Life Insurance in New Brighton, MN

Life insurance is a financial product that can protect loved ones from financial burdens following an insured’s passing. It can help cover various losses and expenses, including debts, mortgage payments or daily living expenses, allowing families to maintain their standard of living. By mitigating the economic impact of a loss, life insurance can offer reassurance and support to those left behind.

How Does Life Insurance Work?

When you buy a life policy, you agree to pay premiums to an insurance company. In exchange, the insurer may offer your chosen beneficiaries a specified amount of money should the insured party die while coverage remains active.

If you are the insured party and pass away while the policy is active, your beneficiaries may file a claim with the insurer by submitting necessary documents such as the death certificate. Once the claim is processed and approved, the company pays out a death benefit to your beneficiaries.

What Are the Different Types of Life Insurance?

There are two common types of coverage under which policies may be categorized:

• Term life insurance can provide a payout to your beneficiaries if you pass away within the policy’s term, which can range from 10 to 30 years or more, depending on the specific policy. If you outlive this term, the policy does not pay out, and you will need to apply for a new policy or convert it to permanent life insurance to maintain coverage. Term policies offer no cash value.
• Permanent life insurance can remain in effect for your entire lifetime as long as you continue to pay the premiums. In addition to the death benefit, permanent life insurance often includes a cash value component, potentially offering an investment opportunity that can provide a source of income while you are alive.

Both policies serve different financial planning needs and can be tailored to better suit your circumstances. Consult with a insurance broker to determine the appropriate amount and type of insurance for your needs.

Where to Get Life Insurance

Your family’s financial security is our priority. If you live in or around New Brighton, MN, contact Dean Olson Insurance Agency today for insurance advice.