A Guide to Life Insurance in Maryland (MD)

The nature of getting Maryland Life Insurance Quotes arranged is that on the one hand you want to get as many as possible, so that you have the widest variety of choice. But on the other hand you really want to hone in on the aspects of life insurance in Maryland that are specific to the state, and which offer you the best opportunity to get a good deal on your life cover.

In this article I am going to address both of those concerns, and also talk about Life Insurance in Maryland both as it relates to consumers looking to buy life insurance, and also about the importance of insurance companies to the Maryland economy.

 

Maryland – The Background…

Maryland is one of the smallest States in the United States (just 12,407 square miles, or 101 miles wide by 249 miles long), and yet proportionately it has quite a large population of some 5,773,552 people according to the 2010 US Census.

The Capital of Maryland is Annapolis which, in a similar vein to many of the Capital cities of US States, is surprisingly small, with an estimated population in July 2008 of 36,524. It does however have certain geographical advantages for politicians in the State, as it is located just 28 miles east of Washington D.C.

The largest city in Maryland is Baltimore, which has 620,961 residents in the main city and 2,690,886 in the metropolitan area, making it the 20th largest city in the United States.

Maryland also has one of the highest median incomes of any of the states. According to the 2005 – 2009 American Community Survey, carried out by the US Census Bureau, the national median (average) household income in the United States was $51,425 dollars in 2009. Whilst in the same survey, Maryland had a median household income of $69,475.

(If you are interested in learning more about the American Community Survey you can do so here - http://www.census.gov/acs/www/ )

Of the top ten highest income counties in the United States in 2008, four were in Virginia, three were in New Jersey, one was in Colorado, and TWO were in Maryland, Howard County and Montgomery County.

The gross state product of Maryland was $269 billion in 2007, ranking it as the 15th highest in the US.

In terms of where that money comes from, the Port of Baltimore handled the 17th most tonnage in the US in 2008, there is a big food production sector, medical research, commercial fishing, manufacturing and agriculture.

Some interesting facts that you may not know about Maryland are that Babe Ruth was born in Baltimore, the first school of dentistry in the US was founded at the University of Maryland, and that the first school in the US, King Williams School, was opened in 1696 (now called St. John’s College).

 

Maryland Life Insurance – The Facts…

As one of the richest States in the United States Maryland is prime territory for life insurance companies looking to get new clients.

There are 453 Maryland Life Insurance Companies who are licensed to sell life insurance in Maryland, and four of them are actually domiciled in the State.

Maryland Life Insurance Companies are a big provider of jobs in the state, and an estimated 11,000 people are employed directly by them, whilst a further 14,000 are supported in non-insurance jobs in the state through financing, mortgages and real estate according to the American Council of Life Insurers.

There are over four million individual Maryland Life Insurance policies, and each of them has an average of $99,000 worth of cover for each policyholder. In fact, the amount of death benefit cover in Maryland amounts to some $570 billion, so in terms of providing a safety net to the citizens of Maryland, it is very significant.

As a group the life insurance companies in Maryland have invested over $90 billion in the State, and own 13% of the “Build America Bonds” which are directly related to Maryland.

Additionally, they own over $140 million of real estate in Maryland, and provide the mortgages on over $10 billion of property in the state.

Taken together this all adds up to a massive industry that provides a lot of money to Maryland's economy, and from a consumer perspective also means that there are a lot of different Life Insurance Companies in Maryland who are competing for the same business.  Therefore it pays to shop around and consider your options.

 

Maryland Life Insurance – Some Useful Phone Numbers

If you are looking to get life insurance in Maryland then there are some different organisations in the state that can assist you.

Here is a list of some organisations directly related to Life Insurance Maryland wide:

Maryland Insurance Administration – 1-800-492-6116

American Council of Life Insurance – 1-202-624-2131

Consumer Protection Division of the Attorney General – 410-576-6550

Insurance Information Institute (For information regarding deceased person’s life insurance policies and other issues) – 1-800-331-9146

League of Life and Health Insurers – (Annapolis) – 410-269-5186

Life and Health Insurance Guarantee Corp – 410-998-3907

State Documents (to obtain copies of Maryland Insurance Regulations) – 410-974-2486

 

Maryland Life Insurance – 5 Tips To Getting Great Life Insurance Quotes in Maryland!


