Category Archives: Massachusetts Life Insurance Company

Coronavirus Will Cause Life Insurance Rates To Increase

Our lives have literally changed overnight thanks to the Covid 19 pandemic. Most of us are stuck in our homes social distancing from family members, friends, neighbors, and co-workers. A trip to the grocery store means gearing up and bracing for longer lines and emptier shelves. Our schools are now just empty buildings instead of places of learning. Even the children would rather be there with their friends and teachers instead of being stuck at home with their parents and siblings.

Office buildings share the same fate. Most of us would rather be back at work telling stories around the water cooler with our co-workers as opposed to working remotely from home. If you are working on the front line we thank you and hope that you stay safe. You are the true heroes. The good news is that this will end at some point in the near future, and we will get back to normal. In the meantime, it is a great idea to take this occasion to be thankful for what you have instead of focusing on what you do not have.

It is also a good opportunity to concentrate on the important things in life such as your family, and how to best protect them. In addition to following all of the Covid 19 protocol in order to keep your family as healthy as possible, it is also important to either review your current life insurance policy, or consider taking one out if you do not have a policy in place. Now is the perfect time to do it because life insurance premiums are bound to go up based on the fact that lives are being lost because of Coronavirus.

Unfortunately, this trend will continue for a while before things level out. That means the life insurance premiums will rise with the death rate. Think of it in the following manner. Life insurance companies are forced to raise prices based on the immense increase in the policy payouts that are associated with the higher death rate. If that sounds a bit morbid, it is. However, it is important to explain the process so that you have a better understanding of how the process actually works.

The bottom line is that now is the perfect time to lock in your life insurance policy before the prices spike up. If you already have a life insurance policy in place, you should be asking yourself if there is enough coverage to protect your loved ones if something should happen to you? For example, most policyholders take out life insurance when they start a family, and then do not think much about it. That being stated, your family may have grown since that time, which means you need to increase the policy amount. If you have started a family and do not have life insurance, now is the time to get it.

In conclusion, the Covid 19 pandemic has taught us the importance of being prepared. Please consult with a professional insurance agent that specializes in providing life insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

The Various Types Of Life Insurance Part 2 Of 2

As mentioned in part one of this article, term life insurance is the most popular type of life insurance amongst consumers. This is due to the fact that it is both cost effective and easy to understand. However, there are other types of life insurance that will provide you will additional benefits. You may very well decide to invest in one of the policies that are listed below depending on a vast variety of factors. It is always a smart idea to consult with an insurance professional prior to making any insurance related decisions that can affect the financial security of your loved ones.

Permanent Life Insurance

Although term life insurance is fairly easy to understand, permanent life insurance becomes a tad more complicated. This is due to the fact that permanent life is trying to accomplish two things at once. First and foremost, the intent of a permanent life insurance policy is to pay your beneficiaries in the event of your death. The second part is where it becomes more complicated. Permanent life insurance can also be used as an investment account because it includes something called cash value. In essence, cash value is like a savings account where you deposit money every month.

It is a pool of money that you own, which means you can access it or borrow against it. The longer that you have the policy, the more cash value the policy actually has. Another bonus is the fact that the permanent life insurance policy does not expire. In essence, it will continue on until the day you die, or cancel the policy. The details of how much money your loved ones will receive upon your death, how the cash value grows, and other important factors typically depends on the exact policy that you purchase. Permanent life insurance policies can include whole life, universal life, or variable universal life.

Whole Life Insurance

When you purchase a whole life insurance policy you pay a locked in premium amount to the insurance company each month until you either die, or decide to cancel the policy, which of course is not recommended. A portion of the premium goes into the cash value, which grows over the whole life of the policy. In essence, the longer you own the policy, the more money it is worth from a cash value perspective. Although whole life insurance is more expensive than term life insurance, having the opportunity to utilize a portion of your monthly payments as a cash value is certainly something to consider if the premium is still affordable.

Universal Life Insurance

Universal life insurance has a death benefit and cash value just like a whole life a whole life policy. However, universal life insurance policies offer adjustable premiums. In essence, you may be able to access some of the cash value in order to adjust your payments, which is a nice benefit that saves you money out of pocket. The bottom line is that the investment will grow over time, and may even be enough to offset the premium all together. Keep in mind that if you do choose to apply cash value to your premium payments, the cash value will decrease. That being stated, it is a worthwhile option to have, and is certainly something to consider if the premium is affordable.

Variable Universal Life Insurance

Perhaps the most complicated life insurance program is the variable universal life insurance policy. In essence it is a life insurance policy, a savings account, and a mutual fund all wrapped into one investment vehicle.  Variable universal life provides you with the ability to decide how your cash value is invested. As with any traditional mutual fund, there are both rewards and risks involved in the process. Here is how it works. You will be presented with a vast variety of investment options for your cash value, and you choose how risky you are with the investments. The bottom line is that you are in control of where your money is invested, however the policy has zero guarantees regarding how much money the cash value will end up being worth.

