Having life insurance in place is essential when planning for you and your loved ones' future, as it can help you fulfill promises you've made to your family after you are gone. Do you know the basic laws and regulations that govern life insurance in Arizona? Here's the information from Prime Choice Insurance & Financial Consultants LLC that life insurance policyholders and prospective policyholders need to know.
In Arizona, life insurance policies are regulated under section 20 of the Arizona Statutes, a regulation that protects policyholders.
Free Look Period
There is no free look period in Arizona, meaning all sales may be final and you may not be able to get a refund if you decide later you don't want the policy. However, most insurance companies provide a "reasonable look period" ranging from 7 days to 30 days, during which a plan can be returned for a refund.
In Arizona, policyholders are allowed a late premium payment grace period of 30 days without the policy lapsing. This grace period protects beneficiaries from forfeiting potential death benefit payouts due to a slightly late payment.
Life insurance policies are guaranteed by The Arizona Life and Disability Insurance Guaranty Fund up to $100,000 off the policy's cash value, and $300,000 of it's stated death benefits per person if the event an insurance company becomes insolvent.
Your life insurance provider is required to pay out all claims on time, generally within two months. Failure to pay promptly can result in significant fines against the company.
Personal Information Protection
Arizona State law requires all life insurance companies to ensure client privacy, meaning companies can't release personal information, including health information, without client consent.
Don't leave you and your loved one's future to chance. Call or drop by Prime Choice Insurance & Financial Consultants LLC today to find the right Arizona life insurance coverage for you and your family's needs.