- Life insurance provides money for people that were dependent on your income.
- A life insurance policy is one of the best ways to take the risk of a premature death off the table for your family.
- Connecticut life insurance companies can help you find a policy to suit your needs and budget.
Connecticut is also known as the Constitution State and is located in the eastern United States. It’s bordered by Massachusetts to the north, and New York to the east. With a population of 3.6 million people as of 2022, it’s the 29th-most populous state. The largest city in Connecticut is Bridgeport which has a population of 148,654 residents. The state capital is Hartford which has a population of 121,504.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Connecticut is approximately 78.4 years which is just under 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 Connecticut have been heart disease, cancer, and Covid-19. The homicide rate in Connecticut is around 4.6 homicides per 100,000 residents, which is lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Connecticut, the 90th percentile income is currently $82,760. The median income in the state is approximately $48,720. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Connecticut, this works out to around $827,600 – $1,655,200 dollars for most people.
How life insurance works in Connecticut
If you have a family or other people who depend on your income, then life insurance is a good idea. Life insurance coverage is similar to other types of insurance, like auto insurance or disability insurance. In simple terms, it protects your loved ones financially if you pass away. This is usually done by paying out a lump sum to your beneficiaries. In some cases, it can also provide an income, either for a set period or for life.
There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance lasts for a set period of time and pays out a death benefit if you die within that term. It does not build up any additional cash value. Whole life insurance (also known as permanent life insurance or universal life insurance) covers you for your whole life and pays out a death benefit whenever you die. A whole life policy also builds up cash value that you can borrow against, withdraw, or use as an investment.
When it comes to choosing a life insurance policy, there are a few things you should consider. First, you need to determine how much coverage you need. This will depend on your financial situation and your dependents. Next, you need to decide what type of policy is best for you. Term life insurance is cheaper, easy to understand and doesn’t mix insurance and investing. Whole life insurance is more expensive, mixes investing and insurance and is complicated to understand. Most people should choose term life insurance.
No matter what type of policy you choose, make sure you shop around and compare rates from different companies before buying, and always consult with a licensed insurance agent before you sign a contract. It is important to compare life insurance quotes from various insurance companies.
An insurance agent will be able to answer any questions you may have, and you’re legally required to buy insurance through an insurance agent anyway, so it makes sense to work with an independent insurance agent who can shop your policy against multiple carriers.
10 Biggest life insurance companies in Connecticut
Connecticut life insurance companies ranked by premiums written in the state.
|3||Mass Mutual Life Ins||$235,233,418||8.28%|
|4||New York Life||$210,956,264||7.43%|
|9||Hartford Fire & Cas||$71,607,925||2.52%|
How much life insurance do you need in Connecticut?
The 90th percentile salary in Connecticut is approximately $82,760. As mentioned, most financial advisors recommend that you purchase a life insurance policy that will cover your beneficiary for at least 10X – 20X your average annual income. In Connecticut that works out to around $827,600 – $1,655,200. 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:
- The remaining balance owed on your primary residence (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
Connecticut life insurance laws
There are a few unique features with respect to Connecticut Life Insurance Laws that have an impact on your specific policy if you are a resident of the state. You can also look into the Connecticut Insurance Department for more information.
aHere’s what you need to know:
- The Free Look Period: This is the required time period in which a new policy owner can terminate the policy without any penalties. The free look period in the state of Connecticut is 10 days.
- 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. In Connecticut, the grace period is 60 days. After the grace period has passed, the insurer can cancel your policy.
- Allowable Timelines for Claims Settlement: The Connecticut Insurance Code requires the insurer to settle claims promptly. Usually, claims must be settled within 30 days.
- Contestable Period: the contestable period is the amount of time an insurer can challenge any potentially fraudulent or misrepresented claims on the coverage application. In Connecticut, this period is two years, after which the policy is usually considered incontestible.
There are a lot of different types of life insurance policies out there for a Connecticut resident, so it’s important to do your research and find the one that’s right for you. But in general, life insurance is a way to help your loved ones cover expenses like funeral costs, outstanding debts, and living expenses if you’re no longer around to provide for them. When you pass away, your family will be grieving and going through a very traumatic period, by ensuring that they have the financial means to carry on, you can ease their suffering, and set them up for a bright future.
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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.