10 Best Life Insurance Companies in Ohio
Key Terms
- Ohio residents should consider life insurance to ensure financial security for their families, covering debts, education, and final expenses.
- Understanding life insurance types—term and whole life—is crucial for choosing the right policy in Ohio, with term being more straightforward for most.
- Ohio life insurance regulations include vital protection features like a 30-day grace period and a maximum two-year contestable period.
Strategically located in the northern U.S., Ohio, known as the Buckeye State, shares borders with five states, including Michigan and Pennsylvania. With a population of 11.69 million, it ranks as the 7th-most populous state, and its capital, Columbus, is the largest city, home to 895,477 residents.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Ohio is approximately 75.3 years which is significantly 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 Ohio have been cancer, heart disease, and Covid-19. The homicide rate in Ohio is around 9.1 homicides per 100,000 inhabitants, which is higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Ohio, the 90th percentile income is currently $97,480. The median income in the state is approximately $39,680. Most financial advisors recommend obtaining a life insurance policy that covers your loved ones for between 10X and 20X your annual earnings. In Ohio, this amounts to around $974,800 – $1,949,600 dollars for most individuals.
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How life insurance works in Ohio
In simple terms, life insurance is a contract between you and an insurance company, where you pay a certain amount of money each month to receive a death benefit. You are covered for a set amount in the event of your death, usually paid to a beneficiary of your choosing. Depending on your policy, it may also be possible to borrow money against your death benefit. However, this money needs to be paid back, or your death benefit will shrink.
There are two main kinds of life insurance: term and whole life. Term insurance is very straightforward: it lasts for a set period of time, such as 20 years. If you die during that time, your beneficiaries get the death benefit. Whole life insurance, on the other hand, is permanent. You pay a set amount every month until you die. Upon your passing, the death benefit will be paid out to your designated beneficiary.
When you take out a policy such as a term life insurance policy, you pay premiums over the course of your policy period. Most people should keep things simple with a basic term life insurance policy. There’s not a lot of people who will benefit from mixing insurance and investing through a a whole life insurance or universal life insurance (except your insurance agent, of course). These often come with riders that allow cash value accumulation, long term care coverage, or even access to annuities.
Most policyholders take out a policy for peace of mind and choose to work with an independent insurance agent to review the various types of life insurance. Evaluate the best state and nationwide companies by looking at things like the carrier’s financial strength. With so many life insurance products available to residents in the state of Ohio, shop around for good quotes. The best price is not always the only thing to look at.
Life insurance is a valuable tool for anyone who has a family to support, anyone who is financially responsible for someone else’s care, or anyone who has outstanding debt that needs to be paid off after death. If you are the sole financial provider for your family, life insurance can help provide the financial support your loved ones need in the event of your death.
