We’ll show you what’s available and explain the differences to help you make an informed choice.
Also, we’ll give you some valuable tips on how to find the right policy that suits your individual needs.
Life Insurance Policies Available in Colorado
Colorado is what I would call a “no exclusion” state. For example, if an insurance company comes out with a new 10 year term policy and they want to sell it in all 50 states, there are usually a few problem states like Washington or New York, where the product might not get approved in (every state has to separately approve the new 10 year term product to be sold there.)
But I rarely ever see policies being offered in certain states, but not Colorado. You pretty much have access to just about every company’s policies that are available in any other state.
Having said that, let’s review the types of policies you do have available to you.
There are 2 types of life insurance policies which can be found in Colorado. The types of life insurance are known as term insurance and permanent insurance. They both have some similar features with when it comes to death benefits, but permanent insurance has a cash value feature which I’ll explain about later on.
Term Life Insurance Explained
The cheapest form of life insurance you buy is term insurance. Term life insurance covers you for life but you buy the policy in chunks of time such as 10, 20, or 25 years. You will be given the option of renewing the term, buying a different term or may even be given the option of switching over to permanent insurance such as a whole life policy or a universal policy.
Another good thing about the premiums is that they are fixed for the life of the term policy so what you’re paying per month in year one, will be the same that you will be paying in the final year of the policy.