Best Life Insurance Companies in Orem

FAQs

• What is the Utah Life & Health Insurance Guaranty Association, and how does it benefit Orem residents?

  The Utah Life & Health Insurance Guaranty Association, established in 1979, is a vital safeguard for Orem residents and all Utah policyholders. It ensures protection in case an insurance company becomes insolvent. If an insurer faces insolvency, funds to maintain coverage and settle claims are obtained through assessments of fellow member companies offering similar types of insurance. All insurance companies in Orem, with few exceptions, are required to be members.

• How can residents of Orem determine the right life insurance coverage?

  Residents of Orem can determine the appropriate life insurance coverage by evaluating their specific needs, taking into account both coverage amount and duration, and keeping their budget in mind. They must investigate various policy options and choose a premium and benefit combination that emphasizes early death protection, long-term benefits, or both. To assess one's specific needs, consulting a local life insurance agent can be beneficial.

• What expenses can individuals in Orem expect to be covered by life insurance?

  Individuals in Orem can rely on life insurance to cover a variety of expenses. These expenses may include college tuition for family members, costs associated with child or dependent care, monthly financial obligations, funeral and end-of-life expenses, and shared debts. The purpose of life insurance is to provide financial assistance for these needs, ensuring that loved ones can maintain their quality of life in the event of the policyholder's death.

• When should individuals in Orem consider variable life insurance?

  Residents of Orem who seek a life insurance policy with investment options should consider variable life insurance. This variant of insurance, which is more complex and expensive than other options, permits individuals to invest in stocks and bonds, with the potential to affect the death benefit and cash value based on investment performance. The adoption of variable life insurance may be contingent on an individual's financial goals and preferences.

• What is the implication of relying solely on their employer-provided life insurance for individuals in Orem?

  Individuals in Orem may face difficulties if they rely solely on their employer's life insurance plan. These plans typically provide coverage equal to 1-2 times one's annual income. According to experts, a more adequate coverage level should be at least 10 times one's annual income. These policies may not be portable in the event of a job change or loss, and maintaining them may become costly. To avoid these issues, individuals should consider purchasing a well-chosen term life insurance policy.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.

• How does life insurance work?

  The details of how life insurance works depend on your individual plan, but the basics are as follows: 

  • You pay a premium to purchase the insurance. Typically the premium is paid monthly, but it could be rolled into quarterly, bi-annual, or annual payments. 
  • As long as you are meeting or have met premium obligations, if you pass away, the insurance company makes the agreed-upon payment to the beneficiaries you designated. 
  • Beneficiaries usually have to provide the insurance company with a death certificate to receive their payments.

• How much is life insurance?

  The cost of life insurance ranges widely. Term life insurance can cost as little as a few dollars a day, and whole life insurance can cost thousands per month on the high end. Factors that impact the cost of your life insurance include whether you're choosing term life insurance or whole life insurance, your age, how much coverage you want, your overall health, and your gender.

• Is life insurance taxable?

  Life insurance proceeds are the funds paid via your plan to your beneficiaries if you pass away. These are also called death benefits. Typically, these are not considered income for taxes. If you take out cash value from a whole life insurance investment and the amount exceeds how much you paid in premiums, the difference may be considered taxable income.

  
  

• Can I buy health insurance that is not Obamacare?

  When people say "Obamacare insurance," they typically mean insurance within the health insurance marketplace. You can get health insurance outside of the marketplace by going through your employer, choosing COBRA coverage if you leave your job, or buying a short-term health insurance policy through an insurance agent. ACA-compliant plans meet all the benefits and coverage requirements of the Affordable Care Act. But you may be able to find supplemental or short-term coverage that simply provides peace of mind for major medical expenses.

• Can I buy health insurance anytime?

  To buy health insurance in the marketplace, you must purchase it within open or special enrollment periods. But you can purchase short-term coverage to bridge the gap between now and the next open enrollment period. These plans are meant to be used for less than a year. You can purchase them online or via insurance agents, but they may not be ACA-compliant.

• Who should buy supplemental health insurance?

  Supplemental health insurance is a product that helps cover the cost of services that your primary health insurance policy doesn't. One popular option is secondary insurance that helps cover some of the costs associated with high deductibles. Medicare supplemental insurance is also popular. Medicare doesn't cover everything, and older adults on a limited income can face large prescription or medical bills after Medicare pays. Supplemental insurance helps reduce those patient costs.