One of the few certainties of life is that it will one day come to an end. No one plans on his or her passing, yet everyone eventually meet that day. Regardless of the circumstances around ones death, we leave behind family and friends. Life Insurance gives Massachusetts residents a way to continue providing for their closest family and friends after they pass away.
Life Insurance in its most basic form is an insurance policy that provides death benefits to help pay for medical, funeral and living expenses. These benefits are payable to a named beneficiaries. Some Life policies add other services such as investment packages onto the death benefits provided.
Almost any person or organization can be listed as a named beneficiary on a Life policy. People often name their spouse or significant others, but other family members or friends can also be listed. Some people may even choose to include nonprofit organizations in order to give back to their communities.
In a few cases, a business has been a named beneficiary to a Life policy. These policies are typically purchased for vital personnel that are indispensable to the organization or impossible to replace. If a vital employee or business owner passes away, benefits may be used to hire someone else or reimburse other business owners for losses they incur.
Death benefits can be used for almost any legal purpose. Depending on a policyholder’s wishes and their beneficiaries’ needs, benefits might also be used for:
When benefits are left to an organization, they may be used to fund a specific project, create a scholarship, add to an endowment among several other options.
Life coverage comes in two forms: term and whole life policies. Both forms of coverage provide death benefits, but they differ significantly in how long they provide coverage and the services they provide.
Term Life policies generally only provide death benefits, and those benefits are typically offered for a defined period of time such as 10, 20 or 30 years. Since these policies only offer death benefits and their coverage is limited to a specific period, their premiums are often more affordable.
Whole Life policies normally offer a combination of death benefits and investment options. They also differ from term policies in that they are designed to provide coverage for a policyholder’s lifetime. Whole Life policy’s premiums will change over time as the policy matures. However, the investments within the policy also typically increase, and the interest generated from those investments are frequently used to pay the policy’s premium. Even though whole life policy premiums may increase, they remain affordable in most cases due to the investment interest growth.
All Massachusetts residents can benefit from having Life coverage. Anyone that has dependents should strongly consider life coverage. This includes:
Selecting life coverage is a major decision. It can be difficult to determine what cause of death a policy must include, or selecting the appropriate amount of coverage. These are important choices regarding one’s financial stability for their family’s future. Massachusetts residents can discuss their options with one of our professional agents experienced in writing Life Insurance policies. Our agents will help define your goals, narrow your options and answer all of your important questions. We can even compare the rates to ensure optimal coverage for the best value!