What You Need to Know About Life Insurance

Life Insurance in Apple Valley, MNRead on for the basics of life insurance in Apple Valley, Minnesota!

When deciding on what life insurance policy you should purchase, you may stumble upon terms, policies, and coverage that you are unfamiliar with.

Before you select the first policy that you see, read on for the basics of life insurance. 

What Is Life Insurance?

Life insurance is designed to protect your family and finances. When you are no longer around to provide for your family, life insurance helps your family cover your funeral costs, pay off remaining debt, and can even be used for your spouse to retire as planned or your child to go to college.

There are different types of policies available:

  • Term
    This provides life insurance protection for a specific length of time at a fixed rate (5 years, 10 years, 20 years). If you were to die during the provided coverage time, term policies pay out in a lump sum to the beneficiaries.
  • Whole
    It is not defined by a specific term length, but it pays a guaranteed benefit to your beneficiaries when you die, and accrues a cash value over time through interest. The cash portion can be withdrawn for an investment such as your kid’s college education, your spouse to retire on time, or to pay off the mortgage.
  • Universal
    This is referred to as a flexible premium or adjustable life insurance. It’s not limited to a set term and usually has cash accumulation too. Usually, the adjustments can be made after life milestones or as your needs change.

Never DIY
In this digital age, many opt for a minimal coverage policy that they see online. This can be a costly mistake as it can easily be the wrong coverage for your finances and family. Talk to a trusted life insurance expert in Apply Valley, Minnesota by calling Mayer Insurance.