South Carolina Life Insurance Laws To Know
If you are considering buying life insurance as a resident of South Carolina, it’s important to know that the state has specific guidelines in place to protect you as a policyholder. These laws include the following:
Contestable Period
In South Carolina, life insurance companies have the right to reject a claim if they find out that the policyholder provided incorrect or misleading information on their application within two years of the policy’s start date.
Free Look Period
Once you receive your life insurance policy from the company or agent, you’ll have 10 days to review it. If you decide you don’t want the policy during this period, you can return it without penalty and receive a full refund of any premiums already paid to the insurance company.
Grace Period For Missed Payments
If you miss a payment in South Carolina, don’t worry, as the law provides a 30-day grace period. During this period, you can still make the payment and keep your coverage without any loss.
Time Allowable To Settle A Claim
For beneficiaries to obtain benefits, they need to submit a claim to the insurance company. In South Carolina, all life insurance companies are required to resolve claims within 30 days.
Guarantee Of Death Claims
The South Carolina Life and Accident and Health Insurance Guaranty Association guarantees payment of life insurance claims up to $300,000 per person.