Key Takeaways
- Virginia requires a 10-day free look period for life insurance policies (20 days for senior citizens age 65+)
- Life insurance policies must include a 2-year incontestability clause under Virginia law
- Virginia limits the suicide exclusion to 2 years from policy issue date
- Policies must include a 31-day grace period for premium payment
- Virginia prohibits unfair discrimination in life insurance underwriting and rating
Virginia Life Insurance Policy Requirements
Virginia law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization.
Free Look Period
Virginia provides different free look periods based on policyholder age:
| Policyholder Age | Free Look Period |
|---|---|
| Under 65 | 10 days |
| 65 and older | 20 days |
| Annuities (all ages) | 10 days |
During the free look period, the policyholder can:
- Review the policy
- Return it for a full refund of premiums paid
- No questions asked, no penalty
Exam Tip: Virginia provides enhanced protection for seniors (65+) with a 20-day free look period for life insurance, compared to 10 days for younger policyholders.
Incontestability Clause
Virginia requires a 2-year incontestability clause in all life insurance policies:
- After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
- Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
- The clause protects beneficiaries from having claims denied due to application errors
Virginia Specific Rules
- Incontestability period begins from the issue date
- If policy lapses and is reinstated, a new 2-year period may begin
- Does not protect against material fraud
Suicide Clause
Virginia limits the suicide exclusion:
- Suicide exclusion cannot exceed 2 years from policy issue
- After 2 years, death by suicide is covered
- If policy is reinstated, new 2-year period applies
- Accidental death benefits may have different rules
Grace Period
Virginia requires a grace period for premium payment:
| Premium Mode | Minimum Grace Period |
|---|---|
| Monthly | 31 days |
| Quarterly | 31 days |
| Semi-annual | 31 days |
| Annual | 31 days |
During the grace period:
- Policy remains in force
- Coverage continues
- Premium may be paid without penalty
- If insured dies, death benefit is reduced by unpaid premium
Required Policy Provisions
Virginia life insurance policies must include:
Mandatory Provisions
| Provision | Requirement |
|---|---|
| Entire Contract | Policy and application constitute entire contract |
| Incontestability | 2-year limitation |
| Grace Period | Minimum 31 days |
| Reinstatement | Right to reinstate within 3 years |
| Misstatement of Age | Adjustment of benefits, not voiding |
| Nonforfeiture | Options for lapse |
Nonforfeiture Options
Virginia requires policies to offer nonforfeiture options:
- Cash Surrender Value - Receive cash value
- Extended Term - Continue as term insurance
- Reduced Paid-Up - Lower face amount, no premiums
Policy Delivery Requirements
Virginia requires:
- Policy delivered within reasonable time
- Delivery must include policy summary
- Receipt may be obtained
- Electronic delivery permitted with consent
How long is the free look period for a life insurance policy sold to a 70-year-old in Virginia?
What is the minimum grace period required for life insurance premium payments in Virginia?