Short answer: Colorado individual life policies must let you return the policy within fifteen days of delivery for a premium refund if you aren't satisfied. Premiums after the first year get a grace of one month, not less than thirty days. Insurers must pay interest on death benefits from the date of death.
This guide is general consumer information for Colorado life insurance buyers. It isn't legal advice or a coverage determination. Policy wording, underwriting and the statutes linked below control.
Fifteen-day free look
C.R.S. §10-7-302(1)(g) requires a notice on the first page of the policy (or attached) that the policyholder may return the policy within fifteen days of delivery and have any premium refunded if, after examination, the policyholder is not satisfied for any reason. For a variable life policy, the refund is the account value as of the return date plus any policy fee or charge deducted from the policy. Refunds go directly to the policyholder in a timely manner.
Grace after the first year
C.R.S. §10-7-102(1)(i) requires a provision for a grace of one month, not less than thirty days, for every premium after the first year, during which the insurance continues in force. If the insured dies within the month of grace, the unpaid premium for the current policy year may be deducted in any settlement.
Interest on death benefits
C.R.S. §10-7-112 requires each admitted life insurer to pay interest on death benefits at not less than the rate for proceeds left on deposit and subject to withdrawal on demand, for the period from the date of death through thirty days after the insurer receives a complete payout request with due proof of death. From that date until settlement, interest runs at least two percentage points above the federal discount rate.
Insurer financial strength
For regulator help with insurer financial strength or solvency questions in Colorado, start with the Colorado Division of Insurance.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Colorado.
Frequently asked questions
How long is Colorado's life insurance free-look?
Fifteen days from delivery under C.R.S. §10-7-302(1)(g); variable life refunds the account value plus deducted fees.
What's Colorado's life insurance grace period?
One month, not less than thirty days, for premiums after the first year under §10-7-102(1)(i).
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.