- Life Insurance covers the expenses that arise when somebody passes away.
- Life Insurance provides peace of mind for you and your family.
- Louisiana life insurance companies can help you find a policy to suit your needs and budget.
Louisiana is known as the Pelican State and is located in the southern United States. It’s bordered by Arkansas to the north, Mississippi to the east, and Texas to the west. With a population of 4.66 million people, it’s the 25th-most populous state. The largest city in Louisiana is New Orleans which has a population of 399,187 residents. The state capital is Baton Rouge which has a population of 221,599.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Louisiana is approximately 73.1 years which is significantly 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 Louisiana have been heart disease, cancer, and Covid-19. The homicide rate in Louisiana is around 19.9 homicides per 100,000 residents, which is much higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Louisiana, the 90th percentile income is currently $80,950. The median income in the state is approximately $37,320. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Louisiana, this works out to around $809,500 – $1,619,000 dollars for most people. You can learn more from the Louisiana department of insurance (LDI)
An insurance agency is a business that sells insurance products on behalf of one or more insurance companies. Life insurance quotes are estimates of the cost of a life insurance policy, based on the provided information about the policyholder. Life insurance plans are specific policies that provide death benefit protection to policyholders and their beneficiaries. Insurance products, such as life insurance and health insurance, provide financial protection against various risks. Annuities are financial products that provide regular payments to policyholders over a specified period of time. Accessibility to these products is often facilitated by insurance agencies.
How life insurance works in Louisiana
Life insurance is typically straightforward and easy to understand. The way it works is that you pay a premium for a policy, and if you die during the term of the policy, your beneficiaries are paid a death benefit. This is typically a lump sum of money that is paid out to your loved ones. The money can be used for anything they see fit, including funeral expenses, debts, living expenses, or anything else.
There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, usually 10-30 years. Once this term expires, so does your coverage. If you die during the term of the policy, your beneficiaries will receive the death benefit.
Whole life insurance provides coverage for your entire life. As long as you continue to pay the premiums, your beneficiaries will receive the death benefit when you die. Whole life policies is more expensive, and as long as you pay your premiums, you’ll never need to worry about your policy expiring.
Most people should be looking at term life insurance and investing the savings in a separate investment account. If you’re not sure which type of life insurance is best for your situation, then it’s always best to speak with an insurance agent about your options.
10 Biggest life insurance companies in Louisiana
Louisiana life insurance companies ranked by premiums written in the state.
|1||New York Life||$242,620,120||9.19%|
|8||Mass Mutual Life Ins||$75,182,694||2.85%|
|9||Southern Farm Bureau Life Ins||$70,704,810||2.68%|
|10||Aegon Us Holding||$65,823,114||2.49%|
How much life insurance do you need in Louisiana?
The 90th percentile salary in Louisiana is approximately $80,950. 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 Louisiana that works out to around $809,500 – $1,619,000 life insurance coverage. 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
Louisiana Life insurance laws
There are a few unique features with respect to Louisiana 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: In Louisiana, policyholders are entitled to a 10-day free look period, during which you can decide whether you want to keep a life insurance policy or cancel it without any penalty.
- Grace Period for Missed Payments: Louisiana laws state that policyholders have a grace period of 30 days to settle any missed payments after the due date. Having a grace period ensures that insurers cannot cancel your policy within that period.
- Time Allowable to Settle a Claim: For beneficiaries to receive benefits, they must file a claim with the insurer. Once a claim is made, all life insurance companies in Louisiana must settle the claim within 30 days after an agreement was made in writing.
- Contestable Period: To protect the insurer against fraud, Louisiana has a contestability period of two years. This means that insurance companies can review your coverage for anything on your application process, such as an undisclosed disease, if the policyholder dies within two years of taking out the policy. In addition, this means that if the policyholder dies within two years of purchasing the policy, the insurance company can legally contest a payout. After this two years the policy will become incontestable.
Life insurance is an important part of your financial planning, and it’s something that everyone should consider. If you’re not sure where to start, talk to your financial advisor or an insurance agent about your options. They can help you understand the different types of policies available and how they work. And once you have a policy in place, be sure to review it regularly to make sure it still meets your needs.
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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.