What Key Terms Are Used in Life Insurance Policies?

Minnesota state law does not require that people obtain life insurance, meaning that this coverage is completely optional. That said, it relieves the burden on family members to cover funerary expenses, and it can also help relatives to recover from the loss of income that they may experience when a breadwinner dies. 

Important Definitions to Know 

Your life insurance contract is referred to as a policy, and your premium is the amount that you pay to the company on a monthly basis. A claim, also called a death benefit, is the sum paid to survivors, called beneficiaries when the policyholder passes away. The insurance company is referred to as the insurer, and the insured is referred to as the owner of the policy. He or she is also the person who is responsible for making the payments. 

Term life is a policy written for a specific number of years, and Permanent life lasts indefinitely, usually having a savings component to it, referred to as its cash value. Whole life utilizes investment instruments, such as CDs and bonds, and this is a type of Permanent life insurance. Universal life, also Permanent life insurance, works with minimizing tax liabilities, and it is good for business owners with a high net worth. Variable life insurance is another type of Permanent life insurance that works with growing mutual funds. 

Hanneken Insurance Agency Inc. Wants to Help You

Residents of Little Falls MN can turn to Hanneken Insurance Agency Inc. for their indemnification needs, as we provide automobile, homeowners, health, life insurance, and a variety of other products. We will work hard to ensure you receive the package to best fit your situation, and we invite you to contact us to speak to one of our friendly representatives serving Little Falls, MN today!

Prepare your business for severe winter storms

As the cold seasons arrive, it is important to keep your most valuable assets protected. This, of course, includes your business.

The fall and winter seasons mean big drops in temperatures and potentially freezing rain, hail and snow storms. With the risk of a severe winter storm damaging your business, it is important to take a few key steps to protect your business and assets before the storm hits. The Minnesota Commerce Department suggests keeping important documents stored off-site, such as receipts, photos, insurance policies and more. It is also key to check the physical structure of the building to ensure that parts of it are in good condition, such as roofs, walls and floors. Using rock salt – or "road salt" – on sidewalks and entry ways that have become hazardous is effective at preventing falls due to ice or snow. 

If you own the building in which your business is located, property insurance should cover damages caused by storms to the structure of the building or losses to other assets contained within the building. However, if you are leasing or renting the business space, it is the business owner’s responsibility to ensure their personal property and assets are covered with business insurance. Liability insurance is also important to have if an individual slips or falls on your business property due to ice or sleet. 

Hanneken Insurance Agency Inc. offers a variety of business insurance solutions to protect your business and assets from damage or loss. Residents of Little Falls, MN should contact an agent to ensure their business insurance is up to date and sufficient to handle the winter weather.