Finances: Insurance
The information in this
document is intended to provide general information on insurance
and other financial matters. For application of the law to
individual cases, please consult with an attorney or accountant.
LIFE
INSURANCE
Life insurance pays a benefit when you die to whomever you
designate. You may be able to borrow money from your life insurance
policy after paying into it for some years. Some policies can be
converted to retirement income plans or disability income, or, in the
case of terminal illness, to a cash benefit before death. No law
requires a company to provide life insurance for its employees.
However, some companies do pay for all or part of life insurance
premiums as part of a benefit package for their employees.
HEALTH INSURANCE
Health Insurance pays all or
part of medical expenses such as hospitalization, doctors, prescription
drugs and laboratory tests. Policies purchased by an individual are
usually more expensive than group insurance policies. Under Minnesota
law individual health insurance policies cannot be more expensive for
women than for men.
Coverage of pregnancy and related
conditions is not always provided in health insurance polices purchased
by individuals. Group health insurance through employment must cover
pregnancy to the same extent as other temporary medical conditions.
No law requires that employers pay for
health insurance for their employees. Persons who are unable to
get health insurance due to a previous medical condition or disability
can buy it through the Minnesota Comprehensive Health Association. Call (612)
456-5290 for information.
MinnesotaCare
Families who do not have health insurance may be eligible for a
state-sponsored plan called MinnesotaCare.
This program provides health insurance on a sliding fee scale and is
available to children as well as adults (with or without children).
Eligibility is based on income, residency and access to other insurance.
Participants in MinnesotaCare must be permanent Minnesota residents and
adults without children must live in the state for six months in order
to be eligible. (This six month waiting period is waived for children
and pregnant women). For an application or more information call: (651)
297-3862 or 1-800-657-3672 outside the metro area.
INSURANCE
CONTINUATION
If you have health insurance at work or if you are covered on a spouse's
work policy, you are entitled to continue that policy for a limited time
even after employment ends. Also, if you and/or your children are on a
spouse's policy and you get divorced, you are entitled to continue the
insurance until you are covered under another plan or until the policy
would otherwise expire. In both circumstances, you may be required to
pay the entire premium, including the part previously paid by the
employer, if any. Ask the employer about the insurance benefits
available to you if your status changes.
AUTO
INSURANCE
Auto insurance protects you and your car in case of accident or
theft. Premiums for these policies vary widely depending upon the
coverage, the car's value, the company, your claims history and whether
or not you are considered a high risk driver. Young men generally pay
more than young women for auto insurance because as a group they have
more accidents. Young people in general pay more than older people for
auto insurance. A divorced woman cannot be charged more for auto
insurance because her former husband had a bad driving record. A company
cannot charge higher rates or place new restrictions on a policy because
of divorce. However, the rates may change to cover just one person.
INSURANCE
RESOURCES
MN
Department of Commerce--Insurance Division
(651) 296-4026
Minnesota
Department of Human Rights
(651) 296-5663
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