Delaware Life Insurance

In this article...
  • The right life insurance coverage can protect your family's way of life if you die. Learn what to expect if you purchase a Delaware life insurance plan.

According to the CDC’s National Center for Health Statistics, Delaware residents today have an average life expectancy of 77.8 years. If you're worried about what might happen to your loved ones after you die, a Delaware life insurance policy may be the solution, but choosing coverage that suits your budget and your financial goals is crucial. Because state laws vary when it comes to life insurance coverage, it’s important to understand your rights as a policyholder under Delaware law.

Delaware Life Insurance Rules and Specifics

Life insurance policies in Delaware are regulated under Title 18 of the state’s administrative code, which outlines the responsibilities of issuing companies, licensing agents, consultants and other financial professionals involved in helping Delaware residents purchase coverage. The state requires all issuers to provide several standardized consumer protections, including: 

  • The free-look provision. Every life insurance policy in Delaware must include a free-look provision, which grants policyholders the right to receive a full refund if they change their minds about their policies within 10 days of issue.
  • The late-payment grace period. Under the state’s administrative laws, Delaware policyholders who have missed payments have 30 days to bring their premiums current. During this grace period, the issuing company can’t decrease or terminate coverage.
  • Timely claims payment. Delaware law requires insurers to pay on life insurance claims within 60 days of receiving the death notice of the insured.

The Delaware Department of Insurance provides oversight, making sure the state's licensed insurance providers execute these provisions.

Life Insurance Resources in Delaware

Delaware residents who have purchased a life insurance policy, intend to purchase a policy or are named beneficiaries on a policy may seek information, education or protection from the following organizations:

  • Delaware Department of Insurance. Consumers who want to learn more about state policies governing life insurance or who have questions or concerns about an issuing company may contact Delaware’s Department of Insurance. The department, which was set up to inform, protect and advocate for state policyholders, maintains a consumer services division to handle complaints. It also offers a lost-policy locator tool.
  • Delaware Life & Health Insurance Guaranty Association. Delaware Life & Health Insurance Guaranty Association consists of the state’s licensed insurers and annuity providers. Under Delaware law, the guaranty association is responsible for servicing policies from member organizations who are liquidated due to insolvency. Policyholders or beneficiaries who have plans through liquidated providers may reach out to the association for additional information.
  • AM Best. Delaware residents who are shopping for coverage may want to obtain information about the financial stability of the state’s insurers by visiting industry rating agencies such as AM Best. This credit rating agency, which specializes in insurance companies, helps consumers assess the creditworthiness of insurers so they can make more informed purchasing decisions about life insurance and annuities.
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