Kentucky Overview

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April 11, 2011

The commonwealth of Kentucky is a state located in the east central regions of United States of America. It is one of the four states in the United States that is recognized as a commonwealth state. Initially a part of Virginia, Kentucky became a separate state and joined the union in 1792.

A life insurance policy is defined as a contractual agreement signed between the policy holder and the insurance company. As per the agreement the insurance provider is required to pay a fixed amount of money to the beneficiary nominated by the policy holder in the event of death of the policy holder. The death benefit amount is paid to the beneficiary to compensate for the lack of income and cover their expenses.

There are basically two types of Kentucky life Insurance – Term life insurance and Permanent life insurance. The Kentucky state Department of Insurance looks after the sale of life insurance policies in the states and regulates the licensing procedure for insurance company. It also ensures that certain protections are available to life insurance policy buyers. If you are looking to buy a Kentucky life insurance policy, you must be aware of the basic rules and regulations of state’s insurance so as to save yourself from being cheated by the insurance provider.

Kentucky State is ranked 42nd out of all the states in terms of Life expectancy. The average life expectancy rate in the state is about 75.2 years. According to reports for every 100,000 people living in Kentucky, about 1200 people aged between 54 and 65 pass away each year. The mortality rate for people age between 75 and 84 is even higher; it is about 2700 people die every year. Looking at these figures if you are a Kentucky resident, you must have a life insurance policy to protect your family members.

The insurance industry in Kentucky is governed by ‘The State Insurance Code of Kentucky’. The state uses the code to regulate the death benefit claim procedures and protect the rights of life insurance policy buyers such as:

Grace Period:

The Kentucky State Insurance code requires all insurance companies in the state to provide a 30 day grace period to all policy holders for payment of monthly insurance premium. The insurance company has to mandatorily provide the grace period before cancelling the policy due to non payment of premium.

The Insurance code also provides protection to the Insurance companies to save the company from fraudsters. The Kentucky state insurance code lays down that Insurance fraud is a serious crime. The code empowers the insurance provider to cancel the policy if the company suspects any foul play in the information provided in the insurance application.