Welcome to our website, this page will provide you with a complete overview on Life Insurance in Ohio. We highly recommend you read this page first but if you are looking for seperated information you can do so by visiting our article page.
We sincerely hope you find the information we provide helpfull and wish you all the best with your love ones.
Quick category overview: (Links will open in a new browser window)
- Life Insurance
- Life Insurance Age Ohio
- Life Insurance Claims Ohio
- Life Insurance Payment Ohio
- Life Insurance Taxes Ohio
- Life Insurance Types Ohio
- Life Insurance Coverage Ohio
- Life Insurance Risks Ohio
Now let’s get started…
- What is Life Insurance?
Essentially, life insurance is a contract between the policyholder and the insurance company. Once completed, the insured is in the obligation of paying a certain amount that depends on the company and type of life insurance they have chosen, and also is determined by the age a person has decided to get or buy a life insurance policy.
In Ohio, people who are employees of the State and have worked for one year continuously without interruptions, are eligible for basic life insurance through Securian Financial.
According to their page, it is meant to cover at least one year of salary income that would have been brought by the policyholder to the household.
You must keep in mind that there is no right way to use the life insurance income, but it is meant to be used to cover final expenses, primarily.
After dying, we wouldn’t want our families to have the financial charge that comes with funerary or crematory services, and this is one of the many ways that life insurance money can be used for.
- Basic terminology
In this section, you will find the basic terminology that you must consider when researching life insurance in Ohio. Keep in mind that you should be familiar with these terms before starting to file a life insurance claim, as you will see them practically everywhere.
A policyholder or insured is the person who made the contract with the insurance company. One of the main responsibilities of a policyholder is to let the heirs know that their names appear in the document since they must be aware of all the procedures they will be handled after the policyholder’s death.
A beneficiary is a person who the policyholder has chosen to receive the life insurance benefits. It can be a single person or multiple ones; it is all on the insured’s wishes.
The policyholder is also able to choose a contingent beneficiary or multiple ones. If the main beneficiaries happen to pass away before they get to receive or claim the life insurance benefits, the contingents can do so.
In case your beneficiary is a minor -for example, your kids-, you must choose a responsible individual who will receive and manage the insurance money for them until they become of legal age.
If a life insurance policy exists but there’s no beneficiary named most members of your family will be able to claim the insurance benefit. This includes parents, siblings, spouses and children.
Those who are beneficiaries in a life insurance policy should be aware of it. If you think you may be beneficiary of someone’s life insurance policy, you should ask them so you can be aware of all the paperwork and responsibilities that you’ll have once they pass away.
A life insurance premium depends on the company you have decided to form a contract with, and it is the total amount of money that you will be paying for the life insurance policy.
If the payments aren’t made, the company will lapse the policy. Be aware that premiums are different depending on the type of insurance you have decided to get.
- Cash value
It is the total amount in cash that was offered to the policyholder by the company when the policy was being filed. This term is related to some types of life insurance, such as whole life insurance or universal life insurance. More information about the types of life insurances can be found below.
Life Insurance in Ohio
Quick article overview if you are looking for specific information: (Links will open in a new browser window)
- What is the best age to get life insurance
- How does Life Insurance Payout work in Ohio
- How to file a life insurance claim in Ohio
- Are Life Insurance Benefits Taxable in Ohio (Important information)
- Types of Life Insurance in Ohio
- Death Cases Which Are Not Covered By Life Insurance Ohio
- Risk Factors that Effect Buying Life Insurance in Ohio
- What Are The Benefits Of Life Insurance?
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There are lots of insurance companies in Ohio, and it is solely up to you to decide which one to form a contract with.
However, if you an employee of the State, you must know that you are eligible for basic life insurance after one year of uninterrupted work. Securian Financial is the company that works with the State, and they will send you a letter once you become eligible for life insurance.
Keep in mind that there are more conditions that you should consider before getting to know if you are eligible for life insurance in Ohio.
While working for the State seems the fastest way to acquire basic life insurance, it is, unfortunately, one of the ways that give the least benefits to the heirs. However, you should keep in mind that it all depends on the age you choose to get or buy life insurance.
Insurance companies prefer to work with younger, healthier people, but that doesn’t mean that a person between ages 50-70 isn’t eligible for one. If you are not working for the State but are thinking of getting life insurance, then you should be aware of how much it’ll cost depending on your age.
