Florida Life Insurance

In this article...
  • Understanding how life insurance in Florida works can help you choose the right policy. Learn about Florida life insurance regulations and consumer resources.

Purchasing life insurance is an excellent way to cover end-of-life expenses and protect your family financially. Each state has its own laws regulating life insurance providers and products. Learning about the Florida life insurance regulations can help you understand your consumer rights and feel more confident when choosing between life insurance companies. 

Florida Life Insurance Rules and Specifics

The Florida Office of Insurance Regulation is responsible for regulating Florida life insurance providers. Chapter 627 of the Florida Statutes describes the specific laws that life insurance providers must abide by in the state. 

Cash Surrender

According to Florida life insurance regulations, insurers must pay interest to enrollees when they surrender their policy for its cash value. The state reassesses the interest rate payable each year, and you can find the current rates in the Standard Valuation Law section of the Florida Statutes. Companies don't have to pay interest on the cash surrender value if the enrollee surrenders their policy within 30 days of issue or if doing so would make the company insolvent. 

Grace Period

A grace period of at least 30 days is mandatory for all life insurance products in Florida. This clause may exclude the first payment and allows enrollees to maintain their coverage if they can't pay a premium on time. Companies may charge an interest rate of up to 8% per year on missed payments. They can also deduct the missed premium plus interest from any payouts if you file a claim during the grace period. 


The state of Florida requires that all life insurance companies allow enrollees to reinstate their policy if they default on their payments. Policyholders must apply to reinstate their policy in writing within three years of default. However, you can't reinstate your policy after the term expires or if you surrendered your policy for a cash value payout. You'll need to repay any overdue premiums, and insurers can charge a compounded interest rate of up to 6% per year on owed payments. 

Life Insurance Resources in Florida

The Life Insurance: A Guide for Consumers document from the Florida Department of Financial Services is a helpful starting point for Florida residents who want to understand their life insurance options. This resource explains how different types of life insurance work and describes your consumer rights under Florida law. It also provides useful advice on how to choose a life insurance agent and company. 

The Florida Office of Insurance Regulation is also a helpful resource for finding out more about the laws governing life insurance in Florida. Its website allows users to view updated legislation and access educational resources. You can also contact the office's consumer helpline at 1-877-693-5236 to file a complaint or get impartial advice. 

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