10 Best Life Insurance Companies in Utah
Key Terms
- Utah’s top earners should consider life insurance policies covering 10X to 20X their annual salary for comprehensive financial security.
- Understanding term versus whole life insurance can impact whether you pay more long-term for guaranteed death benefits or save through investments.
- Familiarizing yourself with Utah’s unique life insurance laws, such as the 30-day grace period, can prevent unexpected coverage lapses.
Utah, known as the Beehive State, is strategically located in the west-central U.S., bordered by Wyoming, Idaho, Colorado, Arizona, and Nevada. With a population of 3.16 million, it ranks as the 30th-most populous state, and its capital, Salt Lake City, is home to 200,591 residents.
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 cancer, heart disease, and unintentional injuries. The homicide rate in Utah is about 2.9 homicides per 100,000 residents, which is considerably 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 household for between 10X and 20X your annual earnings. In Utah, this amounts to around $980,700 – $1,961,400 for top income earners.
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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.