Florida, also known as the Sunshine State, is a great place to live as it has a great climate, beautiful beaches, no state income tax, and plenty of job opportunities.
With all these advantages, it’s no wonder Florida is a popular destination for people looking to start their best lives.
However, although you want to spend your time living your life, it’s also crucial to plan for the future. One way to do that is by getting life insurance.
In this article, we will go over how life insurance works in Florida, the best companies in Florida, the importance of choosing a good policy, and lastly, how to find the best policy to suit your needs.
How Does Life Insurance Work In Florida?
Florida operates under the same basic principles throughout the United States.
The way it works is simple: you pay a premium to an insurance company, and in return, they will provide your beneficiaries with a lump sum of money upon your passing.
The amount paid out depends on your policy type and the coverage amount you select.
There are two types of insurance policies that you can choose from. The first is term life insurance, which covers a specific period.
The second is permanent life insurance, which covers you until death and includes an investment component.
State-Specific Regulations In Florida
Although insurance works the same way in Florida as in other states, there are some state-specific regulations to keep in mind. Here are some in Florida you may want to know!
- In Florida, 15 years of age is the minimum age you can buy life insurance.
- Florida allows many different entities to be named as beneficiaries (the receiving end of your policy). This includes people, organizations, businesses, and estates.
- However, it’s important to understand that minors can’t access the money until they’re 18.
- Lastly, in Florida when it comes to divorce, the designation of a former spouse as a beneficiary will be automatically revoked if the divorce is finalized (unless stated otherwise).
How Does Florida Protect Consumers Of Life Insurance?
There are also two different ways that Florida protects consumers of life insurance.
First is unclaimed life insurance. Florida has processes in place to return unclaimed life insurance proceeds to beneficiaries or their rightful heirs.
Second, Florida has a Guaranty Association that protects the policyholders of insolvent insurance companies.
Insolvent means the company is unable to pay its debts or claims. The Guaranty Association will step in and cover the claims up to a certain amount.
How Are Premiums Determined In Florida For Life Insurance?
A couple of different factors determine premium pricing. They are type and amount of coverage, age, health, lifestyle, family history, gender, and lastly, financial obligations.
In Florida, the only state-specific thing that determines premium costs is market dynamics. The competition between Flordia’s life insurance companies will directly affect the pricing for premiums. This can work in your favor as a consumer by driving down prices!
Now that you are more informed about how life insurance works in the state of Florida, let’s talk about the very best life insurance in the state of Florida.
Best Life Insurance Companies In Florida
- Liberty Financial Group
At Liberty Financial Group, we pride ourselves on being recognized as one of the premier life insurance companies in Florida, a title we believe we’ve earned for several reasons.
Firstly, our commitment to offering personalized service sets us apart. We work very closely with our clients to identify the life insurance policy that perfectly aligns with their needs.
Moreover, our partnership with over 50 top-rated carriers ensures that our clients receive the finest policy and the most competitive pricing. Our goal isn’t to sell you a policy for the sake of it; our aim is to present you with the best possible option.
On top of that, we are dedicated to educating our clients as we make sure you know the ins and outs of whatever policy you choose.
Working with us, you can make sure you get the very best policy for you without the setbacks of having only certain policy types available to you.
For those interested in exploring what Liberty Financial Group has to offer, click here to contact us now and get started!
- Bestow Life
Bestow is known for its quick application process and no medical exams. It’s a perfect option for those looking to quickly get life insurance coverage. They are good for people who don’t want to go through the long process of getting traditional life insurance.
- State Farm
State Farm has plenty of different life insurance options for just about anyone. They are known for having outstanding customer service and their flexible terms. For instance, they allow you to convert your term life insurance to permanent life insurance. They also offer competitive rates and discounts for bundling insurance policies.
- MetLife
MetLife is a massive insurance company (one of the largest in the country). They have a notable presence in Florida as well. They offer term life, group variable universal life, and universal group life, which is less common. They also have a wide range of policies that cater to different needs and budgets.
