Utah Insurance Blog

Utah Health Insurance Market Update: 2012

Here's what happening in the Utah health insurance market:

Health Reform: Nationally, there aren't many changes that will be apparent on the surface. The reform bill is encouraging efficiency and an increase in the quality of care in 2012. The state of Utah continues to improve it's defined contribution system in the group health insurance market.

HumanaOne has a new rating structure that keeps health insurance affordable for single-parent families! Their Enhanced Copay plan with a $1,000 medical deductible has become more affordable in 2012. They also have a *Cancer Cash Plan that's only $8.99 per month for a family of 5 (parents, age 45) for a $5,000 cancer cash benefit. It's a way to protect yourself financially against devastating medical costs and lost income while you recover from a battle that many people win. Get a quote for this plan now.

SelectHealth seems to have some competitive pricing on lower deductible HSA-eligible plans. This is a great way to receive tax benefits and lower your health insurance premium! Get a quote for their HealthSave product now!

Altius Health Plans has a new product called Peak Preference. It's similar to an HMO product, but you don't need a referral to see a specialist. Rates are about 15% lower than their main product. Great way to save some money and still keep good coverage! Explore your options instantly online.

Hospital Cash Plan / Supplemental Health Insurance: Currently I know of one plan that pays a daily benefit when the insured is admitted to a hospital. Call me at 801-679-0405 to find out more!

Dental Insurance: Dental Select of Utah has some of the most competitive dental rates in the Utah market. Explore your plan options!

Term Life Insurance: It's been super-affordable for a while, and rates are still near an all time low. If you haven't explored term life insurance as part of your long term financial plan, get instant term life quotes with no obligation.

If you have questions on what's happening in the Utah health insurance market, or would like quotes for any type of insurance, please email or call me at 801-679-0405!

*Kanawha Policy Form 70620 UT.

Child Life Insurance - a Gift for Their Future

Sometimes when people approach me for life insurance, they ask me about adding a child rider. The child rider provides a small amount of protection for the insured's child(ren). It's a relatively affordable coverage, but usually only provides $5,000 or $10,000 of term protection, and ends when the policy term ends.

A Valuable Option

Last year I ran across an interesting life insurance product for children that is often more affordable ($45 per year, per child!) and provides $20,000 of term protection that automatically converts to a whole life policy when the child turns age 25.

More Than Pure Life Insurance Protection

I really like the fact that there's more in it for the child than just the death benefit. Once the policy converts to a whole life policy, it can build cash value which can be taken advantage of in different ways. In addition, the policy allows the child to increase the life insurance coverage at ages 25, 28, and 31, by an additional $20,000 at each of those ages. This gives them the opportunity to accrue $80,000 of whole life insurance by age 31, without having to prove insurability.

Protect Their Insurability

Not having to prove insurability can be especially valuable if a child develops a medical condition which makes them uninsurable when they are older.

Popular Uses

I've had parents purchase these policies for their kids for the basic benefit and grandparents purchase them as a gift for their grandchildren.

If you are interested a policy for your child, grandchild, or someone you know, email me at jared@utahinsurance.org or call me at 801-679-0405.

Life Insurance Q&A - Determining How Much and What Kind of Policy to Purchase

Recently, Phillip C. approached me with some questions about life insurance, which type to buy, and how much he needed. His question is in green and my response is in red.

Hey Jared-

Thanks for the life insurance quotes.  What is a relatively common death benefit amount - $200,000 - $300,000 - $500,000??  Or do people just arbitrarily pick a number?  Also, I am relatively young (29 years old) - is it a better, or more appropriate way to go with universal insurance?  One that doesn't lapse when I am sixty?

Anyhow, whatever additional info you could provide would be very helpful.  Thanks again.

-Phillip C.

Phillip,

There is a method to figure out how much life insurance you need/should have etc…

It really depends on your goals and what you want to protect. Are you married? Do you have children?

Some of the most common and popular reasons that people buy life insurance are:

• Income protection (replace your income so your spouse can continue the lifestyle she is accustom to)
• Create an inheritance for children in the event of your death
• Create a college fund in case you are not there to help with college (the same thing can apply to helping children pay for weddings and honeymoons etc)
• To pay for your final/funeral expenses
• Payoff your mortgage so your spouse can continue to live in her current house without having to worry about making payments.
• Payoff credit card debts
• Payoff student loans
• Payoff vehicle loans
• Payoff possible medical expenses that you may incur before your death.

Take a look at this life insurance needs worksheet. It will guide you in determining how much life insurance you might need.

As for the universal vs. term life insurance question, Universal life insurance is appropriate if you want to have a guaranteed death benefit paid to your beneficiary no matter when you die. However, they are about four times more expensive than term policies.

Many young people will buy term insurance to protect their spouses and/or  kid(s) from having to pay toward debts, mortgages, cars, etc...  A 20 or 30 year term life insurance policy is usually sufficient for those needs.

It’s a personal choice, but the main advantage of universal life insurance is that the death benefit can last all the way until age 121 or 105, meaning that your spouse/beneficiary will most likely get the death benefit when you are gone.

Jared Balis

Utah Insurance Advisors

If you have any follow up questions to these emails, or would like to discuss your life insurance needs, please contact me by email @ jared@utahinsurance.org or by phone @ 801-679-0405. Visit my website for instant term life insurance quotes!

 

Term Life Insurance Riders – Worthwhile or a Waste?

When you purchased your last life insurance policy, did you add any riders to it? If not, it might be a good idea to take another look at the riders available.  On the other hand, maybe it’s better not to have them.

• Accidental Death Benefit – This rider pays the life insurance beneficiary extra if the insured dies in an accident.  The idea is that the event was sudden, and totally unexpected.  The extra death benefit (often times double the normal death benefit) helps offset the expenses incurred by the unexpected nature of the accidental death.  In my experience, this rider is not a great deal.  Often times you are better off doubling the death benefit, than adding the rider.  This means that the beneficiary gets paid “double” the death benefit whether the insured dies in an accident or of an illness or other cause.  The money you save by dropping the accidental death rider can easily help you afford more life insurance.
• Waiver of Premium- This rider pays the insureds premium in the event that the insured becomes disabled (usually for a period exceeding six months).  The cost of this rider can be 20% of the life insurance premium.  This means that the insured is paying 2.4 months premiums extra each year for this benefit.  It comes down to whether or not the insured would be able to pay their premiums if they were disabled.  Since they would most likely not be bringing in any income, maybe it is a smart move.  On the other hand, if the insured has disability insurance and/or other means of paying their expenses while they are disabled, this rider might be one to pass on too.  Assuming the insured doesn’t have a disability plan, it may be wise to put the savings toward a disability insurance policy.
• Child Rider-  Since there is little need for a small child to have their own life insurance policy, it often makes sense to add the child rider to the insureds life insurance policy.  Usually this rider provides between $2,000 and $10,000 in benefits, often used in the unfortunate event of child’s funeral.  Normally if the insured has more than one or two children, the extra premium makes sense for the added protection.  However, if money is tight, the main concern is the the possibility of losing the breadwinner.  If the insured only has one child, the cost of a $50,000 life insurance policy for them is normally only a little more than adding a $2,000 or $10,000 child rider.

If you aren’t sure what riders to select, talk to a financial adviser or a trusted broker or agent.  They can run the numbers and present the options.