Idaho Life Insurance

As you get older, it's natural to look for ways to safeguard your family's financial future — that's where life insurance comes in. As you evaluate different Idaho life insurance companies, make sure each one is following the rules set out in the state's insurance code. That way, you can pick a trustworthy provider and rest assured that your family is protected after you pass.

Idaho Life Insurance Rules and Specifics

Agents and companies selling life insurance in Idaho are required to follow the laws in Idaho Statutes Title 41: Insurance. The Idaho Department of Insurance enforces the life-insurance rules and protects your rights as a consumer.

When a company is licensed to sell life insurance in Idaho, every policy must come with a specific set of provisions. Before you commit, it's a good idea to check the documentation for:

• Free look period: Idaho has a generous 20-day "free examination" period. If you change your mind about a policy — no matter the reason — you can cancel it within 20 days without paying a penalty. To get a full refund, simply return the policy to the company's home office, a branch office or the agent you worked with during the purchase process.
• Grace period: Life insurance contracts usually require you to make payments for a set amount of time. After you've paid on time for 12 months, you benefit from Idaho's grace period rules. If you have a late payment after this point, the insurance company can't cancel your policy for 30 days. Pay the amount due plus interest during the grace period and coverage will continue as usual.
• Incontestability: After you've made payments on your policy for two full years, section 41-1905 of Idaho state law prevents the insurance company from contesting or refusing to pay a legitimate claim. Incontestability stands as long as you pay all premiums.
• Claim timeline: If your beneficiary makes a claim on your life insurance and provides proof of your death, Idaho law requires the company to pay within two months. After 30 days, the company must start adding interest to the payout.

Life Insurance Resources in Idaho

As you find and manage life insurance coverage in Idaho, these organizations can help:

Idaho Department of Insurance (DOI): The Idaho DOI offers services and resources to help you navigate the world of life insurance. Most resources are available online; you can look up the license status of a company, register a complaint or report fraud.

Idaho Life & Health Insurance Guaranty Association:  This organization exists as a safeguard for consumers in Idaho. Check the list of members; if your life-insurance provider is on the list, you're guaranteed a payout if the company goes out of business. The company pays up to $300,000 for a death benefit and up to $100,000 for a cash surrender value.