Types of Life Insurance

Life insurance protection comes in many forms, and not all policies are created equal. While the death benefit amounts may be the same, the costs, structure, durations, vary across the types of policies.

Whole Life Insurance

This provides guaranteed insurance protection for the entire life of the insured, otherwise known as permanent coverage. These policies carry a “cash value” component that grows tax deferred at a contractually guaranteed amount, usually a low interest rate, until the contract is surrendered. The premiums are usually level for the life of the insured and the death benefit is guaranteed for the insured’s lifetime. With whole life payments, part of your premium is applied toward the insurance portion of your policy, another part of your premium goes toward administrative expenses and the balance of your premium goes toward the investment, or cash, portion of your policy. Your basis is the amount of premiums you have paid into the policy minus any prior dividends paid or previous withdrawals.

Universal Life Insurance

This is also known as flexible premium or adjustable life, is a variation of whole life insurance. Like whole life, it is also a permanent policy providing cash value benefits based on current interest rates. The feature that distinguishes this policy from whole life is that the premiums, cash values and level amount of protection can each be adjusted up or down during the contract term as the insured’s needs change.

Variable Life Insurance

This is designed to combine the traditional protection and savings features of whole life insurance with the growth potential of investment funds. This type of policy is comprised of two distinct components: the general account and the separate account. The general account is the reserve or liability account of the insurance provider, and is not allocated to the individual policy. The separate account is comprised of various investment funds within the insurance company’s portfolio, such as an equity fund, a money market fund, a bond fund, or some combination of these.

Term Life Insurance

This is one of the most common policies. Term insurance can help protect your beneficiaries against financial loss resulting from your death; it pays the face amount of the policy, but only provides protection for a definite, but limited, amount of time. Term policies do not build cash values and the maximum term period is usually 30 years. Term policies are useful when there is a limited time needed for protection and when the dollars available for coverage are limited. The premiums for these types of policies are significantly lower than the costs for whole life.

No matter what policy you have, or are looking to get, make sure to contact us with any questions that you might have.

Choosing The Right Insurance For Your Needs

Any type of insurance you purchase is there to make sure that that, no matter what the physical loss, your family will not suffer financially.  How we help you is we take the expertise of working with hundreds of clients and apply that toward your specific needs. Making sure you have the right policies in place will allow you and your family to rest easy knowing you have the right coverage.

Life Insurance

Explaining a life insurance policy can be a very difficult, so it is best to contact us for the correct information.  We make sure that you not only get the right life insurance policy for your needs but we also make sure that you actually understand the policy that you are purchasing.

Auto Insurance

In Minnesota, anyone operating an automobile is required to have insurance.  This is to protect you and any other drivers on the road. The minimal coverage may not be exactly what you need to cover your personal automobile.  With that in mind we offer a comprehensive evaluation of your needs and make recommendations off of you specific coverage goals.

Homeowners Insurance

You will hear it said repeatedly that your home is your biggest investment.  For this reason, getting the right amount of coverage to protect your home and the property inside is vital to a good financial plan.  We take the time to understand all the property that you need to insurance and find the policy that meets those needs for the lowest possible price.  With a proper homeowners policy in place you can be sure that your possessions are protected if the worse were to happen.  If you have any questions about your current policy, or any other policy, make sure to contact us. We can answer any questions you might have, and advise you on what type of insurance policies are right for you.

Why Having Multiple Policies May Be Needed

Life insurance is a wonderful tool that spares your loved ones some of the pain of losing your income and support. But as with insurance options, the terminology can be confusing to many people. Complicating matters, life insurance comes in two basic forms that have many different names and different degrees of coverage. The question most people ask is whether they need term life or whole life.

The most basic definitions are the simplest: term life lasts for a specified term of your life; whole life lasts for the rest of your life. In both policies, your beneficiaries receive your death benefit when you die. The main differences lie in the duration of the two forms of life insurance and some of the built-in features available.

But term life is generally aimed at younger consumers, and often those customers outgrow their term life policies. If you buy a policy at 25 and name your parents and your spouse as beneficiaries, you can later change the policy to include future children, but the overall terms will remain the same, your designated beneficiaries would end up with fewer benefits from your life insurance policy. Consequently, some term life policies allow you to switch to whole life down the road.

Term life comes in two basic forms: level term life and decreasing term life. Level term life is more popular because the death benefit stays the same throughout the policy’s time frame. In decreasing term life policies, the benefit decreases over the course of the policy, most commonly in one-year increments. As with most insurance policies, the premiums you pay are not refunded if you make no claim during the course of the policy

Also known as permanent life insurance, whole life policies pay out death benefits if you die tomorrow or years from now. Whole life also allows you to build equity in the form of a savings account. Whole life insurance is available is three types of policies, each with their own variations.

