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Illinois Life Insurance

What You Should Know About Illinois Life Insurance

Find the right life insurance policy for you.

Steve Dahl | March 17, 2020

In Illinois, known affectionately to locals as the “Lincoln State,” you can find a life insurance policy to suit practically every individual’s need. Life insurance is a way to protect your loved ones by providing them some financial security in the event of your death. Basically, your life insurance company agrees to pay a certain amount of money to your beneficiaries if you were to pass away.

Finding the right Illinois life insurance policy can be daunting. What policy is the right one for you? Contact an independent insurance agent in our network to find the information you need. These independent agents can help you compare Illinois life insurance quotes so you can find the most suitable plan at a reasonable cost. Contact an agent today to get started.

  • For life expectancy, Illinois ranks 33rd out of the 50 states and the District of Columbia.
  • The average life expectancy here is 76.4 years.
  • Each year, 1,000 out of every 100,000 Illinois citizens pass away between the ages of 55 and 64.
  • This figure rises to 2,500 out of every 100,000 between the ages of 65 and 74.

What Types of Life Insurance Are Available?

Life insurance is regulated by the State Department of Insurance. All life insurance policies sold in the state must have specific provisions to protect the consumer, such as a 30-day grace period for a missed premium. There are two types of Illinois life insurance:

  • Term life insurance
  • Permanent life insurance

What Is Term Life Insurance?

Term life insurance is a life insurance policy that covers a person for a certain segment of time (known as a “term”) such as 1, 5, 10, 15, 20, 25 or 30 years. An age-specific term policy can also be purchased, such as for age 55, 65 or even 100. Term life insurance is the most affordable form of life insurance, as it only covers death benefits, which are payable to the named beneficiary as a lump sum payment and are generally non-taxable. The three types of term life insurance policies sold in the state include the following:

  • Level term: Both the death benefits and the premiums remain the same through the life of the term purchased.
  • Decreasing term: The death benefits decrease over the life of the term, but the premiums remain the same.
  • Increasing term: The death benefits start at a specific amount and increase by a specific amount or percentage over specified time intervals. The premium you pay increases as the death benefits are increased.

What Is Permanent Insurance?

Permanent insurance policies cover you for life and come in a variety of formats, which vary from company to company. The permanent life insurance policies available in Illinois are more expensive to purchase than term life policies because include death benefits and also have a cash value accumulation/investment feature. A portion of the premium paid on a policy goes toward the cash value accumulation/investment component of the policy. Permanent life insurance can be broken down into two main types:

  • Whole Life Insurance
  • Universal Life Insurance

Both of these types of policies are available in a variety of hybrid formats, allowing individuals to select policies that are most suitable to their individual life insurance requirements. As these types of policies require a long-term financial investment, it is advisable to seek a licensed independent agent to explain your life insurance options.

How Much Will Your Illinois Life Insurance Policy Cost?

The cost of any Illinois life insurance policy is dependent on a number of variables assessed by the underwriters as they determine the cost of your premium. Underwriting requirements vary from company to company, as do the rates underwriters charge for their services. Some of the primary variables that each insurer uses to determine the cost of the premium you pay will include the following:

  • Age
  • Gender
  • Current state of your health
  • Results of a medical exam or medical questionnaire
  • Family history
  • Lifestyle
  • Profession and hobbies

How Can You Find Illinois Life Insurance?

You can compare the types of policies available and find the most affordable premiums by obtaining Illinois life insurance quotes through a local independent agent in our network. These agents can also give advice as you determine how much insurance you should carry, and will help you decide whether you should buy a term or a permanent life insurance policy. Independent agents work for you and not for a life insurance company. 

Contact a local agent in your area today to find the coverage you need to protect your loved ones.

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