Alaska Life Insurance

Whether you're beginning to start a family, are an empty-nester whose children are now independent or an Alaskan enjoying retirement, life insurance can provide financial protection for your loved ones in the event of your death. When shopping for life insurance in Alaska, knowing the rights afforded to you by state laws can help you make an informed decision about policies and spot potential scams.

Alaska Life Insurance Rules and Specifics

In Chapter 45 of Title 21 in the Alaska Statutes, you can find all the specific laws governing the sale of life insurance, features of policies and the payment of death benefits. Some key points to know include:

• Free look period: Alaskan law requires life insurance companies to give you a 10-day free look period that starts when you get the documents outlining the details of your new policy. If you cancel before the free look period ends, the company must fully refund any premium payments.
• Grace period: You must have at least 30 days from the due date of your premium to pay. A life insurance company can only cancel your policy if you fail to pay your premium by the time the grace period ends.
• Incontestability period: Life insurance companies have only two years to investigate details of the policy to cancel or refuse to pay death benefits. After the two-year anniversary of the policy, the insurance company can't contest payout requests. The only exception is for accidental death riders or insurance policies, which may have longer contestability periods.
• Dividend wait period: Participating policies that offer dividends must begin issuing payments once the policy reaches its three-year anniversary.
• Policy loans: An insurance company can allow you to take out a policy loan after the three-year anniversary of the policy. The company can't charge you more than 6% annual interest unless it can prove that the higher rate will lower your premium payments or increase any dividends owed.

Life Insurance Resources in Alaska

Certain nonprofit organizations and government agencies in Alaska can assist you with a range of issues related to life insurance, such as:

• Life insurance counseling: Alaska's Aging and Disability Resource Centers offer free financial counseling services for older adults. Counseling can include advice on whether to buy life insurance or access cash to cover financial obligations or long-term care.
• Death benefit protection: The Alaska Life & Health Insurance Guaranty Association will pay death benefits up to a set amount if a life insurance company becomes insolvent and unable to honor policies.
• Complaint resolution: If you have a dispute with a life insurance company, you can file a complaint with the Alaska Division of Insurance and request an investigation.

Consumer protection: If you become a victim of a life insurance scam, the Consumer Protection Unit of the Alaska Department of Law can investigate your complaint.