10 Best Life Insurance Companies in Maryland
Key Terms
- Maryland residents face lower-than-average life expectancy and higher homicide rates, influencing life insurance needs.
- Life insurance in Maryland is crucial for financial security, with policies recommended to cover 10x-20x annual income.
- Maryland insurance laws provide consumer protections like grace periods and claim settlement timelines.
Strategically located in the eastern U.S., Maryland, the Old Line State, is bordered by Pennsylvania, Delaware, and Virginia. Home to 6.04 million people, it ranks as the 18th-most populous state, with Baltimore as its largest city and Annapolis as its capital.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Maryland is approximately 76.8 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 Maryland have been heart disease, cancer, and homicide. The homicide rate in Maryland is about 11.4 homicides per 100,000 residents, which is higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Maryland, the 90th percentile income is currently $126,610. The median income in the state is approximately $48,460. Most financial advisors recommend acquiring a life insurance policy that covers your household for between 10X and 20X your annual earnings. In Maryland, this amounts to around $1,266,100 – $2,532,200 for most individuals.
Life insurance coverage provides financial protection to policyholders’ beneficiaries in the event of the policyholder’s death. An insurance agency is a business that sells insurance products on behalf of one or more insurance companies. Health insurance is a type of insurance that covers the costs of medical care. Annuities are financial products that provide regular payments to policyholders over a specified period of time. Life insurance and health insurance are both important forms of insurance that can provide financial security and peace of mind to individuals and families. An insurance agency can help individuals and businesses choose the right insurance products to meet their needs.
Show Me Life Insurance Companies
How life insurance works in Maryland
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.
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. Because your beneficiaries are guaranteed to get the benefit, whole life insurance is significantly more expensive.
The main difference between whole life insurance and a term life insurance policy 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. Most people will prefer simple term life insurance.
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 contracts, as they can help you choose a policy that suits your needs and budget. In the state of Maryland, the Maryland insurance administration provides more information about the insurance industry.