We may take our insurance products for granted, but coverage through all different lines is a hugely important safety net for us to have in our daily lives. One piece of coverage that we may overlook is life insurance, especially for younger people who may not be thinking about what they’re leaving behind for loved ones in the hereafter. For residents in Minnesota, there are a few things that need to be evaluated when considering life insurance policies. Let’s take a closer look at what some of this coverage has to offer.
Term Life Insurance
Across the United States, people are recognizing the importance of having life insurance coverage to some extent. Insurers like Minnesota Life Insurance Company seek to provide affordable rates with a guarantee on a death benefit being paid out upon your passing, so long as the policy is paid for regularly with monthly premiums. These companies understand that a person’s individual circumstances may differ, so they offer a variety of options ranging in price and extent of the coverage to accommodate people of any age, their spouses, and their family members.
One of the more popular life insurance options is a term policy, which provides coverage for a select period of time usually ranging anywhere from 10 to 30 years. Term life insurance coverage pays a death benefit to beneficiaries should you pass away during the term. This is simple, straightforward protection within the insurance business, and it is a less expensive option provided by an insurance company that can be converted to permanent protection.
Whole Life Insurance
Speaking of that permanent protection, whole life insurance coverage through companies like Minnesota Life can provide a lot of benefits in the long run. Whole life insurance policies provide lifetime coverage with a fixed cash value growth over time. This offers predictable, stable premium amounts for the duration of the policy, ensuring lifetime protection for your loved ones including eligible children. This also offers fixed interest rates for cash value growth, meaning that an insured party can borrow against the policy to handle any outstanding debts.
While this is more expensive than term life insurance coverage, it is actually a more low-risk policy brought on by predictable growth. This is sometimes viewed as an investment, so long as there is an understanding through the underwriting process about when an insured person may be able to capitalize on a cash payout from their policy. Keep in mind: This is borrowed against the death benefit that is paid out upon your passing.
Other Insurance Options
Beyond the standard of term and whole life insurance coverage, there are options on the market that are offered through companies like Minnesota Life. However, be sure to evaluate the financial strength of your insurer before even looking at the terms and conditions of an insurance quote. For example, insurance companies like Minnesota Life have the backup of Securian Financial to pursue other lines of coverage.
For example, group term life insurance coverage is another available option. This is usually offered through an employer to add to existing policies as a supplement. This is designed as a people-first option to cover one’s self or dependents on an insurance policy. There’s also universal life insurance coverage, the second kind of permanent life policy that allows for fixed or adjustable premiums. That flexibility is then expanded to the adjustment of the benefit and building cash value.
Remember, these insurance policies are designed for peace of mind. Make sure you get all the knowledge that you need for information purposes to make sure that your policy is covering you and your loved ones in all facets. Basic life insurance is always a good safety net to have for now, and you can expand it over time.
