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Whole Life Insurance In Massachusetts

Whole Life Insurance In Massachusetts

Introduction: It may not be pleasant now, but planning for the future of your dependents in your absence is the best thing you can do for your family. Anyone can face death all of a sudden and think how your family members will suffer,  if you are the sole breadwinner of the family. Purchasing of a life insurance will solve all of your family financial problems in the event of your premature death. It will also help pay off your outstanding debts and meet your final expenses. Let us see what are the salient features of life insurance in Massachusetts in the ensuing paragraphs.

Whole Life Insurance In Massachusetts

Whole Life Insurance In Massachusetts
Whole Life Insurance In Massachusetts

Life Insurance in Massachusetts:

As in any other State, there are many leading life insurance providers in Massachusetts that offer life insurance Massachusetts to the residents. You are aware that you should do proper shopping and get life insurance quotes from a minimum of five insurance companies. It is also essential to compare these quotes along with the insurance coverages offered. This process will fetch you a good company with right coverage at at an affordable life insurance price. After doing necessary comparison and selection, you can buy life insurance online from the desired company with the desired coverage.

Types of Life Insurance:

There are several types of life insurance and we shall discuss some of the popular life insurance coverages that are available in Massachusetts.

Term Life Insurance:

Term life insurance is the most popular and least expensive life insurance type one can buy. There are no investment accounts, cash values or policy loan features in respect of term life insurance. If all these exist, they cost you money. You can buy a term life insurance policy for any specified period of time such as 10, 15, 20, 25 or 30 years. The premium will be the same throughout the policy period.

If you are alive till the maturity of the policy, you will get the maturity value of the policy along with some bonus amount, if any. If you unfortunately die in the middle of the policy, your family members or your nominee will get the death benefits of the policy. Term life insurance quotes are available

with all the insurance providers that offer life insurance. You can compare them, decide the policy amount and the period of the policy and then buy the same.

Benefits of Term Life Insurance:

  • It is inexpensive and you pay for what you need. That means you get the highest amount of life protection for a lowest cost when compared to other types of life insurance.
  • It involves a very simple procedure and nowadays you can even buy it without a medical exam. Life insurance no medical exam is the improvement done in selling life insurance as most of the people think that going for a medical exam is painful and a waste of time. But, life insurance no medical exam is not suitable for all persons.
  • This policy has a specific expiration date and this depends upon the term of the policy, you choose. If you want to extend the period of the policy, there are options to do so.
  • It is flexible. You can use term life insurance policy to protect your family, pay estate taxes, getting a bank loan and much more. If you are in business, you can fund it to grow your business.

But, if you want term insurance policy beyond 30 years, it will be better to opt for a whole life or universal life insurance policies , which come under permanent category.

Permanent Life Insurance:

There are three main types of permanent life insurance and they are whole life, universal life and variable universal life. All these policies are structured to provide lifetime coverage. Some of the common characteristics of permanent policies are as follows.

  • Coverage can be extended upto your life time
  • They can accumulate cash value
  • The cash value is tax-deferred
  • You are allowed to avail policy loans or borrow against the cash value
  • The initial cost will be greater than term life policy
  • The cumulative cost in the long run may be lower than term life.

Permanent life insurance is suitable for those

  • Who want the period of the policy be extended beyond 30 years
  • Who have a sizeable estate that may be subject to estate taxes
  • Who want to grow cash value within the policy and this growth is usually tax-deferred.

Whole Life Insurance:

The premium of this policy will be stable throughout the policy period. This policy provides you the death benefit and an accumulated cash value.on the positive side, this policy offers lifetime death benefit, cash value growth and fixed interest rate. At the same time, it is more expensive, not flexible and has fixed premiums.

Universal Life Insurance:

This is more flexible and allows you to alter and adjust the premium amount and death benefits. This policy can be customized to fit your better needs,  as it has some special features. The advantages of this policy are lifetime death  benefit, flexible in nature, cash value growth and fixed interest rate. The disadvantages are that it is more expensive than term life, interest rate is often low and there are a lot of options, which can be confusing and costly.

Variable Universal Life Insurance:

This is almost similar to Universal life insurance and the main difference between the two is that the premiums can be invested in various investment accounts ensuring greater potential for cash value growth. The advantages are lifetime death benefit, flexible premiums, more options for greater cash value growth and you can choose where the cash value can be invested. On the other side, cash value growth depends on the investment plan, the policy will be put into risk if the investment fails, premiums may increase to keep the policy in force and it is expensive than universal life.

As far as life insurance employee benefit is concerned, any employer can offer group insurance to all employees subject to certain conditions. Whatever the life insurance policy you choose, you must clearly mention the name of the person who benefits from life insurance proceeds after the death of the insured. This is very much important and needed by all types of policies.

Conclusion: It is essential for your family members to lead a dignified life even after your passing due to some unfortunate incidents or accidents. To keep them happy even after your death, life insurance is a must. Realise this fact and buy a proper life insurance at once.

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