Utah Insurance Blog

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!

 

The History and Risk of Utah Earthquakes - Facts, Future Likelihood, and Earthquake Preparedness

Every time a significant earthquake strikes, the media focuses on the very real possibility that Utah could suffer a devastating earthquake. You may have heard that the Wasatch Front is long overdue for an earthquake, and that's because we haven't had a big one in hundreds of years. However, there have been several earthquakes that were over a 6.0 on the richter scale in Utah since 1850.

Utah History and Earthquakes

Just last month (January of 2011) there were eight earthquakes in the state of Utah, ranging in size from 3.1 to 4.5 on the richter scale. Utah is an active state. Below is a chart that shows the chances of different sized earthquakes, according to the University of Utah Seismograph Stations (as reported & printed in the "Homebuyer's Guide to Earthquake Hazards in Utah" by the Utah Geological Survey in 1996):

Earthquakes do not occur in regular patterns. The box above shows how many earthquake main shocks occur, on average, in the Wasatch Front area and in the Utah region (which includes the areas bordering the state). “On average” is a key term, as earthquakes in Utah sometimes happen more frequently or less frequently within the time frames shown above.

Insurance Considerations

On February 22nd, 2008, Becky Bruce from ksl.com reported that only 15% of Utahan's who carry home owner's insurance have earthquake coverage. It's a staggeringly low number that could leave much of Utah in financial ruin in the event of a strong earthquake. To find out the cost of earthquake insurance for your home or business, complete this earthquake insurance proposal request form.

Earthquake Resources

• Read this ksl.com article explaining the parallels between the latest earthquake in Christcurch, New Zealand and a potential Earthquake along the Wasatch Front.
• Review this Utah state map showing the potential of strong ground shaking. (provided by the Utah Geological Survey):

• Visit the Utah State Insurance Department's earthquake insurance page for some useful information on earthquake insurance in Utah. You can read it here: http://www.insurance.utah.gov/auto/earthquake.html.
• Watch an informative narrated video of a flyby along the Wasatch fault Line, presented by the Utah Geological Survey.

 

• Download the handbook released by the Utah Geological Survey titled "Putting Down Roots in Earthquake Country." - This handbook provides information about the threat posed by earthquakes in Utah, particularly along the Wasatch Front, and explains how you can prepare for, survive, and recover from these inevitable events. If you live or work in Utah, you need to know why you should be concerned about earthquakes, what you can expect during and after an earthquake, and what you need to do beforehand to be safe and protect your property.

If you would like to learn more about protecting your home from the potential damage of an earthquake, request a free, no obligation Utah earthquake insurance proposal by email.

*If you found this article valuable, please share it with a friend or family member by clicking the "ShareThis" button below!

For further reading about earthquakes in Utah and earthquake insurance, check out this informative earthquake article by Lesley Mitchell from the Salt Lake Tribune!

Child Only Coverage in Utah - an Option That's Back on the Table!

Since fall of 2010, children have not been allowed to apply for health insurance unless they've applied with at least one adult. This has caused some serious problems for children caught in specific situations.

Emergency Rule Regarding Dependent Eligibility

The Utah Department of Insurance recently issued an emergency rule regarding dependent eligibility for health insurance plans. The rule states that a child under the age of 19 shall be issued a health insurance plan from any private insurance company in Utah, if that child has a certificate of insurability.

Certificate of Insurability

A certificate of insurability is a certificate issued by the Comprehensive Health Insurance Pool of Utah (HIPUtah) if they determine that someone who has applied for HIPUtah insurance is indeed insurable in the private market.

The Comprehensive Health Insurance Pool of Utah

The Comprehensive Health Insurance Pool of Utah (HIPUtah) is a state funded program that is administered by Selecthealth. The purpose of HIPUtah is to provide insurance to individuals who are uninsurable in the private health insurance market, or have been declined by one or more insurance companies. HIPUtah does not have income guidelines like Medicaid and CHIP, but does require that a person be uninsurable before they are approved for coverage.

