10 Best Life Insurance Companies in Mississippi
Key Terms
- In Mississippi, life insurance policies range from term life, offering temporary coverage, to whole life insurance, providing lifelong benefits and cash value.
- Mississippi’s unique life insurance laws include no free look period, a 30-day grace for payments, and a 30-day claim settlement rule.
- Financial advisors suggest policies covering 10X–20X annual income, ensuring family stability through coverage of mortgages, education, and final expenses.
Affectionately known as the Magnolia State, Mississippi is a southern gem bordered by Tennessee, Alabama, Louisiana, and Arkansas. Its capital, Jackson, is home to a vibrant community of over 164,000 residents, contributing to the state’s nearly 3 million population.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Mississippi is approximately 71.9 years which is much 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 Mississippi have been cancer, heart disease, and COVID-19. The homicide rate in Mississippi is around 20.5 homicides per 100,000 residents, which is significantly higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Mississippi, the 90th percentile income is currently $76,110. The median earnings in the state is approximately $35,070. Most financial advisors recommend purchasing a life insurance plan that covers your loved ones for between 10X and 20X your annual income. In Mississippi, this equates to around $761,100 – $1,522,200 for most individuals.
You can speak to a life insurance agent who works at an insurance agency to discuss your life insurance needs. Based on your financial needs, they can find a life insurance plan for you that provides the right about of life insurance coverage. They can run a free quote on your coverage needs and find out how much the life insurance quote is for your term coverage based on the life insurance products your purchase.
The Mississippi insurance department handles the regulation of all underwriting entities and the insurance industry in general (including health insurance).
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How life insurance works in Mississippi
Life insurance is not as complicated as many people think. In fact, it’s really quite easy to understand. Like other types of insurance, you pay a premium to the insurance company, and the company pays a benefit to your beneficiaries if you die. There are different types of life insurance policies, but the two most common are term life and whole life.
Term life insurance is the most basic type of life insurance. You pay premiums for a set period of time, usually 10, 20, or 30 years. If you die during that time, your beneficiaries receive a death benefit. If you don’t die during that time, the policy expires, and you get nothing.
Whole life insurance (also called universal life insurance) is a more complex type of life insurance. You pay premiums for your entire life, and your beneficiaries receive a death benefit when you die. Whole life insurance also has a cash value component, which grows over time. You can use the cash value to pay premiums, or you can take it out as a loan.
In terms of purchasing life insurance, you have a few options. You can shop around online for quotes, or you can contact an insurance company. In almost all cases, it’s best to consult with a licensed insurance agent before signing up for a life insurance policy. An insurance company can help you understand your options and find the right policy for your needs.