Who needs life insurance?
Essentially, life insurance is recommended for people of all ages. Some parents decide to get their children insured, the main reason for it is that the younger you start, the less you pay. In Ohio, life insurance this is not the exception.
In the overall life expectancy chart of the USA, Ohio is #38, with a life expectancy of 77.
Life insurance can be used to cover a lot of expenses that follow the policyholder’s death. During these months, your family will be mainly focusing on living without your presence, which may take some time to get used to, especially if you were the main provider of the household.
Grief can be very overwhelming, and life insurance can give your family a bit of quietness during these rough days.
There’s no particular need that life insurance income should be used to cover, it can be used how the beneficiary thinks is the right way to do so.
However, there are some things that a beneficiary should take into account after getting the insurance money, especially if they relied on the policyholder economically:
- Final expenses can be a burden if you don’t have enough money to cover them. However, with life insurance, you can trust that you’ll have less weight on your shoulders. To avoid becoming a burden to your family after you pass away, it is best to get life insurance while you can.
- Your house is one of the most important things in your family’s life, which means that mortgage can become a problem if the main provider dies. Life insurance can be used to solve the financial charge of a mortgage.
- Taking care of their children is one of the most important things in a parent’s life. If you happen to pass away and leave kids behind, life insurance can be a way to provide your spouse (or the person who is taking care of them) of having enough income to help them during your children’s growth. Remember that food, clothes and other expenses aren’t the only things that matter when it comes to a child, educational expenses are also part of it.
- Medical expenses are also part of the things that a beneficiary can cover with life insurance. For example, if your spouse has some kind of illness and doesn’t have enough money to get proper treatment, naming them beneficiary in the life insurance policy may help them to treat their illness.
To give you a few examples, life insurance may be necessary for:
- People with little kids: When you pass away and leave children behind, they can have a hard time during the next years of their life. With life insurance, you can trust that your children will have enough money to survive until they are of legal age and can take care of themselves.
- Parents of special-needs children: If you are the parent of a child who was a life-long condition, such as Down syndrome, then you would want to make sure that the person in charge of them will be able to cover their expenses since most of these special-needs children can’t survive on their own.
The list goes on, as the cases are very different and the needs depend on what circumstances surround the beneficiary.
Best age to get life insurance in Ohio
According to research done by LifeHappens, 41% of Americans do not own life insurance of any kind, which is almost half of the population. The same survey revealed that 70% thinks of life insurance as a necessity.
There are some people out there who aren’t able to get one, and if there’s no one who’s currently relying on you economically, this is something that is likely not vital for you. However, things will change in the future and is not a bad idea to get it while you’re in the 20s.
The younger and healthier you are, the more benefits and less money you will have to pay for the insurance.
However, keep in mind that getting life insurance is possible at any age, but the monthly fee or premium you’ll be paying increases each year that passes. It is better to get one while you don’t need it, because it may come in handy in the future.
In Ohio, life insurance isn’t vital at this point of your life, but it may help to solve some problems if you are planning to have kids, a spouse and a household of your own.
Getting to know the life insurance types
Think about what you are trying to reach before starting to get your life insurance policy. As the policyholder, your wishes are what matters the most, because you are the one who will decide what kind of life insurance you’ll get.
The beneficiary will receive the benefit under the conditions that the policyholder stated in the policy. Depending on the expenses you’re trying to cover, there are three different main types of life insurance in Ohio that you should consider:
Basic Life Insurance
In Ohio, life insurance is given to extent employees (either full-time or part-time) who have been working for the state for a whole year or more continuously. After the 12 months have passed, you will be eligible and Securian Financial will notify you by sending a letter.
The State of Ohio’s official page says that it is meant to cover at least one year worth of expenses, and the total amount the beneficiaries will get is equal to a year worth of salary.
If you have already filed a life insurance policy and want to change the beneficiary, you can do it by visiting this website. It will take some time for Securian Financial to register the change. Changes aren’t possible after the policyholder has passed away.
In Ohio, life insurance acquired by being an employee of the State depends on other conditions. Some of them are the following:
- If you want your spouse to be a beneficiary in the policy, they must not work for the State.
- It is not possible to receive the total amount of insurance in cash.
- Accidental death provision applies to this kind of life insurance.
- Those who were diagnosed with a terminal illness or were given less than a year to live by a physician are eligible for accelerated death benefits.
