Key Terms
- Life Insurance covers the expenses that arise when somebody passes away.
- A good life insurance policy can cover your mortgage payments, your child’s education, and even therapy for your loved ones and dependents should you pass unexpectedly.
- Mississippi life insurance companies can help you find a policy to suit your needs and budget.
Mississippi is known as the Magnolia State and is located in the southern United States. It’s bordered by Tennessee to the north, Alabama to the east, Louisiana to the south, and Arkansas to the west. With a population of 2.98 million people, it’s the 34th-most populous state. The largest city in Mississippi is Jackson which has a population of 164,422 residents. Jackson is also the state capital.
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 heart disease, cancer, and Covid-19. The homicide rate in Mississippi is around 20.5 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 Mississippi, the 90th percentile income is currently $76,110. The median income in the state is approximately $35,070. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Mississippi, this works out to around $761,100 – $1,522,200 dollars for most people.
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).
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.
10 Biggest life insurance companies in Mississippi
Mississippi life insurance companies ranked by premiums written in the state.
| Rank | Company Name | Mississippi Premiums Written | Mississippi Market Share |
|---|---|---|---|
| 1 | Sammons Enterprises | $111,827,995 | 7.22% |
| 2 | Mass Mutual Life Ins | $93,159,091 | 6.01% |
| 3 | New York Life | $92,883,145 | 5.99% |
| 4 | Southern Farm Bureau Life Ins | $86,928,226 | 5.61% |
| 5 | State Farm | $71,456,491 | 4.61% |
| 6 | Metropolitan | $59,627,998 | 3.85% |
| 7 | Prudential | $52,651,964 | 3.40% |
| 8 | Northwestern Mutual | $51,537,786 | 3.33% |
| 9 | Globe Life Inc | $49,302,830 | 3.18% |
| 10 | Lincoln National | $49,070,267 | 3.17% |
How much life insurance do you need in Mississippi?
The 90th percentile salary in Mississippi is approximately $76,110. 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 Mississippi that works out to around $761,100 – $1,522,200. 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
Mississippi Life insurance laws
There are a few unique features with respect to Mississippi 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. There is no free look period in Mississippi.
- Grace period: As with most US states, policyholders of Mississippi 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 Mississippi, providers must pay out a claim within 30 days after receiving death paperwork. If the provider does not pay within this deadline, they must pay interest on the amount owed.
- Incontestability and contestable period: In Mississippi, 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.
Most people purchase insurance policies for peace of mind. Knowing that you and your loved ones are protected financially if something happens to you can be a great source of comfort. There are many other benefits to having an insurance policy as well. For example, life insurance can be used to help pay off debt, cover funeral costs, and provide financial security for your family. In short, having an insurance policy is one of the best ways to protect yourself and your loved ones. If you don’t have a policy, now is the time to get one.
Looking for life insurance companies in a different state?
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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.
