The Minnesota Department of Commerce regulates most insurance business that is conducted in the state. The MDC also provides an excellent consumer guide for selecting and buying Minnesota life insurance policies. The guide suggests that you determine which type of life insurance to buy, and then compare similar policies from different insurers in order to find the best value for your money.
Figuring out which type of life insurance to purchase can be tricky. A local independent agent in the Trusted Choice® network who specializes in life insurance can provide professional advice and help you compare Minnesota life insurance quotes from multiple insurers. Contact a member agent in your area today to find the best policy to suit your needs.
- Estimated percentage of Americans without individually purchased life insurance : 40%
- Estimated number of Americans without adequate life insurance: 50 million
- Less than half of young families have individually purchased life insurance on either spouse.
You may have group life insurance from your employer that helps support your family, but these benefits may end if you change jobs or lose your job. On the other hand, if you purchase a policy privately, it will continue to be in force as long as you pay your premiums.
Types of Minnesota Life Insurance Policies
Some financial experts have strong feelings about which type of life policy to buy. The Minnesota Department of Commerce (MDC) describes the pros and cons of term vs. permanent insurance as follows:
- Term life: A term policy pays a benefit to beneficiaries if the insured dies during the length (term) of the contract. Term life is usually the cheapest life insurance option.
- Whole life: As the name implies, whole life stays in force as long as the policy premiums are paid. It combines coverage with a cash value or investment feature.
- Universal life: Also a permanent life insurance option, universal life insurance also provides a cash value savings portion which grows over time. You have flexibility in how you use the cash; for example, you may be able to apply some or all of it to pay your premiums.
Which policy is best for you? The best selection is unique to each individual. If you want cheaper coverage, and you don't need the policy as an investment or savings vehicle for retirement income, a term policy is a good choice. If you want lifetime coverage with retirement savings, one of the permanent policies may make more sense.
How Much Does Minnesota Life Insurance Cost?
The cost of your Minnesota life insurance policy really depends on what type of policy you choose, as well as the size of the policy. It also depends upon your age and your health. For example, you might expect to pay less than $50 per month for a 30-year term policy if you are a young non-smoker, or over $1,000 a month for a permanent policy of the same amount if you are over 40 and you smoke.
In general your life insurance rates will depend upon the following factors:
- Your age and general health history
- Your health habits
- The type and amount of life insurance coverage you need
- The life insurance company you work with
- Where you live
Insurers each use specific data and algorithms to determine premiums, and rates can vary not only from one insurance company to another but can differ one state to the next. For example, if you live in Minneapolis and have a twin who lives in another midwest state, you would both pay different rates for similar coverage.
Compare Minnesota Life Insurance Quotes
To save time, you can let your local Trusted Choice member agent do most of the hard work for you. Your agent can help you understand the various life insurance options available to you and help you compare Minnesota life insurance quotes from several insurance companies.
Contact a local Trusted Choice member agent to find the right coverage right away.