10 Best Life Insurance Companies in South Carolina
Key Terms
- Life insurance in South Carolina offers both term and whole life policies, tailored to personal and family financial needs.
- Residents benefit from a 10-day free look period and a one-month grace period for missed payments on their insurance policies.
- Financial protection from life insurance ensures loved ones can manage expenses, from mortgages to education, after a policyholder’s death.
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.
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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.