Best Life Insurance Companies in West Valley City

FAQs

• What should people of West Valley City consider before canceling their old insurance policy and getting a new one?

  Individuals in West Valley City should only cancel their existing policy once the new one is in hand. After obtaining the new policy, there is a review period to ensure it meets one's needs. Because switching policies might incur costs similar to the initial setup fees of the previous policy, policyholders must ensure they understand these potential expenses before making changes.

• What should a West Valley City resident expect from insurers when purchasing a life insurance policy with a death benefit of less than $15,000?

  In West Valley City, insurers must disclose if a policy limits death benefits for a set period of time after coverage begins. They must also notify you if the premiums are likely to exceed the death benefit over time. This information is provided at the time of policy or certificate delivery. Policyholders should always be informed and maintain open lines of communication with their insurers.

• Is there any protection for West Valley City residents if their life insurance company goes bankrupt?

  Residents of West Valley City are covered by the Utah Life & Health Insurance Guaranty Association. This association ensures that if a licensed insurer in West Valley City goes bankrupt, policyholders' policies will be covered up to the limits set forth in the Utah Guaranty Association Act. This safeguard contributes to the financial security of life insurance policyholders.

• Is employer-provided life insurance in West Valley City sufficient for one's financial needs?

  Employer-provided life insurance may fall short for residents of West Valley City. Typically, these plans only cover one to two times the annual income. Experts recommend at least ten times that amount in coverage. Individuals may also lose this protection if they change careers. Obtaining a term life insurance policy can be a cost-effective way to increase their coverage.

• Why should both parents in West Valley City consider life insurance?

  For families in West Valley City, it is critical for both parents to have life insurance because a parent's contribution goes beyond just income. The death of one parent creates an unexpected gap in responsibilities such as childcare, home maintenance, and travel. Having two life insurance policies helps families preserve their way of life.

• 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.