10 Best Life Insurance Companies in South Carolina
Key Terms
- Life Insurance provides peace of mind for you and your family.
- 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.
- South Carolina life insurance companies can help you find a policy to suit your needs and budget.
South Carolina is known as the Palmetto State and is located in the southern United States. It’s bordered by North Carolina to the north, and Georgia to the southwest. With a population of 5.1 million people, it’s the 23rd-most populous state. The largest city in South Carolina is Charleston which has a population of 150,277 residents. The state capital is Columbia which has a population of 136,632.
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 around 12.7 homicides per 100,000 residents, which is higher than the national average of 7.5.
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 annual salary. In South Carolina, this works out to around $796,800 – $1,593,600 dollars for most people.
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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.