When you are looking for New Mexico Life Insurance Quotes it is important to understand the specific differences between the states, as well as some of the particulars with Life Insurance in Mexico in particular that you need to consider.
In this article I am going to explore several of those different factors, both in terms of residents of New Mexico who are looking to get some life cover, and also by looking at the role that the life insurance industry plays in New Mexico to help to sustain the economy.
Let’s first take a look at a little background on New Mexico so we can understand the state better.
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New Mexico – A Little Background…
New Mexico is one of the largest states in the Union with the 5th largest land area of 121,589 square meters (342 miles wide by 370 miles long). But despite this it has a relatively small population of 2,059,179 in 2010, and a corresponding population density of only 17 people per square mile on average, less than a quarter of the US average of 87.4, and well below states like New York that have population densities of over 400 (411 in 2010).
New Mexico has one of the highest percentage Hispanic populations of anywhere in the United States (46% in 2010), and Spanish is the main spoken language for 29% of the population.
It also has a large Native American Population, and Navajo is spoken by an estimated 4% of the population.
The largest city in New Mexico is Albuquerque which had a city population of 545,852 and a metropolitan population of 887,077 in 2010.
The population of the city has grown five-fold over the years, from 96,815 in 1950 to 545,852 in 2010.
The Capital City of New Mexico is Santa Fe which had a city population of 75,764 and a metropolitan population of 183,782 in 2010. Other larger cities in New Mexico are Las Cruces, Rio Rancho, Roswell and Farmington.
One of the infamous events that happened in New Mexico occurred in Roswell in the summer of 1947, when it was claimed that the US Government covered up an alien UFO spacecraft landing in the New Mexico desert and subsequent ‘alien autopsies’. Despite a great deal of publicity over the years and speculation as to what really went on, the definitive truth of what actually happened at the so called "Roswell Incident" has never totally been explained.
The biggest industries in New Mexico are oil and gas production, but the economy of New Mexico still gets a lot of assistance from Federal Government with an estimated $2.03 dollars coming in for every dollar the Federal government received back in taxation in 2005.
The state GDP of New Mexico was $75.5 billion in 2010, the 14th lowest of the US States, but still roughly equivalent to the GDP of Libya ($77.9 billion) or Iraq ($84 billion).
New Mexico Life Insurance – The Facts…
There are 478 New Mexico Life Insurance Companies who are licensed to sell life insurance in New Mexico; one of which is domiciled in the state.
Together these employ around 2,000 people directly, and a further 2,000 non-insurance jobs are supported by the sector through mortgages, financing, loans etc.
The residents of New Mexico cumulatively have over $130 billion of death benefits cover, and there are some 650,000 individual New Mexico Life Insurance policies currently active. Taken together each policy holder in New Mexico has an average of $100,000 worth of life cover.
On a year by year basis life insurance is a significant economic driver for the New Mexico economy, with $7 billion worth of individual New Mexico Life Insurance purchased in 2009, and New Mexico Group Life Insurance that totals $65 billion from the businesses in the state.
The cash-flow effects that this has on the economy are also significant, with $2 billion being paid out in death benefits, surrender values, matured endowments and policy dividends in 2009, and a further $670 million paid out in Annuity benefits according to the American Council of Life Insurers.
There is also a considerable on-going benefit in the way of continued investment in the state from the New Mexico Life Insurance Companies to the tune of $20 billion (mostly in bonds and stocks, but with commercial property investments and residential property investments also adding considerably to the amounts involved.)
New Mexico Life Insurance – Four Questions To Ask Yourself Before Buying…
1/ What Do I Need This Life Insurance For?
This is actually a more important question to address then you might think. Many people either don’t get any life insurance, or get too little life insurance precisely because they haven’t fully thought through the implications of this question.
Life Insurance is NOT just about paying bills or funeral expenses. It can also be about providing those you love with a better, bolder future that is often only possible if they have the finances to make it happen.
And that can include such items as sending your children to college, paying off your mortgage, paying off debt that your family may have accumulated, or making sure that your spouse is better provided for.
So it is a good idea to really get your thinking cap on about why you might want the life insurance before you rush off to get some New Mexico Life Insurance Quotes.
2/ Do I Currently Have Any Life Insurance?
You may find that you have some life insurance already perhaps from a Group Life Insurance Policy that you may be signed up for at work, or perhaps because you are a member of a certain club, or sports society (this is often the case with more physical sports like boxing or football).
So it is a good idea to go and check by checking with payroll at work, or the club secretary at your sports society. It is all too common that life insurance goes unclaimed, simply because relatives weren’t aware of its existence.
Even if you find that you do have some cover, you should still look into getting your own. For example, if you left your job in five years’ time then all that life cover may come to an end, but because you are now five years older, the cover would cost more and may now be prohibitively expensive. Whereas if you buy it now, it will be cheaper because you are younger.
So it can definitely save you money to plan ahead.
3/ How Much Life Insurance Cover Do I Need Then?
If you consider 1/ and 2/ then you should now have a clearer idea both about how much life cover you currently have, and also how much you might ideally want to have.
You should try to firm up those figures so that when you go out and get some New Mexico Life Insurance Quotes you are actually doing so with a clearer mind, and more knowledge about how you arrived at the figure that you finally did.
4/ Is There A Certain Type Of Life Insurance That I Should Buy?
There are several different types of life insurance, and so it is worth considering which one is going to be right for your particular circumstances.
The two most common types are:
New Mexico Term Life Insurance – This will cover you for a specified amount of time that you decide upon, and in return for a death benefit if you die during that period you will pay a regular premium.
The good thing about term life insurance is that it tends to be quite a bit cheaper than whole life insurance. But it doesn’t contain a savings element, and will become considerably more expensive if you wish to renew the policy when it is nearing its conclusion.
So those are both factors to bear in mind before opting to go down that path.
New Mexico Permanent Life Insurance – Also called whole life insurance, variable universal life insurance or variable life insurance the basic premise of your beneficiaries being paid out a lump sum of money if you die remains the same.
However, with this the policy is on-going rather than expiring after a certain time, and there is usually a savings or annuity element built into it, which means that you could potentially get some money back on the insurance policy or cash it in beofre you die.
Sounds good, however you will pay quite a bit more for the same amount of cover as term life insurance, and the savings portion is heavily weighted to years into the future, so if you cash the policy in within the first few years then you will get hardly anything back.
It is a good idea to get some New Mexico Life Insurance Quotes for these different types so that you will have a clearer idea both about the differing terms and conditions, and also how much each type might cost you.
New Mexico Life Insurance – The Details…
The laws and legal framework that surround how insurance in New Mexico are regulated are laid down in The State Insurance Code of New Mexico.
This contains all the detail about exactly how insurance business should be conducted in New Mexico, and is useful to be able to refer to, especially if you ever have a complaint against your New Mexico insurance company and want to know if they have broken any rules.
New Mexico Life Insurance Resources
New Mexico Insurance Division
The New Mexico Insurance Department oversees the conduct of insurance business in New Mexico, and applies the above rules to consumers, insurance agents and insurance companies.