Key Terms
- Life Insurance covers the large expenses that arise when somebody dies.
- Life insurance is the best way to protect your loved ones when you pass away.
- Kansas life insurance companies can help you find a policy to suit your needs and budget.
Kansas is known as the Sunflower State and is located in the central region of the United States. It’s bordered by Nebraska to the north, Missouri to the east, Oklahoma to the south, and Colorado to the west. With a population of 2.9 million people, it’s the 35th-most populous state. The largest city in Kansas is Wichita which has a population of 389,225 residents. The state capital is Topeka which has a population of 125,904.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Kansas is approximately 76.4 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 Kansas have been heart disease, cancer, and Covid-19. The homicide rate in Kansas is around 7.0 homicides per 100,000 residents, which is close to the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Kansas, the 90th percentile income is currently $84,390. The median income in the state is approximately $38,050. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Kansas, this works out to around $843,900 – $1,687,800 dollars for most people.
How life insurance works in Kansas
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.
Whole 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 is more expensive, but as long as you pay your premiums it’s guaranteed to pay out. Sometimes you will see whole life insurance described as universal life insurance, which is a type of policy that offers both death benefit protection and the ability to save for the future. The bottom line is that you’re probably better off sticking with cheap term life insurance policies.
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.
10 Biggest life insurance companies in Kansas
Kansas life insurance companies ranked by premiums written in the state.
| Rank | Company Name | Kansas Premiums Written | Kansas Market Share |
|---|---|---|---|
| 1 | Northwestern Mutual | $152,357,506 | 9.53% |
| 2 | New York Life | $111,180,924 | 6.95% |
| 3 | Prudential | $79,293,510 | 4.96% |
| 4 | Sammons Enterprises | $62,301,857 | 3.90% |
| 5 | Metropolitan | $56,420,013 | 3.53% |
| 6 | Mass Mutual Life Ins | $55,521,114 | 3.47% |
| 7 | State Farm | $54,818,249 | 3.43% |
| 8 | Lincoln National | $53,173,901 | 3.33% |
| 9 | Iowa Farm Bureau | $51,728,375 | 3.24% |
| 10 | Dai‐Ichi Life Holdings Inc | $36,619,706 | 2.29% |
How much life insurance do you need in Kansas?
The 90th percentile salary in Kansas is approximately $84,390. 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 Kansas that works out to around $843,900 – $1,687,800. 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
Kansas life insurance laws
There are a few unique features with respect to Kansas 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:
- No free look period: Kansas insurance laws do not provide a free look period when buying life insurance in Kansas. This means that it is up to the insurer to offer you a free look period during which you can cancel your policy and get a full refund. Some insurers may offer a free look period, but Kansas insurance laws do not require it.
- 30 Day grace period for premiums: if you are late on your premium payments, Kansas insurance laws mandate that you have a 30-day grace period to make the payment. This means that your insurance company will not cancel your policy provided you pay within the 30 day grace period.
- Life Insurance Guaranty in Kansas: if your insurer becomes insolvent, the Kansas Life & Health Insurance Guaranty Association will cover you for up to $300,000 death benefit per insured life and $100,000 cash surrender per insured.
Other products offered by life insurance companies in Kansas
Annuities are financial products that provide regular payments to policyholders over a specified period of time. Accessibility to these insurance products that offer insurance coverage is often facilitated by insurance agents working for an insurance agency.
Supplement insurance, such as long-term care coverage, can be added to a universal life policy to provide additional protection. An insurance company’s market share is the percentage of the total insurance market that it controls, often measured by enrollment numbers of policyholders. Group life insurance is a type of policy that provides coverage for a group of individuals, such as employees of a company.
When it comes to life insurance, there are a lot of misconceptions out there. A lot of people think that life insurance is only for people with dependents, or that it’s too expensive. But the truth is, life insurance is something that everyone should have. It’s not just for people with families, it’s for anyone who wants to make sure their loved ones are taken care of in the event of their death.
The bottom line is that life insurance is an important piece of the financial puzzle, and everyone should have a policy in place. If you don’t have life insurance, now is the time to get started on finding the right policy for you.
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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.
