10 Best Life Insurance Companies in Delaware
Key Terms
- Delaware’s lower-than-average life expectancy highlights the importance of securing adequate life insurance coverage for high-income professionals.
- Choosing between whole life and term life insurance involves evaluating cost, investment potential, and the certainty of receiving a death benefit.
- Understanding Delaware-specific insurance laws, such as the grace period and incontestability clauses, ensures proper financial protection for beneficiaries.
Known as the First State, Delaware offers high-income professionals a unique mix of small-town charm and strategic East Coast access. With Wilmington as its largest city and Dover as the capital, Delaware is ideally situated for both business and leisure, nestled between Pennsylvania, New Jersey, and Maryland.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Delaware is approximately 76.7 years which is 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 Delaware have been heart disease, cancer, and homicide. The homicide rate in Delaware is about 9.9 homicides per 100,000 inhabitants, which is higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Delaware, the 90th percentile income is currently $107,540. The median income in the state is roughly $46,700. Most financial advisors recommend acquiring a life insurance policy that covers your loved ones for between 10X and 20X your annual earnings. In Delaware, this amounts to around $1,075,400 – $2,150,800 dollars for most individuals.
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How life insurance works in Delaware
The way life insurance works is that you pay a premium and in return your named beneficiaries receive a specified amount of money upon your death. There are many different types of life insurance policies, but one of the most common is called term life insurance.
With term life insurance, the premium is fixed for a specified period of time (the “term”). If you die during the term, your named beneficiaries will receive the death benefit. If you don’t die during the term, then no death benefit is paid out, and you lose the premiums you paid into.
Another type of life insurance is called whole life insurance. With whole life insurance (also known as universal life insurance), the premium is also fixed, but it is paid for your entire life. When you die, your named beneficiaries will receive the death benefit.
When purchasing life insurance, you must purchase through a life insurance agent (either a captive agent that works for a single life insurance company or an independent agent who can shop your case around multiple insurance companies). It is important to check life insurance agents NAIC code to ensure that they are properly liscenced and you should also keep in mind that life insurance products (like variable annuities) are not backed by the state of Delaware or any federal government agency.
The death benefit is meant to pay off your liabilities and to provide support to your beneficiaries in the event of a premature death, particularly to those people who rely on your income.
The main difference between whole life insurance and term life insurance is that with whole life insurance, you are guaranteed to receive the death benefit as long as you continue to pay the premium. With term life insurance, there is no death benefit if you live past the term of the policy. For those reasons, whole life insurance is much more expensive and also involves a complicated mix of insurance and investing. Most people are going to want to purchase simple term life insurance and use the extra money to invest in investment accounts.
Regardless of which type of life insurance policy you choose, it’s important to make sure that you name your beneficiaries correctly. If you do not name your beneficiaries correctly, the death benefit may not be paid out according to your wishes. You should also consult with a licensed insurance agent before signing any contract, as they can help you choose a policy that suits your needs and budget.