10 Best Life Insurance Companies in Vermont

Nestled in the northeastern U.S., Vermont captivates with its stunning landscapes and vibrant cities. Burlington, with its 42,899 residents, and the quaint state capital of Montpelier showcase the unique allure of the Green Mountain State, which boasted a population of 626,299 in 2022.

According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Vermont 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 Vermont have been heart disease, cancer, and accidents. The homicide rate in Vermont is so low that it’s listed as “Not Applicable” on the CDC website.  

According to the U.S. Bureau of Labor Statistics, in Vermont, the 90th percentile income is currently $96,040. The median income for Vermont residents is approximately $46,910. Most financial advisors recommend purchasing life insurance coverage that safeguards your loved ones for between 10X and 20X your annual earnings. In the State of Vermont, this works out to around $964,400 – $1,920,800 for most individuals.

How life insurance works in Vermont

Some people think that life insurance is complicated, but it’s actually quite easy to understand. Life insurance is basically a contract between the policyholder and an insurance company. The insurance company agrees to pay a certain sum of money to the policyholder’s designated beneficiaries in exchange for a premium that is paid monthly, or in some cases, annually, just like with health insurance.

There are two types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, usually 10, 20, or 30 years. Whole life insurance, on the other hand, tends to be a bit more expensive, but it provides coverage for your entire life, offers a cash value, and will pay out the death benefit whenever you happen to pass away. Because of this whole life insurance is much more expensive.

Most people purchase life insurance to provide financial security for their loved ones in the event of their death. The death benefit from a life insurance policy can be used to pay for final expenses, such as funeral costs and outstanding medical bills or bills from long-term care facilties, or day-to-day expenses, like mortgage payments.

Regardless of whether you choose a term policy or a whole life policy, either way, you’re making a smart decision by purchasing life insurance. You can look online and find various quotes from different companies, but before you sign any contracts you should consult with a licensed insurance agent. An independent insurance agent can answer any questions you may have, and they can help you find a policy that suits your unique needs and financial situation.

How much life insurance do you need in Vermont?

The 90th percentile salary in Vermont is approximately $96,040. As mentioned, most financial advisors recommend that you purchase a life insurance product that will cover your beneficiary for at least 10X – 20X your average annual income. In Vermont that works out to around $964,400 – $1,920,800. 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

Vermont life insurance laws

There are a few unique features with respect to Vermont Life Insurance Laws (Department of Financial Regulation – vermont.gov) 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: Vermont’s laws allow policyholders to terminate a policy within ten days of receipt. The policyholder is also entitled to a refund of their premium if they decide not to keep the policy. 
• Grace period for missed payments: According to Vermont’s life insurance laws, there is a grace period of 30 days for individuals who miss paying their monthly premiums on time. The policy will remain valid but if a claim arises within this period, the insurance agency will deduct any due premiums from the payout.
• Time allowable to settle a claim: In Vermont, insurance companies are required to pay customer claims within 45 days from the day they’re filed. Failure to do this will result in accrued interest which the company must pay to the beneficiaries.
• Contestable period: The law in Vermont has a provision that restricts insurers from contesting a life insurance policy except for nonpayment of premiums. The contestable period runs for two years, after which the insurer cannot contest a claim.

Life insurance is vital for anyone who has dependents. If something happens to the policyholder, life insurance can provide much-needed financial stability for loved ones. It can be used to cover final expenses, like medical bills and funeral costs, and it can also help replace lost income and cover other expenses, like childcare. For many people, life insurance is one of the most important investments they ever make. It’s a way to protect your family financially if you die unexpectedly. And it’s also a key part of financial planning for the future.

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