A Guide to Life Insurance in Rhode Island (RI)

When investigating Rhode Island Life Insurance Quotes it is important to focus in on the specifics of how to get a better deal on your life insurance in Rhode Island, and also the more general factors that you need to bear in mind when getting life cover anywhere in the United States.

In this article I am going to explore some of those different factors, as well as take a look at how the life insurance sector slots into the economy of Rhode Island, and some specific legal and state specific resources that you can use to investigate further.

First let’s start by getting a little background about Rhode Island.

(If you would prefer to get a RI Life Insurance Quote right now then you can do so in the box above)


Rhode Island – A Little Background


Rhode Island is the smallest state in the United States in terms of physical size at only 1,214 square metres (approximately 37 miles wide by 48 miles long), but because it also has the second highest population density of over a thousand people per square mile, it had an estimated population of 1,053,209 people in 2009 which ranks it as the 43rd most populated state in the United States.

This amount of people is higher than Wyoming for example, which has over 80 times more land, but only about half the amount of people!

The official name of Rhode Island, which is rarely used apart from on official occasions is “The State of Rhode Island and Providence Plantations”, whilst the nickname of the state is “The Ocean State”.

The residents of Rhode Island were given the option to shorten the name to simply Rhode Island in a referendum in Nov 2010, but they decided by 78% to 22% to keep the original name.

The Capital City and biggest city in Rhode Island is Providence which had an estimated city population of 178,042 in 2010; but which has a metropolitan sprawl that encompasses the neighbouring state of Massachusetts (in addition to Rhode Island) that brings the metropolitan population total up to 1,600,856 people.

Amica Mutual Insurance, a large Fortune 500 insurance company is based in Rhode Island, and healthcare, education and manufacturing play large roles in the states economy.

In 2010, Rhode Island had a state GDP of $49.5 billion, which considering its small physical size is a considerable amount, but which is roughly in keeping with its population of around a million people.



Rhode Island Life Insurance – The Facts About RI Life Insurance

There are 391 Rhode Island Life Insurance Companies who are licensed to sell life insurance in Rhode Island, and three of these are domiciled in the state.

There are around 3,000 people who are directly employed by the life insurance companies in Rhode Island, and a further 3,000 people employed in non-insurance jobs which are directly supported by the sector.

Overall, Rhode Islanders have 440,000 individual life insurance policies, and the average amount of cover per policy-holder is $140,000. In fact, it is estimated by the American Council of Life Insurers that there is $120 billion worth of death benefit cover currently in operation in the state, and roughly $5 billion worth of cover is purchased every year.

The practical effect that all this life insurance has is that significant amounts of money are paid out each year in the state in the form of surrender values, death benefits, matured endowments and policy dividends to the tune of $1 billion a year, and another $350 million paid out in annuity benefits.

In a state with an annual GDP of $49.5 billion, it is clear that this is a significant amount of money.


The Three Step System To Buying RI Life Insurance
That Works For You...


1/ Decide on how much life insurance you need


Life insurance is a delayed planning mechanism and exists to cater for the unexpected, but real possibility that you may not be around to look after your financial affairs or your loved ones.

So, like any forward planning, it is a good idea to think ahead to future scenarios of what may happen in the future, and what expenses your family may face.

Even if you are single you may want to get life insurance to pay off the debt on a property you own for example, so that your brother or sister inherits something worthwhile in the event of your death.

There can be all kinds of reasons as to why you might want life insurance, so think them through.


2/ Decide over what period you need the life insurance


Term Life Insurance is by its nature cheaper than Whole Life Insurance, because it does not have the same savings or annuity element.

One thing you need to consider is what type of like insurance you want to get, and over what period of time.

If it is a long-term security AND saving’s vehicle then you may be better off going for a whole life insurance policy. But if it is simply designed as a financial safety net for your family, then you may decide that a term life insurance policy will suffice.

Either way think it through carefully.


3/ Way up the combinations of benefits and prices, get some RI Life Insurance Quotes sorted out, and then purchase the policy!


Life insurance is by its nature cheaper the younger you are. So there is no time to delay! You should most certainly think the matter through carefully, and do all your due diligence before purchasing a policy. But the fact is that even bad life insurance that is not well suited to your needs is preferable to no life insurance.

So don’t procrastinate for too long. Do the research, get the quotes and buy the policy as soon as possible.


Rhode Island Life Insurance – The Details


In terms of the legal and regulatory framework that surrounds the insurance business in Rhode Island, this is covered by The State Insurance Code of Rhode Island.

You can find the Rhode Island Insurance Code here:

http://www.rilin.state.ri.us/Statutes/TITLE27/INDEX.HTM

This is basically the rules and statutes that both you, insurance professionals and Life Insurance Companies in Rhode Island are expected to abide by.


Rhode Island Life Insurance Resources


Rhode Island Insurance Department

Rhode Island is one of very few states that buries its insurance regulation away inside another website. In this case the Department of Business Regulation.

Most of the information that you would need is contained within it, but it is a little hard to find, so be sure to persevere.

You can find the Rhode Island Insurance Departments portion of the Business Regulation website here:

http://www.dbr.state.ri.us/divisions/insurance/


Rhode Island Life & Health Insurance Guaranty Association


In the event of a Rhode Island Life Insurance Company becoming insolvent and not being able to meet its liabilities, then the Rhode Island Life and Health Insurance Guaranty Association would step in to assist Rhode Island Policyholders.

http://www.rilifega.org/



 

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