Key Terms
- Life insurance can cover your final expenses like funeral costs and debts.
- 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.
- Oregon life insurance companies can help you find a policy to suit your needs and budget.
Oregon is known as the Beaver State and is located in the north-western United States. It’s bordered by Washington to the north, Idaho to the east, and Nevada and California to the south. With a population of 4.19 million people, it’s the 27th-most populous state. The largest city in Oregon is Portland which has a population of 661,189 residents. The state capital is Salem which has a population of 173,442.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Oregon is approximately 78.8 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 Oregon have been cancer, heart disease, and accidents. The homicide rate in Oregon is around 3.8 homicides per 100,000 residents, which is lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Oregon, the 90th percentile income is currently $102,190. The median income in the state is approximately $46,910. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Oregon, this works out to around $1,021,900 – $2,043,800 dollars for most people.
How life insurance works in Oregon
Life insurance is easy to understand. Basically, you pay a premium, and the insurance company promises to pay a lump sum to your beneficiaries if you die. It’s like most other types of insurance, in the sense that you are insuring against an unlikely but catastrophic event.
There are three main types of life insurance that you may want to consider: term life insurance, whole life insurance, and universal life insurance. Term life insurance pays a benefit to your beneficiaries if you die during the term of the policy. The term is typically 10, 20, or 30 years, and the benefit amount is fixed. If you die after the term expires, your beneficiaries do not receive anything.
Whole life insurance pays a benefit to your beneficiaries whenever you die, regardless of when that is. You pay a higher premium for whole life insurance than for term life insurance because the insurer knows that it will have to pay a benefit eventually. Whole life insurance also has a cash value that builds up over time. Depending on your policy, you may be able to borrow from this cash value or pay your premiums with it.
Universal life insurance is another type of whole life insurance that has some flexibility built into it. With universal life insurance, you can adjust your premium up and down as needed, and you can also adjust the death benefit amount up or down without having to cancel and reapply for a new policy.
Most people should stick with cheap term life insurance and invest the difference. That doesn’t mean you’re out of the woods yet though. Many insurance policies can come with additional riders, such as long-term care riders, annuities, and even accidental death coverage. The longer you wait for enrollment for life insurance policies, the more expensive your coverage is. The younger you are, the easier underwriting will be and the lower your likely premium payments. Determine your amount of coverage by shopping around with carious insurance providers and thinking about what you hope the funds from your individual policy will cover.
When in doubt, your best bet will be to consult with an independent insurance agency. A licensed insurance agent will be able to help you understand your options and find the best policy for your needs and budget. Life insurance may provide important payout protection for your family, including income replacement and funeral expenses, among other things.
10 Biggest life insurance companies in Oregon
Oregon life insurance companies ranked by premiums written in the state.
| Rank | Company Name | Oregon Premiums Written | Oregon Market Share |
|---|---|---|---|
| 1 | Northwestern Mutual | $107,845,165 | 7.54% |
| 2 | New York Life | $87,564,661 | 6.12% |
| 3 | State Farm | $68,593,898 | 4.80% |
| 4 | Prudential | $65,138,425 | 4.56% |
| 5 | Lincoln National | $61,321,910 | 4.29% |
| 6 | Meiji Yasuda Life Ins | $51,877,561 | 3.63% |
| 7 | Minnesota Mutual | $49,568,455 | 3.47% |
| 8 | Pacific Life | $48,352,465 | 3.38% |
| 9 | Metropolitan | $43,740,724 | 3.06% |
| 10 | Mass Mutual Life Ins | $38,867,307 | 2.72% |
How much life insurance do you need in Oregon?
The 90th percentile salary in Oregon is approximately $102,190. 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 Oregon that works out to around $1,021,900 – $2,043,800. 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
Oregon life insurance laws
There are a few unique features with respect to Oregon 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: Although most policies have 10 days as the free look period, buyers in Oregon have a maximum of 30 days to replace their existing coverage.
- Grace period for missed payments: In Oregon, a policyholder receives a grace period of 31 days to pay any due life insurance premiums unless they give the insurer a notice of discontinuing their policy.
- Time allowable to settle a claim: Once you file a claim in Oregon, your insurer needs to pay it out immediately. Failure to do this can lead to serious penalties.
- Contestable Period: Based on the Oregon life insurance law, contesting the validity of a policy is not allowed except for nonpayment of premiums once it has been in force for two years since the issue date. In the absence of fraud, your insurer cannot cancel the policy after two years due to an error in your initial application.
No one likes to think about their own death, but it’s important to have a life insurance policy in place in case of an unforeseen event. There are many benefits to having life insurance, including peace of mind for you and your loved ones, financial security, and the ability to leave a legacy. Life insurance can be tailored to fit your specific needs, and there are many different types of policies to choose from. It’s important to do your research and work with a trusted life insurance agent to find the right policy for you.
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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.
