- Life Insurance provides peace of mind for you and your family.
- A good life insurance policy can cover your mortgage payments, your child’s education, and even therapy for your loved ones should you pass unexpectedly.
- Minnesota life insurance companies can help you find a policy to suit your needs and budget.
Minnesota is known as the North Star State and is located in the northern United States. It’s bordered by Wisconsin to the east, Iowa to the south, and North and South Dakota to the west. With a population of 5.6 million people, it’s the 22nd-most populous state. The largest city in Minnesota is Minneapolis which has a population of 427,728 residents. The state capital is Saint Paul which has a population of 312,818.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Minnesota is approximately 79.1 years which aligns with the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Minnesota have been cancer, heart disease, and Covid-19. The homicide rate in Minnesota is around 3.6 homicides per 100,000 residents, which is lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Minnesota, the 90th percentile income is currently $101,980. The median income in the state is approximately $47,590. Most financial advisors recommend purchasing a life insurance policy that covers your loved ones for between 10X and 20X your annual salary. In Minnesota, this works out to around $1,019,800 – $2,039,600 dollars for most people.
How life insurance works in Minnesota
In simple terms, life insurance is a contract between you and an insurance company, where you pay a certain amount of money each month to receive a death benefit. Just like other types of insurance (like health insurance), if you meet the eligibility requirements you can get either a group insurance policy or an individual policy. You are covered for a set amount in the event of your death, usually paid to a beneficiary of your choosing. Depending on your policy, it may also be possible to borrow money against your death benefit’s cash value. However, this money needs to be paid back, or your life insurance benefit will shrink.
There are two main kinds of life insurance: term and whole life. Term life insurance is very straightforward: it lasts for a set period of time, such as 20 years. If you die during that time, your beneficiaries get the death benefit. If you live beyond the term, the policy expires. Whole life insurance (also known as universal life or variable life insurance), on the other hand, is permanent. You pay a set amount every month until you die. Upon your passing, the death benefit will be paid out to your designated beneficiary. Because of this, whole life insurance is much more expensive.
Life insurance is a valuable tool for anyone who has a family to support, anyone who is financially responsible for someone else’s care, or anyone who has outstanding debt that needs to be paid off after death. If you are the sole financial provider for your family, life insurance can help provide the financial support your loved ones need in the event of your death. It can pay off any existing debt you may have, such as a mortgage or student loans, or it can help with everyday expenses such as your children’s education or your spouse’s day-to-day expenses.
It is important to talk about your insurance needs with an insurance agent so you can learn about various insurance products.
10 Biggest life insurance companies in Minnesota
Minnesota life insurance companies ranked by premiums written in the state.
|5||Equitable Holdings Inc||$221,100,143||4.11%|
|9||Thrivent Financial For||$198,725,300||3.70%|
|10||New York Life||$162,948,076||3.03%|
How much life insurance do you need in Minnesota?
The 90th percentile salary in Minnesota is approximately $101,980. As mentioned, most financial advisors recommend that you purchase a life insurance policy that will provide life insurance coverage your beneficiary for at least 10X – 20X your average annual income. In Minnesota that works out to around $1,019,800 – $2,039,600. This amount will ensure that your loved ones can continue to pay their bills, settle your debts, and cover the cost of your final expenses. make sure to run a life insurance quote to insure that you have the financial strength to pay the life insurance premiums associated with your policy
You may also want to purchase an additional life insurance plan to cover:
- Your mortgage (if you want your spouse and kids to be able to live in the home without worrying about mortgage payments)
- Children’s education costs (if you want your child’s education to be covered without any additional stress to your spouse)
- Bereavement therapy costs for your spouse and children (if you want them to spend time with a therapist after your unexpected death)
- Any other expenses that may be unique to your family or lifestyle
Minnesota life insurance laws
There are a few unique features with respect to Minnesota Life Insurance Laws that have an impact on your specific policy if you are a resident of the state.
Here’s what you need to know:
- Free look period: The period between purchasing and committing to an insurance policy is usually referred to as the free look period. For Minnesotans, there is no free look period for life insurance.
- Grace period: Minnesota’s policyholders, like those in the majority of other U.S. states, get a grace period of 30 days to pay their premiums before an insurer can cancel their policy.
- Time period for claim settlement: Minnesota’s residents are at advantage as the insurance law mandates insurance companies pay interest on claims from the date of death. The rate of interest rises if the insurance company fails to make the payment within 60 days of receiving the proof of death.
- Incontestability and contestable period: A life insurance policy in Minnesota becomes incontestable when it has been in force for at least two years from the date of issue.
Everyone should have life insurance because it is a safety net for your loved ones in the event of your death. Without life insurance, your family could be left to shoulder funeral and other expenses related to your death. A life insurance policy gives peace of mind in knowing that you and your loved ones are taken care of financially if something happens to you. No one knows when their time will come, so it’s important to have this type of coverage in place.
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Joshua Holt is a licensed insurance agent (License #2785989) and founder of Biglaw Investor and Sidebar Insurance LLC, an insurance agency created by lawyers, for lawyers. His insurance expertise lies in the areas of life and disability insurance, particularly covering lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.