Life insurance keeps you and your family safe from financial struggles. The question is, how do you get it? Let’s look at the steps to getting life insurance in Minnesota.
#1: Consider the Type of Plan You Want
While there are plenty of different types of life insurance plans to choose from, they all fall within two categories — term life insurance and permanent life insurance. The one you choose depends on what you’re looking for and how it fits into your goals.
Permanent life insurance is simple — you purchase a plan, and as long as you keep up with your payments, you’re covered up until you, the policyholder, pass away. When the time comes, your provider will issue a payout called the death benefit, which can range anywhere from $2,000 to more than $1 million.
Term life insurance, on the other hand, is not permanent. Instead, you purchase your policy for a set amount of time (i.e. “term”). For those 10-30 years, you’re covered for the death benefit if you pass away. If you don’t pass away within your term, you have the option to renew your policy, or simply let it end.
So, when buying life insurance, you have to decide which plan will work best for you. For Minnesotans, remember to keep your location in mind when making a decision. Life insurance companies have access to regional data that document mortality rates and life expectancy, and they use that data to calculate the rates they offer.
#2: Decide if You Have Trustworthy Beneficiaries
If you think you’ve made a decision for the type of policy you will choose, you need to make sure you have a plan for if or when your life insurance policy ends.
When your policy issues its death benefit, it won’t go to you (since you will have passed away). Instead, you get to choose who it goes to, called your beneficiary. Or, beneficiaries, since you may choose more than one.
These beneficiaries will be receiving a large sum of money on your behalf. Life insurance doesn’t work the same as a will, so they are not legally required to use it the way you intended. So, picking someone you trust to carry out your plans is important.
#3: Compare Plans and Providers in Minnesota
Finally, before you officially buy your plan, make sure you look at all of your available options in Minnesota. Not every plan and provider are built the same, and not all of them will give you your best coverage. Be sure to look at all of your options before making your decision.
#4: Choose and Enroll Confidently
The best way to buy life insurance in Minnesota is with local insurance experts. At All Things Insurance, we’re focused on leading you to your best coverage. To learn more, call (763) 645-5450.