It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

The Various Types Of Life Insurance Part 1 Of 2

Life insurance can be a confusing topic, especially for people that do not like to think about their ultimate demise, let alone talk about something as morbid as death. However, it is incredibly important to protect your loved ones, from a financial standpoint, just in case you do happen to die suddenly. Having the correct life insurance policy in place will accomplish that. The good news is once you have set it up, it is not something that you have to think about on a frequent basis.

All you really need to do is simply pay the bill when it is due, live your life, and sleep well at night knowing that your family will not face financial ruin upon your passing. That being stated, it is also important to know a bit about what you are getting into when purchasing a policy. As mentioned above, it can be a confusing topic unless it is properly explained.  So without further ado, the following information will teach you about the various types of life insurance.

Term Life Insurance

Term life insurance is the most popular types of life insurance available on the market. This is due to the fact that it is fairly simple and typically the most affordable choice that you can purchase. This type of life insurance does one thing and one thing only. The bottom line is that it pays the people you choose a fixed amount of money if you die. However, the term life insurance policy is not worth anything unless you do happen to die during the term.

In essence, you are paying the insurance company to assume the financial risk of your death during the period of time that the policy is in effect. The typical terms are typically 10 years, 15 years, 20 years, and 30 years. Here is an example of how it works. If you purchase a 10-year term life insurance policy with $250,000 coverage, you will make monthly payments for ten years. If you happen to die within those ten years, the insurance company will issue a check to your loved one in the amount of $250,000. This is known as the death benefit.

However, if you live longer than the ten years, the policy ends. The good news is you have outlived the policy. The bad news is that you need new life insurance coverage. That is why most consumers choose a longer term from the start, such as 20 or 30 years. The cost of the policy increases for longer terms. So a 10-year policy will cost you less than a 30-year policy. The other factor that determines the price you pay for the policy is the payout. It is highly recommended that you purchase a term life insurance policy that is 10-12 times your annual income.

If something happens to you, the death benefit will go a long way in replacing your income for the long term. Although a term life insurance policy is the most cost effective manner in which to protect your loved ones, the other types of life insurance plans provide additional benefits.

….To Be Continued….

It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Life Insurance Is A Key Piece Of The Financial Planning Puzzle

Life insurance is certainly not one of those topics that you enjoy talking about around the water cooler because it forces us to face our own ultimate demise. Purchasing a policy may even feel like a jinx to some of us. Although most people are aware of the fact that they need life insurance, they tend to procrastinate until a significant life event provides them with the incentive to purchase a policy. This is unfortunate, because death can occur at any time and for some it is too late. There are a plethora of benefits to having a life insurance policy in place. In fact, life insurance is a key piece of the financial planning puzzle. The following information will explain this even further.

Life Insurance Replaces Lost Income

A life insurance policy provides financial security to your loved ones after you have passed away. In essence, it will give you with peace of mind knowing that if you were to die suddenly your family will be covered from a financial standpoint. This holds particularly true if your family depend solely on your income. Think if it in the following manner. What would happen to your loved ones if you were to pass away? Will they be able to afford the basics such as shelter, food, and clothing, let alone the comforts of life without your income? You need a life insurance plan with adequate coverage so that your family is not left helpless when the monthly bills are due.

Life Insurance Covers Burial Expenses

Even a basic funeral can cost upwards of five to ten thousand dollars. That can be a tremendous financial burden on your family. The good news is that your life insurance policy covers burial expenses so that your loved ones can grieve without worrying about how they are going to pay for the funeral. In essence, life insurance provides your beneficiaries with a guarantee, and lifts the burden off of them and yourself while you are alive.

Life Insurance Pays Off Debt

Did you know that when you pass away it does not necessarily mean that your debt will disappear? That means your family may very well be responsible to pay your creditors. For example, if you and your spouse have co-signed for a mortgage, automobile loan, or other loans your spouse may become responsible for the repayment. In addition, your creditors could try to collect from your estate. Life insurance provides your beneficiaries with the ability to handle all of your remaining financial responsibilities.

Life Insurance Can Build Cash Value

Unlike Term Life Insurance, which stays in place for a set period of time, Whole Life Insurance provides permanent coverage that only ends if you cancel the policy. The reason why this is important to understand is due to the fact that Whole Life Insurance provides you with the ability to build up a cash value over time. Although Whole Life Insurance is more expensive than Term Life Insurance, it is an attractive option from a financial planning perspective. In essence, the cash value acts as an additional financial cushion that you can access at any time. This can come in extremely handy if you happen to experience a financial crisis at some point in the future.

Life Insurance Diversifies Your Investments

A great deal of financial savvy people utilize life insurance as an investment tool by taking out a universal life policy. These policies are attached to a particular investment product. Policyholders receive dividend payments that are based on the product’s performance. It is highly advised to read all of the fine print before signing the policy papers. That way you will be well aware of the potential risks prior to committing to the policy.

In conclusion, life insurance will ease the financial burden of the people that you leave behind, and can come in handy while you are alive as well. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your life insurance policy and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs.