Wyoming is known as the Equality State and is located in the north-western region of the United States. It’s bordered by Montana to the north, South Dakota and Nebraska to the east, Colorado and Utah to the south, and Idaho to the west. With a population of around 577,000 people as of 2022, it’s the 50th-most populous state. The largest city in Wyoming is Cheyenne which has a population of 63,957 residents. Cheyenne is also the state capital.

According to the Center for Disease Control and Prevention (CDC), the average life expectancy in the state of Wyoming is approximately 76.3 years which is 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 Wyoming have been heart disease, cancer, and Covid-19. The homicide rate in Wyoming is around 4.9 homicides per 100,000 residents, which is lower than the national average of 7.5.

According to the U.S. Bureau of Labor Statistics, in Wyoming, the 90th percentile income is currently $86,510. The median income in the state is approximately $45,890. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Wyoming, this works out to around $865,100 – $1,730,200 dollars for most people.

How life insurance works in Wyoming

There are different types of life insurance plans, but they all work in a similar way. You, the policyholder, pay monthly or annual premiums to the insurance company like you do with health insurance and long-term care insurance. If you die while the policy is active, the insurance agency pays a death benefit to your beneficiaries. The beneficiaries can then use the money to cover your final expenses and any other debts or expenses you may have left behind.

There are two main types of life insurance products: term life insurance and whole life insurance. Term life insurance coverage is the more affordable and straightforward option. It pays a death benefit only if you die during the term of the policy, which is usually 20 or 30 years. If you outlive the term, the policy expires. Term life insurance is ideal for people who want coverage for a specific period of time, such as when they have young children and large mortgages (this is most people who buy insurance).

Whole life insurance is more expensive. It pays a death benefit regardless of when you die. In addition, whole life insurance builds cash value over time that you can borrow against in annuities or cash out. Because whole life insurance mixes investing and insurance products, most people will benefit for simply buying cheap and easy to understand term life insurance policy. It’ll cost you a lot less and you can use the money you save to build up an investment fund.

How much life insurance do you need in Wyoming?

The 90th percentile salary in Wyoming is approximately $86,510. 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 Wyoming that works out to around $865,100 – $1,730,200. 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 supplemental 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

Wyoming life insurance laws

There are a few unique features with respect to Wyoming 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: In Wyoming, state laws do not mandate the insurer to offer a free look period. This means that it is up to the insurer whether or not to offer you a trial period or a free look period after enrollment in the policy.
• Grace period: This refers to the number of days that you’re allowed to delay insurance payments after the due date has passed while still remaining coverage. The Wyoming insurance code states that the policyholder is entitled to a grace period of 31 days.
• Contestable period: Wyoming insurance laws allow the insurer to cancel your policy if you lie, misstate or misrepresent yourself on your application. However, the insurer can only contest the policy within two years from the date of purchase. After this two year period, your policy becomes incontestable.
• Allowable timelines for claims settlement: The Wyoming insurance code requires the insurer to settle claims within 45 days and pay interest on the total amount from the day the insurer receives a certified copy of the death certificate.

It is important to have life insurance because it provides financial protection for your family in the event of your death. If you are the primary breadwinner for your family, life insurance can replace your income and help your family maintain their standard of living. It can also pay for final expenses, such as funeral costs and outstanding debts. Life insurance can give you peace of mind knowing that your loved ones will be taken care of financially if you are no longer there to provide for them. It is one of the most important investments you can make in your family’s future.

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