North Carolina Life Insurance

In this article...
  • North Carolina life insurance policies comply with state-specific regulations. Read here for information on these rules and an overview of consumer resources.

Life insurance policies provide a reliable way for individuals to protect their loved ones’ financial security in the event of their death. Regulations vary by state, so it’s helpful to know what to expect from life insurance in North Carolina.  

North Carolina Life Insurance Rules and Specifics 

Life insurance companies that sell policies in North Carolina comply with the guidelines set under Chapter 58 of the state’s General Statutes. This document outlines standard business practices insurers must follow along with policyholders’ rights. 

Free Look Periods 

North Carolina residents are entitled to a 10-day free look period. During the 10 days after purchasing a policy, you can cancel the policy for a full refund if you decide it’s not right for you. This ensures that you have plenty of time to review your insurance contract.  

Grace Periods 

Life insurance companies in North Carolina must provide a 30-day grace period, which begins on the first day the premium payment is missed. As long as the insured makes the full payment within the grace period, the policy can’t lapse.  


The incontestability period in North Carolina is two years, meaning that life insurance companies have two years from the time you purchase a policy to contest the validity of the policy for any reason other than missed payments.   

Payment Guarantees 

While it’s rare, a life insurance company may become financially insolvent, meaning it doesn’t have the ability to fulfill its financial obligations to policyholders. If your life insurance company goes bankrupt, you have protections under the North Carolina Life and Health Insurance Guaranty Association. This organization pays a portion of your death benefits along with a cash surrender value. 

Claims Payouts 

Life insurance companies in North Carolina must pay out on death claims within 30 days of a beneficiary filing. After that period, the money owed to the beneficiaries is treated as a loan and accrues interest.   

Life Insurance Resources in North Carolina 


  • North Carolina Department of Insurance: This agency regulates life insurance policies sold within the state and advocates for policyholders in instances related to unfair claims practices. Through the DOI, you can get comprehensive information on locating a lost life insurance policy, addressing insurance fraud and filing a complaint.  
  • North Carolina Life and Health Insurance Guaranty Association: The North Carolina Life and Health Insurance Guaranty Association protects the interests of policyholders if the insurer is unable to pay out on a claim due to insolvency. It provides up to $300,000 in death benefits and up to a $100,000 in cash surrender payment.
  • National Association of Insurance Commissioners: The National Association of Insurance Commissioners is a nationwide organization that serves state insurance regulators. Through this organization, you can file complaints, obtain advice on purchasing a life insurance policy and search for insurers that operate within the state.  
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