Exploring The Different Types Of Permanent Life Insurance Policies

Central Lakes Insurance Brokers is an independent insurance agency. We offer coverage to the Edina, MN community, as well as the surrounding areas. Our primary objective is to make sure that our clients find the policies they need to manage future risks. We will help you assess your options and find the necessary coverage to protect your assets.

The Different Types Of Permanent Life Insurance Policies

At some point, you have to plan for the future. If leaving a legacy behind is important to you, consider the benefits of life insurance. Life insurance allows you to set up protection so that your loved ones are covered once you pass away. Life insurance can help your loved ones make arrangements or handle your estate. The coverage gives your loved ones a foundation to rely on as they cope with your passing.

Permanent life insurance is a popular form of coverage because you are protected throughout your lifetime. You’ll have peace of mind as you journey through Edina MN. Universal policies are considered more flexible than whole life policies because you have the ability to adjust the terms if your life changes. This is an important thing to consider if you plan to start a family or open your own business one day. Universal policies allow you to put something in place if your children decide to pursue higher learning in the future or ensure that your business will continue to thrive after you have passed away.

Variable life policies also offer flexibility as they allow you to pursue opportunities in order to increase the value of your policy. You have to be careful though, as one bad decision can lower the value of your policy as well.

Central Lakes Insurance Brokers Will Guide You Through The Process

Visit our website to learn more information on life insurance.  

What Is Life Insurance and How Can it Help Me?

Fundamentally, many people don’t fully understand what life insurance is and how it can benefit an individual or a family. Central Lakes Insurance Brokers of Edina, MN are committed to helping MN residents understand what life insurance is and why it’s beneficial. 

What Is Life Insurance?

When you invest in life insurance, you are investing in a policy that will pay a family member or some other beneficiary a monetary amount in the event of your death. As the policyholder, you pay a monthly premium. When you invest in life insurance, you choose a monetary benefit amount that the beneficiary will receive once you die. 

How Does Life Insurance Work?

Life insurance is similar to any insurance in that you pay a monthly premium to an insurance company. If you die while the insurance policy is still active, the insurance company will pay a tax-free sum of money or death benefit.

Term Life vs. Whole Life Insurance

Term life insurance is a life insurance policy that’s purchased for a set number of years. A pre-selected beneficiary receives a death benefit if you die before the term is up. The beneficiary can receive the death benefit as a monthly payment, an annuity, or a lump sum. These types of insurance policies are less expensive than others, and the terms can last as long as thirty years. Conversely, whole life insurance never expires and is active as long as you pay your premiums. In addition to a death benefit, the policyholder also has a cash value. This cash value is represented as a tax-deferred savings account. This savings account is part of your policy. A whole term life insurance policy builds interest at a fixed rate that was determined when you got the policy. As you pay your premiums, some of that money goes towards the cash value of your policy. The cash value of your whole life insurance policy offers a guaranteed rate of return. 

Central Lakes Insurance Brokers in Edina, MN understands how confusing life insurance can be. We are committed to educating our clients and helping them invest in the best life insurance policy to suit their unique needs and situation. Give us a call or visit our office.

Does LIfe Insurance Cover Only Funeral Expenses?

Life insurance is something that anyone can benefit from and that many families could use when they lose a loved one. Unless you have a policy however, your family is not going to be able to benefit from this type of protection. For those that live in the Edina, MN area, the agents with Central Lakes Insurance Brokers can help you find the right policy for you and can tell you just what it covers.

When most people hear the words life insurance they immediately assume that these funds cover only funeral expenses. This is not the case, however. Unless you buy funeral insurance that is only for funerals, life insurance can cover anything you deem fit. Life insurance works in a simple way, the policyholder pays the premiums until the policy either matures as with term insurance, or until the time of their death as with whole life insurance. The money is then paid out to the beneficiary after death has been affirmed and the proper forms and death certificates have been filed.

In most cases, unless otherwise specified, the money comes to the beneficiary in the form of a check that they can then cash, deposit, save and do whatever they want to do with it. In most cases, if the death was sudden or previous arrangements had not been made, beneficiaries will pay the funeral expenses out of the life insurance balance. Life insurance is to be spent and used at the discretion of the beneficiary and is meant to help ease the transition of life with the policyholder to life without the policyholder.

For those that live in the Edina, MN area, the agents with Central Lakes Insurance Brokers can help you to get the policy you need and the amount of coverage you need as well.  

How to Protect Your Business with Life Insurance

If you own your own company, you can use life insurance as an essential tool in your personal and business planning. Life insurance helps you ensure the overall stability of your company in Brainerd or Edina, MN. You’ve poured your heart and soul into your enterprise and, especially if you have partners, you want to make sure you’re covered if tragedy strikes. Ask your Central Lakes Insurance Brokers for more information on the type of life insurance that would work for you. Meanwhile, here’s some information that will help you prepare to decide on the type of life insurance policy you need.

Using Life Insurance to Protect Your Business Assets

When you set up arrangements to protect your business with a life insurance policy, there are many ways you can accomplish this. The most often used is the buy or sell agreements. Ask your agent to outline the types of plans available and which is best for your business. 

Buy and Sell Agreements

A buy and sell agreement applies to two or more partners in a business. If one of the owners passes away, it could put the company at significant risk or even cause the business to go under. When the owners sign a buy and sell agreement, they can use a life insurance policy to fund the agreement. In this case, each owner gets a life insurance policy that pays out to the other owner in the case of an unexpected death.

Here, each of the business owners purchases a life insurance policy on the other. Then, if one of the owners passes away unexpectedly, their life insurance coverage gives the other partner(s) the money to purchase the deceased owner’s interest in the company. Some of the proceeds could also go to the deceased owner’s family for final expenses or to pay for living expenses for their survivors. However, the business ownership reverts to the surviving partner.

Contact your Central Lakes Insurance Brokers in Edina, MN to find out how to protect your business and your family with customized life insurance policies.