Minnesota Life Insurance Company Review 2018

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Are you searching for Minnesota Life Insurance Company review? If yes, you have landed on the right page. When seeking life insurance company reviews, going directly to the company’s website will not give you the overall picture. Many times, they don’t display the rates and do not elaborate on the types of coverage they offer.

We at Effortless Insurance work with Minnesota Life and more than 50 other companies. Therefore, we have access to their rates, products type, and underwriting materials. Let’s find out if Minnesota Life is a good choice for you.

Minnesota Life Insurance Company History

Started almost 140 years ago in 1880, Russell Dorr founded the Bankers Association of Minnesota. In 1901, the company structure was changed to a mutual company, and so its name to Minnesota Mutual Life Insurance Company.

Minnesota endured the economic ups and downs through longevity and commitment to its clients by providing insurance, investments, and retirement solutions that give clients trust and confidence. In 2005, Minnesota Life adopted its subsidiary name, Securian, as their enterprise brand.

According to Securian website, they have some impressive stats:

  • Nearly $1.2 trillion life insurance policies in force
  • $78.6 billion assets under management
  • Almost 19 million clients in North America
  • $5.3 billion in benefits paid to clients since 2017
  • The 10th largest life insurance company in the U.S.
  • 5300 employees and representatives

Minnesota Life Financial Ratings

  • A.M Best: A+ (Superior)
  • Fitch: AA (Vey Strong)
  • Moody’s: Aa3 (Excellent)
  • Standard & Poor’s: AA- (Very Strong)

Products Offered by Minnesota Life

Minnesota Life offers financial products such as investments, trust services, and annuities. In this post, I will only review the life insurance product offerings, which are term life, whole life, and universal life insurance.

Advantage Elite Select—Term Life Insurance

If your idea for the perfect life insurance coverage is simple, straightforward, and affordable, level term life insurance from Minnesota Life is your friend. Term life insurance offers protection for a specific period of 5, 10, 15, 20, or 30 years, and will only pay the death benefit if you die during that specified time.

Your premiums and death benefit are fixed for that duration. You can also convert your coverage to whole life during the term without going through underwriting or proving insurability. At the end of the term, you can renew it on an annual basis until the age of 95. Essentially, term life gives you the financial security you are seeking now, with the flexibility for later.

  • Issue ages: 16–80 (not available on all term lengths)
  • Minimum face amount: $50,000
  • Renewable to age 95
  • Conversion periods:
    • 5-, 10-, and 15-year term in the first five years
    • 20- and 30-year term in the first ten years

Accumulator Universal Life

Universal life insurance offers unparallel flexibilities that aren’t found in any other coverages. The ability to adjust your premiums and death benefit amount as you see fit is a significant advantage for owning universal life. Besides, UL is permanent protection that will pay the death benefit to your beneficiary whenever that time arrives.

Minnesota Life’s UL offers a fixed rate of 2% which grows on a tax-deferred basis in your cash account. Accumulator Ul is for those who are looking for cash value accumulation without the market fluctuations.

  • Issue ages: 0–90
  • Minimum face amount: $25,000
  • Minimum guaranteed interest rate: 2%
  • Permanent coverage to age 121

Survivorship Universal Life Insurance

Minnesota Life offers another type of UL coverage that covers two individuals, and the benefits are paid after the death of the second person. It’s an ideal solution for estate planning or for those who are looking to leave a legacy for their heirs.

Indexed Universal Life

For those who are seeking a higher cash accumulation opportunity, IUL may be the right answer. The only difference between a traditional UL to IUL is how the cash portion is invested in the account. With IUL interest crediting, earning is tied to fluctuations in an index account you choose.

Minnesota Life’s IUL gives you five indexed accounts and one fixed account from which to choose. The fixed account will only pay 2% per year. Let’s review all five IUL policies:

  1. Eclipse—Offers the highest growth potential by offering competitive interest crediting options. Its primary goal is to help clients supplement retirement income or other high monetary purposes.
  2. Eclipse Protector—Offers moderate cash value accumulation in a more budget-friendly way than Eclipse. Its main focus is protection rather than cash growth.
  3. Omega Builder—Offers high growth potential with an added benefit called Income protection agreement (IPA), which allows you to choose the way in which the death benefit is paid. You can select installment payments or lump-sum payout which potentially lowers the cost of insurance.
  4. Eclipse Survivor—Offers higher cash value accumulation with guaranteed death benefit upon the death of the second individual.
  5. Eclipse Survivor Pro—Offers a budget-friendly coverage for the estate planning seeker with an average cash potential return.

Indexed Universal Life Highlights

  • Issue ages: 0–85
  • Minimum face amount: $100,000
  • Minimum guaranteed interest rate: 2%
  • Permanent coverage to age 121
  • Five index crediting accounts

Whole Life Insurance

For those who are seeking a lifetime of coverage with fixed premiums, cash value growth, and death benefit paid upon their death, whole life insurance is the right policy.

Whole life doesn’t have the flexibility UL offers. Also, the cash value accumulation is limited because the premiums are fixed, unlike UL where you can increase the premiums if you choose, and therefore, can earn more.

Nonetheless, whole life still offers cash growth potential by paying dividends which you can reinvest or use to reduce premiums. Minnesota Life offers two types of whole life:

  1. Secure Protector—Offers guaranteed death benefit protection to be paid upon the insured’s death with high consideration for low premiums for the budget conscious person.
  2. Secure Accumulator—Offers higher growth potential to supplement income for retirement or college tuition.

