Best Life Insurance Rates in New Mexico

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The capital of New Mexico, Santa Fe, is the highest capital in the country, at 7,000 feet above sea level. It’s also the second-oldest city that still exists in America, founded in 1607. New Mexico is also known for producing more chili peppers than any state and for being the site of the first atomic bomb explosion. What’s more, in New Mexico, they have high rates of death from guns, diabetes, and accidents, but low rates of Alzheimer’s Disease. Any of these factors may play a role in the cost of life insurance in New Mexico.

New Mexico Life Insurance Quotes

Almost half of the people from New Mexico who used QuoteWizard to shop for life insurance last year said they had major health issues. That’s a big deal because individuals with health problems pay more for this coverage.

The best way for New Mexico residents to save on life insurance is to shop around and compare quotes from multiple companies.

Life Insurance Rate Factors in New Mexico

Below are the major factors that affect life insurance rates.

Age - Age is one of the largest factors affecting life insurance rates. The younger you are when you purchase a policy, the less likely it is that it will pay out, so the lower your rates will be, other things being equal.

Life expectancy at birth in New Mexico is 78.4 years, half a year lower than the life expectancy at birth for the US overall, which is 78.9 years. So, if you purchased a 30-year term life policy in New Mexico at age 50, you would be more likely than not to pass away before 80 years of age, the end of the term.

On the other hand, if you were 30 years old and purchased a 30-year term life policy, you would be well under New Mexico’s life expectancy of 78.4 years old when the policy term ended. You’d be a much lower risk to insure and would therefore pay much lower rates than the person in the former example.

Driving Record - This might seem like a confusing inclusion, as this page is about life insurance, not auto insurance, but car accidents are incredibly common; they kill more than 30,000 people per year. If someone has a driving record littered with moving violations, they are at an increased risk of a premature demise. The result is higher rates.

Firearm Deaths - Places that have higher rates of accidental or premature death generally have higher rates. A significant part of these untimely deaths comes from firearm injuries, which account for about 33,000 deaths in the US every year. In New Mexico, the death rate from injury due to firearms is 15.5 per 100,000 deaths, the #9 highest rate in the country. Nationwide, the average firearm death rate is 10.4 per 100,000.

Gender - Since women live longer than men on average, they pay less for insurance than a similar man would, other things being equal. In New Mexico, the percentage of the population that’s female is 50.4%, and the percentage that’s male is 48.6%. In the US as a whole, women are 50.8% of the population, and men are 49.2% of the population.

Gender of New Mexico residents that used QuoteWizard last year.

 
         
 
   
51%Female
   
49%Male
 

Health History - While most of us have one or two minor health issues, if you have been diagnosed with a serious illness, or if you have a family history of such illnesses, this can have a significant impact your rates.

There are certain conditions, such as heart disease or certain kinds of cancers, which can make your premiums much higher if you have them or a family history of them. In some cases, a pre-existing condition can make you ineligible altogether, which is why it’s important to get life insurance before something serious happens.

Percentage of QuoteWizard users in New Mexico that indicated whether they where healthy or had minor or major health issues.

 
             
 
   
45%Healthy
   
43%Major
   
12%Minor
 

Lifestyle & Hobbies - People who engage in adventure sports or who have potentially dangerous hobbies will pay more for insurance, other things being equal, than those who don’t. This is especially relevant in New Mexico, where skiing and hunting are common recreational activities.

Marital Status - Research shows that on average, married people live longer and are healthier than similar single people. So, if you’re married, you can get a modest discount on life insurance. According to the most recent data available from the US Census, in New Mexico in 2009, the rate of marriage for people over 15 was 40.3 per 1,000 people, the rate of divorce was 20.3 per 1,000 people, and the rate of widowhood was 8.8 per 1,000 people.

Marriage status of New Mexico residents that used QuoteWizard last year.

 
         
 
   
68%Single
   
32%Married
 

Occupation - People with hazardous jobs like logging and fishing will pay more for insurance than someone with a less dangerous, mundane office job, other things being equal. The most common job in New Mexico, proportionally, is a plasterer.

Tobacco Use - Because tobacco users don’t live as long as non-tobacco users (other things being equal) tobacco users pay substantially more for life insurance than an identical non-tobacco user would pay for the same policy. Tobacco use is associated with a number of health complications, such as heart disease, stroke, and COPD, any of which may cause higher rates and an earlier death.

As of 2013, the national average rate of smoking was 19%. To compare to the most recent data available, in 2014, approximately 19.1% of New Mexico adults smoked cigarettes – about 302,000 adults.

Percentage of QuoteWizard users in New Mexico that indicated that they smoke last year.

 
         
 
   
85%Don't Smoke
   
15%Smoke
 

Travel - If you regularly travel to developing countries, particularly countries on the US State Department’s Warning List, you will pay more for insurance than a traveler who sticks to developed countries.

