Life Insurance from Massachusetts Agents
What is it?
Life insurance provides payments when the worst happens. Death benefits help loved ones and others carry financially carry on.
Who needs it?
Anyone whose passing would be a financial burden for others should consider life coverage. This may include parents, spouses, caregivers and even business partners.
- Term Life Coverage
- Whole Life Coverage
What is life insurance?
The saying states that only two things are sure in life. Life insurance won’t help with taxes, but it may provide financial relief when the other occurs. For many Massachusetts residents, purchasing life coverage is an important step in being prepared for the end.
Life insurance generally offers protection against financial hardship that a policyholder’s passing might cause. Some policies also offer savings opportunities, which can help policyholders prepare for life’s later years.
What Massachusetts residents should purchase life coverage?
Any Massachusetts residents whose passing would create financial hardships for others should consider purchasing life coverage. Some examples of people who might want a policy include:.
- Parents whose minor children are financially dependent upon
- Spouses whose partner financially depends on their income
- Heads of household who are the main breadwinners for their families
- Caregivers who provide services for children, grandchildren or disabled family members
- Children whose burial costs would be significantly burdensome
- Business partners whose colleagues depend on their partner’s role within a business
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Children don’t necessarily need a large life policy, but a small one that’s worth a few thousand dollars may cover burial costs in a worst-case scenario. Business partners may want enough coverage to pay back their colleagues’ investments, should an essential partner pass and the business fold.
In addition to these, some people choose to carry life insurance so that they can leave a legacy. The legacy may be for their family (e.g. paying tuition for grandchildren) or a nonprofit organization (e.g. setting up a fund).
An insurance agent who specializes in life coverage can help determine how much coverage is appropriate for each of the above scenarios (or any other situations)
How do term life and whole life coverage differ?
The two main types of life coverage are term life and whole life. They differ in how long coverage lasts, how premiums are structured, and whether a savings option is offered:
- Duration: Term life policies typically provide coverage for a predetermined amount of time (e.g. 10, 20, 30 years), and benefits are normally only paid if the policyholder passes away during this time. Whole life policies are usually intended to provide coverage throughout a policyholder’s life, eventually paying death benefits upon passing.
- Premiums: Most term life policies have fixed premiums that don’t change throughout the policy’s term. Whole life policies’ premiums often escalate as the policy continues providing coverage. Premiums can become quite expensive later in life, but the interest that accumulates in these policies frequently is greater than the premiums later in life. In many cases, the accumulating interest can eventually be used to pay the premiums.
- Savings: Most whole life policies include a savings option, possibly in the form of an annuity. Part of the premiums paid can contribute to the savings, which along with interest can build up a nest egg for later in life. Term policies rarely (if ever) have such a feature.
What are cash-value whole life policies?
The savings that accumulate within a whole life policy build up what’s commonly referred to as “cash value.” The cash value is what’s able to help with expenses later in life, or sometimes during financial emergencies as you may be able to borrow against this amount.
How can Massachusetts residents get quotes for life insurance policies?
For assistance with life insurance, contact the independent insurance agents at Norwood Insurance Agency. Our agents can help you explore quotes from multiple insurance companies that underwrite policies in Massachusetts, and we have the expertise required to help you determine which quote best meets your needs.