Life insurance is an important cornerstone of every family’s financial planning journey. Buying life insurance protects your partner and children from potentially devastating financial losses if something bad happens to you. It’s the peace of mind and security underlying your financial journey; life insurance in Massachusetts can help pay off debts, living expenses, and medical or final expenses. So why do so many families overlook a life insurance policy? Let’s explore the benefits and drawbacks of life insurance.
What is Life Insurance?
Life insurance is a financial safety net – an insurance policy that pays out a lump sum payment to your beneficiaries upon the policyholder’s death. The sum called a death benefit, will help your family cover a number of unexpected and expected expenses, such as funeral expenses, outstanding debts, mortgage payments and more. In addition, the money can help provide ongoing financial support for your dependents.
What does that look like? Let’s take a $2,000,000 policy. A policy of this sum will provide $2,000,000 in death benefits directly to your beneficiaries. Generally, it’s not subject to federal income tax, either.
There are several types of life insurance policies tailored to different needs:
Term Life Insurance
Term life insurance offers coverage for a specific period, providing a death benefit if the insured passes away during the term.
Whole Life Insurance
Whole life insurance offers coverage for the entire lifetime of the insured and includes a cash value component that grows over time.
Universal Life Insurance
This type of life insurance provides flexibility in premiums and death benefits, allowing policyholders to adjust coverage as needed.
At Oliver Capital Management, we understand each family has their own unique situation – and their own unique needs. That’s why we work closely with our clients to best understand which life insurance policy works for their financial goals and keeps their loved ones comfortable.
Benefits of
Life Insurance for
Massachusetts Residents
Benefits of Life Insurance for Massachusetts Residents
Life insurance in Massachusetts plays a vital role for residents seeking financial security for families. Life insurance provides that critical financial safety net, ensuring loved ones receive proper care in wake of the policyholder’s death. In a state with high living expenses, this can prove invaluable.
In addition, life insurance in Massachusetts can help mitigate estate taxes and ensure your family has a smooth transfer of wealth to heirs. Massachusetts offers certain state-specific advantages for those with a life insurance policy, too, with favorable tax implications.
Likewise, business owners in Massachusetts can use their life insurance policy to fund buy-sell agreements and protect against the loss of a key employee – or even secure business loans.
Why Oliver Capital Management?
Choosing the right financial advisor can make all the difference when navigating the complexities of your financial future. At Oliver Capital Management, we take the time to understand each client’s unique needs and tailor solutions accordingly. Our team has long been helping Massachusetts residents secure their financial future. We believe in the power of financial planning to transform lives. Allow us to guide you on the path to financial security and peace of mind.
Frequently Asked Questions
Why do I need life insurance?
Life insurance can help your loved ones with financial needs if you aren’t there anymore. Consider your mortgage and other debts and how much money your family might need to cover added expenses like funeral costs, education costs for children, and more. Once you add up these costs, you will understand how much life insurance you need.
Can I change my life insurance policy later?
Depending on the type of insurance policy you hold, you may have the option to change or adjust your coverage. In addition, you should have the option to change beneficiaries or update your premium payments. It’s critical to review your policy on a regular basis and make changes to meet your needs.
Is life insurance taxable?
Most of the time, life insurance death benefits are not taxable for your beneficiaries. However, there can be exceptions in certain situations – if the policy was owned by a business or if the death benefit exceeds certain thresholds. Consult a tax advisor for specific guidance.
Do I need a medical exam to get life insurance?
Certain life insurance policies will require a medical exam during the underwriting process. The exam will assess your health and determine premium rates. However, some life insurance policies will not need an exam, but these life insurance policies may have higher premiums or lower coverage amounts.
How do I choose the right life insurance policy?
To choose the right life insurance policy, consider factors like your budget, financial needs, age, health, and long-term goals. It’s crucial to compare different life insurance policies and insurance companies to find the best coverage at the right price.
Life insurance isn’t just a financial product – it’s a key pillar of long-term financial planning for families. We recognize the profound impact that strategic life insurance planning can have on your financial future. If you’re unsure where to start, get in touch to speak with our advisors to better navigate the complexities of life insurance and secure your financial future.
We Have Your Back
It all begins with a simple and honest conversation. This first step is the easiest and most important. Book a call with us and let’s get started!
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. You should consult a qualified tax professional for tax advice on your own personal situation. All guarantees are based upon the claims-paying ability of the issuer.