10 Best Life Insurance Companies in Arkansas
Key Terms
- Life Insurance covers the expenses that arise when somebody passes away.
- A good life insurance policy can cover your mortgage payments, your child’s education, and even therapy for your loved ones and family members should you pass unexpectedly.
- Arkansas life insurance companies can help you find an insurance product that suits your needs and budget by running a life insurance quote.
Arkansas is known as the Natural State and is located in the south-central region of the United States. It’s bordered by Missouri to the north, Tennessee and Mississippi to the east, Louisiana to the south, Oklahoma to the west, and Texas to the southwest. With a population of 3.03 million people as of 2022, it’s the 33rd-most populous state. The largest city in Arkansas is Little Rock which has a population of 201,998. Little Rock is also the state capital.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Arkansas is approximately 73.8 years which is significantly lower than the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Arkansas have been heart disease, cancer, and Covid-19. The homicide rate in Arkansas is around 13.0 homicides per 100,000 residents, which is much higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Arkansas, the 90th percentile income is currently $78,100. The median income in the state is approximately $36,680. Most financial advisors recommend purchasing a life insurance policy that provides life insurance coverage for your loved ones for between 10X and 20X your annual salary. In Arkansas, this works out to around $781,000 – $1,562,000 dollars for most people.
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How life insurance works in Arkansas
A life insurance policy is basically a contract between you and the life insurance company. You agree to pay premiums to the company. In exchange, the company agrees it will pay a death benefit to your loved ones, which is typically a lump sum payout, if you pass away during the term of your policy. That said, there are several types of life insurance policies.
Term life insurance is the most basic and straightforward type of policy. It provides coverage for a specific period of time, typically 10, 20, or 30 years. If you die during that time frame, your beneficiaries will receive the death benefit. If you don’t die during that time frame, the policy expires, and you (or your beneficiaries) get nothing in terms of cash value or annuity payment.
Whole life insurance (also known as universal life insurance) is another option. This type of policy provides coverage for your entire life. As long as you continue to pay the premiums, the policy will remain in force and your beneficiaries will receive the death benefit whenever you pass away. Whole life insurance tends to be more expensive, but as long as you pay your premiums it’s guaranteed to pay out.
Ultimately, life insurance is a personal decision. Everybody has different needs from their policy. Therefore, it’s important to think about your situation and choose a policy that makes sense for you, your family, and your budget. You must purchase life insurance from an insurance agency and a licensed insurance agent.