10 Best Life Insurance Companies in Arizona
Key Terms
- Arizona, known for its stunning landscapes, offers a range of life insurance options tailored to the needs of its residents.
- Life insurance in Arizona includes whole and term life policies, providing financial security for beneficiaries in case of policyholder death.
- State-specific regulations, such as grace periods and claims settlement timelines, ensure consumer protection in the life insurance market.
Famously known as the Grand Canyon State, Arizona captivates with its breathtaking landscapes and strategic Southwest location, bordered by California, Nevada, Utah, and New Mexico. Phoenix, the vibrant capital, is a bustling hub for living and business, attracting around 1.6 million of the state’s 7.3 million residents.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Arizona is approximately 76.3 years which is significantly lower than the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Arizona have been cancer, heart disease, and Covid-19. The homicide rate in Arizona is about 7.5 homicides per 100,000 residents, which is exactly the national average.
According to the U.S. Bureau of Labor Statistics, in Arizona, the 90th percentile income is currently $98,860. The median income in the state is approximately $39,500. Most financial advisors recommend acquiring a life insurance policy that covers your loved ones for between 10X and 20X your yearly earnings. In Arizona, this amounts to around $988,600 – $1,977,200 dollars for most individuals.
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How life insurance works in Arizona
There are many kinds of insurance to purchase from an insurance agency, including disability insurance, health insurance, and auto insurance. However, this article focuses on the financial services product known as life insurance. In the state of Arizona, there are many different life insurance companies, and they all have their own packages and plans. That said, the general idea is the same with all of them. You pay a monthly premium, and if you pass away during the term of your life insurance policy, then your loved ones will receive a set amount of cash value known as the death benefit.
There are two different types of life insurance policies to be aware of: whole life insurance and term life insurance. With whole life insurance, also known as permanent life insurance or universal life insurance, is a type of life insurance product where you pay premiums throughout your entire life, and when you die, your beneficiaries will receive the amount of coverage provided for in the policy. Whole life insurance policies usually involve a mix of investing and insurance making them more complicated to understand.
Term life insurance plans are a bit different. With this type of insurance, you pay premiums for a set number of years or time frame, and when that time (or “term”) is up, the policy expires. Term life insurance policies are more affordable than whole life policies and act strictly as insurance. You pay the premium and if you die during the term you collect the benefit.
In the end, it comes down to this: life insurance is for peace of mind. If you have people in your life who depend on you financially, then you should make sure that they’ll be taken care of financially if something happens to you. Life insurance is one of the best ways to do that.