Jessica Fox Last Updated On: August 21, 2023

Your Guide to Purchasing Indiana Life Insurance

Indiana is known for many things; from bringing us Larry Bird, to creating the gas pump, and even showing the nation the first professional baseball game, Indiana has put itself on the map for many reasons. 

But one thing it should be known for is affordable life insurance. When 8 in 10 millennials overestimate the cost of life insurance, it’s clear there’s a gap in information. 

So keep reading to find out everything you need to know about getting life insurance in Indiana, including average costs, because everyone in the Hoosier State deserves the peace of mind that comes with life insurance coverage. 

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Table of Contents

Life Insurance Options in Indiana

Buying life insurance can be overwhelming. It helps to know what your options are, so you can choose the policy that makes sense for you and your loved ones. Here are the main life insurance options in Indiana:

  • Term Life Insurance: This is life insurance that lasts for a set term, usually 10-30 year increments. If you outlive the term, the policy expires (unless you renew the term or convert it to whole life insurance) and the money is forfeit. If you pass away during the term, your beneficiaries receive your death benefit. 
    • This is an affordable option for life insurance that can help cover you during years when your children are most dependent, you are paying off your mortgage, or until you pay off student debt.
  • Permanent Life Insurance: There are different forms of permanent life insurance, but it’s designed to last your entire life. No matter what age you pass away, your loved ones are guaranteed a payout (as long as your policy is in good standing). Permanent life insurance comes with a cash value component where part of each premium is invested and builds up a savings account that can even be accessed during your lifetime.
    • Permanent life insurance can be more expensive than term life insurance because of the guaranteed payout. 
    • The main types of permanent life insurance include whole life, universal life, variable universal life, and indexed universal life.
  • Final Expense Life Insurance: This is a low cost, low payout type of policy. The benefit can be anywhere from $5,000 to $30,000 depending on your needs, but it’s designed to cover just your funeral and burial/cremation, or any other final expenses like medical bills or outstanding debt. Your beneficiary can choose how to use the money for your final expenses. 

These are the main buckets of life insurance policies, but the good news is that they can be customized even more with riders or endorsements. We’ll explore those next.

Life Insurance Riders in Indiana

Adding riders or endorsements to your policy helps provide you even more protection and ensure your policy fits your unique needs. Some of the common riders in Indiana include:
  • Accidental Death: If you happen to pass away from an accidental death, your beneficiary will get an additional amount in the payout. 
  • Guaranteed Insurability: This allows you to purchase more life insurance coverage without a medical exam, even if your health has changed. This could benefit those wanting to add insurance for their child after a birth, or to extend term life insurance despite declining health.
  • Waiver of Premium: If you become disabled or lose your income due to illness/injury, this rider allows you to stop paying your premiums and still keep your policy active. 
  • Accelerated Death Benefit: If you’re diagnosed with a terminal illness, you can access your life insurance payout during your lifetime. Your beneficiaries will receive less as a result. 
  • Child Life Insurance: Instead of taking out a separate policy on your child, you can cover them by adding a rider to your policy. When they get older, they can convert the policy into whole life insurance without the need for a medical exam. 
  • Return of Premium: If you outlive your term of life insurance, this rider allows all your premiums paid to be returned to you.
These are some of the most common riders you can add to your policy in Indiana. Keep in mind that not every insurance provider offers all of these, or they may work differently at each provider, so be sure to review your options carefully. 

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The Cost of Life Insurance in Indiana

It’s time to answer the question that’s on everyone’s mind: how much does life insurance cost in Indiana?

The truth is that Indiana life insurance is fairly affordable: the average annual premium in the state is $593. This is lower than in surrounding states; for example, Illinois is $631 per year, and Ohio is $599 per year. 

Keep in mind that these are just average costs. Your actual life insurance quote will depend on a number of factors, including:

  • Policy type and amount of coverage
  • Your age
  • Your sex
  • Your health
  • Lifestyle
  • Occupation
  • Smoking or non smoking

If you add any riders to your policy, that will also increase your premiums. Luckily, there are always ways to find savings on insurance, and we’ll explore those next. 