- Ethos
Ethos, like Bestow Life, has a no-medical exam option. They make it extremely easy to get coverage quickly. They also offer a 30-day money-back guarantee, which allows you to cancel within the first 30 days and get a full refund if you change your mind.
The Importance Of Choosing a Company That Goes Above And Beyond
There are many reasons why you need to be focused and diligent in choosing a life insurance policy that is right for you. Let’s go over what they are.
You Want To Make Sure Your Loved Ones Are Covered The Right Way
If your main goal in getting life insurance is to ensure that your loved ones are taken care of in case something happens to you, then it’s essential to choose the right policy. You need to consider factors such as the amount of coverage needed, the length of time you want to be covered, and any additional features or riders that may be important to you. If you didn’t already know, riders are additional policy features that can be added to a life insurance policy for an extra cost.
Get The Right Policy Type For You
Working with the right company could help pinpoint exactly which policy would be best for you based on your situation. For example, if you are on a limited budget and need coverage for a specific period of time, term life insurance may be the best fit for you. On the other hand, if you have more room in your budget and want permanent life insurance with potential cash value accumulation, then whole or universal life insurance could be the way to go.
You Don’t Want Any Hidden Surprises
Often, people get hit with early cancellation fees or penalties for changes in their policies that they had no idea even existed. That is why it’s vital to work with a company that clearly outlines all of the terms and conditions for their policies.
Ongoing Help
A lot of companies get complacent once they get you in the door. For example, you might hear from them once a year when it’s time to renew or make a payment. You want to make sure you choose a company that allows you to reach out whenever you need in order to get help with any questions or concerns you may have.
Leave It To Us To Find Your Policy
As you can tell from above, weighing your options is very important regarding the fine print of an insurance policy, the price, and ongoing support.
We have no skin in the game regarding which company you choose; we just want to ensure you find the right insurance policy for you.
Instead of doing all the due diligence yourself, let us help you by providing all the necessary information so that you can make an informed decision.
There’s no need to stress or worry about making the wrong decision when it comes to something that is as important as your life insurance coverage. Click here and leave it to use to find the best policy for you!
Frequently Asked Questions
Q1: Can non-residents purchase life insurance in Florida?
A1: Yes, non-residents are eligible to buy life insurance policies in Florida. However, they may need to provide additional documentation to demonstrate their insurability and may be subject to the same underwriting process as Florida residents. It’s advisable to consult with an insurance provider for specific requirements.
Q2: How do hurricanes or natural disasters impact my life insurance policy in Florida?
A2: Life insurance policies are generally not directly affected by hurricanes or other natural disasters. These policies pay out the death benefit upon the policyholder’s death, regardless of the cause, as long as the policy is active. It’s essential to review your policy details, as living benefits or riders related to property damage are typically part of homeowners’ insurance, not life insurance.
Q3: Is life insurance subject to taxes in Florida?
A3: Life insurance death benefits are typically not subject to income taxes for the beneficiary. However, any interest earned on top of the policy’s death benefit may be taxable. Estate taxes may apply if the insurance proceeds are paid directly to the estate and the total estate value exceeds federal estate tax exemptions. It’s advisable to consult with a tax professional for specific situations.
Q4: How often should I review my life insurance policy?
A4: It’s recommended to review your life insurance policy at least every three years or after significant life events, such as marriage, divorce, the birth of a child, purchasing a home, or changing jobs. This ensures that your coverage continues to meet your needs and financial goals.
Q5: Can I have multiple life insurance policies in Florida?
A5: Yes, you can have multiple life insurance policies from the same or different insurers in Florida. This strategy can help you tailor coverage to meet specific needs or goals, such as covering a mortgage or providing for your family. However, the total amount of coverage you can obtain may be limited by your income and insurability.
Q6: What happens if my life insurance company goes out of business?
A6: If your life insurance company becomes insolvent, the Florida Life & Health Insurance Guaranty Association (FLHIGA) will step in to provide protection. This organization helps ensure that policyholders receive their benefits in the event of an insurer’s financial failure.
