- Life Insurance covers the expenses that arise when somebody passes away.
- A good life insurance policy can cover your mortgage payments, your child’s education, and even therapy for your loved ones and family members should you pass unexpectedly.
- Arkansas life insurance companies can help you find an insurance product that suits your needs and budget by running a life insurance quote.
Arkansas is known as the Natural State and is located in the south-central region of the United States. It’s bordered by Missouri to the north, Tennessee and Mississippi to the east, Louisiana to the south, Oklahoma to the west, and Texas to the southwest. With a population of 3.03 million people as of 2022, it’s the 33rd-most populous state. The largest city in Arkansas is Little Rock which has a population of 201,998. Little Rock is also the state capital.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Arkansas is approximately 73.8 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 Arkansas have been heart disease, cancer, and Covid-19. The homicide rate in Arkansas is around 13.0 homicides per 100,000 residents, which is much higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Arkansas, the 90th percentile income is currently $78,100. The median income in the state is approximately $36,680. Most financial advisors recommend purchasing a life insurance policy that provides life insurance coverage for your loved ones for between 10X and 20X your annual salary. In Arkansas, this works out to around $781,000 – $1,562,000 dollars for most people.
How life insurance works in Arkansas
A life insurance policy is basically a contract between you and the life insurance company. You agree to pay premiums to the company. In exchange, the company agrees it will pay a death benefit to your loved ones, which is typically a lump sum payout, if you pass away during the term of your policy. That said, there are several types of life insurance policies.
Term life insurance is the most basic and straightforward type of policy. It provides coverage for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive the death benefit. If you don’t die during that time frame, the policy expires, and you (or your beneficiaries) get nothing in terms of cash value or annuity payment.
Whole life insurance (also known as universal life insurance) is another option. This type of policy provides coverage for your entire life. As long as you continue to pay the premiums, the policy will remain in force and your beneficiaries will receive the death benefit whenever you pass away. Whole life insurance tends to be more expensive, but as long as you pay your premiums it’s guaranteed to pay out.
Ultimately, life insurance is a personal decision. Everybody has different needs from their policy. Therefore, it’s important to think about your situation and choose a policy that makes sense for you, your family, and your budget. You must purchase life insurance from an insurance agency and a licensed insurance agent.
10 Biggest life insurance companies in Arkansas
Arkansas life insurance companies ranked by premiums written in the state.
|1||Mass Mutual Life Ins||$126,904,030||8.73%|
|3||New York Life||$71,346,296||4.91%|
|7||Southern Farm Bureau Life Ins||$59,044,322||4.06%|
How much life insurance do you need in Arkansas?
The 90th percentile salary in Arkansas is approximately $78,100 as of 2022. As mentioned, most financial advisors recommend that you purchase a life insurance plan that will cover your beneficiary for at least 10X – 20X your average annual income. In Arkansas that works out to around $$781,000 – $1,562,000. This amount will ensure that your loved ones can continue to pay their bills, settle your debts, and cover the cost of your final expenses.
You may also want to purchase additional life insurance to cover:
- Your mortgage (if you want your spouse and kids to be able to live in the home without worrying about mortgage payments)
- Children’s education costs (if you want your child’s education to be covered without any additional stress to your spouse)
- Bereavement therapy costs for your spouse and children (if you want them to spend time with a therapist after your unexpected death)
- Any other expenses that may be unique to your family or lifestyle
Arkansas Life insurance laws
There are a few unique features with respect to Arkansas Life Insurance Laws that have an impact on your specific policy if you are a resident of the state. Further, you can learn more from the Arkansas insurance department about the Arkansas code of insurance.
Here’s what you need to know:
- Free look period: This is the required time period in which a new policy owner can terminate the policy without any penalties. Arkansas’s state law does not mandate a free look period for the insurance policies sold within the state. However, several insurers offer a reasonable period to their customers, usually between 7–30 days, to evaluate the policy and make a decision.
- Grace period: This is the amount of time a policyholder has to pay a missing premium without paying a penalty. During this time, the insurance coverage remains active. Insurers in Arkansas must give policyholders a minimum grace period of 30 days.
- Time period for claim settlement: In the case of a life insurance claim in Arkansas, the insurance provider must pay the claim to the beneficiary within two months. If claims are not settled promptly and fairly, the insurers may be severely penalized.
- Contestable period and incontestability of a policy: The contestable period is the amount of time an insurer can challenge any potentially fraudulent or misrepresented claims on the coverage application. After this period ends, the policy is usually considered incontestible. Life insurance policies in Arkansas become incontestable, except for nonpayment of premiums, after a maximum of two years.
Most people need life insurance because they have dependents who rely on their income. If you die, your dependents will still need to pay bills and live their lives. Life insurance can help make sure they don’t have to worry about money while they’re grieving your loss. Nobody knows what the future has in store for us. By taking out a life insurance policy, you can ensure that your family is protected no matter what.
Looking for life insurance companies in a different state?
If you want to find the best life insurance companies in other states, click on your state below.
Joshua Holt is a licensed insurance agent (License #2785989) and founder of Biglaw Investor and Sidebar Insurance LLC, an insurance agency created by lawyers, for lawyers. His insurance expertise lies in the areas of life and disability insurance, particularly covering lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.