A Guide to Life Insurance in North Dakota (ND)

If you are looking to secure North Dakota Life Insurance Quotes then it is important to consider a number of different factors. In this article I am going to explore life insurance in North Dakota, and exactly what you need to know to both get the best deals possible, but also to ensure that you get the right kind of life insurance, and that it is specifically tailored to your requirements.

I am going to commence by looking at some background information about North Dakota so that we can get a feel for the state and what it is all about.

(To get some instant North Dakota Life Insurance Quotes right now simply use the box above to find our choice of specially chosen North Dakota companies to use. Then click on those to get a selection of quotes instantly.)


(ND) North Dakota – A Little Background…


North Dakota is a middling state in terms of its physical size, ranking as the 19th largest in the United States with an area of 70,700 square meters (approximately 210 miles wide by 340 miles long), and nestles on the top most border of ther United States with Canada. 

In population terms however it is one of the smallest states, with just 672,591 people in 2010, ranking it as having the 3rd smallest population of any of the states (only Vermont and Wyoming have smaller populations).

The largest city in North Dakota is Fargo with a population of 105,549 (and an estimated metropolitan population of 208,777) in 2010; and the State Capital is Bismarck, which had an estimated population of 106,286 in 2009.

The biggest contributor to the North Dakota economy is agriculture, although food processing and petrol production are also other big sources of revenue.

In terms of State GDP, North Dakota roughly matches its population position of 48th, with a relatively modest figure of $33.4 Billion in 2010.


North Dakota Life Insurance – The Facts About ND Life Insurance


When you consider how relatively small North Dakota is (in terms of population), it is surprising to see how much of an impact the life insurance industry in North Dakota has on the economy.

There are 459 life insurance companies in North Dakota who are licensed to sell life insurance in North Dakota, and of that number 3 are actually domiciled in the state.

When you look at the situation with the amount of jobs that the life insurance companies directly provide in ND, then this amounts to about 2,000 people who are directly employed, and a further 2,000 people who are supported in their non-insurance jobs through financing, mortgages or investments that the life insurance companies make according to the American Council of Life Insurers.

In financial terms this translates into individual life insurance cover of $4 billion being purchased in 2009, and over 400,000 individual life insurance policies, with the average policy holder in North Dakota having cover of $96,000.

This also translates over to company and group life insurance in North Dakota, where there are a total amount covered of $10 billion.

On a year to year basis the effect that this has on the states economy and residents is significant, with $630 million paid out in the form of policy dividends, surrender values and death benefits in 2009 alone, and $120 million paid out in savings and annuity benefits.


Important Considerations Before Buying Life Insurance in North Dakota (ND)


1/ Figure Out How Much You Need


There are a number of different factors that can go to make up the final amount of life insurance that you really need. These will include such factors as the bills that you have to pay out, mortgage and housing expenses, childcare arrangements, moving fees if your partner would need to move if you died, education and college expenses and miscellaneous expenses that may be peculiar to your particular circumstances.

Get specific. The more specific you are the better you will be able to get a handle on exactly how much cover you need to have, and what measures you need to take to protect your families future.


2/ Deciding On The Right Kind Of Policy


It is important to think through whether you want to get Term Life Insurance or Whole Life Insurance.
This is a big decision because 20 years down the road with Term Life Insurance, it may have cost you less money, but you will not have accumulated any savings, and you may find that you will shortly have to renew the policy at a much higher personal cost to you.

With a Whole Life Insurance policy you will have built up some savings that you could potentially cash in, and you won’t be facing a hike in the cost of your insurance. But on the flip side, the first few years will have cost you probably considerably more money.

So you need to weigh up the pros and cons of the different options and reach some considered judgements based on your particular circumstances.


3/ Four Other Questions To Ask…


It is also worth asking a few specific questions before finally committing to a policy.

  • Will your premiums remain stable over time, or will they change from a year to year basis?

    Get this clear before you commit to a policy, because otherwise it makes it very hard to reach any considered budget decisions.

  • What money will build up in the policy?

    If you get a whole life insurance policy with an annuity element then make sure that you understand how that works exactly, and how much money you can potentially take out from it.

  • Is There A Portion Of The Benefit or Premium That Is NOT Guaranteed?

    This may or may not affect you. But be clear about the amount of death benefits. On what basis payments will be made, and if there are any financial incentives to taking one policy over another.

  • Do You Get Any Other Benefits Or Financial Rewards From Taking One Policy Over Another?

    Again, be clear. The more clarity you have about the terms and conditions of the particular policy that you end up getting, the easier you will sleep at night, and the easier it will end up being for any dependants of the policy.

 

North Dakota Life Insurance – The Details…

When looking at the laws and regulations that surround ND Life Insurance you need to look at The State Insurance Code of North Dakota, which is what governs how life insurance in the state is regulated.

You can find a copy of the North Dakota State Insurance Code here:

 http://www.legis.nd.gov/information/statutes/cent-code.html

(If you scroll down on that page then the North Dakota Life Insurance Code regulations are covered in titles 26 and 26.1)

North Dakota Life Insurance Resources

North Dakota Insurance Department

It is the North Dakota Insurance Department that handles how the above rules and regulations are enforced in the state on insurance professionals and ND Life Insurance Companies.

It also provides information for consumers about what to expect from different types of life insurance, and what their obligations are when they take out a policy (telling the truth, paying the premiums etc).

http://www.nd.gov/ndins/

North Dakota Life & Health Insurance Guaranty Association

If there were problems with a North Dakota Life Insurance Company, and it became insolvent, then it would be the North Dakota Life and Health Insurance Guaranty Association who would step in to assist policy holders in North Dakota.

http://www.ndlifega.org/



 

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