Whole Life Insurance in Massachusetts

WHAT IS IT? WHO NEEDS IT? COVERAGES OFFERED

Whole life insurance is so-named because it’s designed to provide coverage for the remainder of a policyholder’s life. Having their financial reassurances later in life can be a great comfort and make a real difference in quality of life.

Many Massachusetts residents should consider purchasing whole life coverage. Broadly speaking, the coverage may be useful to anyone who wants to both save for retirement and leave an inheritance. Parents, married couples and even single individuals who hope to have a family one day might want to look at these policies.

Broadly speaking, the coverage may be useful to anyone who wants to both save for retirement and leave an inheritance. Parents, married couples and even single individuals who hope to have a family one day might want to look at these policies.

What is Whole Life Insurance?

The latter years of life come with multiple financial concerns, and two big ones are usually how seniors will afford their living expenses and what they’ll leave loved ones. Whole life insurance can help Massachusetts residents address both of these concerns.

Who in Massachusetts Should Consider Whole Life Coverage?

What Are Death Benefits in Whole Life Policies?

Death benefits are a primary feature of almost any life insurance policy. They’re normally what the policy pays to beneficiaries upon the covered death of the policyholder. Beneficiaries are generally free to use these benefits in whatever way they choose.

TESTIMONIALS

Customers Love Us

When I called the staff at Paul T. Murphy Insurance, they explained how auto reform would allow me to increase coverage and save money at the same time. I moved my home and umbrella insurance to my current auto carrier and saved over $350. In July 2008 when my auto insurance renews with Safety Insurance, I will save another $300 just for having my auto and home insurance with the same company. The staff at Paul T Murphy Insurance Agency really understands the new Massachusetts reform and how to pass savings and additional coverage to their clients.

Frank

Winchester, MA
Nulla at nulla justo, eget luctus tortor. Nulla facilisi. Duis aliquet egestas purus in blandit. Curabitur vulputate, ligula lacinia scelerisque tempor, lacus lacus ornare ante, ac egestas est urna sit amet arcu. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos.

Mark Anderson

Marketing Director
Nulla at nulla justo, eget luctus tortor. Nulla facilisi. Duis aliquet egestas purus in blandit. Curabitur vulputate, ligula lacinia scelerisque tempor, lacus lacus ornare ante, ac egestas est urna sit amet arcu. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos.

Mark Anderson

Marketing Director

What is Cash Value in Whole Life Policies?

The premiums paid for whole life policies cover more than the insurance and administration cost, and the extra amount paid goes into a tax-deferred savings account. As more money is paid into the savings account and as the account collects interest, the policy builds up a “cash value.”

The cash value of a whole life policy is the accumulation of the policy's investment portion. These are the funds that can be used in later years to pay for living expenses (or other costs), and some policies allow you to borrow against the cash value of a policy. Borrowing can allow you to access a policy’s cash value should you face a financial emergency before retirement.

What Tax Benefits Do Whole Life Policies Offer?

The savings accounts within whole life policies are tax-deferred, which means income taxes are only paid on the funds when money is withdrawn. Money can be invested into a policy’s savings account and grow in that account without paying taxes (until the money is withdrawn).

Deferring taxes allows money to grow faster than if taxes had to be paid on the account when funds were deposited, as is normally the case with standard savings accounts and many other investment products.

How Does Whole Life Coverage Differ From Term Life Coverage?

Whole life coverage and term life coverage both normally provide death benefits, but there are two notable differences between them.

First, term life policies generally don’t come with savings vehicles. Policyholders usually can’t take advantage of a tax-deferred savings account within the policy, as they can with whole life policies.

Second, term life policies are so-named because they generally last for only a finite amount of time. They don’t typically last for a policyholder’s entire expected or actual life span, and they don’t pay death benefits if a policyholder passes away after the policy’s term expires.

While there are notable advantages to whole life policies, both whole life and term life policies have their place in end-of-life planning. An insurance agent who specializes in these policies can help residents determine which type of life insurance best meets their needs.

How Much Does Whole Life Coverage Cost?

Whole life premiums are structured so that they increase as a policy progresses. This can help keep the policy’s initial premiums quite affordable, and the higher premiums later on are often quite affordable. Although the premiums can become high if a policyholder lives long enough, the policy’s cash value savings also grow and accumulate. In many cases, the interest generated from the savings investments can cover all or most of a policy’s premiums later on.

How Can Massachusetts Residents Get Whole Life Insurance?

For help comparing whole life insurance quotes, contact the independent insurance agents at Paul T. Murphy Insurance. Our agents can help you request quotes from multiple insurance companies in Massachusetts, and we’ll help you find the best policy that provides the protection you want.

Proud Partner of

This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.