Key Terms
- Life Insurance covers the expenses that arise when somebody passes away.
- A good life insurance policy can cover your mortgage payments, your child’s education, and even therapy for your loved ones should you pass unexpectedly.
- Idaho life insurance companies can help you find a policy to suit your needs and budget.
Idaho is known as the Gem State and is located in the north-western United States. It’s bordered by Washington to the north, Montana to the east, Utah and Nevada to the south, and Oregon to the west. With a population of 1.75 million people, it’s the 38th-most populous state. The largest city in Idaho is Boise which has a population of 228,790 residents. Boise is also the state capital.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Idaho is approximately 78.4 years which is just under the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Idaho have been heart disease, cancer, and Covid-19. The homicide rate in Idaho is around 2.5 homicides per 100,000 residents, which is much lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Idaho, the 90th percentile income is currently $79,780. The median income in the state is approximately $37,550. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Idaho, this works out to around $797,800 – $1,595,600 dollars for most people.
Life insurance companies often work with insurance agencies to sell their policies directly to consumers. Insurance agencies act as agents on behalf of one or more insurance companies. In addition to traditional life insurance policies, some life insurance companies also offer supplemental insurance products, such as accidental death insurance or critical illness insurance, which provide additional coverage for specific risks or events.
How life insurance works in Idaho
Life insurance is not as complicated as many people think. In fact, it’s really quite easy to understand. The way it works is that you pay a premium to the insurance company, and the company pays a benefit to your beneficiaries if you die. There are different types of life insurance policies, but the two most common are term life and whole life.
Term life insurance is the most basic type of life insurance. You pay premiums for a set period of time, usually 10, 20, or 30 years. If you die during that time, your beneficiaries receive a death benefit. If you don’t die during that time, the policy expires but congratulations on not having a premature death!
Whole life insurance (also known as universal life insurance or permanent life insurance) is a more complex type of life insurance that mixes life insurance and investing. In these types of whole life insurance policies you pay premiums for your entire life, and your beneficiaries receive a death benefit when you die. Whole life insurance also has a cash value component, which grows over time. You can use the cash value to pay premiums, or you can take it out as a loan.
In terms of purchasing life insurance, you have a few options. You can shop around online for quotes, or you can contact an insurance company. In almost all cases, it’s best to consult with a licensed insurance agent before signing up for a life insurance policy. An insurance company can help you understand your options and find the right policy for your needs.
10 Biggest life insurance companies in Idaho
Idaho life insurance companies ranked by premiums written in the state.
| Rank | Company Name | Idaho Premiums Written | Idaho Market Share |
|---|---|---|---|
| 1 | Northwestern Mutual | $99,656,536 | 13.01% |
| 2 | Mass Mutual Life Ins | $44,349,031 | 5.79% |
| 3 | New York Life | $38,742,145 | 5.06% |
| 4 | Prudential | $33,926,860 | 4.43% |
| 5 | Dai‐Ichi Life Holdings Inc | $25,548,378 | 3.34% |
| 6 | Minnesota Mutual | $24,483,744 | 3.20% |
| 7 | Iowa Farm Bureau | $24,236,450 | 3.16% |
| 8 | Lincoln National | $23,383,234 | 3.05% |
| 9 | State Farm | $23,009,379 | 3.00% |
| 10 | Pacific Life | $20,727,150 | 2.71% |
How much life insurance do you need in Idaho?
The 90th percentile salary in Idaho is approximately $79,780. As mentioned, most financial advisors recommend that you purchase a life insurance policy that will cover your beneficiary for at least 10X – 20X your average annual income. In Idaho that works out to around $797,800 – $1,595,600. This amount will ensure that your loved ones can continue to pay their bills, settle your debts, and cover the cost of your final expenses.
You may also want to purchase additional life insurance to cover:
- Your mortgage (if you want your spouse and kids to be able to live in the home without worrying about mortgage payments)
- Children’s education costs (if you want your child’s education to be covered without any additional stress to your spouse)
- Bereavement therapy costs for your spouse and children (if you want them to spend time with a therapist after your unexpected death)
- Any other expenses that may be unique to your family or lifestyle
Idaho life insurance laws
There are a few unique features with respect to Idaho Life Insurance Laws that have an impact on your specific policy if you are a resident of the state.
Here’s what you need to know:
- Grace period: In Idaho, your insurance company cannot cancel your life insurance policy for late payment of premiums for at least 30 days from the payment due date.
- Free look period: In Idaho, the state insurance law requiers a 20-day free look period within which you can cancel your policy and get a full refund without penalty.
- Claim settlement period: Idaho insurance laws require insurance companies to settle life insurance claims within 60 days. If the insurer exceeds this timeframe, they will be subject to fines and penalties.
- Guaranteed benefits: In case your insurer becomes insolvent, the Idaho Life and Health Insurance Guaranty Association will cover your policy for up to $300,000 death benefits and $100,000 lost cash surrender. This guarantee is only valid if your premiums are up to date.
- Contestability period: In Idaho, your insurer can contest the life insurance policy within the first two years after purchase. After two years, the life insurance policy becomes incontestable unless the insured does not pay the required premiums.
No one likes to think about their own death, but it’s important to have a life insurance policy in place in case of an unforeseen event. There are many benefits to having life insurance, including peace of mind for you and your loved ones, financial security, and the ability to leave a legacy. Life insurance can be tailored to fit your specific needs, and there are many different types of policies to choose from. It’s important to do your research and work with a trusted life insurance agent to find the right policy for you.
Life insurance policies shouldn’t be confused with retirement plans and long-term care insurance. Life insurance also isn’t the same thing a disability insurance, which exists to replace your income if you are unable to work (but still alive).
Life insurance companies offer a range of coverage amounts for their policies, and policyholders typically make regular premium payments to maintain their coverage. Many life insurance companies offer a free quote service, which allows potential policyholders to get an estimate of the premiums they would pay for a policy with a specific coverage amount. Some life insurance policies may also offer the option to receive the death benefit as a lump sum payment rather than as ongoing income.
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Joshua Holt is a licensed insurance agent (License #2785989) and founder of Biglaw Investor and Sidebar Insurance LLC, an insurance agency created by lawyers, for lawyers. His insurance expertise lies in the areas of life and disability insurance, particularly covering lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