Having multiple life policies offers consumers more flexibility and more opportunities to save on overall costs. This is possible because multiple policies do not cancel each other out. Rather, they work together to better meet your individual needs. Life insurance is available is so many forms that it can fit your current financial situation and whatever your situation may be in the future. If you have any questions about your current policy or other options, make sure to contact us.

Types of Insurance That You Need

There are several types of insurance policies that you may want to invest in. If you have any questions about your current policy, or an existing policy, make sure to contact us so we can advise you on your options.

Homeowners insurance

If you own a house, your bank will require you to have homeowners insurance. If someone loses their homeowners insurance for some reason, like a cancellation, nonpayment, or nonrenewal, then the bank is notified. They will immediately place their own insurance in it and bill the homeowner. Then they will give the homeowner a chance to get their own. The bank will not allow it to go uninsured for any length of time. Unless you have paid off your mortgage, there is really no way out of homeowners insurance.

Auto insurance

This is another must-have. In fact, it is against the law to drive without some sort of coverage. If you are caught driving without insurance, you probably will not go to jail, but your driver’s license will likely be suspended and you will be fined.

Health insurance

If you do not have health insurance, you will have to pay whichever is higher. In 2014 it was either one percent of your yearly household income or $95 per uninsured adult. In 2015, the fee was two percent of your income or $325 per person, and in 2016, it was 2.5 percent of your income or $695 per person. In 2017 and beyond, the fee will be adjusted for inflation. So make sure to look into what health insurance coverage is right for you and your family.

Umbrella insurance

Think of umbrella insurance as insurance for your insurance. It is an extra amount of liability coverage in $1 million increments that protects over and above your personal and auto liabilities if they become exhausted. Typically a family can add this policy for between $250 to $300 a year. If you need umbrella insurance, it depends on what you have to lose and how concerned you are about getting hit with a lawsuit. To review umbrella insurance or any other types of coverage, schedule an appointment with us so we can go through the options for you.

Why Health Insurance is Needed

No one plans to get sick or hurt, but most people need medical care at some point. Health insurance covers these costs and offers many other important benefits.

  • Health insurance covers essential health benefits critical to maintaining your health and treating illness and accidents
  • Health insurance protects you from unexpected, high medical costs.
  • You pay less for covered in-network health care, even before you meet your deductible.
  • You get free preventive care, like vaccines, screenings, and some check-ups, even before you meet your deductible.

If you have any questions about your current policy, or another policy, make sure to contact us. If you do not have health insurance coverage, there are some things that you will not be eligible for. Make sure to know the risks if you do not have health insurance. Consider these factors when deciding whether to buy health insurance.

You may need to pay a penalty

If you choose not to sign up for health insurance, you will need to pay an annual fine at the end of the year. It may not seem like a lot at first, but over time the penalty fee will increase.

You risk financial ruin

You may be healthy now, but the onset of a sudden or serious illness (cancer, diabetes, appendicitis) or a traumatic event (ski accident, car crash) can leave you with staggering medical bills. The inability to pay high medical bills, one of the most common reasons people file for personal bankruptcy, can ruin your credit history and set you back for years. By having health insurance, you can be covered for any accident or unexpected emergency that you or your family might have.

No access to preventive care and primary care

The law requires insurers to cover annual checkups and preventive care, including mammograms, vaccinations, colonoscopies, and prostate cancer screenings, without a co-pay. That means you are more likely to stay healthy and catch health problems early, when they’re easier and less expensive to treat. Policies also must provide a minimum standard of care known as essential health benefits in 10 categories. These include preventive and wellness services, ambulatory (outpatient) care services, emergency care, hospitalization, maternity and newborn care, pediatric care, mental health and substance use disorder services, prescription drugs and rehabilitative and habilitative services, such as specialized therapies and medical equipment to help people facing long-term disabilities.

The Importance of Having Insurance

You may know it is important to have insurance, but do you know why you should have an insurance policy? Insurance is a way to help manage risks for you, your family, and your home. When you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, which is the premium.

The insurance policy will help you to own a home, drive a vehicle, maintain your current standard of living, cover health car costs, and help provide for your family in the case that something would happen.

Even if you are in good health, an unexpected illness or injury could require you to pay out-of-pocket if you do not have health insurance. If you are uninsured and unexpectedly require surgery or other emergency care, your expense will be for the full amount of the services, which could be thousands of dollars. While you may save money every week by opting out of a health insurance plan, the costs of being uninsured could be much greater in the long run.