What This Means for Utah's Children

Plainly said, if a child under the age of 19 years old needs to apply for health insurance as an individual in the state of Utah, they can now do so once they have applied for HIPUtah and obtained a certificate of insurability. It takes some paperwork, but it is possible to insure a child on a stand-along policy once again.

To get help insuring a child on a stand alone plan, please call me at 801-679-0405 or email me.

Selecthealth Releases Their New Online Application for Individuals & Families!

Today, Selecthealth released their online application.

They are the last major insurance company in the Utah market to offer the ability to apply online. From what I've seen, it looks like its been worth the wait.

Saving the Best for Last

Compared to other insurance companies' online applications, Selecthealth is definitely in the top two (the other being HumanaOne). Their online application system takes you step-by-step through the quoting, plan selection, and application process.

Out with the Old and In With the New

Paper applications slow down the application process in more ways than one. Using the new online application will;

• Help to ensure that each application is complete
• Make sure applications make it to the review process sooner
• Ensure that the correct supplemental application forms have been submitted

It's not a bullet-proof system, but it's bound to make things much easier for people who apply for a Selecthealth medical plan.

Get free instant quotes online and get access to the Selecthealth application now.

Check your doctors, download brochures and more at www.UtahInsurance.org, a Utah Insurance Advisors site.

What Healthcare Reform Means for You in 2011

Will health reform affect your situation? It might affect you and it might not. Here are a few things to be aware of through 2011:

Guaranteed-Issue Health Plans are Not Available Yet

A lot of people in Utah are under the impression that they can get guaranteed issue coverage already (meaning that the insurance companies won't deny them for a pre-existing health condition). In actuality, the date when that happens is January 1st, 2014. Anyone that's over age 18 must qualify medically for an individual or family health insurance policy. Children are now able to get guaranteed health coverage in Utah.

Covering Children in Utah

As of October 2010, children can get guaranteed issue health plans, but are being required to apply with at least one adult (some companies require the whole family to apply.) Children ages 18 and younger cannot get a policy on their own anymore. To find out more about this, please read my blog post "Insuring Children on a Utah Health Plan."

Group / Employer-Sponsored Health Plans & Defined Contribution

This year, Utah employers have the option of using a defined contribution model. This model allows employers to offer a defined contribution (a specified dollar amount) towards their employees' coverage, rather than paying a percentage of their employees' premiums. It also lets employees within the same company choose plans from different Utah insurance companies and choose from different plans within those companies. If you are interested in a group health insurance plan in the defined contribution market, please email us to work alongside a licensed agent.

Tax Benefits for Small Businesses

Some businesses qualify for a tax credit of up to 35%. To find out if your business qualifies, use this free tool from SelectHealth.

Changes will keep coming over the next few years. Sign up for blog-post email updates to keep up to date!

Get Involved in the Auto-Accident Claims Process

No one expects to be in an auto accident, but it's good to be prepared just in case.

A Real Story

Today I talked to a gentleman I've worked with in the past and he told me about an auto accident he had two weeks ago. His car was a total loss. His auto insurance company offered him a specific dollar amount to replace his totaled vehicle. He thought the amount they were offering him was low, so he went to a dealership near his house. He found out that the book-value of his car, in the condition it was in, should have been more than they offered him.

Getting Involved

He printed out the information from the dealership and printed his own findings from Autotrader.com and NADA.com. This gentleman sent all of the printed research to the insurance claims adjuster and expressed his concern that the amount they had offered him was too low. The claims adjuster reviewed the information and agreed in the end, which resulted in a higher claims check for this insured.

The Bottom Line

This guy got involved in his own claim and contributed his own thoughts and research to the process, which literally paid off for him.

No matter what type of insurance, be involved in the claims process to make sure your claim check is for the appropriate & correct amount.

