What is one benefit provided by the Connecticut Health and Life Insurance Guarantee Association?

The Connecticut Health and Life Insurance Guarantee Association offers a significant benefit by providing a limit of $500,000 for death benefits. This guarantee is designed to protect policyholders in the event that a member insurance company becomes insolvent or is unable to meet its financial obligations. By ensuring that beneficiaries of life insurance policies can receive up to this specified amount, the association acts as a safety net for individuals and families, providing peace of mind that their beneficiaries will still receive essential financial support, even in the unfortunate event of an insurer's failure.

This limit is part of the broader framework of consumer protection established by state legislation to help maintain trust in the insurance system, ensuring policyholders do not face complete loss of benefits due to insurer insolvency. Such measures are crucial in a regulated industry where policy benefits are important for the financial well-being of families. The other options do not accurately reflect the established benefits provided by the Connecticut Health and Life Insurance Guarantee Association.