State
Life insurance in Delaware
Delaware life insurance rules: $300,000 guaranty protection on death benefits, a 30-day grace period, interest on late death claims, no estate tax since 2018.
Guaranty association protection
| Guaranty association | Delaware Life & Health Insurance Guaranty Association |
|---|---|
| Life insurance death benefits | $300,000 |
| Cash surrender value | $100,000 |
| Annuity benefits | $250,000 |
| Health benefits | $500,000 basic hospital, medical or surgical or major medical; $300,000 disability and long-term care; $100,000 other health |
| Overall limit | $300,000 per person ($500,000 if basic hospital or major medical benefits are involved) |
| Notes | Unallocated group annuity benefits are covered up to $1,000,000 per contract owner. |
| Website | delifega.org |
Policy rules
| Free-look period | 20 days for replacement policies sold through agents (18 Del. Admin. Code 1204, per NAIC); 10 days for variable life |
|---|---|
| Grace period | 30 days, or one month of not less than 30 days; insurer may charge up to 6% a year interest for the days of grace used (18 Del. C. § 2906) |
| Interest on delayed claims | 18 Del. C. § 2914: interest from the date the death claim is filed, plus 10% a year starting 31 days after the insurer has proof of death and the information it needs to pay |
| Community property state | No |
Taxes
| State estate tax | No state estate tax (repealed effective January 1, 2018) |
|---|---|
| Inheritance tax | No |
Lost policies and unclaimed money
| Unclaimed property office | Delaware Unclaimed Property |
|---|---|
| Search unclaimed property | unclaimedproperty.delaware.gov |
Regulator
| Insurance regulator | Delaware Department of Insurance |
|---|---|
| Consumer hotline | 800-282-8611 |
| Website | insurance.delaware.gov |
| File a complaint | insurance.delaware.gov/services/filecomp… |
| Address | 1351 West North Street, Suite 101, Dover, DE 19904 |
How your policy is protected if an insurer fails
The Delaware Life & Health Insurance Guaranty Association was created by the legislature in 1982. Every insurer licensed to sell life insurance, health insurance or annuities in Delaware must belong to it. When a member fails and is ordered liquidated, the association protects Delaware residents' covered policies up to set limits, funded by assessments on the other members. Usually it does this by continuing coverage or moving the policies to a healthy insurer. Keep paying premiums in the meantime.
Limits from the association's FAQ, as of October 4, 2026, consistent with NOLHGA's chart (as of June 1, 2025), with the overall cap from the NAIC's summary of state guaranty laws:
| Coverage | Delaware limit |
|---|---|
| Life insurance death benefit | $300,000 per insured life |
| Life insurance cash surrender value | $100,000 per insured life |
| Annuities (present value) | $250,000 per contract owner |
| Unallocated group annuities | $1,000,000 per contract owner |
| Basic hospital, medical or surgical or major medical | $500,000 per insured life |
| Disability income and long-term care | $300,000 per insured life |
| Other health coverage | $100,000 per insured life |
| Overall cap | $300,000 per person, or $500,000 when basic hospital or major medical benefits are involved |
Limits apply per type of policy, no matter how many of that type you bought from the failed company. Amounts above them can be filed as claims against the insurer's estate.
The association says it is a private entity, not a state agency. Delaware law prohibits agents and insurers from using it in advertising or as an inducement to buy. As the association puts it, guaranty coverage is not a substitute for choosing a well-managed, financially stable insurer. See state life and health guaranty associations and what happens if your life insurance company fails.
Who regulates life insurance in Delaware
The Delaware Department of Insurance, headed by the elected Insurance Commissioner, licenses insurers and agents, reviews policies and rates, regulates company solvency and helps consumers. Its Consumer Services division answers questions and investigates complaints. It can contact the insurer for you and check the company's response against Delaware statutes, regulations and the policy itself.
Free look, grace periods and policy rules
- Grace period: 18 Del. C. § 2906 requires a grace period of 30 days, or one month of at least 30 days, for every premium after the first. The policy stays in force during the grace period. The insurer may charge interest of up to 6% a year for the days of grace you use, and an unpaid premium can be deducted from a claim.
- Free look: Delaware's insurance code does not set a general return period for new life policies, so look for the notice on your policy's first page. When a new policy replaces existing coverage and is sold through an agent, Delaware's replacement regulation gives 20 days to return it, according to the NAIC's state chart. Variable life gets 10 days. See the free-look period: returning a policy for a refund.
- Paying death claims, with interest: Under 18 Del. C. § 2914, if a policy sets a deadline for settlement, it cannot be more than 30 days after the insurer receives proof of death. Interest on the death benefit runs from the date the claim is filed. The rate is the policy's rate for funds left on deposit, or the 2-year Treasury rate if the insurer has none. An extra 10% a year is added starting 31 days after the latest of three dates: when the insurer receives proof of death, when it has enough information to decide who is owed what, and when legal impediments such as appointing an executor or guardian are resolved.
Taxes, estates and community property
Delaware repealed its estate tax effective January 1, 2018, and has no inheritance tax. Only the federal estate tax can apply, with a $15,000,000 per-person exclusion in 2026, according to the IRS. Delaware is not a community property state.
Finding a lost policy or unclaimed benefits
Request a free search through the NAIC Life Insurance Policy Locator. Participating insurers check their records and contact the beneficiary if they find a policy. Then search Delaware Unclaimed Property, the official state site, for life insurance proceeds that were turned over to the state. When an owner's address is unknown, unclaimed property generally goes to the state where the company holding it is incorporated, so Delaware can hold money for people who never lived there. Our guides to how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property cover more places to look.
Where to get help
- Delaware Department of Insurance, Consumer Services: 800-282-8611 toll-free in Delaware, or 302-674-7300; [email protected]. Offices are at 1351 West North Street, Suite 101, Dover, DE 19904, and 503 Carr Road, Suite 303, Wilmington, DE 19809.
- File a complaint: fill out the department's online complaint form, or call if you have already been in touch about the same matter. Have your policy and claim numbers and the company's letters ready. See how to file a complaint against a life insurer.
- Guaranty association: Delaware Life & Health Insurance Guaranty Association, 220 Continental Drive, Suite 212, Newark, DE 19713; 302-456-3656.
Neighboring states: Maryland, Pennsylvania and New Jersey.
Sources
- delifega.org/FAQ
- delifega.org/Contact
- nolhga.com/policyholders/how-youre-protected/
- content.naic.org/sites/default/files/model-law-chart-in-10-life-and-health-guaranty-fund…
- insurance.delaware.gov/
- insurance.delaware.gov/contact/
- insurance.delaware.gov/services/filecomplaint/
- delcode.delaware.gov/title18/c029/index.html
- delcode.delaware.gov/title30/c015/index.html
- content.naic.org/sites/default/files/model-law-chart-li-30-life-insurance-disclosure-pro…
- unclaimedproperty.delaware.gov/
- irs.gov/publications/p555
Rules and limits were checked against these sources on the review date below. Laws change - confirm with the state insurance department or guaranty association.
Profile last reviewed October 4, 2026