Minnesota Life Insurance

In Minnesota, life insurance is part of a solid overall financial plan. There are different life insurance products available to residents of Minnesota. In order to make good decisions about your MN life insurance, you need to examine your options carefully. Use the guide below to bring yourself up to speed before reviewing quotes for this important product.

Minnesota Term Life Insurance

As the name implies, Minnesota term insurance is something you buy for a specific term only. After that point, the coverage under that policy expires. It can be a good choice when you only want or need to arrange for coverage for a set amount of time or you can't afford to buy a policy that will provide you with permanent life insurance coverage.

Some insurance companies will allow you to convert your term insurance plan into a permanent one after you have had it in place for a certain amount of time. Most companies have a minimum level of coverage that you must buy; additional insurance coverage will be offered in increments of a set amount.

Be sure to ask your insurance agent or company about level premiums for a set amount of time. Depending on the plan you choose, your premiums may be guaranteed not to increase for 10, 20, or 30 years. After that point, you may have the option of renewing your policy on an annual basis at a rate set by the insurer.

Term life insurance is something that is less expensive the younger you are when you buy the policy. As you age, your premiums will increase, and there may be an age limit in place as to when you can buy term insurance. Some policies are not offered to people over the age of 50, for example.

Minnesota Whole Life Insurance

When you buy a Minnesota whole life insurance policy, you have coverage that will not increase during your lifetime, or until you reach the age of 100. Like term insurance, there is an upper age limit after which you cannot buy coverage, but if you are younger than 80, you should still be able to find a company willing to issue you a policy.

One of the advantages to buying a Minnesota whole life policy is that as you pay your premiums, the policy accumulates a cash value in addition to the death benefit the insurer is obligated to pay if you die while the policy is in force. You have the options of

• Taking the dividends the company pays you in cash (which may have tax consequences)
• Using them to reduce your premiums
• Allowing them to accumulate interest. The rate of interest you are given will be determined by the insurance company
• Use the dividends to buy more coverage

Using your dividends to purchase more coverage is a good choice in a situation where you are at an age when the cost of insurance premiums is substantial and you feel you don't have adequate coverage for your needs. Using the dividends in this way means you can afford to provide better benefits for your family without necessarily paying any more out of pocket. If you need to top up the premiums to get the level of protection you want, you will not be paying the full cost yourself.

Ask your Minnesota life insurance agent or the company about how the insurance proceeds will be distributed to your beneficiary after your death. It may not be your desire to have the person or persons you designate receive a check for a lump sum, since it may be tempting to spend that cash quickly. A person who has recently suffered a loss may not be in the best position to make wise choices about handling a large amount of money, either.

Some insurers offer the option of setting up a plan where your insurance policy proceeds are distributed on a monthly basis or with an initial lump-sum payment and payments made afterward. If your goal is to make sure that your beneficiary has an income for his or her life, then you may want to look at this type of option. The company or your agent will be able to help you examine your personal situation and find the solution that makes the most sense to you.

Minnesota Universal Life Insurance

When you want to give yourself maximum flexibility with your MN life insurance policy, then a universal life plan is definitely worth a look. Buying a universal life policy means that you have the option of changing the premium you pay or even taking a break from paying premiums for a period of time, as long as you have enough cash surrender value in your policy to cover the amount.

Your policy will earn interest at a minimum rate as long as you keep making your premium payments. This money grows on a tax-free basis until you either surrender the policy or decide o withdraw the funds.

If you need to raise some cash in a hurry, your insurance policy is an asset you can borrow against. The amount you can borrow cannot exceed the cash value of the policy, less whatever sum is required to keep the policy in force for the balance of the policy year. (The company or your insurance agent can explain these amounts to you if you are interested in this option.) You can also choose to surrender a portion of your policy or the full amount.

Minnesota Variable Universal Life Insurance

Variable universal life insurance also accumulates a cash value over time. The funds can be invested in a number of different types of accounts. You can choose to invest the money in mutual funds, if desired. You have the option of deciding how much risk you want to take with your investments, keeping in mind that the more risk you assume, the greater the potential reward.

Find Minnesota Life Insurance Quotes Today!

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