What to Expect From MassMutual Life Insurance

FT Contributor
A smartphone screen displays the MassMutual app.

Massachusetts Mutual Life Insurance Company, commonly referred to as MassMutual, is a life insurance provider founded in 1851 that offers coverage to eligible individuals. Since the life insurance company is a mutual company, it’s partially owned by its policyholders.

When the company succeeds financially, qualified policyholders benefit with dividend payments from MassMutual. To be eligible for these payments, customers must purchase whole life insurance policies through the company.

Additionally, MassMutual administers retirement and investment programs for individuals who want to save for retirement and employers who wish to set up benefit plans for their workers. To learn more about the different types of life insurance and other financial services MassMutual provides, review the following sections.

Term Life Insurance

When you purchase a term life insurance policy, you’re buying coverage for a certain term. If you pass away within this term, the policy payout amount is awarded to the beneficiary you named in the policy. Upon your death, your beneficiary must make a claim with MassMutual to receive the benefit.

Your premium is determined by your health, age, and other factors. While most people qualify for a term life insurance policy with MassMutual, older individuals in poorer health will pay higher premiums for this coverage.

MassMutual offers term life insurance policies spanning from 10 to 20 years. The higher the policy payout amount you choose, the higher the premium you’ll pay.

Once your policy term expires, you have the choice to renew for another term. However, your premium may increase when you renew. If eligible, you may also decide to convert your term life insurance policy into a permanent life insurance policy with no expiration date.

Universal Life Insurance

Universal life insurance is a flexible alternative to a permanent life insurance policy. When you buy a universal life insurance policy, you can choose a guaranteed death benefit. If you pass away while your policy is active, your family can make a claim and receive a lump-sum benefit.

You pay what you can afford in premium each month and the policy remains active as long as your account value is high enough to cover administrative fees and the cost of the insurance itself. When you pay extra premium, you build account value and eventually, you can take this extra account value out as cash.

Whole Life Insurance

Whole life insurance is also referred to as permanent life insurance because the policy lasts your entire life. As a whole life insurance policyholder, you’re eligible to receive dividend payments from MassMutual when the company is doing well.

These dividends can be automatically reinvested into the policy to increase its value. When the value increases, you can increase your death benefit or eventually take out the cash value after retirement.

If you pass away, your family receives a lump-sum policy payout when they make a claim. The beneficiary on your whole life insurance policy receives this payout no matter when you pass away.

Variable Insurance

A variable life insurance policy is a permanent life insurance policy that allows you to decide how your money is invested. Your policy beneficiary makes a claim with MassMutual if you pass away and they’re awarded the policy benefit as a lump-sum payment.

You make premium payments that you can afford when you can afford them, within certain limits related to your eligibility and policy characteristics. The premium you pay each month must be enough to cover the administrative charges and insurance associated with your account.

Depending on how much premium you pay over the life of the policy, you could also earn an account value that has the ability to pay you back in your retirement years. You have control over where your premium dollars are invested, so you can decide how risky or conservative you want to be.

Retirement Services

MassMutual provides a variety of retirement services for individuals and employers, including the following:

Annuities and IRAs

Depending on the type of annuity you invest in, it may be a retirement vehicle or pay you a stream of income. MassMutual offers many annuities, including a deferred fix, variable, fixed index, immediate income, or deferred income annuity.

An IRA is a retirement vehicle that can include annuities, bonds, stocks, and other investments and is known for its tax advantages. Through MassMutual, you can sign up for a traditional or Roth IRA, depending on your savings goals.

Protection Plans

MassMutual offers whole life insurance that protects your family financially at the time of your passing. Not only can you earn dividends through this policy, your beneficiary is also provided with a lump-sum payout if you pass away.

Long-term care insurance also protects your family’s financial future if you were to suddenly need long-term medical care after an accident or injury. The policy covers your medical expenses and other needs to ensure your assets remain safe.

Workplace Benefits

MassMutual works with employers so they can offer comprehensive retirement and insurance benefits to workers. The company helps employers implement plans for group whole life, universal life, critical illness, and accident insurance.

Investment Options

MassMutual customers who are looking into investment options will find many choices with the company, including the following:

  • Brokerage products: MassMutual financial advisors can help you decide how to invest your money based on your financial goals. The company offers many products, including mutual funds, exchange-traded funds, unit investment trusts, and section 529 plans. These investments can easily be managed through the company’s digital investment platform, Fortuna, along with the assistance of a dedicated advisor.
  • Advisory and trust services: MassMutual advisors help customers create wealth management plans that cater to their goals. The company offers wealth management services, financial planning, and private client services to ensure customers stay on track and make smart financial moves for their future.
  • MML investor services: MML investor services is an independent brokerage affiliated with MassMutual. Through this service, consumers are provided with investment advice and management. MML investment advisers offer comprehensive investment solutions that may include insurance products through MassMutual.

Pros of MassMutual

There are several advantages to becoming a MassMutual customer, including the following:

  • You can create a comprehensive financial plan using multiple products through one company.
  • You can manage your investments online with the Fortuna online platform.
  • You may be eligible to convert your term life policy into a permanent life policy.

Cons of MassMutual

While MassMutual offers various products, there are some disadvantages to doing business with the company, including the following:

  • MassMutual isn’t accredited with the Better Business Bureau (BBB) and has a B-minus rating.
  • You can’t make a life insurance policy claim online and your beneficiary must call the company.
  • You must complete the application process to learn how much you’ll pay for your life insurance policy.

If you’re looking for a company that offers both life insurance and investment products, MassMutual may be a good choice. Review your financial goals, budget, and options before deciding where to invest your money.

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