10 Best Life Insurance Companies in Tennessee

Strategically located in the southeastern U.S., Tennessee, known as the Volunteer State, shares its borders with eight states, including Kentucky and Virginia. With a population of 6.77 million, it ranks as the 16th-most populous state, and its vibrant capital, Nashville, boasts 681,928 residents.

According to the Centers for Disease Control and Prevention (CDC), the average life expectancy in Tennessee is approximately 73.8 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 Tennessee have been heart disease, cancer, and homicide. The homicide rate in Tennessee is around 11.5 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 Tennessee, the 90th percentile income is currently $81,220. The median income in the state is approximately $37,700. Most financial advisors recommend acquiring a life insurance policy that covers your loved ones for between 10X and 20X your annual earnings. In Tennessee, this amounts to around $812,200 – $1,624,400 dollars for most individuals.

How life insurance works in Tennessee

Life insurance is typically straightforward and easy to understand. The way it works is that you pay a premium for a policy, and if you die during the term of the policy, your beneficiaries are paid a death benefit. This is typically a lump sum of money that is paid out to your loved ones. The money can be used for anything they see fit, including funeral expenses, debts, living expenses, or anything else.

There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, usually 10-30 years. Once this term expires, so does your coverage. If you die during the term of the policy, your beneficiaries will receive the death benefit.

Whole life insurance provides coverage for your entire life. As long as you continue to pay the premiums, your beneficiaries will receive the death benefit when you die. Whole life policies tare more expensive but they are permanent which means that as long as you pay your premiums your policy won’t expire.

Most people opt to purchase term life insurance. Term life insurance is more affordable and doesn’t mix investing with insurance. If you’re not sure which type of life insurance is best for your situation, then it’s always best to speak with an independent insurance agent about your options.

How much life insurance do you need in Tennessee?

The 90th percentile salary in Tennessee is approximately $81,220. 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 Tennessee that works out to around $812,200 – $1,624,400. 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

Tennessee life insurance laws

There are a few unique features with respect to Tennessee Life Insurance Laws via the Tennessee Department of Commerce website (tn.gov) that have an impact on your specific policy if you are a resident of the state.

Here’s what you need to know when looking at life insurance quotes:

• Free look period: Also known as the free examination period, this is the period after enrollment given to policyholders to review their coverage amount and request a no penalty refund if they are not satisfied with the terms. In Tennessee, the free look period is 10 days.
• Grace period for missed payments: If you miss a life insurance payment in Tennessee, you will be given 31 days to make the payment. During this period your coverage will remain in effect. After this period, your insurance agency has the right to cancel your policy.
• Time allowable to settle a claim: Life insurance companies in Tennessee have 60 days to process and pay death claims to beneficiaries. They will need to pay interest if it takes longer.
• Contestable period: In Tennessee, the contestable period for life insurance is two years. In this period, your insurance provider may decline to pay out your claim due to material misrepresentation on your application.

Life insurance is an important part of your financial planning, and it’s something that everyone should consider. If you’re not sure where to start, talk to your financial advisor or an insurance agent about your options. They can help you understand the different types of policies available and how they work. And once you have a policy in place, be sure to review it regularly to make sure it still meets your needs.

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