Life insurance

Life Insurance - MetLife

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Category: Life
Published on Tuesday, 20 July 2010 09:48

metlife-lifeLife insurance gives you the peace of mind you only get from knowing that you've protected your loved ones. In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for whatever they want, such as:

- Make up for your lost income
- Fund your child's education
- Paying off household debt
- Paying for your funeral and other related expenses

In addition, Permanent Life Insurance offers a cash value component which can be put to good use during your lifetime.1

 

The Two Types: Term & Permanent

If you want life insurance for a limited time — long enough to meet your anticipated responsibilities to those who depend on you, but not longer — Term Life Insurance may be right for you. If you value added security, flexibility, cash value and lifetime coverage, some form of Permanent Life Insurance may be right for you.

Term Life Basics
  • Provides coverage for a specified period
  • Easy to understand
  • Affordable way to get maximum coverage
  • Becomes expensive after the specified period
  • You build no equity

Term and Permanent Life Together

Don't think that you're limited to one or the other; you may find that a combination of Term and Permanent Life meets your needs best.

For example, the foundation of your life insurance plan could be Permanent Life, supplemented by Term Life during your family-building, mortgage-paying years when coverage needs are typically higher.
Permanent Life Basics
  • Protection for your whole life, as long as sufficient premiums are paid
  • Can build equity in the form of a cash value
  • Offers flexibility and many options to choose from
  • Initially higher premiums than Term, but generally more cost-effective in the long run

 

Term Life Insurance

Term Life Basics
Term Life Insurance provides a cost-effective solution for your temporary life insurance needs and gives you the flexibility to change your policy should your temporary needs turn into permanent goals.

Term Life Insurance is right for you if you want:

  • An affordable way to get maximum coverage
  • To cover specific financial responsibilities like a mortgage or college expenses
  • To supplement your Permanent Life Insurance during periods when coverage needs are higher, such as family-growing, mortgage-paying years


Some things to consider about Term Life Insurance:

  • There is no cash value accumulation
  • Continuing your coverage after the initial level premium-paying term expires can be very expensive


How Much Do You Need?

Getting the right coverage starts with knowing how much you need. For most people, our quick and easy Life Insurance Calculator can provide a good estimate:

  • Tell us a little about yourself
  • Provide some quick info on income, debts and assets
  • Get an instant estimate of how much coverage you need

Revisit your coverage if your needs change and talk to a professional about specific concerns like a special needs child.


Whole Life Insurance

Whole Life Insurance is the simplest form of permanent life insurance. It features lifelong protection with guaranteed premiums, death benefit, and cash value. Whole Life Insurance protects you for your entire life unless you cancel the policy.

Whole Life Insurance can be right for you if you want:

  • Fixed premiums that will not increase
  • A guaranteed death benefit payout
  • Cash value that is guaranteed to grow each year - tax-deferred
  • