and brokers, upholding state insurance laws and consumer protection and assistance. For example, you can search for agents and brokers by name to make sure the company or person you are working with is licensed in your state.
You can find your state insurance department here.
New State Term Life Insurance Resources
We’ve recently gathered all this state-specific information in one place on our new state term life pages. You can easily find your state on our map and view everything we’ve discussed in this post!