What to consider when purchasing a life insurance policy in the Sunshine State.
Like most insurances, life insurance is regulated by state law. Find out what you can expect when buying coverage, along with our list of available life insurance providers in Florida.
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Why we like: LadderLife™ Life Insurance
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How much does life insurance cost in Florida?
Your premium is a product of your age, gender, driving record, occupation, hobbies, health and family medical history. We couldn’t find any publicly available information about whether life insurance rates are affected by the state you live in. However, some experts say residents in states that are prone to natural disasters, such as earthquakes, hurricanes and tornadoes, may pay more for coverage.
Flooding is common in some parts of Florida, and this might influence life insurance rates.
What risk factors will life insurance providers consider if I live in Florida?
Living in Florida, the rate you’re offered will reflect the following risk factors:
- Age. Usually, the younger you are, the less you’ll pay for life insurance. Life expectancy comes into play here, and Florida residents can expect to live to a median age of 77 years.
- Weight. Obese and overweight people are more likely to run into serious health problems, such as heart disease and diabetes. To compensate for that risk, life insurers often charge higher rates. In Florida, the adult obesity rate is 28.4%.
- Tobacco use. Tobacco use is associated with heart disease, stroke and COPD, so non-smokers tend to pay less for life insurance. 15.5% of adults smoke in Florida. To put this into context, the national average is 17.1%.
- Occupation. People with dangerous jobs can expect to pay higher premiums. Think firemen, loggers and war journalists.
- Gender. Across the US, men have an average life expectancy of 76.1, and for women, the number sits at 81.1. As such, men might pay more for coverage.
- Driving record. If your driving record is free from DUIs and major traffic violations, you may score a lower rate. Insurers assess accident and crash data to determine rates, too. In 2017, there were 3,116 driving-related deaths in Florida.
- Lifestyle and hobbies. It’s risky to cover people who sign up for bungee jumping, skydiving and other dangerous hobbies. Watersports are popular in Florida, and insurers may consider your penchant for those when crunching the numbers.
What are Florida’s leading causes of death?
These are the state’s leading causes of death, according to Centers for Disease Prevention and Control (CDC).
- Heart disease — including coronary artery disease (CAD)
- Cancer
- Accidents — including unintentional injuries and falls, motor vehicle accidents, and accidental poisoning or exposure to fire and smoke
- Stroke
- Alzheimer’s Disease
- Chronic lower respiratory diseases — including emphysema, asthma and chronic bronchitis
- Diabetes
- Suicide
- Kidney disease
- Chronic liver disease and cirrhosis
Does Florida have any life insurance laws I need to be aware of before applying?
Yes. There are a few laws in place under Title 37 of the Florida Statute that are designed to protect you.
- The free look period.
In Florida, any resident purchasing a life insurance policy has at least 10 days to back out and receive a full refund of any premiums paid. Some insurers offer a free look period of up to 14 days, but the law gives you 10 days to change your mind. - Timely payment on claims.
Florida laws don’t specify a time limit to settle on claims. However, life insurance companies are required to add interest to the total benefit, starting from the day they receive a certified copy of the death certificate. In many cases, this motivates them to pay out the death benefit faster, typically within a month. - Life insurance policies are guaranteed.
As long as you pay your premiums, your beneficiaries are guaranteed to receive a death benefit — even if the insurer goes out of business. The Florida Life and Health Insurance Guaranty Association backs all current life insurance policies. The guarantee is capped at $300,000 for a lost death benefit, and $100,000 for a cash value surrender. - Laws regarding former spouses.
There are laws to protect policyholders who failed to change their beneficiary after getting divorced. Under the new laws, ex-spouses will no longer receive life insurance payouts from a deceased ex-wife or husband’s policy. The proceeds will go to the heirs or other beneficiaries listed on the policy.
Bottom line
When you’re shopping around for life insurance in Florida, know that the rates can vary considerably between providers and based on your personal profile.
To make sure you’re getting the best possible deal, compare life insurance providers, policy features and riders and pick the provider that best suits your needs and budget.