10 Best Life Insurance Companies in Kansas
Key Terms
- Life insurance in Kansas offers options like term and whole life policies, tailored to individual needs and budgets.
- Kansas insurance laws include a 30-day grace period for late premium payments but no mandatory free look period.
- Adequate coverage in Kansas should be 10X to 20X of annual income, factoring in mortgage, education, and other expenses.
In the heart of the U.S., Kansas, affectionately known as the Sunflower State, is bordered by Nebraska, Missouri, Oklahoma, and Colorado. With a population of 2.9 million, it boasts Wichita as its largest city and Topeka as the capital, making it the 35th-most populous state.
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 cancer, heart disease, and homicide. The homicide rate in Kansas is about 7.0 homicides per 100,000 inhabitants, which is comparable 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 acquiring a life insurance policy that covers your loved ones for between 10X and 20X your annual earnings. In Kansas, this amounts to around $843,900 – $1,687,800 for most individuals.
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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.