Massachusetts Life Insurance

Massachusetts life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Massachusetts life insurance regulations.

  • Explains the Massachusetts Guaranty Association's protection.

  • Links to more information about life insurance in Massachusetts

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Massachusetts life insurance rights and regulations

The insurance industry in Massachusetts is regulated under Chapter 175 of the Laws of Massachusetts. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such consumer protection is the 10-day "free look" provision contained, by law, in every Massachusetts life insurance policy. During this window, a new policyholder can decide to decline the coverage and still recieve a full refund of premiums, without penalty. Some insurers will allow a window of up to 30 days.

Massachusetts law also requires insurance companies to allow a 30-day grace period on late premium payments. An insurer cannot cancel a life insurance policy during this grace period, and coverage will continue uninterrupted so long as the account is brought current.

And while the claims procedure for life insurance in Massachusetts varies from company to company, no settlement should take longer than 30 days after receipt of proof of death. If the settlement takes longer, the proceeds should begin accruing interest.

If your insurance policy should lapse, most companies will allow you to reinstate it at same rate if you agree to pay the premiums from the lapsed time. A medical exam may be required.

However, Massachusetts law extends some protections to insurers, too. Inaccurate statements made on the policy or application, if discovered within the first two years, can be grounds for policy cancellation. A misstatement of age will result in the recalculation of death benefits to reflect the correct age.

Death by suicide is not covered in the first two policy years. Such a claim will only result in the refund of paid premiums.

Sidebar
If you are ready to apply for a Massachusetts term life insurance policy, or if you just want a quick online quote, visit Efinancial now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Massachusetts Life Insurance Guaranty

If your company is licensed in Massachusetts, your policy is backed by the Massachusetts Life and Health Insurance Guaranty Association. This organization will help protect you, the insured, should your insurance company go bankrupt.

However, there are some restrictions on this protection. In Massachusetts, the maximum compensation for lost cash surrender is $100,000,and the maximum compensation for lost death benefits is $300,000.

And your insurer must be licensed in Massachusetts to qualify. To check the status of an insurer, you can call the Consumer Information Hotline at (617) 521-7777.

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Apply for a quote with confidence at Efinancial
(for Mass term life insurance), or InsureME.
Your insurer will be licensed in Massachusetts.

Viatical settlements

Viatical settlements, which are purchasing arrangments made between a third party and an insured, are regulated in Massachusetts. Under these arrangements, the third party buys a policy from the insured, pays the premiums, and becomes the policy's beneficiary. Always contact a licensed agent before arranging a viatical settlement.

More MA life insurance help

If you want more help getting the best value on your Mass life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about Mass life insurance laws and regulations, visit the state's official website at the Massachusetts Division of Insurance.

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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