Whole Life Highlights

  • Issue ages: 0–90
  • Minimum face amount: $10,000
  • Minimum guaranteed interest rate: 4%
  • Permanent coverage
  • Single premium option

Optional Riders

Life insurance riders are provisions that are added to an insurance policy to enrich its benefits. Below are optional riders (not available on all plans) Minnesota Life offers:

  1. Accelerated death benefit allows the insured to access a portion of the death benefit if he was diagnosed with a terminal illness.
  2. Benefit distribution provides heirs the choice between a lump-sum payment or installment which guarantees income stream.
  3. Children’s term offers coverage on your kids which can be converted to whole life by age 25.
  4. Extended conversion gives the policy owner the opportunity to convert the policy at the end of the term duration instead of at specific time points.
  5. Waiver of premium will waive the policy premium if you become totally and permanently disabled.
  6. Accidental death allows up to $300,000 in death benefit if you die by accident related event.
  7. Single premium paid-up additional insurance provides the insured an option to buy an additional paid-up coverage each year up to the age 90.
  8. Guaranteed insurability option provides an option for future increased coverage without underwriting or proof of insurability between the ages of 22 and 40.
  9. Inflation agreement provides an opportunity to increase your death benefit amount every three years based on increases in the Consumer Price Index (CPI).
  10. Term insurance offers extra temporary protection up to four times your base amount.
  11. Overloan protection prevents an outstanding loan from canceling your policy.
  12. Premium deposit account provides an opportunity to fund the policy through scheduled fixed payments.

Minnesota Life No-Exam

As the name implies, no-exam life insurance eliminates the need for a paramedical exam, invasive lab work, and urine sample as part of the approval process. Instead, Minnesota Life will collect public information to help them determine your eligibility for coverage. They will use the following routes:

  1. Tel-interview helps the underwriter to get a complete picture of the health and lifestyle to determine eligibility.
  2. Prescription history database offers the underwriter an insight into current and past medical ailments.
  3. Medical Information Bureau (MIB) shows if the client applied for life insurance coverage in the past with sensitive medical history.
  4. Motor Vehicle Report (MVR) will reveal to the underwriter risky driving habits, license suspension, etc.
  5. Financial, property, and credit information reveal financial stability which can influence mortality. Financially stable individuals are in better overall health, have less stress, and are more likely to take care of themselves.

Express Issue

Express issue underwriting offers a 24-hour policy issue, without the need for a medical exam or blood work.

  • Face amount on whole life: $10,000–$249,999
  • Face amount on term life: $50,000–$249,999
  • Issue ages:
    • 16–55 for 5- and a 15-year term
    • 16–55 for 10- and a 20-year term
    • 16–45 for a 30-year term
  • Only standard health class

WriteFit Underwriting

In 2017, Securian introduced an expedited underwriting process for the healthiest clients. WriteFit underwriting is also called “holistic approach to underwriting” because there is no exam needed or lab work. The underwriter assesses the applicant’s mortality risk using the same readily-available public data mentioned above.

However, applicants can get up to $1 million in face value, and coverage could be issued in less than 48 hours. Additionally, you could also qualify for better rating class such as preferred or preferred plus as opposed to the express issue which only allows standard.

  • Face amount up to $1,000,000
  • Issue ages: 18–54
  • Standard or better rate classes available

Minnesota Life vs. Other Carriers’ Sample Monthly Rates

minnesota life insurance sample rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 Principal $14.66 $19.03 $42.61 $110.03
 SBLI $14.79 $21.67 $51.68 $147.70
 Minnesota Life $15.43 $20.00 $48.83 NA
 Prudential $20.34 $24.50 $45.50 $128.84

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 Principal $13.13 $16.63 $32.90 $77.92
 SBLI $13.31 $18.99 $36.46 $90.37
 Minnesota Life $13.91 $17.96 $36.68 NA
 Prudential $17.28 $22.53 $40.03 $89.25

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 Minnesota Life $22.42 $31.18 $87.12 NA
 SBLI $21.32 $36.92 $96.06 $286.85
 Transamerica $23.65 $43.00 $95.46 $253.70
 Prudential $33.25 $41.56 $83.56 $250.25

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Minnesota Life $18.48 $26.84 $62.04 NA
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 SBLI $19.14 $29.67 $65.87 $173.03
 Transamerica $19.78 $34.83 $73.10 $204.68
 Prudential $27.13 $37.63 $72.63 $171.06

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 SBLI $35.24 $56.03 $147.73 $457.62
 Minnesota Life $38.24 $55.76 $167.64 NA
 Prudential $48.56 $70.44 $157.94 $467.69

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 SBLI $29.67 $44.28 $104.57 $272.92
 Minnesota Life $30.36 $47.08 $117.48 NA
 Prudential $37.19 $59.94 $124.69 $319.81

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Aug 2018 and are subject to underwriting approval.*

Bottom Line

Minnesota Life has excellent financial ratings and customer service. Their term life insurance is most competitively priced for women up to $500,000 in coverage. As for men, they are still among the top 10 companies, but if you are perfectly healthy, companies such as Protective or Banner will be better priced.

They do fall short on the express issue underwriting for two reasons. First, they only offer up to $249,999 which isn’t enough coverage for most. Second, they only offer standard rate classes even if you are perfectly healthy. They do that because they take an increased risk by not performing the paramedical and lab work.

There are other companies, such as SBLI, which offer up to $500,000 without an exam and also allow preferred rating classes. They also don’t offer a 20-year term if you are over the age of 55 years, while most other companies offer it up to the age of 70 years.

Saving money on life insurance starts with comparison shopping and then selecting the best company for your needs. A company selection is more complicated because it correlates to your current health, driving history, family history, and even your profession.

Here at Effortless Insurance, we work with more than 50 companies, and our loyalty is to consumers, never the carriers. Give us a call at 866-326-3053 so we can present all choices, or use the form on the right-hand side to see instant life insurance quotes.

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2018-09-01T16:08:34+00:00August 20th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, heavy squats, critical thinking, and reading.

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