- Life Insurance covers the expenses that arise when the policyholder passes away.
- Life Insurance provides peace of mind for you and your family.
- Utah life insurance companies can help you find a policy to suit your needs and budget.
Utah is known as the Beehive Star State and is located in the west-central region of the United States. It’s bordered by Wyoming and Idaho to the north, Colorado to the east, Arizona to the south, and Nevada to the west. With a population of 3.16 million people, it’s the 30th-most populous state. The largest city in Utah is Salt Lake City which has a population of 200,591 residents. Salt Lake City is also the state capital.
According to the Centers for Disease Control and Prevention (CDC), the average life expectancy in Utah is approximately 78.6 years which is close to 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 Utah have been heart disease, cancer, and accidents. The homicide rate in Utah is around 2.9 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 Utah, the 90th percentile income is currently $98,070. The median income in the state is approximately $38,860. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Utah, this works out to around $980,700 – $1,961,400 dollars for top earners.
How life insurance works in Utah
The way life insurance works is that you pay a premium, like you do with health insurance, and in return your named beneficiaries receive a specified amount of money upon your death. There are many different types of life insurance policies, but one of the most common is called term life insurance.
With term life insurance, the premium is fixed for a specified period of time (the “term”). If you die during the term, your named beneficiaries will receive the death benefit. If you don’t die during the term, then no death benefit is paid out.
Another type of life insurance is called whole life insurance. With whole life insurance, the premium is also fixed, but it is paid for your entire life. When you die, your named beneficiaries will receive the death benefit.
The main difference between whole life insurance and term life insurance is that with whole life insurance, you are guaranteed to receive the death benefit as long as you continue to pay the premium. With term life insurance, there is no death benefit if you live past the term of the policy. Whole life insurance achieves this by mixing insurance and investing products and costing significantly more. Most people will be better off with term life insurance and investing the difference.
Regardless of which type of life insurance policy you choose, it’s important to make sure that you name your beneficiaries correctly. If you do not name your beneficiaries correctly, the death benefit may not be paid out according to your wishes. You should also consult with a licensed insurance agent before signing any contracts, as they can help you choose a policy that suits your needs and budget and make sure you’re not paying higher premiums than you need to.
10 Biggest life insurance companies in Utah
Utah life insurance companies ranked by premiums written in the state.
|2||New York Life||$92,337,639||5.32%|
|8||Mass Mutual Life Ins||$61,804,182||3.56%|
How much life insurance do you need in Utah?
The 90th percentile salary in Utah is approximately $98,070. 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 Utah that works out to around $980,700 – $1,961,400. 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
Utah life insurance laws
There are a few unique features with respect to Utah Life Insurance Laws via the Utah Insurance Department that have an impact on your specific policy if you are a resident of the state.
Here’s what you need to know:
- Free look period: This refers to the timeframe given to policy buyers to read through policy terms and determine whether they are still interested in the coverage. For Utah residents, there is no legal free look period for life insurance policies.
- Grace period for missed payments: In Utah, you will have a 30-day grace period to make your monthly payments, after which time your insurance agency may decide to deny you coverage. During this period your coverage will remain active.
- Time allowable to settle a claim: There are no laws in Utah set forth that require insurers to pay claims within a specific period. Before purchasing your policy, be sure to discuss this with your provider.
- Contestable period: Based on the Utah laws, insurers can contest the validity of your life insurance plan within the two-year timeframe after purchase. After this period, the insurer will lose the right to cancel your policy due to a misrepresentation of information during the application.
Most people understand that life insurance is important, but they often don’t know why. Life insurance is important because it is a type of insurance product that helps protect your family financially in the event of your death. If you are the primary breadwinner for your family, then your death could leave them in a difficult financial situation. Life insurance can ensure that your family is taken care of financially if you are no longer there to provide for them.
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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.