Life Insurance - Minnesota
There are basically four types of life insurance.
Term - Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.
There are two basic types of term life insurance policies—level term and decreasing term.
Level term means that the death benefit stays the same throughout the duration of the policy.
Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.
Whole life insurance- This is the most common type of permanent insurance policy. It offers a death benefit along with a savings account. If you pick this type of life insurance policy, you are agreeing to pay a certain amount in premiums on a regular basis for a specific death benefit. The savings element would grow based on dividends the company pays to you. With certain companies you could use this policy in other financially beneficial ways
Universal or adjustable life insurance- This type of policy offers you more flexibility than whole life insurance. You may be able to increase the death benefit, if you pass a medical examination. The savings vehicle (called a cash value account) generally earns a money market rate of interest. After money has accumulated in your account, you will also have the option of altering your premium payments – providing there is enough money in your account to cover the costs. This can be a useful feature if your economic situation has suddenly changed. However, you would need to keep in mind that if you stop or reduce your premiums and the saving accumulation gets used up, the policy might lapse and your life insurance coverage will end. Always check with your agent or insurance company before changing premium payments.
Variable life insurance - This policy combines death protection with a savings account that you can invest in stocks, bonds and money market mutual funds. The value of your policy may grow more quickly, but you also have more risk. You can lose your money with this policy due to market volatility. Some policies guarantee that your death benefit will not fall below a minimum level, there is a cost for the guarantee.
Variable-universal life insurance - If you purchase this type of policy, you get the features of variable and universal life policies. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance.
Providing Services in Hopkins, St. Louis Park, Minnetonka, Edina, Eden Prairie, Bloomington, Plymouth, Minneapolis, St. Paul, Brooklyn Park, Brooklyn Center, Coon Rapids, Anoka, Mound, Richfield, Golden Valley, New Hope, Maple Grove, Chaska, Chanhassen, Shakopee, Savage, Prior Lake, Burnsville and Hennepin County, Scott County MN (Minnesota).