Life insurance is an important part of planning for the inevitable, but it is important to make sure that your policy is fully compliant with local laws. For Colorado residents, the good news is that most laws are designed to make things more efficient and beneficial for policyholders and their loved ones. So whether you’re looking to get a life insurance policy or simply want to learn more about the one you already have (and perhaps how it could be improved), here’s what you should know about Colorado life insurance laws:
All Colorado life insurance laws are regulated under state statutes Title 10. At Colling Insurance Services Inc. (serving the Lakewood, CO area and beyond), for example, our policy underwriters ensure that all of these laws are strictly followed. Insurers who do not comply with these laws may be subject to strict fines and/or further litigation.
Now let’s get to specifics. First, all life insurance claims must also be settled in a timely manner, meaning most in this state will be settled within two months. Additionally, Colorado law states that should a payment be missed, the life insurance policy must stay in place for at least a month after the payment was due. This mandatory grace period ensures that the policy will still be paid out should the policyholder die shortly after the payment is late. It also just helps buy people more time if they run into financial difficulty.
It’s worth noting at this time that the Colorado Life and Health Insurance Protection Association works to protect policyholders by guaranteeing life insurance funds against potential insurer bankruptcy of up to $300,000 (essentially, if you’re insurer goes broke, your policy will still be paid out). If you still need to set up a life insurance policy, however, and are based in Lakewood, CO or surrounding areas, Colling Insurance Services Inc. is here to help. Our insurance experts are happy to sit down with you to discuss your specific needs (and those of your family). With the right policy, you can rest easy knowing that your loved ones will be taken care of should anything happen to you.