Life Insurance in Michigan

Michigan residents can apply for coverage through Valor Life Benefits. Coverage sold in the state is regulated by the Michigan Department of Insurance and Financial Services, known as DIFS, which licenses agents, answers consumer questions and takes complaints.

Michigan Buyer Tips From DIFS

DIFS publishes a short list of buying tips for Michigan residents. The ones that matter most at application time:

• Use the DIFS Locator to check that the agent and agency are licensed in Michigan.
• Read the application for accuracy before you sign it.
• Make the check payable to the insurance company, not to the agent.
• Ask about returning a new policy during the refund period required by Michigan law.
• Buy a policy only if you intend to keep it, because early termination can be very costly.

Replacing a Policy in Michigan

DIFS warns against canceling an existing policy before a new one is approved and in force. A new policy restarts the two-year contestable period, is based on your current age and health, and carries new issue expenses that can lower its cash value in the early years. Changing the terms of the policy you already own can work better than a new one, and an illustration of the old policy's projected values helps with that decision.

DIFS's Consumer Counselor guide on life insurance adds that, unlike home and auto coverage, life insurance can involve waiting periods, surrender charges and tax consequences on cash value policies. If your agent or company cannot answer a question about your policy, DIFS takes the question directly.

Before replacing coverage, DIFS suggests making sure any savings on a new policy outweigh the new policy's early expenses, which include the agent's commission, the administrative work of issuing and delivering it, and setting up the new account. DIFS also suggests checking the coverage level of the new policy against your needs.

Michigan Life Insurance and Annuity Search

DIFS runs its own lost policy program, the Life Insurance and Annuity Search Service. Families submit a request for a deceased relative's policy purchased in Michigan, and at the start of each month DIFS forwards the requests to every life insurance and annuity company authorized in the state. Companies reply only to a beneficiary or someone legally authorized, and the deceased person's Social Security number is required. DIFS reports more than 82 million dollars recovered for Michigan families through the program.

Benefits that are never claimed go to the state. They are listed on the Michigan unclaimed property site.

Coverage for Michigan Residents

Michigan residents can apply for term life coverage, whole life coverage, final expense policies, mortgage protection and indexed universal life. State rules for Texas, Colorado and South Carolina have their own pages.