Everyone deserves the opportunity to protect their quality of life and their future, and with disability insurance you can. You can think of disability insurance as your financial safety net, giving you an earnings replacement if you’re not able to earn a paycheck due to illness or injury. We’ve laid out the cost-of-living analysis in Utah to show you the average expenses in the state and why disability insurance can give you peace of mind during unpredictable times.
MERIC's 2021 Cost of Living Index data collected during the third quarter of 2021 indicates that Utah has the 31st lowest cost of living in the United States. According to data from the Bureau of Economic Analysis, the average price of goods and services in the state is 3.4% lower than the national average.
Housing in Utah can be pricey. How much you will spend depends on the living situation you select. According to 2019 census data, there are over 1,100,000 housing units available, so you'll have lots of options to pick from. In late 2021, Zillow reported that the average home price in Utah was over $515,000!
Utah renters spend $988 per month on housing, $35 less than the national median of $1,035 per month. The average monthly rent for a unit with five or more bedrooms in the state is $1,644, compared to $791 for a unit with one bedroom.
Here's some stats on Utah Mortgages:
The annual average cost of child care for a 4-year-old in Utah is $7,646, which is significantly less than the national average of $8,903. It costs an average of $15,095 a year to care for a 4-year-old and an 8-year-old, compared to the national average of $15,853.
Here’s a look at the annual childcare costs from infant to college:
How much should you budget each month for utilities if you plan to reside in Utah? The average monthly utility bill in the state is $268. Here’s what you need to consider in terms of utility costs:
According to the Bureau of Economic Analysis, the average annual (non-restaurant) food expense per person in Utah is $3,040, or about $253 per month.
The average price for eating out would be:
Grocery shopping in the state would cost as follows:
In Utah, 87.1% of commuters drive to work, compared to the national average of 85.5%. A typical driver in the state travels 10,143 miles annually on average. Considering average fuel economy and average gas prices — standard fuel cost an average of $2.46 per gallon in Utah in mid-2020 — the average Utah driver can expect to spend $1,029 on gas alone in a single year.
According to data from Insure.com, the average car insurance rate in Utah is $1,759, higher than the national average of $1,509. The average single adult in the state spends $9,940 year on transportation, according to EPI data.
The average yearly income of a single adult living in Utah is $57,462. Utah has a flat individual income tax rate of 4.85%. There is a 4.85% corporate income tax. In addition, the state sales tax sales tax rate is 6.10%, the maximum local sales tax rate is 2.95%, and the average state and local sales tax rate is 7.19%.
Most expensive Utah cities to live in
As shown by the above cost of living breakdown, a steady income is required to live comfortably and worry-free. But sometimes you find yourself unable to work due to some sort of emergency, illness or accident. Whether you are a full-time employee or a freelancer, getting disability insurance is the first step towards financial stability and peace of mind.
What would happen if you found yourself unable to earn a paycheck because you were too ill or injured to work? According to a recent survey conducted by the personal financial website Bankrate, more than half of Americans (51%) have less than three months' worth of emergency funds.
Medical bills are reported to be the number one cause of U.S. bankruptcies. One study has claimed that 62.1% of bankruptcies were caused by medical issues. Other studies show that over 2 million people are adversely affected by their medical expenses.
If medical bills start piling up, you’ll no longer be able to support your lifestyle in other areas as well, especially if your income is on hold. You might find yourself unable to pay for utilities and rent, and that eventually could lead to foreclosure. Half of foreclosures on conventional mortgages in Utah are caused by the disability of one of the homeowners. In fact, Utah came in at number 21 for having the most foreclosures. Out of the 1,151,414 homes in the Beehive State, 214 went into foreclosure. This means that one out of every 5,380 homes in the 30th most populous state went into foreclosure.
A lot of people still think that the need for disability insurance is not top priority, thinking that disability rarely happens, and when it does, it’s only caused by serious accidents. But did you know that up to 90% of disability cases recorded are due to illness, not injury?
With that being said, getting a private disability income insurance should be on top of your to-do list because life is unpredictable but your income shouldn’t be.
Only 5 states in the U.S. require companies to provide their employees with disability insurance coverage that includes benefits for accidents or illnesses sustained outside of the workplace. Unfortunately, Utah isn’t one of those states.
If you live in Utah and can't work, you can apply for disability benefits from the federal government through Social Security and SSI. The Social Security Administration (SSA) offers two types of disability benefits, and Utah's worker's compensation program can give long-term disability benefits for injuries or illnesses that happened at work.
SSDI is for people who have worked and paid Social Security taxes for a certain number of years. SSI is only for people with low income and resources.
But it's not as easy as one might think to file a successful Social Security disability claim. In Utah, your chances of getting disability benefits depend on where you are in the process of applying and appealing. At the first stage of applying for benefits, 38% of people from Utah are approved, which is higher than the average of 35% across the country.
If you have disability insurance provided by your employer, make sure to double-check the criteria in the agreement that qualify you to receive disability benefits when you’re unable to work. Some of these criteria can include the following:
Seeking a private disability insurance policy is the best option in Utah. Here at Asteya, we offer disability insurance (or disability income insurance as we like to call it) that’s simple, fast, and affordable. Our 100% digital process means we don’t tire you out with proof of income, medical exams, phone interviews, or wait times. Click here to get a quote, or contact us for any inquiries.
Most insurances are bought to protect homes, vehicles, and health, but our most valuable asset tends to get neglected: our income. 70% of working Americans live paycheck to paycheck, with little savings to buffer the financial burden of a disability that leaves them unable to work.
At Asteya, we offer a variety of disability income insurance policies. Please visit asteya.world for more details on the eligibility of our product offering.
Protecting your income shouldn’t be a luxury, so here at Asteya, we’ve created affordable and easy solutions that won’t drain what you’re trying to protect (your income!). Our prices start as low as:
On average, living in the state of Utah will cost you $3,114 per month, give or take – that’s a lot of expenses! You've invested a lot of time and hard work in building a life that works for you, and your hard work should not go to waste due to an accident or illness. That’s why you should protect your lifestyle and your income with DI.
If you're still on the fence about whether disability income insurance is for you (hint: it is), here are a few extra points to consider while thinking about it:
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