If you have a family or support aging parents, life insurance can alleviate any worries you may have about their financial security in the event of your unexpected demise. Life insurance acts as a financial buffer to help those you love to carry on. At Veldhouse Insurance Agency, we offer diverse types of life insurance policies to meet the needs of residents in our community. Here’s what you should know about life insurance in Minnesota.
Generally, there are two kinds of life insurance – term life and permanent life – with variations of each. Of the two, term life is the most popular.
Term life insurance protects you for a certain amount of time, depending on the term you choose. A 10 or 20-year policy, for example, will provide financial support for your family while your kids are growing up if you pass on when they’re young. A 30-year policy will provide more long-term protection for those you love.
You also choose the amount of protection you want, which is the amount of death benefits your family will receive when you pass on. Term life insurance is designed to provide financial support to loved ones after you’re gone.
Permanent life insurance is a bit more complicated as it offers more protection than death benefits alone. Permanent life policies also accrue cash value over the years, which you can borrow against while you’re still alive. These policies are suitable for the duration of your life, as long as you pay the premium on your policy.
There are numerous variations of permanent life policies, i.e., whole life, universal life, variable universal life insurance, with variations on the protection they provide. The number of death benefits and cash value your permanent life insurance accrues will depend on the policy you choose.
To learn more about life insurance in Minnesota or to purchase a policy, contact Veldhouse Insurance Agency.