Life insurance can have a lot of specifics, but we’ve collected what you need to know to seal the deal in Minnesota.
Minnesota Life Insurance Rules and Specifics
Whole life insurance policies are offered by private insurance. They are monitored and ensured for quality by the Minnesota Department of Commerce.
There are a few terms that can apply to life insurance anywhere in the United States, but with Minnesota-specific guidelines and standards, you need to know:
- Free Look Periods: Every life insurance policy is required to give you a 10-day free look period. During this time, you can cancel your policy and have your premiums refunded without penalties. This will provide you with all the time you need to review the policy’s coverage and limits to ensure it’s right for you.
- Grace Period: Grace periods ensure that policyholders have a few days to catch up on late or missed premium payments without automatically losing their coverage. Scheduled premium policies require a grace period of at least 31 days since payment may be missed at no fault of your own. Flexible premium policies have grace periods of at least 61 days.
- Incontestability: Your insurance company has two years to verify your insurance application to ensure you are legitimate. After that, the insurer can’t deny a claim based on a misstatement.
- Prompt Claims Settling: Life insurance companies have 60 days to settle a claim in Minnesota. Any longer than this, and the owed money will begin to accrue interest.
- Guarantee of Death Benefits: While it’s rare for a life insurance company to go bankrupt, it can happen. For example, suppose they can’t fulfill their financial obligations. In that case, the Minnesota Life and Health Insurance Guaranty Association will provide up to $500,000 for death benefits and up to $130,000 for cash surrender value.
Life Insurance Resources in Minnesota
Besides All Things Insurance and your life insurance provider, Minnesota has government resources to help dispute claims and ensure that your coverage is reliable:
- The Minnesota Department of Commerce regulates Minnesota insurance policies. It publishes up-to-date information on legislation affecting life insurance policies and results for financial examinations and statements for insurers. Your insurance agent will check this resource to ensure your coverage is up-to-date and your best option.
- The Minnesota Life and Health Insurance Guaranty Association includes every insurance provider in the state. It protects policyholders by paying death benefits and cash surrender values if a life insurance company becomes insolvent.
- The Minnesota Attorney General addresses complaints about life insurance providers in Minnesota. They jump in to resolve legal issues with your policy.
Your Life Insurance Partner
All Things Insurance will navigate these details to support you and your coverage. Get started by calling us at (763) 645-5450 and learning more about your life insurance options.