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The inventor of the TV set, Philo T. Farnsworth was born in Beaver, Utah, in 1906. Even though his invention changed the world, Utah boasts the highest rate of literacy in the country. What’s more, women in Utah were given the right to vote in 1850 – a whole 70 years before the 19th Amendment was passed. Nowadays, Utah has the lowest rates of smoking and death from cancer in the country, very low obesity rates, but high rates of suicide. All these things can factor into the cost of life insurance in Utah.
If getting the best life insurance rates is important to you, shop around and get quotes from Utah’s top insurance companies.
More than 2,500 people did just that last year and let QuoteWizard help them compare life insurance rates in Utah.
Below are the major factors that affect life insurance rates.
Age - Age is one of the largest factors affecting life insurance rates. The younger you are when you purchase a policy, the less likely it is that it will pay out. So the lower your rates.
Life expectancy at birth in Utah is 80.2 years, one of the highest in the country. The life expectancy at birth for the US overall is 78.9 years. What if you purchased a 30-year term life policy in Utah at age 55? You'd be more likely than not to pass away before 85 years of age, the end of the term.
On the other hand, what if you were 35 years old and purchased a 30-year term life policy? You'd be well under Utah’s life expectancy of 80.2 years old when the policy term ended. And you’d be a much lower risk to insure and would therefore pay much lower rates than the person in the former example.
Driving Record - Car accidents are incredibly common. They kill more than 30,000 people per year. If someone has a driving record littered with moving violations, they are at an increased risk of a premature demise. The result is higher rates.
Firearm Deaths - Places that have higher rates of accidental or premature death generally have higher rates. A significant part of these untimely deaths comes from firearm injuries, which account for about 33,000 deaths in the US every year. In Utah, the death rate from injury due to firearms is 12.6 per 100,000 deaths, tied with Georgia as the #19 highest rate in the country. Nationwide, the average firearm death rate is 10.4 per 100,000.
Gender - Women live longer than men on average. So they pay less for insurance than a similar man would. In Utah, the percentage of the population that’s female is 49.7%. The percentage that’s male is 50.3%. In the US as a whole, women are 50.8% of the population, and men are 49.2% of the population.
Health History - Most of us have one or two minor health issues. But if you have a serious illness or a family history of such illnesses, this can impact your rates.
There are conditions like heart disease or cancer which can make your premiums a lot higher. In some cases, a pre-existing condition can make you ineligible. That's why it’s important to get life insurance before something serious happens.
Lifestyle & Hobbies - People who engage in adventure sports or who have potentially dangerous hobbies will pay more for insurance. This is especially relevant in Utah, where skiing and hunting are common recreational activities.
Marital Status - Married people live longer and are healthier than similar single people. So, if you’re married, you can get a modest discount on life insurance. In Utah in 2009, the rate of marriage for people over 15 was 56.3 per 1,000 people. The rate of divorce was 21 per 1,000 people. And the rate of widowhood was 7.4 per 1,000 people.
Occupation - People with hazardous jobs like logging and fishing will pay more for insurance than someone with a less dangerous, mundane office job. The most common job in Utah, proportionally, is a college residential advisor.
Tobacco Use - Because tobacco users don’t live as long as non-tobacco users. So smokers pay a lot more for life insurance than an identical non-tobacco user. Tobacco use is associated with a number of health complications like heart disease, stroke, and COPD. Any of which may cause higher rates and an earlier death.
As of 2013, the national average rate of smoking was 19%. To compare to the most recent data available, in 2014, approximately 10.3% of Utah adults smoked cigarettes – about 209,000 adults.
Travel - If you regularly travel to developing countries, particularly countries on the US State Department’s Warning List, you will pay more for insurance than a traveler who sticks to developed countries.
Value of Policy - One of the largest contributing factors to a policy’s premiums is the value of the policy. As with anything, you get what you pay for. The more protection that you purchase, the more you pay.
Weight - Obesity has surpassed smoking to become America’s largest public health cost and problem. Obese or seriously overweight people have a lower life expectancy. This means an increased probability of their policy being paid out. Obesity increases the likelihood of health problems like heart disease, stroke, diabetes, and some cancers. So overweight and obese individuals can expect to pay higher rates.
As of 2013, the adult obesity rate in Utah was 24.1%. This makes Utah the fifth-least obese state. Overall, the average obesity rate in the US is 34.9%.
While each of these factors plays a big role in the cost of your policy, some aspects of life insurance are entirely individual. Insurance companies calculate your rates based on your own health, habits, and lifestyle. That’s why shopping around and comparing quotes is so important–to make sure you’re getting the best rate possible. And, a quick and easy way to do this is by using QuoteWizard.
|Rank||Cause of Death||Total Deaths||Death Rate||State Rank||US Death Rate*|
|3||Lower Respiratory Disease||718||32.0||45th||42.1|
|6||Alzheimer's Disease||412||19.4||38th (tie)||23.5|
|*Death Rate calculated as: (deaths from that cause / total population) / 100,000|
|Rank||Company||Direct Premiums Written (in thousands)||Market Share|
|1||Allianz Insurance Co.||$370,714||17.1%|
|2||Jackson National Life Group||$222,887||10.3%|
|3||Sammons Enterprises Group||$125,480||5.8%|
|4||American International Group||$109,824||5.1%|
|5||TIAA - CREF||$103,447||4.8%|
|6||Prudential Financial Corp.||$91,240||4.2%|
|8||Lincoln National Corp.||$89,838||4.1%|
|9||New York Life Insurance Co.||$75,301||3.5%|
|10||AXA Life Insurance Co.||$71,492||3.3%|
Source: A.M. Best (Ratings as of 9/3/2015)
Insurance in Utah is governed by the laws defined by Title 31-A of the Utah Codified Laws, as outlined by the Utah State Legislature.
This legislation is used to regulate claims and provide certain protections to Utah consumers, for example:
Consumer Misrepresentation: The state of Utah protects insurance companies against consumer misrepresentation. If the consumer is found to have made any errors or misrepresented themselves in any way, the insurance company can legally terminate the policy for up to two years after the policy start date. If this is the case, the insurance company is not obligated to pay any claims during the two years. And, if the consumer purposefully lied about something serious, such medical history, they can prosecuted for fraud.
No Law regarding Timely Payment of Claims: In most states, it is required that insurance companies pay out claims in a timely manner, meaning within 30 days. In these states, if unreasonable delay occurs, the state will fine and/or sanction the insurance company and interest will accrue based on the length of the delay. However, in Utah, no such law exists and insurance companies are allowed to set their own policies regarding claim payments.
These regulations don’t just protect consumers; they also protect insurance companies from fraud. For example, Utah insurers may challenge any information in your insurance application for up to two years from the policy’s effective date. If they find any evidence of fraud, they can terminate your policy immediately.
This organization assists the customers of any insurance company that is found to be insolvent. If you have concerns about the financial well-being of your carrier, you should contact the ULHIGA. Their contact info is below:
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