Death is inevitable. So, of course, it is natural to worry about your family's well-being and what will happen to them after your death, especially if you are the breadwinner of the family. 

This is why people choose to buy life insurance policies to provide a safety net for their families once they are gone. It is not easy to think about such decisions, but they prove to be fruitful in the long run. 

However, before you make the decision to buy life insurance, it is important to know that every state has different rules and regulations on life insurance. Knowing the details will help you understand every aspect of buying and claiming life insurance in your state. 



If you're a resident of Colorado, then this blog reviews the types of life insurance in Colorado and what to do if your claim is denied. Let's begin. 

Types of Life Insurance in Colorado

Of course, it is best to understand the types of insurance before considering buying one. Following are the two categories that life insurance in Colorado breaks into:

Term Life Insurance

Term life insurance is for a certain time period. In case you die in the specified time period, the assigned beneficiaries get death benefits from the policy. People find this type of life insurance to be more affordable. However, the downside is that if you outlive the policy's term, the insurer is not liable to pay you anything. In order to turn this in your favor, you can cancel the policy before the term expiry arrives, which will save you from paying the leftover premiums. 

Whole Life Insurance

On the other hand, whole life insurance lasts as long as you live and does not expire during your life.

The premium you pay on these policies is fixed and does not change with time, as in the case of renewing term insurance.

Also, unlike term insurance, whole life insurance has a cash component included in the policy. This cash component can increase in value, and any interest on the growth is tax-deferred. Furthermore, neither you nor your beneficiaries need to pay tax on the cash value. 

Survivorship Life Insurance

Survivorship life insurance is a joint policy. It is usually preferred by couples because it costs less than buying two separate policies. As far as the death benefit is concerned, it is paid to the beneficiary after both individuals in the policy has passed away. 

Universal Life Insurance

Universal life insurance is another form of whole life insurance, but the difference is that a universal life insurance policy lasts until the insured pays the premium. However, you can make changes to your policy and have it last your whole life. 

Return of Premium Life Insurance (ROP)

ROP life insurance is similar to term insurance but addresses the problem of getting no value at the end of the term if the insured does not die. 

Hence in ROP life insurance, if you outlive the term of insurance, the insurer must pay you back the entire premium that you have paid for the complete term. The duration of the term does not matter, and this rule is applied to all ROP policies. In case you want to cancel the policy before the term ends, you will get a partial premium, and your hard-earned money won't go to waste. 

What to Do if Your Claim for Life Insurance is Denied?

Remember, your insurer can deny an insurance claim. This can be due to material misinformation which indicates that the policy holder gave false information regarding their age or health. If this happens, you should immediately seek help from a life insurance lawyer in Colorado. 

A Colorado life insurance lawyer can help you get complete compensation in case the insurer is delaying or denying payment. You can also read up on the rules regarding life insurance under Colorado law. 

How Does Colorado Law Help?

The rules for life insurance in Colorado are dictated through Article 10 by the Colorado Division of Insurance. 

Here is how the state's law protects you:

15 Day Period

When you purchase life insurance in Colorado, you have a period of 15 days to ensure they have made the right decision or to cancel the policy if they wish to change their mind. In case a premium was paid during this term, the insurer must pay back the entire amount. 

It is important to note that this is not mandatory by law, but in case an insurer provides this facility, they must do so with full integrity and fairness. 

1 Month Grace Period for Late Payments

In case you miss paying a premium, the insurer must provide the policyholder a grace period of 30 days in order to give them time to make payment. This grace period is provided only after you have paid the premium for a full year. In addition to this, the insurance provider cannot cancel the policy during this period. 

Foreign Travel

Your insurer cannot limit your coverage if you have a history of foreign travel. However, they may increase the limits on the coverage in case you are involved in activities during travel that increase your life risk.