While actually needing to access the benefits provided by a life insurance policy might be far from what you desire, in certain situation unfortunate events cannot be prevented, and not being covered will only mean further unpleasantness. Getting life insurance is a wise choice to make and that is why any person is recommended to acquire a policy of this sort at any given time in their life. In the United States, as you might already know by now if you have read a few things on the subject, life insurance is state-level and not federal-level regulated, which means once you relocate and become a resident of a different state, updating your policy is required. Consumers without much expertise, who might not know much about the implications of getting life insurance, are advised by experts to form a general idea on the subject before looking into policy opportunities. As a Maryland resident, learning about the code of the state on this sort of insurance, which is regulated by Title 31 of the Code of Maryland Regulations, is something that will give you the opportunity to get familiarized with the most appealing policy opportunities available, and allow you to make the right choices in this department.
Policy flexibility – consumer protection
The state of Maryland gives you the possibility to change your mind and cancel your insurance policy if you have decided to go in another direction. However, in order for this to be possible and to manage to obtain a full refund, the cancelation needs to be done in a maximum 10 day period after the purchase. These 10 days allow you to understand the policy you have bought better, and a full comprehension of the subject might help you conclude you are not satisfied with the level of coverage provided. If you have found something that you don’t like, you have the freedom to resort to this solution. According to American Council of Life Insurers representative Jack Dolan, this decision has been implemented from consumer protection considerations.
Maryland’s stand on unpaid insurance bills
When you are no longer able to cover your monthly insurance bills, normally your policy will have to be terminated. Luckily, the state of Maryland provides you with a bit of support on the matter, preventing you to face a terminated insurance policy scenario just because you have forgotten or were unable o pay your bills on time. According to local laws and regulations, you have up to 30 days to cover your unpaid fees, before your insurer is able to cancel your life policy in Maryland entirely. This is called the “grace period” and facilitates a better relationship between insurers and beneficiaries. This way you won’t have to deal with an unpleasant situation just because you have forgotten to make a payment, or other factors have prevented you keep up with your bills.
Local regulations on claim payments
Claim timeliness is one of the laws the state of Maryland focuses on, thus supporting life insured beneficiaries to get the support required in an optimal period of time. According to local regulations, a Maryland insurer is obligated to ensure the payment within 30 days after the claim has been made. As soon as a clear proof of the decease has been provided, the said insurance company only has this predetermined period of time to give full coverage to the insured person’s family or legal recipient. In the situations where the insurers are not able to meet the deadline, they will be subjected to fines and they will also be required to provide further financial benefits to the beneficiary.
Maryland’s view on policy warranty
One of the things the majority of individuals stress over when trying to find a good insurance company for this specific policy is not to end up making a purchase from a firm that could deal with bankruptcy scenario later in the future. For Maryland residents, luckily, authorities come with an appealing solution, which will give you peace of mind. If you have gotten your policy from a company that has gone out of business before providing you with the coverage you have paid for, the state will offer you the necessary support. Maryland Life and Health Insurance Guaranty Association offer up to 300,000 dollars in death benefits in the said situation, but in order to get access to the amount, your insurer should have been legally licensed by the local authorities in charge of the matter.
General tips on buying life insurance
Once you have accessed the necessary information regarding the legislative and regulatory nature of life insurance, you can move on to the next step and that is browsing through offers provided by a different company and deciding on an offer. In order to spend your money wisely and to get a policy with the coverage desired, as well as not dealing with unreliable firms, which are as frequently met in Maryland as in any other state, these tips should be followed during your insurance shopping process:
- Research with precise care if the company has been licensed by the Maryland Insurance Administration and is certified to provide you with the demanded coverage.
- Establish from the start your specific requirements and get your policy customized to suit your particular situation and demands.
- Avoid signing the policy before going over the details stipulated there, and making sure everything is presented correctly and with accuracy
- Your monthly check should be payable directly to the insurance company and not the agent.
- Get quotes from the most reputable local companies in order to access reasonable fees and not be overcharged for minimal included benefits.
These are the most important factors to be aware of when you are thinking about purchasing life insurance as a Maryland resident. In order to acquire the best insurance benefits and for neither you and your family to deal with inconveniences further into the future, researching the topic more in-depth and understanding the regulations and rules revolving around the matter is essential. This is a short and comprehensive guide you can use to your advantage in order to get a policy that will actually facilitate you with the level of protection desired, in case of an unfortunate event.