Term life insurance
As the name suggests, term life insurance is meant to last for a determinate time frame (the term), after those years have passed, the insurance will expire, which means that the beneficiary won’t be able to claim it.
However, if you happen to pass away within the chosen time frame, the beneficiary will be able to claim it by lump sum.
This is one of the most gotten life insurances in Ohio. It is simple, flexible and affordable. Term life insurance is a great option if you want to make sure that your family will be able to deal with expenses like college and mortgages.
It is also great if you currently can’t afford the premiums of other kinds of life insurances, but still want to get it.
Keep in mind that even if this is one of the cheapest options, it is only meant to serve as a temporary solution, since it only lasts a definite amount of time. There are sub-types of term life insurance that you must know:
- Level: By getting this type of term life insurance you can be sure that the premiums won’t change during the chosen time frame.
- Annual renewable: By getting this type of term life insurance, you can start paying a definite amount of money, which will be increasing each year.
- Decreasing: Similar to the first type, you pay a single amount of money during the policy’s whole life, but be aware that the benefits will be decreasing the more years pass.
- Return of Premium: This type of term life insurance makes you able to get the whole money if you outlive the chosen time frame.
- Non-Medical-Exam: With this type of term life insurance, you will be able to receive benefits without having to submit yourself to a medical exam.
- Group Term: This type of term life insurance is commonly offered to you in your workplace, and the benefits depend on the company you’re working with.
- Mortgage protection: While this work similar to the Decreasing type, the difference is that the beneficiary will be your mortgage provider, and will last as much as the mortgage.
As you can see, term life insurance in Ohio is very popular due to its flexibility and lots of options that you can choose from. It is also the most affordable and cheapest of all types.
Whole life insurance
This type is very different from the previous one. While both offer death benefits to the beneficiary designated by the policyholder, the main difference is that instead of just covering for a determinate time frame, it does so throughout your lifetime, of course, when premiums are paid in time and continuously.
Remember that total amount you’ll be paying depends on the company and the type of life insurance you have chosen.
Just as term life insurance, whole life insurance has some sub-types. These are:
- Traditional: With a traditional whole life policy, you can be sure that the amount of cash you’ll be getting will be stipulated by a minimum rate of return.
- Interest sensitive: This type works similarly to the traditional one. With an interest-sensitive whole life policy, the amount of cash you’ll be getting is variable and doesn’t depend on a minimum rate of return. With this type, the total value of your death benefit can be increased, and you won’t have to pay more for the premiums.
- Single-premium: People with large amounts of money can get single-premium whole life insurance since, with it, they can get it upfront. It includes the same benefits the previous one have.
As you can see, there are many perks with whole life insurance in Ohio than with a term life insurance. However, keep in mind that the premiums you’ll be paying for will be more expensive, so if this is the type of policy you want to get, make sure you can afford it.
With whole life insurance, you can trust that the premiums won’t be raised, unless you request to do so. Most of the benefits that come with a term life insurance also are available for this type.
Universal Life Insurance
This is the third main type of life insurance, and it is even more flexible than the previous one, meaning that you can do more about the death benefit. The universal life insurance, just as whole life insurance, is meant to last all your life.
The policy also includes a savings account, where you can get cash value. Universal life insurance requires you to pay a certain amount for the savings account when it is time for the premium.
One of the perks of this is that you can get some of the money that is inside that account, just as if you were retiring cash from an ATM.
While this may seem very useful and easy, there’s some other information that you should consider. When you get universal life insurance, of course, you pay premiums, but this time, a part of it covers the life insurance, while the other covers the savings account.
One of the main differences between this type and the whole life insurance is that this one allows the policyholder to choose how much is the monthly fee you’ll be paying during a specific time frame.
When the policy is being filed, the company will give you an annual interest rate. When you pay something for the life insurance, an amount will go to the savings account/cash value, and it will grow depending on the annual interest rate.
There are some types of universal life insurance that you should get in touch with:
- Indexed: Getting indexed universal life insurance means that your cash value will be linked to the current situation of the market, meaning that the better it gets, the higher your cash value will increase; however, the same thing happens if the situation isn’t good, your cash value will decrease. Keep in mind that getting indexed universal life insurance also means that the company will take a part of it.
