Vermont Life Insurance

Vermont life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

Briefly describes Vermont life insurance regulations.

Explains the protection of the Vermont Guaranty Association.

Links to more information about life insurance in Vermont.

Premiums can vary by as much as 50%. Enter your ZIP code on the right, and with just one short form, you'll receive quotes from several insurers in your state. Start comparing quotes today:

Use InsureME to compare additional term life and whole life quotes, and get expert advice from an agent in your area, who can help you design a plan that's right for you. Click here to fill out a quick form.

Vermont life insurance rights and regulations

The insurance industry in Vermont is regulated under Title 8 of the Vermont Statutes. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such consumer protection is the 10-day "free look" provision contained, by law, in every Vermont life insurance policy. During this window, a new policyholder can decide to decline the coverage and still receive a full refund of premiums, without penalty.

Vermont law also requires insurance companies to allow a 30-day grace period on late premium payments. An insurer cannot cancel a life insurance policy during this grace period, and coverage will continue uninterrupted so long as the account is brought current.

Vermont insurers are obligated to settle life isurance claims within 30 days of receiving proof of death. Benefits not paid by this time begin accruing interest at a rate of 12%. A detailed description of the exact claims procedure accepted by your insurance company will included in your policy.

And while there are no laws in Vermont limiting an insurance company's freedom to disclose policyholder information, insurers are obligated to honor any policyholder request for this information.

However, Vermont law extends some protections to insurers, too. Consumer misrepresentation on a policy or application, if discovered within the first two years of the policy, can result in its cancellation. The insurer won't be obligated to honor any claims.

A misstatement of age can be discovered at any time and will result in the reduction of death benefits to reflect the actual age of the insured.

Vermont insurers are also exempt from paying claims made within the first two years where suicide is the cause of death. (Premiums will be refunded.)

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If you are ready to apply for a Vermont term life insurance policy, or if you just want a quick online quote, visit Insured Street now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.

The Vermont Life Insurance Guaranty

If your life insurance company is licensed in Vermont, your policy is backed by the Vermont Life and Health Insurance Guaranty Association. This organization helps protect you, the insured, should your insurance company go bankrupt.

However, there are restrictions on this protection. In Vermont, the compensation for lost death benefits is limited to $300,000, and compensation for lost cash surrender is limited to $100,000.

And your insurer must be licensed in Vermont to qualify for the guaranty's backing. To check the status of an insurer, you can call the Vermont Banking, Insurance, Securities & Health Care Administration at 802-828-3301.

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Apply for a quote with confidence at Insured Street
(for Vermont term life insurance), or InsureME.
Your insurer will be licensed in Vermont.

Other notes on Vermont life insurance

Viatical settlements, which are purchasing agreements, are permitted in the State of Vermont. Under these arrangements, a third party buys a life insurance policy from the insured, pays the premiums, and becomes the policy's beneficiary. It's wise to enlist the aid of a licensed agent in arranging a viatical settlement.

Life insurance illustrations, which are financial projections made by an insurance company, are regulated in Vermont. For specific rules, consult Regulation 98-1: Life Insurance Illustrations, which is available on the Insurance Department website.

More VT life insurance help

If you want more help getting the best value on your VT life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about VT life insurance laws and regulations, visit the official website of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration.