Life Insurance in Minnesota
When you purchase homeowners’ insurance, you're doing it to protect your house. When you buy auto insurance, you're protecting your car. So, when you buy life insurance, whom are you protecting? If you answer yourself, sorry, but you're wrong. You're protecting your family. Our Minnesota clients are well aware of this. However, many need guidance in deciding whether they need whole life insurance or term life insurance. The quick and easy answer is it all depends.
You Need Term Life Insurance If:
If you're starting a family and are on a budget, term life insurance can be a good fit for you. Since term life only protects you for a predetermined period, it's less costly than whole life since insurance companies don't have to pay a premium if you outlive the policy's term. And the younger you are, the less they charge since they know it's more likely they'll benefit by keeping the premiums.
Term life is also a good fit if you're taking on long-term debt, such as buying a house or putting a child through college. By timing that term of your insurance policy to match the length of your debt, it will expire just about when your need for it is over.
For example, if you have a 30-year mortgage and purchase a 30-year policy, once you've paid off the mortgage, you no longer need the insurance you bought to cover it in the eventuality of your death. Now, however, might be the time to consider whether you need a whole life insurance policy.
You Need Whole Life Insurance If:
If you're at a point in life when you can afford the more expensive premiums of whole life insurance and understand that you'll be making a lifelong commitment, whole life insurance can be a good fit for you. Not only will it ensure that you will be leaving a comfortable sum of money to your family, but it will also be building cash value against which you can borrow for any debts that may arise.
We warned that it all depends and gave you the quick and easy answer. Speak with our team to get into the other types of lifelong insurance such as universal life insurance, variable life insurance, and survivor life insurance. We invite you to contact Brittany Olson Insurance Agency LLC in Cloquet, MN, and tell us all about yourself so that we can help you decide whether term life or one of the forms of lifelong insurance is the best fit for you.
While our office is located in Cloquet, MN, we serve all across Minnesota and Wisconsin.