Life insurance is a key component of many good, complete financial plans. This is because the proceeds that are received from a life insurance policy by survivors are obtained free of income taxation, and these funds can be used for a wide range of unique needs.
Those who are planning in both the personal or the business area can make use of life insurance as a flexible and beneficial financial tool. However, before you move forward with the purchase of a life insurance policy, there are several essential elements to keep in mind.
For example, you will want to ensure that you are moving forward with the proper type and amount of life insurance coverage. You will also want to know that the insurance carrier you are going to purchase your policy through is strong and stable financially and that it also has a good, positive reputation for paying out its claims promptly. One company that meets these criteria is Minnesota Life.
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The History of Minnesota Life
Minnesota Life traces its initial roots back to the year 1880. This insurer is the largest affiliate company of Securian Financial Group, Inc., which is also the holding company parent to a group of companies that offer a wide range of insurance and financial services across the United States.
Today, Minnesota Life Insurance Company offers a number of key products that are used to both enhance and protect wealth, including life insurance coverage, retirement annuities, and retirement plans. These products are offered to consumers and to businiesses.
Minnesota Life Review
Securian Financial Group – the parent company of Minnesota Life – has a strong financial footing. As of year-end 2016, this company held in excess of $70 billion of assets under management, and nearly $1.2 trillion of insurance in force. In the year 2016 alone, Securian paid out nearly $5 billion in total benefits to is clients and policyholders. Securian is headquartered in St. Paul, Minnesota.
Over the years, both Securian and Minnesota Life Insurance Company have earned numerous awards and accolades, such as:
- In 2015, The Securian Foundation was one of 14 Minnesota foundations recognized and featured in the Star Tribune’s 201 Giving Back publication
- Also in 2015, Securian received the Community Impact Award for Long-Term Achievement and was also one of just three finalists for Youth Initiatives Award from Minnesota Business magazine
- In 2014, Securian received the Honored Company Award from the Minnesota Keystone Program – which recognizes three businesses that have done something extraordinary to make a difference within their community
- In 2011, Securian received the National Jefferson Award for Exemplary Philanthropy and Community Involvement. This national award was to recognize and to honor public stewardship, and it was founded in 1972 by Jacqueline Kennedy Onassis, U.S. Senator Robert Taft, Jr., and Sam Beard, the founder and chairman of the National Development Council.
Insurer Ratings and Better Business Bureau Grade
Securian Financial Group and its member companies – including Minnesota Life Insurance Company – are highly rated by all four of the independent insurer rating agencies. These include the following:
- A+ by A.M. Best Company (which is the second highest out of a total 16 ratings)
- AA by Fitch Ratings (which is the third highest out of a total 19 ratings)
- Aa3 by Moody’s Investor Service (which is the fourth highest out of a total of 21 ratings)
- A+ by Standard & Poor’s (which is the fifth highest out of 23 total ratings)
Securian also has a Comdex Ranking of 93 out of 100 (as of November 2017). This places Securian Financial group in the top 7 percent of all companies that have such a rating.
At this time, Securian Financial Group is not an accredited company of the Better Business Bureau (BBB), nor has the company been given a grade by the BBB.
Indexed Universal Life (IUL) Insurance Coverage Offered Through Minnesota Life
Throughout the years, new and advanced life insurance products have been developed in order to better help people with meeting their financial and wealth protection needs. One such product is indexed universal life insurance.
With an indexed universal life or IUL policy – which is a permanent form of life insurance coverage – there is death benefit protection, as well as cash value build up. The return on this cash value is based upon the performance of an underlying market index, such as the S&P 500. If the index has a positive return in a given year, then the return is credited to the cash value – up to a certain stated cap (or maximum). However, if the return on the underlying index is negative for a given year, then the return on the cash value will not be credited with a negative, but rather with a 0%. Therefore, the funds can continue to build over time.
As with other types of permanent life insurance, the money that is in the cash component is allowed to grow and compound on a tax-deferred basic, meaning that there is no tax due on the gain unless or until the money is withdrawn.
The funds in the cash value component may be either borrowed or withdrawn for any reason by the policyholder, such as supplementing retirement income, paying off high-interest debt, or even for taking a nice vacation. For this reason, IUL policies are oftentimes used for more than just life insurance protection, but also as a flexible and tax-advantaged financial tool.
