- 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 should you pass unexpectedly.
- Iowa life insurance companies can help you find a policy to suit your needs and budget.
Iowa is known as the Hawkeye State and is located in the north-central region of the United States. It’s bordered by Minnesota to the north, Illinois to the east, Missouri to the south, and Nebraska to the west. With a population of 3.15 million people, it’s the 31st-most populous state. The largest city in Iowa is Des Moines which has a population of 216,853 residents. Des Moines is also the state capital.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Iowa is approximately 77.5 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 Iowa have been heart disease, cancer, and Covid-19. The homicide rate in Iowa is around 3.6 homicides per 100,000 residents, which is much lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Iowa, the 90th percentile income is currently $81,660. The median income in the state is approximately $39,070. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Iowa, this works out to around $816,600 – $1,633,200 dollars for most people.
How life insurance works in Iowa
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 money.
There are two different types of life insurance policies to be aware of: whole life insurance and term life insurance. With whole life insurance, you pay premiums throughout your entire life, and when you die, your beneficiaries will receive the amount of coverage that you paid for.
Term life insurance is a bit different. With this type of insurance, you pay premiums for a set number of years, and when that time is up, the policy expires. Because term life insurance policies don’t mix investing and insurance, they are cheaper than whole life policies. Most people should purchase term life insurance.
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.
Life insurance policies aren’t the same as retirement plans and long-term care options and also don’t replace disability insurance policies that you need if you are unable to work. It’s best to work with an independent insurance agent when looking for insurance information as they can help you obtain life insurance quotes and coverage online.
Life insurance companies often work with insurance agencies to sell their policies to consumers. Insurance agencies are businesses that sell insurance products on behalf of one or more insurance companies. In addition to traditional life insurance policies, some life insurance companies also offer supplemental insurance products, such as accidental death insurance or critical illness insurance, which provide additional coverage for specific risks or events.
10 Biggest life insurance companies in Iowa
Iowa life insurance companies ranked by premiums written in the state.
|2||New York Life||$118,623,738||5.39%|
|3||Mass Mutual Life Ins||$105,682,550||4.80%|
|5||Iowa Farm Bureau||$94,753,249||4.30%|
|8||Thrivent Financial For||$71,683,768||3.26%|
|9||Dai‐Ichi Life Holdings Inc||$71,437,450||3.24%|
How much life insurance do you need in Iowa?
The 90th percentile salary in Iowa is approximately $81,660. 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 Iowa that works out to around $816,600 – $1,633,200. 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:
- 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
Iowa life insurance laws
There are a few unique features with respect to Iowa Life Insurance Laws that have an impact on your specific policy if you are a resident of the state.
Here’s what you need to know:
- Free Look period: Iowa, like most other states, gives life insurance policyholders 10 days to opt-out of their policy and get a full refund. This free look period allows you time to evaluate your policy and terminate it without penalty.
- Grace period for premium payment: If you miss a premium payment for your life insurance policy, Iowa insurance laws state that you have 30 days to make the payment. This means your insurer cannot cancel your policy and you will remain covered if you are within the 30-day grace period mandated by the state.
- Claim settlement period: If you have a life insurance policy in Iowa, your insurer is required to pay the claim within 30 days of it being filed. If they fail to pay within 30 days, the policy will start accruing interest, and the insurer will have to pay the policy’s value plus the interest.
- Personal information protection: Iowa insurance laws require the insurer to notify you on request if they have accessed your medical information or credit report.
- Guaranteed claim payment: Iowa, like most states, has a Guaranty Association to protect you if your insurer becomes insolvent. The Iowa Life and Health Insurance Guaranty Association will compensate your policy up to $300,000 for lost death benefits and $100,000 for lost cash value provided you are up to date with your premiums.
A life insurance policy is an important part of financial planning for anyone with dependents. It can provide peace of mind and financial security for your loved ones in the event of your death. Life insurance benefits can be used to cover a variety of expenses, including funeral and burial costs, outstanding debts, and daily living expenses. Life insurance can also be used to help your loved ones maintain their current lifestyle when you pass away.
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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.