1/ Assess your own situation FIRST!


Before you jump headlong into buying some life insurance, make sure that you have done your own sums about how much life insurance you need, for what period of time, and the amount that you can afford to pay.

The Maryland Life Insurance Companies can show you projections of how much life cover may cost you, but they can only do this if you already have a good idea of what it is that you need.


2/ Check out the Maryland Insurance Company you choose to go with


Once you have got some Maryland Life Insurance Quotes (you can do that at the top of this page), then as a final check it is a good idea to check out that they are properly licensed in the State.

99% of the time they will be. But because life insurance can affect your family so radically for years to come, even if the answer is most likely that they are, it is still worth checking, even if only to provide you with some peace of mind that you have actually checked.

You can do that here: https://eapps.naic.org/cis/


3/ Read the policy terms and conditions carefully BEFORE signing it!


This is something that many people just don’t do.

They get some Maryland Life Insurance Quotes, and are then content to choose one purely based on price and the amount of cover.

That simply isn’t a good idea. You will find that the policy terms and conditions will vary between companies and so one policy for example that doesn’t allow rock climbing may be cheaper than a policy that does.

All well and good if you aren’t a mountaineer, or do rock climbing at the weekends, but not a lot of good to you if you do!

Therefore, make sure that any policy really meets your requirements before you part with your money.


4/ Make sure that this is something for the long-haul and that you can afford to keep paying the premiums

There are two main types of life insurance.

Maryland Term Life Insurance - Which covers you for a specific period of time and pays out only if you die during that time. It has no residual value.

Maryland Permanent Insurance – This would be such as Maryland Universal Insurance, Maryland Variable Universal Life Insurance and Whole Life Insurance.  This provides cover for your whole life, not just a fixed term, and also can provide an element of savings in addition to the death cover that term life insurance provides.  Because of this it is more expensive, but potentially more flexible.

During the early years of any Permanent Insurance Policy, the savings element will be very small, and hence if you cash in the policy within the first few years you will get very little money back, and would have generally been better off to get a term life insurance policy.

So make sure before you take out a permanent policy that you can afford to pay the premiums out into the future.

If you aren't sure then you may be better off to get term life insurance and arrange for permanent life insurance when you have a clearer idea of your long term plans.


5/ If you choose to buy life insurance in Maryland through an agent, rather than online, then be aware that your contract is still with the Maryland Insurance Company, and that any monies for a policy should be payable to them, not the agent.

This is common sense in many ways, but it is nevertheless worth a quick mention... And always rmemeber to check any Maryland Life Insurance Quotes over throughly, so that you know exactly what you are buying.

 

Maryland Life Insurance – The Details…

Life Insurance in Maryland is regulated through The State Insurance Code of Maryland, which is a set of regulations about how insurance is regulated in the state.

You can see a copy of the Maryland Insurance Regulations online here:

http://www.michie.com/maryland/lpext.dll?f=templates&fn=main-h.htm&cp

If you click on ‘Maryland Code > Michie’s Code of Maryland > Insurance’ then you can see them (I would provide the direct link, but the site is rather oddly done with frames, and it seems to freak out at direct linking)

It is these rules that govern both consumer rights in Maryland when it comes to insurance, and what responsibilities the Maryland Life Insurers have to their customers (and vice versa).

 

Maryland Life Insurance Resources

Maryland Insurance Administration (MIA)


It is the Maryland Insurance Administration that is responsible for overseeing how life insurance in Maryland (and all other types) are handled.

They state their purpose as follows:

“The Maryland Insurance Administration (MIA) is an independent State agency that regulates Maryland's insurance industry and protects consumers by ensuring that insurance companies and health plans act in accordance with insurance laws.”

http://www.mdinsurance.state.md.us

 

Maryland Life & Health Insurance Guaranty Association

If your Maryland Life Insurance Company runs into problems and goes into administration, then this association steps in to provide some levels of protection to consumers in Maryland who are policy holders.

http://www.mdlifega.org



 

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