Homeowners and renters face the risk of their property being damaged by a natural disaster or a home robbery. If you are not insured, it may be costly to replace all of your belongings. You may not think your belongings are worth the insurance premiums, but replacing electronics alone could cost thousands of dollars, depending on what you own. If you are insured, the coverage can help you replace these items.

The real benefit of insurance is to reduce the financial risk and give you the support you need when the unexpected happens. If you are not sure what insurance policy you need, make sure to contact us and we can advise you on the options you have.

Understanding Homeowners Insurance

Having insurance is important and necessary to protect your home, but do you know what is included in the insurance? If you have any questions or concerns about your insurance, or coverage you might need, make sure to contact us and we can advise you.

When you purchase insurance, make sure you are getting the right coverage you need. There are different levels of coverage, so you will want to make sure you have enough to cover what you have. You will also want to avoid paying for more than what you need. One level in the policy protects newer, well maintained homes. It can cover against accidents and disasters, except for those specifically excluded by the policy.

You should also understand the details and terms of your policy. The deductible will refer to the amount you will pay out of pocket before the insurance kicks in. The higher the deductible is, the lower the annual premium will be. You will also want to know what liability coverage is. This is the coverage that will pay for medical or legal bills if someone is hurt on your property. Personal property refers to your property such as furniture, electronics, or clothing. Replacement cost is the kind of insurance that will pay for the full cost of replacing your personal property, but only up to a maximum dollar amount. Most of the standard policies offer replacement cost, but you will want to make sure the amount is correct for your items. If you have questions about what your insurance means or covers, always make sure to contact us. We can help answer your questions, as well as advise you on the right coverage that you will need.

Why Do You Need Insurance?

Having insurance is important in order to protect yourself and what you own. You can find an insurance policy that cover almost anything imaginable, but there are only a handful of policies that you actually need. Some types of insurance can protect your possessions, income, and even provide for a loved one when you are gone.

Health insurance is a necessary policy to have. Good health allows you to work and earn money, as well as enjoy life. If you come down with an illness or have an accident without health insurance, you may find that you are unable to receive proper treatment. Many employers will provide health insurance benefits to full time and sometimes part time employees. If you do not currently have health insurance, make sure to contact us so we can set you up with the right plan.

Another insurance policy you can invest in is life insurance. This is recommended to have if you are married or have children. When you are gone, you create an income gap, which could put your spouse or children in financial trouble. This can also create more stress on the family during a difficult time. Many employers offer basic life insurance as a benefit, so make sure to check with them first. Otherwise, you can contact us and we can provide the right coverage for you.

You should also make sure you have homeowners insurance. For many people, their home is their greatest asset, so it is vital to adequately protect it. If you rent your home instead of own it, you should get renters insurance. Your possessions inside your home can add up to a significant amount of money. If there was a fire, natural disaster, or burglary, you should have a policy that will cover most of the replacement costs.

You can also invest in auto insurance. This will help protect your vehicle incase it gets damaged and you would like to repair or replace it. Most automotive policies can also cover bodily injury or death of another person in an incident that you are legally responsible for. You can also find medical payment coverage that pays for medical treatment for you and your passengers during an accident, regardless whose fault it might be. If you have any questions about your current insurance policy or any other ones, make sure to contact us so we can answer your questions.

Be Aware of Cyber Insurance

When you hear about insurance, one type that you might not be aware of is cyber insurance. By knowing what cyber insurance is, you can help to protect yourself, as well as your business. Since technology, social media, and the internet play a key role in how most organizations conduct business or reach out to potential customers, there is a greater chance that a cyber attack happens. This can happen to businesses large and small.

A cyber insurance policy, is also referred to as cyber risk insurance or cyber liability insurance coverage. This is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber related security breach or similar event. About one-third of U.S. companies currently purchase some type of cyber insurance.

Cyber insurance typically covers expenses related to first parties as well as claims by third parties. Although there is no standard for underwriting these policies, the following are common reimbursable expenses for cyber insurance. If you have any questions about your insurance policy, or cyber insurance, make sure to contact us so we can explain the options to you.

What is Life Insurance?

Understanding your insurance policy is important. If you ever have any questions about your current plan or another plan, make sure to contact us. We can answer any questions and advise you on the options you have for a plan. A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage.

Term Life Insurance

Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same for the coverage period you select. After that period, policies may offer continued coverage, usually at a substantially higher premium payment rate. Term life insurance is generally less expensive than permanent life insurance.

Universal Life Insurance

Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Another common use is long term income replacement, where the need extends beyond working years.

Not matter what coverage you have, make sure to contact us with any questions that you might have. This way you know what your coverage will cover for you and your family.