Utah Life Insurance
- Get to know how Utah state law safeguards your rights as a resident insurance consumer, so you can choose a Utah life insurance policy that works for you.
If you're like many Utah residents, you're considering life insurance as a way to safeguard your dependents' futures. Whether you buy a term or cash value policy, Utah law guarantees you certain rights. Before you commit to a Utah life insurance plan and provider, verify that it meets these minimum standards.
Utah Life Insurance Rules and Specifics
The Utah insurance code is found in Title 31A of the state code. It's enforced by the Utah Insurance Department. It requires each contract to include these provisions:
- Gender and Marital Status: Utah life insurance companies are prohibited from discriminating against you based on your gender or marital status. This includes determining benefits, terms and coverage types.
- Required Disclosures: To help you pick the right policy, Utah law requires providers to give you a buyer's guide as well as a life insurance illustration or a policy summary. They can send it with the policy but must also send it early if you request it.
- Free Look Period: In Utah, you have 10 days to examine a new life insurance policy. For a replacement policy, you have 30 days. During this free look period, you're legally permitted to cancel coverage; the company is required to refund any money you've paid. To return the policy, you must send it back to the company or agent by first class mail; include a written notice of return.
- Grace Period: If you can't make a premium payment by its due date, state law gives you 31 days to catch up. As long as you do, your life insurance coverage stays current. You can expect the company to charge interest for every day the payment is late.
- Guaranteed Benefits: Utah law mandates that providers pay for membership in a guaranty association. If your insurance company can't pay a death benefit, the law requires the association to pay up to $500,000 of the death benefit or $200,000 of the cash surrender value.
Life Insurance Resources in Utah
Utah Life & Health Insurance Guaranty Association
Before you commit to a life insurance provider, make sure its membership in this association is in good standing. This ensures your investment is protected and guarantees a payout under the policy conditions.
The officials at the Utah Insurance Department are dedicated to consumer education; you can call or email to ask questions or check the status of a provider's license. The website offers a helpful buying guide for beginners, a complaint form and a company lookup tool.
Check the creditworthiness and credit quality of prospective life insurance companies with this organization. This is one way to assess the financial strength of the company; the stronger it is, the more likely it is to be able to pay claims and grow your account.