- Guaranteed: In case you think the previous one won’t work for you, then you can get guaranteed universal life insurance. With this type, your cash value won’t depend on market performance, because everything, including interest rates, will be determined when the policy starts being filed. This is one of the most recommended life insurance in Ohio due to its flexibility. However, as some cons as well, and it is that the cash value isn’t high because this type of life insurance isn’t meant to generate more cash.
- Variable: The last type of universal life insurance allows you to start a mutual fund (that will be handled by experts in the matter), where you can invest using some of the cash value. There’s a catch and is that since it’s used for investing, there’s the possibility of losing money. The cash value will be invested in several companies, but the ones who manage it may take part in it as well. This is the least recommendable because this sum isn’t meant for investing, it should be used to help your family and loved ones if you happen to pass away.
In Ohio, life insurance companies can be found everywhere. They will try to offer you some of these types, so it’s better to keep in mind what they are about so you can make the right decision for you, your family, and your budget.
How do life insurance payouts work in Ohio?
One of the policyholder’s responsibilities while filing the life insurance policy is to designate one or multiple beneficiaries, who will receive the benefits once the insured pass away.
If the primary beneficiaries die before claiming the insurance money, if the policyholder has named a contingent beneficiary, they will be able to claim it when that happens.
The two-year contestability period applies in all states, including Ohio. Most companies use this contestability period to avoid fraud, and the payment can be delayed if the policyholder happens to die before the period is completed.
If that happens, you’ll have to wait until the time frame left passes, until then, the company will retain the total amount of insurance.
Keep in mind that the circumstances surrounding the insured’s death need to be clarified while claiming life insurance. If needed, an investigation process might be started by the company, and you will not be able to receive the money until it is completed and everything about your loved one’s death is clarified.
If everything goes well, you will receive the total payout within 45 days or less.
There are many ways that you can request the insurance benefit, and the company will notify you of when you can do so.
In the case of minors being named as beneficiaries, a responsible individual should exist in the policy as well. They will manage the money until they grow up and can do it on their own.
Are life insurance benefits taxable in Ohio?
Life insurance information is a bit hard to process, and most of the websites don’t offer clear information that can be understood by all people. Keep in mind that losing a loved one brings grief, and it can be overwhelming.
You should know that life insurance benefits are taxable in Ohio, but there are many ways to avoid it. You can request a transfer of ownership, or maybe place it in an irrevocable insurance life trust (ILIT). It all depends on you, and both options are great to consider.
If you were named as a beneficiary in a life insurance policy, you will be able to claim a determinate amount. The beneficiary can expect to get the money free of income tax, but there are some cases where things don’t work that way.
For example, if the estate of a single person is worth more than 5.4 million, the total amount will be taxed as part of the estate. A FAQ section can be found on the IRSS Government website.
Important documents and information related to life insurance
Beneficiaries have the responsibility to start filing the death certificate with assistance from the funerary or crematory company you have requested services from. In Ohio, fees apply depending on the count you’re currently residing in.
The death certificate is the most important document during these proceeds, so once you’re done with the filing, you should request as many copies as you think you’ll need. It is one of the requirements to start filing a life insurance claim in Ohio.
Getting a death certificate shouldn’t take too much time, but you should start filling it as soon as possible after knowing about the insured’s death.
You should also contact the insurance company once that happens, to start the correct proceedings regarding the life insurance claim.
Up to two months are required for the process to be completed, and if the proper documents and information are not provided, it may be denied or might take longer.
We know that losing a loved one can be difficult, and funerary services can be very expensive. A way to help your family deal with that after your death is by getting life insurance.
In Ohio, after working for the State for at least one year continuously, you’ll be eligible for basic life insurance, but keep in mind that this plan only covers an amount equal to one year of salary.
If you think that this won’t help your family as much as you want, you should get a plan that actually covers what you think your family will need in the future after you pass away.
Once you know the insured’s death, you should start the paperwork to claim the insurance benefits. The insured is also able to claim some of the money if they have been diagnosed with a terminal illness, or were given less than a year to live by a physician.
In Ohio, life insurance will give your family many benefits after your death, and with the insurance benefit, they will be able to solve the financial charge that comes with mortgages, children’s growth (clothes, food, education), final expenses and more.
We encourage you to look for as much information as you can regarding life insurance so you can start the process as soon as possible. Assistance from a professional is recommended, as they will act as a mediator between you and the insurance company during the whole proceeding.