10 Best Life Insurance Companies in South Carolina

Nestled between North Carolina and Georgia, South Carolina captivates high-income professionals with its rich culture and historical charm. From Charleston’s storied streets to Columbia’s vibrant life, the Palmetto State offers enticing lifestyle and investment opportunities for its 5.1 million residents, ranking it as the 23rd-most populous state in the U.S.

According to the Center for Disease Control and Prevention (CDC), the average life expectancy in South Carolina is approximately 74.8 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 South Carolina have been heart disease, cancer, and Covid-19. The homicide rate in South Carolina is about 12.7 homicides per 100,000 residents, which is higher than the national average of deaths.

According to the U.S. Bureau of Labor Statistics, in South Carolina, the 90th percentile income is currently $79,680. The median income in the state is approximately $37,250. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your yearly earnings. In South Carolina, this amounts to around $796,800 – $1,593,600 dollars for most individuals.

How life insurance works in South Carolina

A life insurance policy is basically a contract between you and the life insurance company. You agree to pay premiums to the company. In exchange, the company agrees it will pay a death benefit to your loved ones, which is typically a lump sum payout, if you pass away during the term of your policy. That said, there are several types of life insurance policies.

Term life insurance is the most basic and straightforward type of policy. It provides coverage for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive the death benefit. If you don’t die during that time frame, the policy expires. Typically, it’s best to get insurance underwritten when you’re young and healthy as your life insurance rates will be lowest then.

Whole life insurance is another option. This type of policy provides coverage for your entire life. As long as you continue to pay the premiums, the policy will remain in force and your beneficiaries will receive the death benefit whenever you pass away. Whole life insurance is more expensive and complicated as it mixes insurance and investing. Most people will prefer to purchase cheap term life insurance and invest the difference.

There are plenty of providers out there and you can get life insurance quotes from most of them when working with an independent life insurance agent or an insurance agency. As the policyholder, you need to determine what you really need from a policy. Term life covers the most basic benefits and won’t have riders or other options like annuities, cash value buildups, long term care riders, or accidental death riders. However, the premium payments with term life are also much lower when compared with other life insurance coverage. Balance these insurance benefits with what you really need in your coverage amount.

Ultimately, life insurance is a personal decision. Everybody has different needs from their policy. Therefore, it’s important to think about your situation and choose a policy that makes sense for you, your family, and your budget. 

How much life insurance do you need in South Carolina?

The 90th percentile salary in South Carolina is approximately $79,680. 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 South Carolina that works out to around $796,800 – $1,593,600. 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

South Carolina life insurance laws

There are a few unique features with respect to South Carolina 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: South Carolina residents purchasing life insurance have 10 days as the free look period. If you are not satisfied with your policy after purchase, you can get a no penalty refund within 10 days.
• Grace period for missed payments: The grace period refers to the length of time you are allowed after you miss to pay your due life insurance premium without your coverage stopping. In South Carolina, the grace period is one month.
• Time allowable to settle a claim: South Carolina law requires that insurers pay out claims as quickly as possible and no later than 30 days after receiving the insured’s death certificate.
• Guarantee of Death Claims: The South Carolina Life and Accident and Health Insurance Guaranty Association guarantees payment of life insurance claims up to $300,000 per person.
• Contestable Period: In South Carolina, a life insurance policy becomes incontestable if it has been in force for at least two years from the date of issue. After two years, the company will be unable to challenge the application for any mistakes or inconsistencies.

When it comes to life insurance, there are a lot of misconceptions out there. A lot of people think that life insurance is only for people with dependents, or that it’s too expensive. But the truth is, life insurance is something that everyone should have. It’s not just for people with families, it’s for anyone who wants to make sure their loved ones are taken care of in the event of their death. The bottom line is that life insurance is an important piece of the financial puzzle, and everyone should have a policy in place. If you don’t have life insurance, now is the time to get started on finding the right policy for you.

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