How Life Insurance Can Help Your Family Get Through Tough Times

Whether you’re paying off debts, funding your children’s education, or taking care of final expenses, life insurance can help your family get through tough times. Click the to learn more.

When shopping for a policy, look for companies with strong financial strength and competitive pricing. Also, check the reliability of policy illustrations (projections of how your policy will perform) and if they are flexible enough to meet your unique needs.

Term life insurance is simple, affordable protection that lasts for a set number of years. If you die within that period, your beneficiaries receive a payout to help with expenses such as funeral costs, mortgage payments, or other ongoing financial obligations.

During the application process, your agent will review your answers to determine how much coverage you need. This is also an opportunity for you to ask your agent any questions you have about the policy. You will usually include a check for the first premium payment with your application and get temporary coverage until it is processed, which typically takes about a month or more.

Most life insurance policies require a medical exam to evaluate your health and to learn more about your lifestyle and occupation (for example, dangerous hobbies like scuba diving may increase rates). You will also name your beneficiaries, which are the people or entities that will receive the death benefit when you die. Typical beneficiaries are your spouse, children or other loved ones but you can also choose to leave money to a charitable organization.

There are multiple types of life insurance, including whole life and universal life, that have varying bells and whistles. The main difference between these and term life is that whole and universal life policies last your entire lifetime and build cash value, while term policies have a fixed length of time and don’t have that built-in feature.

We offer competitively priced, guaranteed issue term life insurance from Pruco. TermEssential offers the ability to convert to a permanent policy in the future and PruTerm One is designed for small business owners who want to create a legacy for their family or employees.

Please note that all life insurance products are subject to change and the guarantees contained herein are based on the claims-paying ability of the issuing company. Life insurance and annuity products are not a deposit, not FDIC insured, not federally insured, not a bank guarantee, not a condition of any banking activity, and they may lose value. All policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force.

Whole Life

Whole life insurance is a type of permanent policy that provides coverage for an entire lifetime.1 It has a death benefit component, a savings component, and accrues cash value on a tax-deferred basis. Whole life policies are the most common form of permanent life insurance in the United States.

A key advantage of whole life insurance is that the death benefit is guaranteed to be paid, and the cash value accumulates at a fixed rate over time. It is also possible to borrow against the policy’s cash value, and the proceeds are tax-free.2 In addition, many participating whole life insurance policies pay dividends to their owners. These dividends can be withdrawn as cash or used to reduce the premium, which may lower your cost of coverage over time.

Like other forms of permanent life insurance, a whole life policy offers several unique benefits, including guaranteed cash values, protection for an entire lifetime, and possible dividends. However, these features can also make it more expensive than other forms of permanent insurance.

The main reason that people purchase life insurance is to provide financial security for loved ones in the event of their death. Whole life insurance is designed to help cover funeral expenses, provide income replacement, and protect against unexpected or unavoidable debt.

When people choose to buy a whole life insurance policy, it is important to choose a company with a strong reputation for financial strength and stability. A good way to determine this is to check the company’s rating with independent sources such as A.M. Best, Moody’s Investors Service or Standard & Poor’s.

Buying a whole life insurance policy is a significant financial decision, and you should consult with an experienced insurance or financial professional to discuss your needs and ensure that you get the right type of coverage for your situation. If you’re ready to find a provider that can offer a whole life policy, MassMutual’s Life Insurance Agent Locator can connect you with someone who can help. You can also consider partnering with a reputable wealth management firm that is well-versed in life insurance to ensure your family’s future is protected.

Universal Life

If you need life insurance coverage that will provide protection for the rest of your life but you also want the flexibility to adjust your premium payments and cash value accumulation (within limits set by the insurer), a universal life policy may be the right choice for you. This type of policy provides the best of both worlds between term life and whole life policies in terms of coverage duration, premium payment options, and death benefit flexibility.

While both whole life and term life provide permanent protection and build a cash value component, a universal life insurance policy offers more flexibility in both your premium payments and the potential for higher cash values over time because the interest rate varies depending on market conditions (though a minimum guaranteed rate is provided). In addition, your death benefit can be paid in a tax-free lump sum to help your family with final expenses or other debts.

Universal life policies come in a variety of forms, including indexed universal life, variable universal life, and guaranteed universal life. Our team can help you determine what your needs are and recommend the most appropriate product to meet those needs.

Ultimately, no matter which option you choose, you can count on your death benefit to be there for your loved ones when you are gone. This money can help replace your lost income, pay for funeral costs, cover estate taxes, and more. It can even be used to pay off your mortgage or other debts and provide an inheritance for your heirs.

A death benefit can also help your loved ones with educational needs, retirement planning, or any other financial goals you might have for them. In addition, a life insurance policy can provide security for your business and family as it covers any unexpected expenses and allows you to leave behind a legacy.

The bottom line is that life insurance shouldn’t be too complicated. Term life policies provide peace of mind for your family and are the most cost-effective way to achieve your life insurance goals. If you are interested in exploring the benefits of permanent coverage with flexible payments, cash value growth, and even investment opportunities, contact us to learn more about our universal life insurance policies.

Variable Life

A variation of permanent life insurance, variable life policies include a cash value component that allows the policyholder to choose how that money is invested. This flexibility comes at a cost, however. Since the policy is more closely tied to investments, there is a greater chance of losing money than with other types of permanent life insurance.

Like whole and universal life, a variable life policy pays out a death benefit when the owner dies. The amount of that payout is determined by the cash value account’s performance and the underlying investments chosen by the policyholder. Because of this added risk, the premiums for a variable life insurance policy are often much higher than for other types of permanent coverage.

The money in a variable life policy’s cash value account grows on a tax-deferred basis, similar to money in a retirement account. If the investment performs well, you may be able to withdraw funds or borrow against them. However, you’ll need to keep in mind that the amount of money you withdraw will be reduced by the costs and charges associated with the policy, as well as surrender fees.

When choosing a variable life insurance policy, look for a company with a high financial strength rating from ratings agencies such as AM Best and Moody’s. Also, it’s important to understand the guaranteed parts of the policy (e.g., the death benefit) as well as its potential worst-case scenario in case the investments tank.

Because of the risks involved, variable life insurance is only appropriate for those who can afford to pay high premiums and are financially prepared to take on investment risk. For most people, a term life policy with a savings component is the better option.

In Canada, variable universal life (VUL) policies are sold by insurance agents who have completed the provincial life insurance licensing requirements and abide by the country’s national life insurance regulations. As a result, VUL policies aren’t considered securities and therefore receive less regulatory scrutiny than regular investments. However, they are still required to undergo medical underwriting.