Minnesota Life Insurance Company offers several different options for indexed universal life insurance. These allow policyholders to have lifetime protection for their loved ones. Just some of the other benefits include:
- Flexible premiums, which can allow policyholders to adjust their payment (alternatively, a fixed, consistent amount of premium can be chosen)
- The ability to adjust the policy’s benefit amount in order to align with changing needs over time
- The ability to build tax-deferred cash value growth that is based on indexed crediting potential that is tied to the performance of an underlying market index
- The opportunity for greater cash value potential than a regular fixed universal life insurance policy
There is also a survivorship universal life insurance policy option that coverage two lives as versus just one. This plan pays out a death benefit at the passing of the second insured. This type of indexed universal life insurance policy may be right for those who have estate planning issues, and/or those who would like to ensure that continuing care is available in the future for a loved one with special needs.
Other Products and Services Available
In addition to indexed universal life, Minnesota Life Insurance Company also offers other forms of life insurance protection. These include both convertible term life insurance and permanent life insurance. With a term life insurance policy, there is death benefit protection only, and no cash value. Because of this more “basic” structure, term life insurance can be very affordable, even for large face amounts of coverage. This is especially true for those who are young and in good health at the time of application.
As their name suggests, term life insurance is purchased for a set period, or “term.” These time frames are usually for ten years, fifteen years, twenty years, or even for thirty years. Typically, the amount of the death benefit, as well as the premium amount, are fixed during the duration of the coverage.
Minnesota Life also offers a long list of permanent life insurance policy options. These include whole life and universal life insurance plans. Whole life insurance offers a guaranteed death benefit for your entire lifetime, while also offering a fixed rate for cash value growth. In addition, the amount of the premium will also remain fixed throughout the life of the policy. This is the case, regardless of the insured’s increasing age, and even if he or she contracts an adverse health issue.
One of the key benefits of owning a whole life insurance policy is the fact that the policyholder can count on protection for their family for life, as well as a steadily growing and fixed cash value.
A fixed universal life insurance policy offers death benefit protection and cash value build up. These policies are quite flexible, and are similar to indexed universal life, except that the return on the cash value is based on a rate that is fixed by the offering insurance company.
These policies are extremely flexible in that the policyholder can oftentimes – within certain guidelines – alter the timing and the amount of the premium payment in order to best fit with their changing needs. They may also be able to chance the benefit amount. For instance, more coverage may be needed as a person’s family grows. Conversely, less coverage may be required as children become more financially independent.
There is also variable universal life insurance. Here, the policy’s cash value return is based upon the performance of underlying equity investments such as mutual funds. In this case, the return can be higher – and in some cases, much higher, than that of a regular fixed universal life insurance policy. Alternatively, there is also more risk inherent due to the potential for a downward moving market.
Minnesota Life also offers other financial growth and protection products and services. These include:
- Investments – Minnesota Life offers a variety of equity and fixed income investment products.
- Long-Term Care Insurance – Long-term care insurance can ensure that you don’t have to dip into assets in the case of a nursing home or home health care need.
- Retirement Annuities – Today, as people are living longer than ever before, there is concern about outliving income in retirement. With an annuity, however, you can better ensure that you will have income for as long as you need it – regardless of how long that may be. In addition, during the “accumulation” period of an annuity, funds can grow and compound on a tax-deferred basis. Therefore, these financial vehicle scan be beneficial to those who are seeking additional avenues of tax-advantaged savings. At Minnesota Life, clients can choose from a variety of both immediate and deferred annuities.
- Accident and Sickness Insurance – These plans can help with protecting the financial security of those who endure unexpected expenses from an accident or a critical illness.
How to Get the Best Premium Rates on Life Insurance from Minnesota Life
If you have been searching for the best rates on indexed universal life insurance from Minnesota Life Insurance Company – or from any insurance carrier, for that matter – it is recommended that you work with an independent life insurance agency or brokerage. That way, you will be able to compare coverage, carriers, and premium rates, and health categories such as smoker or non-smoker rates. From there you can better determine which plan will work the best for you and for your budget.
When you are ready to proceed, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the industry today. We can assist you with getting all of the information that you need for making a well-informed insurance buying decision. We can do this for you very quickly, easily, and conveniently – all from your computer, and without you needing to meet in person with a life insurance agent. If you would like to take a look at the coverage and the premiums that you may be eligible for, then just simply take a few moments to fill out the quote form on this page.
Should you find that you still have any additional questions or concerns about life insurance, then please feel free to reach out to us directly via phone. Our experts are here and can help you with a wide range of items, such as securing quotes and even applying for the protection that is right for you. Just dial, toll-free, 800-712-8519.
We understand that the purchase of life insurance protection can be somewhat overwhelming. There are so many different variables to choose from – and you want to make sure that you are moving towards the proper coverage for your specific needs. But the good news is that this process can be made so much easier when you are working with an ally on your side. So, contact us today – we’re here to help.