Best Life Insurance Companies in West Jordan

FAQs

• Are death benefits from life insurance taxable in West Jordan?

  Generally speaking, death benefits derived from life insurance are not subject to income tax in West Jordan, meaning beneficiaries who receive the money in a lump sum are exempt from income tax. However, if the beneficiary wants to receive the death benefit in installments that include interest, the interest will be taxable. Furthermore, if the death benefit goes to the insured’s estate, the amount may be subject to federal or estate tax if the estate crosses the amount for tax exemption.

• What do insurance companies in West Jordan consider when writing your life insurance policy?

  Generally, some of the factors insurance companies consider include the applicant’s age, health condition, and the amount of insurance coverage they wish to get. This is why some insurance companies in West Jordan order medical exams before writing a policy. It helps them identify the client’s risk classification.

• Where can you lodge a complaint about a life insurance provider in West Jordan?

  If you have any issues with your life insurance provider in West Jordan, you may contact the Utah Insurance Department’s Life Insurance Section to assist you in filing a complaint against the insurance company, agency, or agent. To reach them, you may dial 801-957-9290. Its toll-free hotline is 800-439-3805.

• Can you back out of a life insurance policy in West Jordan?

  It depends on how long your life insurance policy has been issued. Under Utah Code Annotated 31A-22-423, you can return your new life insurance policy to your chosen West Jordan provider within 10 days. On top of that, you are entitled to a full refund of any premiums you’ve paid. If the policy replaced a previous life insurance policy, the 10-day “free look” period is extended to 30 days.

• Are all types of death covered by life insurance in West Jordan?

  Depending on the policy that the insured carries, there can actually be exceptions to coverage when it comes to life insurance coverage in West Jordan. These exceptions typically apply if the insured died by suicide or was murdered. There may be other exceptions, and those will be specifically stated in the policy. It is important to fully understand the extent of one’s life insurance coverage to avoid claim denials.

• 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.