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New London, MN 56273




How Much Life Insurance Coverage Do I Need?

How Much Coverage Do I Need?

Life insurance coverage provides financial support to your loved ones after you pass away, but there are many factors to consider when deciding how much life insurance to get. In the state of Minnesota, the number one question people ask the Lake Region Insurance Agency about life insurance is How much life insurance do I need? 

Here are some answers to that question that might help you answer it yourself.


What is Commercial Auto Insurance

Commercial auto insurance is a type of insurance that will protect you from any potential financial liability if you cause an accident. A business owner might need commercial auto insurance if they have employees or assets to cover. 

When deciding on the amount of life insurance coverage, people often consider their company’s size and financial situation because some companies just don’t want to take the risk and offer lower coverage for less money. You should also think about how much your family would cost if you died suddenly and add a little more for emergencies. 

Term life insurance covers only one person, but permanent life insurance can cover many generations at once. Some people buy both kinds of policies as part of their financial plan. Permanent life insurance has higher premiums than term life insurance, but it’s better when someone wants to leave something behind for loved ones after they die. People with high financial obligations, such as debt, may want to buy more life insurance than others. 

A policy typically starts in effect a month after purchase and lasts until death (unless canceled). Sometimes, life insurance companies require a medical exam and provide discounts for older applicants who do not smoke. Other options are available through independent agents if a life insurance company does not accept an applicant. 

There are two types of life insurance: term life and permanent life. Term life provides coverage for up to 20 years, while permanent life provides protection over many years or even generations. Some people like to purchase both types of life insurance as part of their financial plan. 

Permanent life insurance coverage generally costs more per year than term life, but this is offset by continuing until death without renewal requirements. You may need more coverage if you’re in a high-risk profession like construction work. Suppose you have significant debts like student loans or mortgages. In that case, you’ll probably want extra coverage, too – though keep in mind that every additional $100 paid into your policy equals a $25 added monthly premium.


Who Might Need Life Insurance Coverage from Commercial Auto Insurance?

businessman in blue suit driving his car.

If you have a vehicle that is owned by your business, then you might need commercial auto insurance. Commercial auto insurance is typically divided into three categories: General liability, Physical damage, and Vehicle coverage. Not all vehicles need to be insured through the company’s insurance policy. 

Independent contractors can often use their auto insurance as a backup for their business car. There are also some other situations where it may not make sense to carry commercial auto insurance on the vehicle. For example, if you only operate one or two cars at any given time or if the car is used primarily in local operations with very few miles driven per year. 

It is important to check with your insurer before deciding on purchasing commercial auto insurance. One other situation when it might not make sense to purchase commercial auto insurance is if the vehicle owner has an individual income of more than $100,000 per year and can afford comprehensive private insurance on his/her own.

When considering what kind of commercial auto insurance to purchase, it is important to know how much protection you need from potential liabilities. Sometimes there is no clear answer but a variety of options available from which you can choose.


6 Things Every Business Owner Should Know Before Buying Commercial Auto Insurance

protective and car, family, life and health insurance

Commercial auto insurance is important to protect your business. There are lots of factors to consider, so it can be confusing. Here are some things that every business owner should know before buying commercial auto insurance: 

  1. How much does the company cover? Most companies will cover liability and property damage, but you may need additional coverage. 
  2. What’s the deductible? How much do you have to pay out-of-pocket for claims? If a company has a $5000 deductible and you get in an accident with $25000 worth of damages, you would have to pay $2000 for the repairs upfront. A higher deductible means lower premiums. 
  3. Who else is covered under my policy? Will employees or contractors be driving vehicles on behalf of my company? 
  4. Can I cancel my policy at any time without penalty? 
  5. Does the company provide emergency roadside assistance? 
  6. How much life insurance coverage do I need? Having adequate life insurance is essential for everyone. 


Bottom Line

Purchasing commercial auto insurance can be confusing. With so many options, knowing where to start and what you need can be difficult. Thankfully, the Lake Region Insurance Agency staff is available to answer any questions about your commercial auto insurance and work with you every step of the way to get you a great rate on the best coverage for your needs.

Once you know your business needs, let us help you find a commercial auto insurance plan that fits your budget. If you have questions or want to speak with one of our agents directly, contact us today!

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