- Life insurance is the best way to protect your loved ones when you pass 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.
- Michigan life insurance companies can help you find a policy to suit your needs and budget.
Michigan is known as the Great Lakes State and is located in the northern Great Lakes region of the United States. It’s only bordered by Indiana and Ohio to the south. With a population of around 10 million people, it’s the 10th-most populous state. The largest city in Michigan is Detroit which has a population of 672,662 residents. The state capital is Lansing which has a population of 118,427.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Michigan is approximately 76 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 Michigan have been heart disease, cancer, and Covid-19. The homicide rate in Michigan is around 8.7 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 Michigan, the 90th percentile income is currently $98,780. The median income in the state is approximately $45,190. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Michigan, this works out to around $987,800 – $1,975,600 dollars for most people.
An insurance agency is a business that sells insurance products (like annuities) on behalf of one or more insurance companies. Insurance products, such as life insurance and health insurance, provide financial protection against various risks. The amount of coverage that an individual needs can depend on their financial goals and obligations, such as providing for their family or saving for retirement. A life insurance plan is a specific policy that outlines the terms and conditions of an individual’s insurance coverage. Choosing the right insurance products and coverage amounts can help individuals and families protect their financial future.
How life insurance works in Michigan
There is no such thing as a one-size-fits-all life insurance policy. There are many different types of packages and policies, and which one you should choose depends on your unique situation. That said, the general idea behind life insurance is pretty easy to understand.
There are two main types of life insurance: term and whole life. Term life insurance is the most basic and straightforward type of policy. It pays out a death benefit if you die while the policy is still in force. Term life insurance is much cheaper than whole life insurance, because it only pays out if you die during the policy’s term. It doesn’t build up cash value as it’s not meant to be an insurance product and an investment product.
Whole life insurance (also called universal life insurance policies) is more complicated and more expensive but don’t have any timeframe associated with them. As long as you pay your premiums, a whole life policy will pay out whenever you happen to pass away. They also have a cash value component. The cash value grows over time, and you can access it while you’re still alive. You can use it to pay premiums, take out loans, or for other purposes.
You can shop around for life insurance quotes online, but after you’ve viewed quotes you’re still going to want to talk to a licensed independent insurance agent. An independent insurance agent can help you understand your options and choose a policy that’s right for you. They can also answer any questions that you may have about your coverage.
You can learn additional information about the state of Michigan from the Michigan department of insurance and financial services.
10 Biggest life insurance companies in Michigan
Michigan life insurance companies ranked by premiums written in the state.
|5||New York Life||$198,508,357||3.80%|
|7||Mass Mutual Life Ins||$171,433,628||3.29%|
How much life insurance do you need in Michigan?
The 90th percentile salary in Michigan is approximately $98,780. 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 Michigan that works out to around $987,800 – $1,975,600. 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
Michigan life insurance laws
There are a few unique features with respect to Michigan 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: The time between purchasing and committing to an insurance policy is usually referred to as the free look period. Michigan residents have 10 days to review the life insurance coverage they purchased. If they are dissatisfied, they may return it within this time frame and receive a refund without any penalty.
- Grace period: As with most US states, policyholders of Michigan also get a grace period of 30 days on their life insurance policies to pay their outstanding premiums.
- Time period for claim settlement: In the event of a life insurance claim in Michigan, the policyholder’s insurance provider must pay the claim to the beneficiary within 30 days of receiving proof of death.
- Incontestability and contestable period: In Michigan, a life insurance policy becomes incontestable when it has been in force for at least two years from the date of issue. After two years, the company will be unable to dispute the application for any mistakes or inconsistencies.
There are many different types of life insurance, but they all work by providing a death benefit to your beneficiaries if you die while the policy is in force. The death benefit can be used for anything your beneficiaries need, including paying off debts, covering living expenses or funding a child’s education. Life insurance is an important safety net for your family, and it’s worth considering if you have dependents who rely on you financially. Be sure to talk with a licensed insurance agent about which policy makes the most sense for you and your family.
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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.