Massachusetts Life Insurance
Choosing The Right Policy To Protect Your Loved Ones
Life insurance is a sound investment for many different reasons. However, not all policies are the same and it makes a difference which policy and provider in Massachusetts that you choose. Here are some reasons why it's important to explore all of your options before signing any papers.
Let's examine the story of Camron Wheaton. Camron took out a $250,000 Whole Life Insurance policy about 17 years ago, to protect his assets and the future of his family. Last year, things slowed down at work and he was laid off. Before long, Camron needed some extra money to make ends meet. Thankfully he remembered his policy had cash value. In fact, he could cash out the policy or borrow money from it. Plus, he did not have to pay income tax on the money. After a few weeks, he went back to work, and the extra money from his whole life policy kept him from seriously damaging his credit rating.
What Is A Whole Life Policy?
Whole life policy is designed to protect you for your entire or "whole life". Plus, it builds up cash value over time. This kind of policy gives you an investment as well as insuring your future.
Are There Options With Whole Life?
There is more than one kind of whole life policy. Some can be paid up in a set amount of years while others require payments the entire time they are in force. With some policies, you can add an accelerated death benefit rider. This allows chronically or terminally ill people to access a percentage of their benefits before death, and can give one the chance to live life more comfortably.
Some types of policies are paid dividends and over the years the value increases more than standard whole life policies. You also may choose either fixed or adjustable premiums.
Do I Have Other Alternatives?
If you want lower monthly premiums on insurance coverage, you may wish to check out Term Life Insurance. This is sometimes referred to as "pure death benefits" because that is all you pay for when you take out a policy. There are no other benefits.
Who Needs Life Insurance?
Anyone in Massachusetts that is concerned about their financial future should consider insuring their lives. After all, the future is uncertain and no one knows what will happen. The money from your policy can be used by your beneficiary to pay for living expenses, funeral expenses, pay off bills, to fund future educational needs of your family, or for any other reason.
Are There Different Types Of Life Policies?
You can choose a general policy or one designed to pay off a given obligation, such as:
- Mortgage Insurance - this will pay off your home mortgage balance in the event of your death.
- Auto loan debt
- Credit card debts
- Personal loans, and other kinds of loans
What are the benefits of Whole Life and Term Life policies?
Depending on your situation, you will receive financial benefits from each one. For example, both policies will provide you with peace of mind in knowing that you have provided for your family's future, in case you cannot be there for them someday.
Whole Life Insurance
Whole life policies come with higher monthly premiums because they are also a financial investment. If your policy has cash value, the money can be borrowed, and there is no need to pay it back. It also can provide you with a more impressive credit report if you plan on buying a new home or a new car.
Earnings from your whole life policy are tax-free and considered to be a strong investment. For example, the stock market can take a dive, and it will not affect your money. Good times or bad, your investment is safe.
Should you develop a serious health problem in the near future, you may find it very hard to get the kind of coverage that you want and need. However, once you start making your monthly premium payments, your policy will remain in force for as long as you continue the payments. It cannot be canceled if you become ill, or for any other reason. This provides you with guaranteed insurance.
Some investments can provide a better rate of return than a Whole Life policy. However, unlike most high return investments, a whole life policy comes with a low investment risk factor plus death benefits.
Term Life Insurance
Term policies are the most affordable option. For example, if you want to insure your life for $100,000 you can find affordable premiums. However, your age and health will have a great deal to do with the cost.
Whether you choose a term or whole life policy, you can rest assured that your family's future is taken care of. To explore all of the available options, contact Risman Insurance Agency in Massachusetts. We have been servicing the insurance needs of businesses and individuals in Massachusetts and surrounding areas since 1925.
Our agency has been family owned for three generations (80 years) and is built upon the foundation of impeccable client service, a standard of high ethics, and financial performance. Risman Insurance Agency has achieved the well-respected Five Star Designation from the Association of Insurance Agents. This is a very difficult designation that requires an entire fitness review of the company every three years.
You can visit us online at http://www.risman.com/ or call 1-800-952-6602 today, to discuss your insurance needs.