Rental Reimbursement

A quick side note: He also rented a car that he's had for two weeks now. It's cost him $350 up to this point. We briefly talked about adding rental reimbursement coverage to his policy, which he is now in the process of doing.

For a custom auto insurance quote call me at 801-679-0405, email me at jared@utahinsurance.org, or complete this Utah auto insurance quote form.

Free Auto Accident Preparedness Kit for Utah Residents

An accident isn't something many people prepare for, but it's important to be prepared, to help you through the claims and legal process post-accident:

When someone is in an accident they are typically panicked and flustered. A checklist of information to gather and steps to follow is the last thing on thier mind. However, gathering witness information, taking pictures of the accident scene, and gathering the other driver's information are just a few important steps that can affect your medical, financial, and insurance situation in the end.

I've developed a free accident preparedness kit that leads you step-by-step through the information to gather, and the steps to take to make sure you, your lawyer, your insurance company, and the police have everything they need to assist you in the claims and legal process.

Download your free accident preparadness kit now at http://www.UtahAutoInsuranceCenter.com/Auto_Accident_Preparation_Kit.pdf.

Please share this free accident preparedness kit with your friends and family by clicking here.

 

Catastrophic Health Insurance for Utah Residents

With prices continually on the rise, individuals and families are looking for less costly ways to insure their health. Catastrophic health insurance is a popular and effective way to provide quality major medical insurance at a price more affordable than traditional health plans.

Catastrophic health insurance is simply any health insurance plan that has the primary purpose to cover catastrophic medical expenses, and not so much the day-to-day expenses. Some plans that offer this type of coverage in Utah are; qualified high deductible health plans, The Utah Netcare plan, and deductible first plans with high deductibles.

Because most catastrophic plans don't cover office visits, prescriptions, or emergency room visits until after you've met your deductible, the monthly plan cost is often much lower than traditional health plans.

Most catastrophic plans in Utah do offer preventive care before you are required to meet your deductible (the deductible is waived). This means that you can take care of all of your/your family's annual physicals and preventive testing without much, if any, out-of-pocket cost. The main expenses you would normally pay toward are doctor's office visits, non-preventive diagnostic tests, accidents, surgeries, and hospital visits.

When considering catastrophic health plans, be sure they aren't "discount plans." Discount plans are not insurance plans. Many people I've talked to over the years are in serious financial trouble because they didn't understand what they had purchased until they needed their coverage.

Be conscious of the following plan components when choosing a catastrophic health plan:

The Out-of-Pocket Maximum:
This is the maximum dollar amount you would be responsible to pay, in a worst case scenario, each year. If you are shopping for a family plan, be sure you know the out-of-pocket maximum for the entire family.

Tax Advantages:
Does the plan you are considering offer any tax benefits? "Qualified high deductible health plans" offer the ability to be paired with a health savings account (HSA). This allows you to pay for most of your medical, dental, and vision expenses with pre-tax money. If you or your family could use another tax deduction, this is a benefit you'll want to explore.

Prescription Coverage:
Does the plan cover prescriptions? Some catastrophic plans don't. If it does cover prescriptions, is there a separate deductible, or are prescription expenditures combined with your medical deductible? How much does the plan cover once the prescription coverage kicks in?

Accident Coverage:
Does the plan have any special accident coverage? Most catastrophic plans don't. But, many companies/plans give you the option to add an accident rider, which can cover a specified dollar amount of accidents before you are required to pay toward your deductible each year.

Coinsurance:
This is the percentage your insurance company pays of your medical bills after you meet the deductible. Some common coinsurance percentages are 50%, 80%, and 100%. Of course, the most money you will pay in a year for covered services is equal to your out of pocket maximum.

In conclusion, catastrophic insurance can be an effective money saving tool for individuals or families that don't use their benefits often, are relatively healthy, and can benefit from a tax deduction.

Learn more about these plans by visiting this website, or...

