Life insurance is a form of personal insurance that helps families protect their family and their finances in the event of a tragedy.
The foundation of life insurance policies are “death benefits.” Death benefits are monetary distributions that are paid when a insured passes away to help provide for dependents who rely on their income, pay outstanding debts, and assist with the other financial obligations such as funeral expenses.
Some life policies offer investment options along with death benefits, but the most common is Term Life Insurance.
Term Life coverage from Garrity Insurance offers a flexible and very affordable way to protect your loved ones. Term limits range from 10 to 30 years. If the insured passes away the benefit is paid to the beneficiary, generally tax free..
Garrity Insurance offers Term Life insurance through all the top carriers and major life insurance companies, and we make the process as easy as possible. Contact us today to find the right plan for you.
There are two main kinds of life policies: term life policies and whole life policies.
Term life policies generally offer coverage for a set number of years. Terms may be any number of years, but most insurers offer policies with terms between 10 and 30 years. Should a policyholder pass away during their policy’s term, their beneficiaries will usually receive the policy’s death benefits.
Term life policies’ premiums normally remain the same over the duration of a policy, and the premium payments typically end once a policy’s term is up. Of course, coverage usually also ends once the term is over. Most term life policies don’t have any investment or savings options.
Whole life policies generally remain in effect from the time a policy is purchased until the policyholder passes away, even if they live to an old age. Most people who purchase whole life policies expect to collect death benefits no matter how long they live, since these policies aren’t designed to expire before death.
Whole life policies’ premiums frequently increase over the duration of the policy, and they sometimes become quite large later in life. The majority of whole life policies also have investment vehicles, though, and these investment options can help balance out the higher premiums. Policies are frequently designed so that the money invested in them can grow faster than their premiums do. By the time a whole life policy’s premiums become high, its investments often have also grown -- and the interest from the investments is frequently greater than the premiums. Thus, the interest earned on a policy’s investments can often eventually be used to pay the policy’s premiums, essentially making the policy "free" later in life.
Most Massachusetts residents should at least consider getting a term or whole life policy. As mentioned, no one escapes passing away. There are a few situations where coverage can be particularly helpful, though. Policies are especially useful for:
Massachusetts residents who want assistance finding life insurance should contact an independent insurance agent in the state. An independent agent can help residents choose between term life and whole life policies, and they can request quotes for either type of policy.