In a hurry? Get access to free quotes fast by clicking here.

How to Save on Indiana Life Insurance

Everyone should be able to get life insurance if they want it, regardless of finances. The good news is that, not only is life insurance more affordable than you might think, but there are ways to find savings on your premiums so you can get the coverage you need without breaking the bank.

These include:

  • Assess Your Coverage: Whole life insurance can be right for many people, but sometimes term life insurance is a better fit. It’s typically more affordable and covers you during the years people rely on you most. And for those that just want to ensure their end-of-life expenses aren’t a burden on loved ones, final expense life insurance might suffice. By determining the coverage you actually need, you can cut unnecessary costs. 
  • Get Multiple Quotes: It’s tempting to take the first quote you get to save time, but shopping around for coverage can help you save, especially over the long run. Make sure to get a few quotes if you can so you can compare rates and coverage.
  • Prioritize Your Health: Smoking and poor lifestyle habits can cause your premiums to skyrocket. By focusing on your health, you can ensure you don’t pay higher premiums and your insurer doesn’t see you as high risk.

Life insurance is always most affordable when you’re young and healthy, so locking in rates sooner rather than later can help you save. If you’re on the fence about life insurance or you’re not sure if you want kids, it might help to know that the longer you wait, the more you can pay in premiums. 

To put it into perspective, here’s what different ages pay in average for a 30-year term life insurance policy:

  • A 30-year-old can expect to pay $33.65 per month 
  • A 40-year-old can expect to pay $56.21 per month
  • A 50-year-old would pay $125.12 per month
  • A 60-year-old would pay $252.26 per month

Locking in rates when you’re young can also help protect you if you develop medical conditions down the line, which would make it harder for you to take out life insurance. If you want to save on life insurance in Indiana, the best way to do it is to buy young. 

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What You Should Know About Life Insurance in Indiana

There are a few interesting laws around life insurance in the Hoosier State that you’ll want to be aware of when shopping around for life insurance. These include:
  • Grace Period: If you miss a payment, no sweat. In Indiana, the law requires insurers to give you 30 days to pay your missed premiums and they can’t cancel your policy during that 30-day period. 
  • Paying Claims: There’s no dragging their feet in Indiana; Insurers have to pay or settle a claim within 60 days of it being filed. If 60 days pass, the policy can start earning interest and the insurer can be fined. 
  • Policy Protection: If your insurer happens to go out of business, your life insurance policy is protected for up to $300,000 in death benefits and $100,000 in cash surrender per person. 
  • No Free Look Period: In many states, insurers are required to give you a period to try out the policy and cancel if it’s no longer right for you. But in Indiana, there’s no such requirement. However, many large insurers still give this option, so be sure to ask for it. 
Understanding your rights and how your policy is protected helps give you even more peace of mind when you’re shopping for a policy.

Is Life Insurance Taxable in Indiana?

Tax is an important consideration in life insurance, because you want to know exactly what you’re leaving to your loved ones. The good news is that life insurance is not taxable in Indiana; your beneficiaries won’t pay federal income taxes on any payout they receive from your life insurance. 

However, if the beneficiary is an estate rather than a person, your death benefit will likely be taxed. 

Does Life Insurance Pay for Suicidal Death in Indiana?

Unfortunately, the answer to this question can depend on your policy. Some insurers will still payout after a suicide, as long as it happened more than two years after the policy was purchased. However, some policies have an exclusion that means that suicidal deaths are not covered. It’s always important to read your life insurance policy in full to understand what it does and doesn’t cover. 

Find Indiana Life Insurance Now

If you’re considering life insurance, it never hurts to start exploring quotes. This can help you determine how much coverage you can afford and give you time to work the costs into your budget. 

Start by getting access to free quotes here. You’ll be able to explore your life insurance options, get sound advice, and find savings wherever possible. 

We’ve got you covered. 

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