Finding the perfect life insurance option for you can be very challenging. There are so many different options to choose from that it can be confusing or overwhelming to decide which option is the best for you. To make things even more overwhelming, each state has different options and legal requirements, which can make switching policies after a move or a job change a bit daunting. Luckily, you have many solid choices when it comes to choosing a Minnesota life insurance company. With a bit of trial and error, you’ll be able to find the best policy for your life as a Minnesotan.
While the options for life insurance policies are endless, there are a few standard options that are offered by most Minnesota life insurance companies. There are many different lifestyle factors that can influence which policy is the best fit for you. These factors include your job, your family structure, and your age. Many people do not believe that they need life insurance, but it is better to be safe than sorry when it comes to taking care of yourself. Many policies are actually very cheap – just a few hundred dollars over the course of a year, and in the unlikely event of your death, your family will have plenty of funds available to arrange a funeral, pay off your bills, and support your children if you have any.
There are a few categories that most life insurance policies fall into. The first and most common kind of life insurance is a term life insurance policy. This type of policy lasts for a specific time period, and is only applicable if your death occurs during this time period. The length of a term insurance policy can vary widely, but typically last around thirty years. These policies are very simple, and typically have no other regulatory components or clauses. Two common types of term life insurance policies are: level or decreasing. In a level life insurance policy, the benefit amount remains stable over the course of the term. In a decreasing life insurance policy, the benefit drops slowly in small increments the longer your policy is active. However, decreasing policies are very rare – most people choose to purchase level term policies. Term life insurance tends to be the most affordable life insurance option, and it is simple to understand, which is appealing to many people. It is an especially good option for people with young children, because the benefit will be active when they are young and would need it most, but will expire once they are fully grown and would no longer need it. There are also children policies that build value as the child grows, as well as term policies that cover your children.
The second major category of life insurance policies is permanent or whole life insurance. These policies are unaffected by age – they cover you for life, regardless of when you pass on. These policies are much more complex than term life insurance policies, and tend to be more expensive as well. There are three major types of whole life insurance policies to choose from with your Minnesota life insurance company.
The first is a traditional whole life insurance policy. This type of policy provides you with a death benefit and a cash value. If you become ill or need access to the cash value you have easy access to it, while still maintaining death benefit coverage. These types of policies are often used for children as for a means to protect the child while offer a way to save for college. There are many variables in life insurance, so we always suggest consulting with your Life Insurance Expert.
Another type of permanent life insurance policy is the universal life insurance policy. This policy is more customizable than other types of life insurance policies, but can also be much more complex and potentially confusing if you do not have previous experience with insurance policies. With this policy, the benefit is placed into a bank account that earns interest over time. If you accumulate enough money in your account, you may be able to decrease your monthly premium amounts, which is a major motivating factor for many people to choose this type of account. Some universal policies also provide you with the option to take a medical examination and increase the amount of your benefit. These types of policies are very attractive to many people, because they offer the opportunity to change your premium to fit your lifestyle. Someone looking for cash access for the future with no tax penalties on its growth while maintaining death benefits should consider an Indexed Universal Life from a Minnesota Life Insurance Company.
The final option for permanent life insurance policies is variable life insurance. This type of policy is a good choice for those with experience and knowledge in finance and investing. These policies usually offer a minimum, stable death benefit, as well as a savings account that you can choose to invest in stocks, bonds, mutual funds, and more. If you are confident in your investment abilities and are willing to take a risk, you can substantially increase your benefit amount over time through investment. However, you also run the risk of losing money through these policies. You can also choose to opt for a variant of this policy called a variable universal life insurance policy. These policies work like a conventional variable policy in that they offer investment opportunities, but they also provide you with options to adjust your premiums over time, similar to a universal life insurance policy. For those looking to increase their benefits substantially without any increases to their premiums, these policies are great options. When invested carefully, you can make huge increases to your benefit amount in just a few years. We strongly advise against selecting this type of policy unless you are either extremely knowledgeable in securities and investments, or you have a licensed professional guiding you. We would be happy to recommend a licensed series six professional but at this time Betters Insurance does NOT carry variable life products. To achieve similar benefits with guaranteed earnings and much less confusing we recommend looking at one of our Indexed Universal Life policies- this route allows you flexibility in policy premium, good track records of growth as well as living benefits.
It’s important for all Minnesotans to find a Minnesota life insurance company that best suits their needs. Life insurance is an important expenditure for many people that provides important benefits. If something happens to you, your family will be taken care of, and they will not have to worry about paying off your debts. You can also live without the stress of wondering what will happen to your family after you pass on and how they will survive financially. If your employer does not currently offer you a convenient life insurance policy, then it is time to start researching the best Minnesota life insurance company for you. It is also important to note that many employer life insurance polices do not follow you into retirement, give you cash access, or move if you change jobs.