10 Best Life Insurance Companies in Massachusetts
Key Terms
- Life insurance in Massachusetts offers various options, including term and whole life policies, to cater to different financial needs and circumstances.
- State-specific regulations like the free look period and grace period provide consumers with flexibility and protection in Massachusetts.
- Financial advisors recommend life insurance coverage of 10 to 20 times annual income to ensure adequate protection for beneficiaries.
Affectionately known as the Bay State, Massachusetts is a northeastern gem with Boston at its vibrant core, housing nearly 700,000 residents. Bordered by Vermont, New Hampshire, Connecticut, and New York, it ranks as the 15th-most populous state with a total population of 6.9 million.
According to the Center for Disease Control and Prevention (CDC), the average life expectancy in Massachusetts is approximately 79 years which aligns with the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Massachusetts have been heart disease, cancer, and homicide. The homicide rate in Massachusetts is about 2.7 homicides per 100,000 inhabitants, which is considerably lower than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Massachusetts, the 90th percentile income is currently $130,970. The median income in the state is approximately $58,540. Most financial advisors recommend acquiring a life insurance policy that safeguards your loved ones for between 10X and 20X your annual earnings. In Massachusetts, this amounts to sufficient protection for most individuals.
Show Me Life Insurance Companies
How life insurance works in Massachusetts
Some people think that life insurance is complicated, but it’s actually quite easy to understand. Life insurance is basically a contract between the policyholder and an insurance company. The insurance company agrees to pay a certain sum of money to the policyholder’s designated beneficiaries in exchange for a premium that is paid monthly, or in some cases, annually.
Life insurance policies come in two basic types: term life insurance and whole life insurance. Term life insurance provides coverage for a specific period of time, usually 10, 20, or 30 years. Whole life insurance, on the other hand, tends to be a bit more expensive, but it provides coverage for your entire life, and will pay out the death benefit whenever you happen to pass away. Whole life insurance policies typically have a cash value component that accumulates over time and can be accessed by the policyholder.
Most people purchase life insurance to provide financial security for their loved ones in the event of their death. The death benefit from a life insurance policy can be used to pay for final expenses, such as funeral costs and outstanding medical bills, or day-to-day expenses, like mortgage payments.
Regardless of whether you choose a term policy or a whole life policy, either way, life insurance can protect your family in the event of an unexpected death. Most people will ultimately pick term life insurance. It’s cheaper and easier to understand. You can invest the dollars you save into a separate investment account.
You can look online and find various quotes from different companies, but before you sign any contracts you should consult with a licensed insurance agent. An insurance agent can answer any questions you may have, and they can help you find a policy that suits your unique needs and financial situation.