Find out how a catastrophic insurance plan can improve your situation. Request a quote, or contact me for a custom proposal.

by Jared Balis
Utah Health Insurance Agent
Utah Insurance Advisors
Visit Jared's Google Author Page.

Over the Counter Drugs and Health Savings Accounts

Starting January 1st, 2011, over the counter drugs will no longer be eligible to be paid for through your health savings account. In other words, you can no longer use pre-tax money to purchase over the counter drugs.

However, there is a way to get around this new rule. If your doctor writes a prescription for you, to take an over the counter drug, it is eligible to be paid for out of your health savings account (with pre-tax money).

For instance, if you and your doctor decide that you need to take a theraputic dose of Niacin for high cholesterol, and you choose to buy Niacin over the counter, instead of through a pharmacy, as long as your doctor has written you a prescription, the IRS will allow you to use your health savings account to pay for your over the counter Niacin.

The same goes for over the counter pain medication, allergy medication and any other over the counter drug. As long as you have a prescription, you can still use your pre-tax money to pay for it each month.

Although this may seem like it's a step backward in consumer driven healthcare, and it is, there's still a way around it. Over the counter drugs not only cost less, but your insurance doesn't have to pay, which keeps premiums lower in the long run.

In my opinion, High Deductible Health Plans are still the best consumer driven healthcare tool on the market. For people who don't utilize their health benefits often, are looking for a low cost way to have major medical protection, there's nothing better out there.

To learn more about health savings account, visit my Utah HSA website. For instant quotes for all health plan options in Utah, please visit my instant quoting site.

If you have questions, or would like to speak to me about high deductible health plans and health savings accounts, or other health insurance solutions, please contact me at 801-679-0405 or email me.

Insuring Children on a Utah Health Plan

The affordable care act (healthcare reform) and insurance company policies introduce new obstacles when it comes to insuring children (ages 18 and younger) in Utah. Here's what you need to know.

Because the health care reform bill makes it mandatory for health insurance companies to insure children, the main health insurance companies in Utah have decided to discontinue all child-only plans.

However, insurance companies in Utah will still insure children, if at least one adult or the rest of the family (depending on the company) applies for coverage as well. Some companies will only allow children to apply during certain times of the year. It's important to know about these open enrollment periods, so you can plan ahead to insure your kid(s).

Get instant health insurance quotes for you or your family for the below companies now!

Altius Health Plans

Altius will only accept applications with children that are signed and dated between November 1st and December 15th each year for a January 1st effective date. They will also accept applications date between May 1st and June 15th each year for a July 1st effective date.

Assurant Health

Assurant Health will accept new applications including children (as long as at least one adult applies also) at anytime during the year.

Current policyholders can add children at anytime during the year.

HumanaOne

HumanaOne will accept an application with children as long as an adult or adults apply with the child. There are no specific enrollment dates. HumanaOne will accept an application with kids anytime during the year. The same applies to current HumanaOne members. You can add children anytime during the year.

Regence Blue Cross Blue Shield of Utah

Regence Blue Cross Blue Shield of Utah will only accept applications with children that are signed and dated between November 1st and December 15th each year for a January 1st effective date. They will also accept applications date between May 1st and June 15th each year for a July 1st effective date.

SelectHealth

SelectHealth will accept new applications including children at anytime during the year.

However if you are already insured by SelectHealth and wish to add your child(ren) to your plan, you must submit an addition form within the two months before your renewal date. If your plan renews on January 1st, you must submit an addition request form (change form) between November 1st, and December 21st the preceding year. If your plan renews on July 1st, you must submit a change form between May 1st and June 21st of the same year.

Exceptions to the enrollment periods are made most of the time for newborns or adopted children.

***Notice: This article was written as a service and for educational purposes only. Do not rely on the above information until you have confirmed it with your insurance agent, or insurance company. If you have questions, or wish to discuss your specific situation, please call Jared Balis at 801-679-0405, or email me.