Michigan Life Insurance

Michigan 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 Michigan life insurance regulations.

  • Explains the Michigan Guaranty Association's protection.

  • Links to more information about life insurance in Michigan

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Michigan life insurance rights and regulations

Life insurance in Michigan is regulated by Chapter 40 the state's Insurance Code. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such protection lies in the one month grace period on late payments that all life insurance policies allow. During this window, the insurer cannot cancel the policy, and the coverage will continue without interruption so long as the account is brought current.

Michigan law also requires that insurers send a written notice of cancellation to a policyholder 30 prior to termination of coverage.

And while specific claims procedures are different company to company, the prompt settlement of claims is guaranteed. If an insurer does not settle within two months of receiving proof of death, the proceeds will begin accruing interest.

However, Michigan law affords some protection to insurers, too. Inaccurate statements made on the policy or application, if discovered within the first two years, can be grounds for policy cancellation. If there has been a misstatement of age or sex the death benefits will be recalculated to reflect this fact.

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

The Michigan Life Insurance Guaranty

The Michigan Life and Health Insurance Guaranty Association helps protect policyholders against an insurance company's failure. Insurers pay fees to the organization, which, in turn, covers policies should a company go bankrupt.

The protection does have limits, though. The maximum compensation for death benefits in Michigan is $300,000 and the maximum compensation for cash surrender is $100,000. These limits hold even if coverage from multiple life policies totals more.

This protection only extends to the policies of insurers who are licensed in Michigan, so be sure yours is. To check the status of an insurer, you can call the Michigan Insurance Division at (877) 999-6442 or (517) 373-0220.

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Apply for a quote with confidence at Netquote
(for Michigan term life insurance), or Insurecom.
Your insurer will be licensed in Michigan.

More MI life insurance help

If you want more help getting the best value on your MI 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 MI life insurance laws and regulations, contact the state's Consumer and Industry Services.

For more help . . .

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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