Best Life Insurance Rates in Minnesota

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Many great products have come from Minnesota, including bundt cake, frozen pizza, Betty Crocker, SPAM, and the Milky Way bar. Despite Minnesotans’ taste for unhealthy foods, their population has the second highest life expectancy, and one of the lowest rates of obesity of any state. Minnesota also brought us the wearable pacemaker and where the first successful open heart surgery took place, so it’s not surprising that it has the lowest rate of heart disease of any state. All of these factors may play a role in the cost of life insurance in Minnesota.

Minnesota Life Insurance Quotes

Shopping for a life insurance policy in the state of Minnesota can be stressful. What can you do to keep from fretting about it? Shop around.

Last year, 4,918 people used QuoteWizard to compare life insurance quotes in Minnesota from multiple companies and find the lowest rates.

Life Insurance Rate Factors in Minnesota

Below are the major factors that contribute to life insurance rates.

Age - Age is one of the largest factors affecting life insurance rates. The younger you are when you purchase a policy, the less likely it is that it will pay out, so the lower your rates will be, other things being equal.

Life expectancy at birth in Minnesota is 81.1 years, the second-highest of any state, after only Hawaii. The life expectancy at birth for the US overall is 78.9 years. So, if you purchased a 30-year term life policy in Minnesota at age 54, you would be more likely than not to pass away before 84 years of age, the end of the term.

On the other hand, if you were 34 years old and purchased a 30-year term life policy, you would be well under Minnesota’s life expectancy of 81.1 years old when the policy term ended. You’d be a much lower risk to insure and would therefore pay much lower insurance premiums than the person in the former example.

Driving Record - This might seem like a confusing inclusion, as this page is about life insurance, not auto insurance, but car accidents are incredibly common; they kill more than 30,000 people per year. If someone has a driving record littered with moving violations, they are at an increased risk of a premature demise. The result is higher rates.

Firearm Deaths - Places that have higher rates of accidental or premature death generally have higher rates. A significant part of these untimely deaths comes from firearm injuries, which account for about 33,000 deaths in the US every year. In Minnesota, the death rate from injury due to firearms is 7.6 per 100,000 deaths, the #8 lowest rate in the country. Nationwide, the average firearm death rate is 10.4 per 100,000.

Gender - Since women live longer than men on average, they pay less for insurance than a similar man would, other things being equal. In Minnesota, the percentage of the population that’s female is 50.3%, and the percentage that’s male is 49.7%. In the US as a whole, women are 50.8% of the population, and men are 49.2% of the population.

Gender of Minnesota residents that used QuoteWizard last year.

 
         
 
   
48%Male
   
52%Female
 

Health History - While most of us have one or two minor health issues, if you have been diagnosed with a serious illness, or if you have a family history of such illnesses, this can have a significant impact your rates.

There are certain conditions, such as heart disease or certain kinds of cancers, which can make your insurance premiums much higher if you have them or a family history of them. In some cases, a pre-existing condition can make you ineligible altogether, which is why it’s important to get life insurance before something serious happens.

Percentage of QuoteWizard users in Minnesota that indicated whether they where healthy or had minor or major health issues.

 
             
 
   
54%Healthy
   
39%Major
   
7%Minor
 

Lifestyle & Hobbies - People who engage in adventure sports or who have potentially dangerous hobbies will pay more for insurance, other things being equal, than those who don’t. This is especially relevant in Minnesota, where skiing and hunting are common recreational activities.

Marital Status - Research shows that on average, married people live longer and are healthier than similar single people. So, if you’re married, you can get a modest discount on life insurance. According to the most recent data available from the US Census, in Minnesota in 2009, the rate of marriage for people over 15 was 30.7 per 1,000 people, the rate of divorce was 15.2 per 1,000 people, and the rate of widowhood was 9.1 per 1,000 people.

Marriage status of Minnesota residents that used QuoteWizard last year.

 
         
 
   
69%Single
   
31%Married
 

Occupation - People with hazardous jobs like logging and fishing will pay more for insurance than someone with a less dangerous, mundane office job, other things being equal. The most common job in Minnesota, proportionally, is a food scientist.

Tobacco Use - Because tobacco users don’t live as long as non-tobacco users (other things being equal) tobacco users pay substantially more for life insurance than an identical non-tobacco user would pay for the same policy. Tobacco use is associated with a number of health complications, such as heart disease, stroke, and COPD, any of which may cause higher rates and an earlier death.

As of 2013, the national average rate of smoking was 19%. To compare to the most recent data available, in 2014, approximately 18.0% of Minnesota adults smoked cigarettes – about 751,000 adults.

Percentage of QuoteWizard users in Minnesota that indicated that they smoke last year.

 
         
 
   
78%Don't Smoke
   
22%Smoke
 

Travel - If you regularly travel to developing countries, particularly countries on the US State Department’s Warning List, you will pay more for insurance than a traveler who sticks to developed countries.

