- Life Insurance covers the expenses that arise when somebody passes away.
- Life Insurance provides peace of mind for you and your family.
- New Hampshire life insurance companies can help you find a policy to suit your needs and budget.
New Hampshire is known as the Granite State and is located in the north-eastern United States. It’s bordered by Maine to the east, Massachusetts to the south, and Vermont to the west. With a population of 1.35 million people, it’s the 41st-most populous state. The largest city in New Hampshire is Manchester which has a population of 112,525 residents. The state capital is Concord which has a population of 43,412.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in New Hampshire is approximately 79 years which aligns with 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 New Hampshire have been cancer, heart disease, and accidents. The homicide rate in New Hampshire is so low that it’s listed as “Not Applicable” on the CDC website.
According to the U.S. Bureau of Labor Statistics, in New Hampshire, the 90th percentile income is currently $102,100. The median income in the state is approximately $46,960. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In New Hampshire, this works out to around $1,021,000 – $2,042,000 dollars for most people.
An independent insurance agent can help you navigate the insurance industry. They work for insurance agencies and will help you consider the different types of coverage and insurance products and insurance options to determine how much life insurance coverage you need. They can also help you run life insurance quotes.
How life insurance works in New Hampshire
Life insurance is one of the best ways that you can protect your loved ones when you pass away. The idea is pretty simple. You pay a monthly premium in exchange for a death benefit which is paid out to your beneficiaries when you die. That said, there are a few different types of life insurance policies.
Whole life insurance is one of the two main types of permanent life insurance (the other being term life insurance). Unlike term life insurance, which only covers you for a specific period of time, whole life insurance covers you for your entire life. This means that as long as you pay your premiums, your beneficiaries are guaranteed to receive your death benefit, no matter when you die.
Whole life insurance also has a cash value component. When you purchase a whole life insurance policy, part of your premium goes into a cash account that you can access while you’re alive. You can take out loans against the cash value of your policy or use it to pay your premiums if you run into financial difficulties. Whole life insurance is complicated and mixes insurance and investing, which is generally not a good idea.
Term life insurance is a bit different. It’s a temporary life insurance policy that only covers you for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive your death benefit. If you don’t die during that time frame, the policy expires, and your beneficiaries don’t receive anything. It costs significantly less than whole life insurance and acts as a true insurance policy covering a risk of a premature death.
Universal life insurance is another option. Universal life insurance policies have a death benefit and a cash value component, like whole life insurance policies. However, the cash value component grows at a faster rate than it does with whole life insurance. This means that you can access your cash value sooner and use it for things like supplemental retirement income or to pay your premiums. In the State of New Hampshire the New Hampshire insurance department regulates the industry.
10 Biggest life insurance companies in New Hampshire
New Hampshire life insurance companies ranked by premiums written in the state.
|Rank||Company Name||New Hampshire|
|2||New York Life||$67,525,651||9.06%|
|3||Mass Mutual Life Ins||$63,494,839||8.52%|
How much life insurance do you need in New Hampshire?
The 90th percentile salary in New Hampshire is approximately $102,100. 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 New Hampshire that works out to around $1,021,000 – $2,042,000. 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 supplemental 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
New Hampshire life insurance laws
There are a few unique features with respect to New Hampshire 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:
- The Free Look Period: During this period, a customer in New Hampshire can return their policy and get a full refund, with no penalties or fees involved up to 10 days after the day of delivery. This allows customers to understand the insurance contract terms better and decide if the policy meets all their needs.
- Grace Period: New Hampshire mandates a grace period of a minimum of 30 days. During this time, you can settle missed payments even after a premium due date to bring your policy back to good standing. In addition, the policy remains active for this time, and the provider cannot refuse a claim if the policyholder passes away.
- Contestable Period: Life insurance policies in New Hampshire become incontestable after a maximum of two years. Insurers can review the claim and the policyholder’s records for inconsistencies or inaccuracies during the contestable period.
- Time Allowed for Settlement: Once a life insurance provider in New Hampshire receives adequate documents regarding proof of death, they must settle the payment within a maximum period of 30 days, beyond which the provider would need to pay interest on the unpaid amount.
- Guarantee of Payment: Policyholders who are residents of New Hampshire remain protected, up to certain limits, regarding policies issued by insolvent providers or declare bankruptcy through the New Hampshire Life and Health Insurance Guaranty Association, established by the New Hampshire legislation.
Most people need life insurance because they have dependents who rely on their income. If you die, your dependents will still need to pay bills and live their lives. Life insurance can help make sure they don’t have to worry about money while they’re grieving your loss. Nobody knows what the future has in store for us. By taking out a life insurance policy, you can ensure that your family is protected no matter what.
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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.