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As Millennials Approach 40, Life Insurance Should Be On The Agenda — But Many Aren’t Prepared

Understanding a beneficiary’s responsibility is part of any preparation checklist.

Today’s millennials (24–39 years old) are getting older, and along with an impending milestone birthday as the first in the generation turns 40, they’re also more likely to be the owners and beneficiaries of life insurance policies. Along with new life insurance policies come responsibilities to share and be aware of key information that will ensure that benefits get paid when needed.

There is a clear need for better communication about life insurance policies across all generations, according to a new survey by the National Association of Insurance Commissioners (NAIC). When the beneficiary is younger and potentially newer to the experience, the issue is even more significant. Overall, 55% of millennials surveyed said they are listed as a beneficiary on a friend’s or relative’s life insurance policy, yet only 30% said they are prepared for that role.

Lack of preparation — i.e., sharing and being aware of basic information about policies — leads to millions of dollars in unclaimed benefits each year by beneficiaries who can’t find or don’t know about loved ones’ policies.

“Millennials are entering the stage of life where life insurance policies may, unfortunately, be paid and it’s important for them to know how that process works,” said Utah Insurance Commissioner Todd E. Kiser. “Many are, or should be, thinking about how to provide for their loved ones in the future. A life insurance policy often offers a better benefit when it is purchased earlier rather than later.”

Beneficiaries Should Know Policy Basics

Millennials, who have grown up with cell phones and social media, recognize the power of communication and transparency. That’s good news for buyers and their beneficiaries, who need to significantly improve their game when it comes to sharing and being aware of information about life insurance policies. According to the survey, only 29% of millennial beneficiaries say they know where the policy is kept, 30% know the name of the insurance carrier, and 26% know the benefit amount.

Whether the owner of the policy or the beneficiary, it can be helpful to consider the information as part of a three-part checklist that includes knowing the answers to:

  1. Who is the carrier?
  2. What is the benefit amount?
  3. Where is the policy stored?

To help consumers who do not have all the information that they need, the NAIC maintains a Life Insurance Policy Locator (LIPL) tool. The LIPL has helped consumers claim more than $650 million in benefits since its introduction in 2016. It’s free to use and available online, eliminating the need to contact multiple companies or agents to find a policy or identify whether there is a policy.

Survey Methodology

The NAIC surveyed more than 1,000 consumers online using SurveyMonkey between Jan. 2–13, 2020. Respondents included approximately equal numbers of Generation Z (18–23 years old), millennials (24–39 years old) and baby boomers (56–74 years old).

Press Release
As Millennials Approach 40, Life Insurance Should Be On The Agenda — But Many Aren’t Prepared

Magna Earthquake Individual Assistance from FEMA available for residents of Davis and Salt Lake Counties

*This is a joint news release by the Utah Division of Emergency Management and the Federal Emergency Management Agency*

Salt Lake and Davis County Residents with March Earthquake Losses Can Register with FEMA

SALT LAKE CITY – Utah homeowners and renters in Salt Lake and Davis counties who had uninsured losses from the March 18 earthquake may be eligible for federal disaster assistance from FEMA.

FEMA has programs that provide financial help with temporary housing expenses, basic home repairs and other essential disaster-related needs.

First, if you haven’t already done so, contact your insurance company and file a claim for the disaster-caused damage. You don’t have to wait to start cleaning up, but be sure to take photographs or video of the damage and keep all receipts for repair work.

If you still have uninsured or underinsured losses, register with FEMA. Registration is free and doesn’t take long. You can register in several ways:

  • Visit DisasterAssistance.gov and click on “Apply Online”
  • Download the FEMA App for smartphones
  • Call 800-621-3362 (800-462-7585 TTY). Multilingual operators are available. The toll-free numbers are open every day from 7 a.m. to 10 p.m. MDT.
  • Information about how to apply for low-interest SBA loans for businesses and residents is available online at www.SBA.gov/disaster. You may also call 800-659-2955 or email disastercustomerservice@sba.gov. TTY users may call 800-877-8339.

SBA offers federal low-interest disaster loans to businesses of all sizes, most private nonprofit organizations, homeowners and renters.

It is helpful to have the following information available when you register:

  • Address of the dwelling/structure where the damage occurred (pre-disaster address)
  • Current mailing address
  • Current telephone number
  • Insurance information
  • Total household annual income
  • Routing and account number for checking or savings account (this allows FEMA to directly transfer disaster assistance funds into a bank account)
  • A description of disaster-caused damage and losses

In conjunction with the Utah Division of Emergency Management, and in consideration of the pandemic, FEMA personnel will work remotely from alternative workspaces until further notice. Health and safety are the highest priorities—for Utahns and for FEMA personnel assisting recovery.