Value of Policy - It shouldn’t come as a huge surprise that one of the largest, if not the largest contributing factor, to a life insurance policy’s premiums is the value of the policy. As with anything, you get what you pay for; the more protection that you purchase, the higher the premiums.

Weight - Obesity has surpassed smoking to become America’s largest public health cost and problem. Like tobacco use, obese or seriously overweight people have a lower life expectancy, which means an increased probability of their policy being paid out. Because obesity increases the likelihood of health problems such as heart disease, stroke, diabetes, and some cancers, overweight and obese individuals can expect to pay higher rates than similar individuals who are not obese.

As of 2013, the adult obesity rate in Minnesota was 25.5%. This makes Minnesota the #41 most obese state. Overall, the average obesity rate in the US is 34.9%.

While each of these factors plays a big role in the cost of your policy, some aspects of life insurance are entirely individual. Insurance companies calculate your rates based on your own health, habits, and lifestyle. That’s why shopping around and comparing quotes is so important–to make sure you’re getting the best rate possible.

Leading Causes of Death US vs. Minnesota - 2013

Source: US Centers for Disease Control
Rank Cause of Death Total Deaths Death Rate State Rank US Death Rate*
1 Heart Disease 7,714 119.6 50th 169.8
2 Cancer 9,601 155.4 39th 163.2
3 Lower Respiratory Disease 2,287 37.1 41st 42.1
4 Accidents 2,405 40.1 33rd (tie) 39.4
5 Stroke 2,073 32.0 40th (tie) 36.2
6 Alzheimer's Disease 1,427 21.5 30th (tie) 23.5
7 Diabetes 1,163 18.8 39th 21.2
8 Influenza/Pneumonia 751 11.6 45th 15.9
9 Kidney Disease 653 11.6 37th 13.2
10 Suicide 678 12.1 39th 12.6
*Death Rate calculated as: (deaths from that cause / total population) / 100,000

Minnesota Life/Health and Fraternal Insurance Market Share – 2013

Source: Insurance Information Institute
Rank Company Direct Premiums Written (in thousands) Market Share
1 Prudential Financial Inc. $866,771 8.0%
2 Securian Financial Group $855,231 7.7%
3 Lincoln National Corp. $622,264 5.6%
4 Manulife Financial Corp. $606,023 5.5%
5 MetLife Inc. $539,843 4.9%
6 Jackson National Life Group $494,535 4.5%
7 Principal Financial Group Inc. $443,512 4.0%
8 Northwestern Mutual Life Insurance Co. $411,346 3.7%
9 Ameriprise Financial Inc. $397,439 3.6%
10 American International Group $389,735 3.5%

Financial Strength Ratings of Top Minnesota Life/Health Insurers

Source: A.M. Best (Ratings as of 9/1/2015)

  • Prudential Financial Corp: A+
  • Securian Financial Group: A+
  • Lincoln National Corp.: A+
  • Manulife Financial Corp: NR
  • MetLife.: A+
  • Jackson National Life Group: A+
  • Principal Financial Group Inc.: A+
  • Northwestern Mutual Life Insurance Co.: A++
  • Ameriprise Financial Inc.: A+
  • American International Group: A
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Minnesota Life Insurance Regulations

Insurance in Minnesota is governed by the laws defined by Chapters 59-A to 79-A of the Minnesota Statutes, as outlined by the Minnesota Office of the Revisor of Statutes.

This legislation is used to regulate claims and provide certain protections to Minnesota consumers, for example:

Interest Rewards: In order to insure that consumers in Minnesota are paid their claims in a timely manner, state law mandates that interest accrue on any death claim. In the interest of the consumer, as soon as the insurance company receives the death certificate, interest starts building, for up to 60 days. After 60 days, the interest rate rises. So, because insurance companies want to avoid this extra payment, claims are usually paid within a month.

Guaranteed Benefits in the Case of Company Failure: If an insurance company is unable to make payments on death claims, the Minnesota Life and Health Insurance Guaranty Association will cover up to $300,000 of death benefits, and up to $100,000 in cash reimbursement. This is so that consumers have confidence that their beneficiaries will receive at least some of their death benefit, though the amount is the same regardless of how much the policy is worth.

These regulations don’t just protect consumers; they also protect insurance companies from fraud. For example, Minnesota insurers may challenge any information in your insurance application for up to two years from the policy’s effective date. If they find any evidence of fraud, they can terminate your policy immediately.

Minnesota Life & Disability Insurance Guaranty Association

This organization assists the customers of any insurance company that is found to be insolvent. If you have concerns about the financial well-being of your carrier, you should contact the MLHIGA. Their contact info is below:

Website:
Homepage
Phone:
(651) 407 – 3149
Address:
Minnesota Life & Health Insurance Guaranty Association
4760 White Bear Parkway, Suite 101
White Bear Lake, MN 55110

Minnesota Office of the Insurance Commissioner

Website:
Homepage
Insurance Commissioner:
Michael Rothman
Insurance Hotline:
(651) 539 – 1500
Office Hours:
Monday - Friday
9:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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