Value of Policy - It shouldn’t come as a huge surprise that one of the largest, if not the largest contributing factor, to a policy’s rates is the value of the policy. As with anything, you get what you pay for; the more protection that you purchase, the more you pay.

Weight - Obesity has surpassed smoking to become America’s largest public health cost and problem. Like tobacco use, obese or seriously overweight people have a lower life expectancy, which means an increased probability of their policy being paid out. Because obesity increases the likelihood of health problems such as heart disease, stroke, diabetes, and some cancers, overweight and obese individuals can expect to pay higher rates than similar individuals who are not obese.

As of 2013, the adult obesity rate in New Mexico was 26.4%. This makes New Mexico the #37 most obese state. Overall, the average obesity rate in the US is 34.9%.

While each of these factors plays a big role in the cost of your policy, some aspects of life insurance are entirely individual. Insurance companies calculate your rates based on your own health, habits, and lifestyle. That’s why shopping around and comparing quotes is so important–to make sure you’re getting the best rate possible.

Leading Causes of Death US vs. New Mexico  –  2013

Source: US Centers for Disease Control
Rank Cause of Death Total Deaths Death Rate State Rank US Death Rate*
1 Heart Disease 3,425 147.1 41st 169.8
2 Cancer 3,482 145.4 47th 163.2
3 Lower Respiratory Disease 1,052 44.7 25th 42.1
4 Accidents 1,245 59.0 3rd 39.4
5 Stroke 689 30.0 44th 36.2
6 Alzheimer's Disease 339 14.9 47th 23.5
7 Diabetes 646 27.6 4th 21.2
8 Influenza/Pneumonia 337 14.8 32nd 15.9
9 Kidney Disease 302 13.2 27th 13.2
10 Suicide 431 20.3 5th 12.6
*Death Rate calculated as: (deaths from that cause / total population) / 100,000

New Mexico Life/Health and Fraternal Insurance Market Share – 2013

Source: National Association of Insurance Commissioners
Rank Company Direct Premiums Written (in thousands) Market Share
1 New York Life Insurance Co. $46,109 7.3%
2 MetLife Inc. $36,947 5.9%
3 Prudential Financial Corp. $33,746 5.3%
4 Northwestern Mutual Life Insurance Co. $31,706 5.0%
5 StanCorp Financial Group $27,832 4.4%
6 Hartford Financial Services $21,358 3.4%
7 Massachusetts Mutual Life Insurance Co. $19,657 3.1%
8 AEGON $18,492 2.9%
9 Lincoln National Corp. $17,184 2.7%

Financial Strength Ratings of Top New Mexico Life/Health Insurers

Source: A.M. Best (Ratings as of 9/2/2015)

  • New York Life Insurance Co.: A++
  • MetLife Inc.: A+
  • Prudential Financial Corp.: A+
  • Northwestern Mutual Life Insurance Co.: A++
  • StanCorp Financial Group: B++
  • Hartford Financial Services: A+
  • Massachusetts Mutual Life Insurance Co.: A++
  • AEGON: A+
  • Lincoln National Corp.: A+
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Rating Guide

New Mexico Life Insurance Regulations

Insurance in New Mexico is governed by the laws defined by Chapters 59 and 59-A of the New Mexico Administrative Code, as outlined by the State of New Mexico.

This legislation is used to regulate claims and provide certain protections to New Mexico consumers, for example:

Guarantee on Death Claims: If an insurance company is unable to make payments on death claims or becomes insolvent, the New Mexico Life and Health Insurance Guaranty Association will cover up to $300,000 of death benefits, and up to $100,000 in cash reimbursement. This is so that consumers have confidence that their beneficiaries will receive at least some of their death benefit, but the amount is the same regardless of how much the policy is worth.

No Free Look Period: A “free look period” is a time period between 7 and 30 days, in which consumers can test out their insurance policy after purchasing it. During this time, an individual can cancel the policy for any reason for a full refund. New Mexico is one of only a few states that does not require this by state law. Many insurance companies still provide a free look period of one to two weeks on most insurance policies, but others don’t offer it at all.

These regulations don’t just protect consumers; they also protect insurance companies from fraud. For example, New Mexico insurers may challenge any information in your insurance application for up to two years from the policy’s effective date. If they find any evidence of fraud, they can terminate your policy immediately.

New Mexico Life & Health Insurance Guaranty Association

This organization assists the customers of any insurance company that is found to be insolvent. If you have concerns about the financial well-being of carrier, you should contact the NMLHIGA. Their contact info is below:

Website:
Homepage
Phone:
(505) 820 – 7355
Address:
New Mexico Life & Health Insurance Guaranty Association
PO Box 2880
Santa Fe, NM 87504-2880

New Mexico Office of the Insurance Commissioner

Website:
Homepage
Insurance Commissioner:
John G. Franchini
Insurance Hotline:
(855) 427 -- 5674
Office Hours:
Monday - Friday
9:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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