If you reported that you may not be able to live safely in your home, it may be necessary for FEMA to perform an inspection of the damaged dwelling. Because of the pandemic, FEMA field inspection will usually be conducted remotely.

For remote inspections, FEMA inspectors will contact applicants by phone to answer questions about the type and extent of damage sustained. Remote inspections provide a new way of evaluating damage, comparable to traditional, in-person inspections, and this expedites the delivery of recovery assistance.

Survivors with minimal damage who can live in their homes will not automatically be scheduled for a home inspection when applying to FEMA. However, they may request an inspection if significant disaster-caused damage is discovered later.

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FEMA’s mission is helping people before, during, and after disasters.

For further media inquiries, contact DEM Interim PIO, Wade Mathews at wmathews@utah.gov or DPS PIO, Joe Dougherty at jdougherty@utah.gov.

Download the news release here.

Remote Testing Now Available for Utah Licensees

Prometric is now offering a remote testing and proctoring tool for insurance licensees in Utah. Licensees can now take their license examinations at a Prometric test center or online using the ProProctor tool.

The system uses advanced AI and live proctoring staff to ensure testing is fair, reliable, and accurate. More information is available on Prometric’s website.

Fingerprinting must still be done in person at a Prometric testing site.

What to Know About Coronavirus & Your Insurance

For the most up-to-the-minute updates about COVID-19 in Utah, visit coronavirus.utah.gov.

It’s important to know that the immediate risk from the coronavirus is low, but the CDC believes that the public health threat will be significant. Utahns can help the community stay healthy by washing their hands and avoiding people who appear sick — just like they would during any other flu season. If you or someone you know is diagnosed with COVID-19, your insurance company will be able to help.

Below are the actions Utah’s health insurers are taking to assist people affected by the coronavirus.

Bridgespan

Cigna

Cigna is waiving all co-pays and cost-shares for COVID-19 testing, treatment, and telehealth screenings through May 31, 2020. It is also providing free home delivery of up to 90-day supplies of maintenance medications and have set up a 24-hour toll-free help line for consumers who are feeling high stress and anxiety.

CVS Health/Aetna

CVS/Aetna is waiving all cost-sharing for COVID-19 diagnosis, testing, and treatment for members. It is also waiving copays for telemedicine visits for any reason for 90 days, waiving charges for prescription home delivery, and allowing 90-day prescriptions of maintenance medicines.

EMI Health

Golden Rule Insurance Company

Humana

Humana is waiving out-of-pocket costs associated with COVID-19 testing for patients who meet CDC guidelines at approved laboratory locations. It is also waiving telemedicine costs for urgent care for the next 90 days and is allowing early refills on prescriptions.

LifeMap

Molina Healthcare

Molina Healthcare is waiving COVID-19 testing costs for members. It is monitoring the coronavirus on a daily basis and working to ensure that it is prepared to assist its members.

MotivHealth

National Foundation Life Insurance Co.

National Health Insurance Co.

PEHP

PEHP is covering COVID-19 testing without preauthorization under the member’s normal benefits. It is also allowing members to acquire 90-day supplies of maintenance medications from retail and mail order pharmacies, and early refills for Diabetes Savings Program members.

Regence BlueCross BlueShield of Utah

Regence is covering the cost of a COVID-19 test with no cost to fully insured members if a provider determines the test is necessary. Members who are diagnosed with COVID-19 will be provided personalized support. Medication policies have been loosened (except for opioids) so members can have needed medications on hand.

SelectHealth

SelectHealth is covering in-network COVID-19 testing with no copays, coinsurance, or deductibles. It is also educating members about the proper way to triage their concerns related to COVID-19, including telehealth visits through Connect Care.

UnitedHealthcare

UHC is waiving copays, coinsurance and deductibles for COVID-19 testing at approved locations and for visits associated with COVID-19 testing, including visits to a doctor’s office, urgent care, or emergency room. It is also allowing early prescription refills, expanding access to telehealth options, and offering a 24-hour emotional support help line that is free for anyone to call, not just members.

University of Utah Health Plans

WMI Mutual Insurance Co.

 

Other Resources

Coronavirus rendering courtesy of CDC/ Alissa Eckert, MS; Dan Higgins, MAMS
arches liquidation logo

Arches Health Plans News

For the latest updates regarding Arches Health Plans, please visit
Arches Health – In Liquidation.

On October 27, 2015, the Utah Insurance Department placed Arches Health Plans into receivership. This action was taken to allow the insurance commissioner to supervise the runoff of existing policies.

On January 13, 2016, the Third Judicial District Court of Salt Lake County, State of Utah issued an Order for the Liquidation of Arches Mutual Insurance Company, a Utah health insurance company. Please see the below links for information regarding the liquidation.