Life Insurance in Pennsylvania

In Pennsylvania, individuals under the age of 18 account for just around 21% of the total population, meaning a majority of the state's residents are old enough to likely benefit from life insurance.

If you're considering obtaining your first policy or purchasing more insurance, understanding laws governing life insurance in Pennsylvania will allow you to make a more informed decision.

Pennsylvania Life Insurance Rules and Specifics

Title 31, Chapter 89 of the Pennsylvania Code lists the requirements for life insurance policies sold in Pennsylvania. The law gives you the following rights:

• Ability to assess policies risk-free: You have 10 days from when you receive your policy information to cancel your policy. If you cancel during this free look period, the insurer must refund 100% of our premiums.
  
  
• Protection from policy cancellation: A life insurance company must give you 30 days after the due date to pay your premium. If they assess an interest-based late fee during this grace period, the rate can't exceed 7%.
  
  
• Guaranteed incontestability: After your policy is more than 2 years old, the insurer typically can't contest your death benefit claim and refuse to pay your beneficiaries unless you were delinquent on your premiums.
  
  
• Loan accessibility: All permanent life insurance policies must let you take out policy loans. Insurers may only charge a maximum of 8% interest or set a variable rate that complies with strict guidelines.

Life Insurance Resources in Pennsylvania

If you run into challenges before or after purchasing life insurance in Pennsylvania, government agencies and nonprofit organizations are available to assist you. Resources can aid you in:

• Receiving a death benefit or cash surrender from an insolvent insurer. If an issuing insurance company goes out of business, the Pennsylvania Life & Health Insurance Guaranty Association will pay out death benefits of up to $300,000 and cash surrender requests of up to $100,00.
  
  
• Filing a complaint about an insurer. If you can't resolve an issue with your life insurance provider, you can file a complaint through the Pennsylvania Insurance Department The department is responsible for overseeing life insurance companies licensed to operate in the state.
  
  
• Investigating a life insurance scam. The Office of the Attorney General can assist you in the event that you're the victim of an insurance scam committed by a fraudster claiming to sell legitimate policies. You can file a complaint online to start the process.
  
  
• Deciding whether to use your life insurance benefits to pay for long-term care. Each county has an Area Agency on Aging office that provides free advice on long-term care planning. Schedule an appointment to explore ways that you may be able to use a permanent life insurance to cover the cost of care in or out of your home.