Life Insurance Quirks That You Have To Know Before Buying A Policy

At Hanneken Insurance Agency Inc., we have seen too many Little Falls MN residents struggle to understand their life insurance. The weird quirks of these policies make it important to understand the full nature of this coverage type.

Policies Need Specific Details

A policy that doesn’t spell out all the parties to the contract, including the insurer, the insured, and the beneficiary, it will be worth very little to you. That’s because a good policy needs all of this exact information to provide you with detailed and high-quality coverage.

Extra Insurance May Not Be Necessary

Too many people get excessive life insurance policies without realizing that they may not need this coverage. For example, it is possible for a person to pay about $77 per year on a $50,000 policy without getting credit life insurance. Those who get this type of coverage receive the same amount of money but spend nearly $400 a year. That extra insurance isn’t necessary.

Permanent And Flexible Policies Are Complex

Permanent policies for life insurance let you create a flexible policy that will change depending on a variety of factors. An increasing death benefit typically provides you with more cash but costs more to buy. As a result, it is often best to choose a stable policy because the extra money paid out is often balanced by the increased premium payments.

Timing Is Everything

One fact that is important to remember about life insurance is that you need to buy it at the right time. Your premiums are going to go up little by little the longer you wait. Experts state that it is probably best to buy life insurance when you are around 30-35 years old.

You Can Avoid These Problems

If you live in Little Falls, MN and want to steer clear of these dangers, contact us at Hanneken Insurance Agency Inc. We service the surrounding area and will provide you with a policy that you can trust.

3 Reasons Why You Need Commercial Life Insurance

Personal life insurance policies protect the financial interests of your loved ones. Business owners, entrepreneurs, freelancers, and other independent and high wage earners in the Little Falls, MN area can increase their family’s safety net with commercial life insurance policies. Here are 3 ways these policies complement a comprehensive, long-term financial plan.

  • Commercial life insurance ensures that your business interests pass into the right hands. Business partners may agree to buy out the other’s share of the company upon their death. This gives dependents a large source of cash that can be invested and provide vital income for many years. Make sure your partner has the funds to complete that agreement by naming them as the beneficiary of your commercial life insurance policy. They won’t have to sell off pieces of the company to come up with the necessary, and your family will receive their maximum benefit from the sale.
  • Are you planning a large-scale expansion of your business operations? Commercial life insurance policies will cover the costs of incomplete plans if you pass away suddenly. That means your family won’t have to bear the financial burden of any loans or liens. The experts at Hanneken Insurance Agency Inc. can help you decide how much coverage you need to protect all the important things in your life.
  • In small operations, every employee is essential. If one of your key people suddenly passes away or becomes permanently unable to work, your commercial life insurance policy will keep you afloat while you change your game plan. Use the payout to find and train a new employee and to supplement lost income. The loss of a key employee doesn’t have to mean the loss of your livelihood.

The experts at Hanneken Insurance Agency Inc. can help you assess your commercial life insurance needs in the Little Falls, MN area. Contact us now for more information.