Jessica Fox Last Updated On: August 24, 2023

Why Choose Life Insurance in Colorado

No matter what stage of life you find yourself in, you should consider purchasing a life insurance policy. These insurance plans are in place to help ease the financial burden that comes with one’s passing. 

Of course it’s not pleasant to think about, but it is necessary. We don’t have control over everything in life, but if you carry life insurance, you can at least take comfort in knowing that your death benefit will help your loved ones. 

And if you hail from the great state of Colorado, we’ll help you understand your options for life insurance and more, next. 

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Table of Contents

Types of Life Insurance in Colorado

Life insurance policies work in pretty much the same fashion across the nation, and Colorado is no exception. While there is a wide range of life insurance policies that offer their own unique coverages and functions, all life insurance will fall into one of the three following categories:

  1. Whole Life Insurance: Lasts from purchase date until policy holder’s death, or cancellation. 
  2. Term Life Insurance: Lasts for a predetermined period of time (such as five years), after which the policy expires unless renewed. 
  3. Final Expense Life Insurance: Only includes a death benefit to be used for end-of-life expenses. 

Once you settle on which type of life insurance policy you’d prefer, you can then explore what features and coverages you’d like your plan to include.

Cash Value Life Insurance

Cash value refers to a type of tax-deferred savings account that your life insurance plan might include. These funds can be invested to accrue value over time and they can also be accessed during your life in certain circumstances. 

If you’d like to learn more about how cash value life insurance works, read more about it here.

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Here’s What Colorado Residents Should Know About Life Insurance

Colorado has some unique legislation when it comes to life insurance. When shopping for life insurance in the state, you’ll want to note the following:
  • Free Look Period: This refers to the period of time between purchasing and committing to an insurance policy. While it’s not mandated, most Colorado insurance providers offer a 7 to 30-day free look period for life insurance. 
  • Grace Period: This refers to the period of time that the insurance company is unable to cancel a policy due to failed or missed payments. In Colorado, this period lasts the first 31 days of a policy. 
  • Time Period for Claim Settlement: State legislation requires insurance providers in Colorado to pay interest on claims starting from the date of death. 
  • Incontestability Period: A Colorado life insurance policy is incontestable after it has been in effect for two or more years. 
  • Contestability Period: Lasts from the start of the life insurance policy up until the two-year mark. 
You and your loved ones have rights when it comes to life insurance. Understanding those specific to Colorado can help you feel more in control over the unknown.

Cost Factors for Life Insurance Policies

Because everyone has a unique insurance profile, costs will vary greatly. The cost of life insurance are dependent on the following factors:
  • Insurance company
  • Policy type 
  • Health 
  • Age 
  • Gender 
  • Hobbies
  • Blood pressure
  • Smoker/Non-smoker
Generally speaking, you can count on the following trends to be true:
  • Men pay more than women due to men’s shorter life expectancy
  • Younger individuals pay more than older ones
  • The healthier you are at the time of purchase, the cheaper your policy will be 
  • The less coverage on your policy, the less money you have to pay 
  • Smokers pay more than non-smokers 
But even if you have more risk factors, you can still find affordable life insurance that suits your needs. Next, we’ll give you an idea of the average cost of life insurance as a handy benchmark.

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Average Cost of Life Insurance in Colorado

As you likely already guessed, your individual demographic will greatly affect the price of life insurance. That said, we do have some numbers for you to help you understand what you can expect to pay. 

In the state of Colorado, the average life insurance policy costs:

  • $34.80 monthly for a woman 
  • $41.36 monthly for a man

Use these figures as a general baseline when you begin your research on life insurance policies in Colorado, or simply get access to free quotes here.

Most Affordable Life Insurance Providers in Colorado

Everyone likes to save money, and life insurance is no exception. The following insurance providers offer the cheapest life insurance in Colorado, so you can put a few bucks back in your pocket each month:

  • Transamerica 
  • Nationwide
  • MassMutual
  • Mutual of Omaha
  • AAA
  • State Farm
  • Prudential 
  • Progressive Life 

But we want you to know that cheapest doesn’t always mean best. 

Sometimes the best policy comes at a slightly higher price, which allows it to provide the best possible coverage. So, when shopping around for life insurance, do consider the quality of a policy alongside its cost. Your best bet is to get multiple quotes and to compare coverage and cost to make sure you’re getting the most out of the policy you choose.

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Colorado Life Insurance Recommendations

Knowing what your needs are and selecting a policy to suit them is a sure-fire way to get the most bang for your buck. 

Here are some common types of life insurance shoppers, and the policies we recommend they look for: 

  • Seniors Over 80: Aging citizens don’t usually have children or other dependents that rely on them financially. For this reason, seniors can save money by opting for final expense life insurance that only pays out a death benefit for funeral expenses. The minimal coverage comes at a minimal price, so it’s an affordable way to ensure you don’t leave any expenses for your loved ones when you pass. 
  • Those Paying off Debt: Whether it’s a student loan, credit card debt, mortgage, or other debt, we recommend a term life insurance policy that lasts for the duration of time needed to pay off the debt. This way your insurance can help pay off outstanding debts in the event of your passing, letting your loved ones off the hook. 
  • Those Planning on Having Children: If you have kids, getting life insurance is a no brainer. But even if you don’t have kids yet or are wanting to have them in the future, we recommend you lock in a whole life insurance policy with a fixed premium. If you do this now, then your rates will not increase after having children. 
  • Young People in Good Health: Similar to those who plan on having kids in the future, we recommend fixed rate whole life insurance to those who are currently young, in good health, and have room in their budget. By locking in your rates now, you’ll save in the future.  
  • Those in Poor Health: It’s never too late to take out a life insurance policy. Guaranteed issue life insurance is made for individuals whose health complications prevent them from qualifying for other insurance plans. 

While these are some common recommendations, they certainly don’t encompass every person in Colorado’s life insurance needs. Life insurance isn’t a one-size-fits-all product, so understanding what you want from life insurance can help you find the right policy to fit your needs.

Life Insurance in Colorado: Key Takeaways

No matter where you’re at in life, life insurance is a good call. It helps protect your loved ones and gives everyone peace of mind. Whether you’re looking to ensure your family doesn’t struggle financially while grieving you or simply looking to avoid saddling your loved ones with outstanding debts, there’s an insurance policy for you. 

Once you determine which product best fits your needs, it’s time to get quotes. Be sure to compare multiple quotes so that you can get the best rate possible. Make it easy on yourself by getting access to free life insurance quotes here, so you can get back to exploring the great outdoors of the Centennial State. 

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