Who Needs Life Insurance?

Who needs life insurance? If someone will suffer financially when you die, chances are you need life insurance because it provides cash to your family after your death.

This cash, known as the death benefit, replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses, and college funding. In addition, there is no federal income tax on life insurance benefits.

To help you understand how life insurance might apply to your particular situation, below we’ve outlined a number of different scenarios of who needs life insurance:

You’re Married

Many people mistakenly believe they don’t need to think about life insurance until they have children. This is not necessarily true. If you or your spouse dies unexpectedly, would there be enough money to pay off debts like credit card balances and car loans and cover the monthly bills such as utilities, mortgage or rent? If you’re planning to have children, you may want to buy life insurance now instead of waiting until you are pregnant as some companies may not issue policies during pregnancy.

You’re Married With Kids

Most families depend on two incomes to make ends meet. If you died suddenly, could your family continue to meet all of their financial obligations — from paying rent or a mortgage to daily living expenses? Could your family continue their standard of living on your spouse’s income alone? Would their plans for the future — like college stay intact? Life insurance can help make sure your plans for the future can continue.

You’re a Single Parent

As a single parent, you’re the caregiver, breadwinner, cook, chauffeur and so much more. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children’s financial future.

You’re a Stay-At-Home Parent

Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cleaning, cooking, and other household activities are all important tasks, and the replacement value of which is often severely underestimated. With life insurance, your family can better afford to make the choice that best preserves their quality of life.

You Have Grown Children

Just because your kids are through college and the mortgage is paid off doesn’t necessarily mean that you no longer need life insurance. If you died unexpectedly, your spouse will still be faced with daily living expenses. Would your financial plan, without life insurance, enable your spouse to maintain the lifestyle you’ve worked so hard to achieve now and into retirement?

You’re Retired

Depending on the size of your estate, your heirs could be hit with a large estate-tax payment after you die. The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of these taxes, funeral costs and other debts without having to liquidate other assets, which may occur at a fraction of their value. Life insurance proceeds are also generally income tax free and won’t add to your estate tax liability, if properly structured.

You’re a Small-Business Owner

Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow owners, or a key employee died? Life insurance can help in a number of ways. For instance, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.

You’re Single

Single people may think they do not need life insurance, but there may be exceptions. For instance, some single people provide financial support for aging parents or a sibling with special needs. Others may be carrying significant debt that they wouldn’t want to pass on to family members who survive them. Insurability is another reason to consider life insurance when you’re single. If you are young, healthy, and have a good family health history, you may be eligible for a more affordable life insurance rate.

Term Life Insurance Rate Comparison: Then & Now

Do you have term life insurance? It might make sense to compare term life insurance rates: then & now.

People are living longer and term life insurance rates are getting lower.

If you can get in a more preferred category, extend your policy term, and pay about the same money, then it may be worth the effort (application & medical exam etc.) to re-apply.

You should review your term life insurance rates: then & now, every time a major change happens in your life – a marriage, birth of a child, purchase of a house, or starting a business.

Sample term life insurance comparison between “then & now:”

TERM LIFE INSURANCE RATES THEN …

Him:   Age 23 as of July, 2007

$500,000 face value, 20 year term: $245 annual   (30 year term: $370)

$1M face value, 20 year term: $425 annual     (30 year term: $665)

$2M face value, 20 year term: $785 annual   (30 year term: $1,265)
Her:   Age 22 as of July, 2007
$500,000 face value, 20 year term: $215     (30 year term: $300)

$1M face value, 20 year term: $365     (30 year term: $535)

$2M face value, 20 year term:  $665     (30 year term: $1,005)
TERM LIFE INSURANCE RATES NOW …

Him:   Age 33 as of July, 2017

$500,000 face value, 20 year term: $294 annual   (30 year term: $433)

$1M face value, 20 year term: $470 annual     (30 year term: $784)

$2M face value, 20 year term: $787 annual   (30 year term: $1,517)
Her:   Age 32 as of July, 2017
$500,000 face value, 20 year term: $237     (30 year term: $376)

$1M face value, 20 year term: $412     (30 year term: $660)

$2M face value, 20 year term:  $741     (30 year term: $1,290)
Although clearly, 10 years later/older, premiums are up. However, in comparison, not by that much. Sample clients are 10 years older and if they were to re-apply for life insurance they would gain 10 additional years compared to their existing policies.

MassQuotes: Term Life Insurance

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noun: term life insurance

life insurance that pays a benefit in the event of the death of the insured during a specified term.

MassQuotes utilizes the technology of the internet and the buying power of the masses to find you the best term life insurance.

MassQuotes compares term life insurance rates at no cost from top-rated companies in seconds.

We believe term life insurance offers the greatest coverage for the lowest premium and can be a great solution for financial responsibilities such as: family protection, consumer debt, dependent care, education, funeral costs and mortgages.

MassQuotes will help you figure out the amount of coverage that’s right for you at a price you can afford.

The typical process for applying for term life insurance online at the most competitive rates available is:

  1. Shop Rates & Request Application. Once you find a policy that is right for you, request an application, at which point a licensed life insurance professional will call you to answer questions and start your formal application.
  2. Application. Complete and sign your entire life insurance application. Use this checklist to help gather additional information your life insurance company may need about you and your health.
  3. Medical Exam. Complete a brief medical exam to confirm your health. The exam is done with an examiner who is paid for by the insurance company or licensed insurance professional and can be completed where ever and when ever convenient for you. View tips.
  4. Review. Wait for your insurance company to review your application and medical information to confirm qualification and rate. This review typically takes 2-8 weeks, depending on your insurance company.
  5. Approval. Once the insurance company has approved your application, your policy will be delivered to you, along with any additional requirements needed, in order to activate your coverage.
  6. Free-Look Period. Most policies offer a Free-Look period.

Reminder: Life insurance isn’t for the person that dies, it’s for the people that live.

The Best Gift Money Can Buy

The Best Gift Money Can Buy

The best gift money can buy.

Term Life Insurance might be the most generous, least selfish gift a person can leave their surviving loved ones. In other words: it’s the best gift money can buy.

Life insurance isn’t for the person that dies, it’s for the people that live.

Life Insurance can be a great solution for financial responsibilities such as: family protection, consumer debt, dependent care, education, funeral costs and mortgages.

Nobody wants to talk about life insurance and, with MassQuotes, you don’t have to. Sit back, learn about life insurance, calculate your life insurance needs, rate different terms, with different face amounts, and find the policy that best suits you.

Term life insurance rates are extremely low right now. Obviously, the younger and healthier you are, the lower life insurance rates are. Let’s face it, term life insurance just might be: the best gift money can buy.

Term life insurance offers the largest face value for the lowest premium.

If you have a term life insurance policy already in effect, you may want to re-apply.

If you can get in a more preferred category, extend your policy term, and pay less money, then it may be worth the effort (application & medical exam etc.) to re-apply.

Please call or click to get a term life insurance quote or to discuss.