Life Insurance in Minnesota
A life insurance policy basically is a contractual agreement between you and the insurance company to pay a sum of money to your beneficiaries in the event of your death, which can help cover your final expenses and help make up for the lack of your income.
There are basically two types of life insurance products: term life and permanent life.
The Kentucky State Department of Insurance oversees the sale of life insurance, ensures that providers are properly licensed and makes available certain guaranteed protections for consumers. You should be aware of these rules as you shop for a policy.
Why do I need life insurance?
With life insurance coverage, you can feel secure knowing that your beneficiaries will have some help covering your final expenses and other financial needs they’ll face without you.
Minnesota was ranked 2nd out of 50 states and the District of Columbia in life expectancy in 2014, with a life expectancy of 80.9 years. Even with this in mind, people living in Minnesota may want to consider their life insurance options.
Minnesota life insurance specifics
The insurance industry in Minnesota is regulated by The State Insurance Code of Minnesota. The state uses this code to regulate claims and provide certain provisions to protect Minnesota Life Insurance consumers. These provisions include:
- Grace Period: A grace period is allowed on all late payments under the Minnesota state insurance code. If you miss a premium payment for any reason, all Minnesota life Insurance providers must give you one month to bring the account current before the insurer can cancel the policy for non-payment.
- Free Look Period
According to the Minnesota state code, life insurance companies are required to give you a 10-day Free Look Period to review your policy and decide if you want to keep it. If you decide during this period (within 10 days of the issuance of the policy) that you don’t want to keep it, you can cancel the policy for a full refund.
Minnesota life insurance state resources
Minnesota Department of Insurance
The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and the Minnesota life insurance industry.
Minnesota Life & Health Insurance Guaranty Association
The state guaranty association is there to provide protection and continuing life insurance coverage in Minnesota, even in the event that a life insurance company becomes insolvent.
Life Insurance Company Ratings From A.M. Best, Standard and Poors and Moody’s
A.M. Best and Standard and Poors provide ratings for life insurance companies based on financial strength and past performance.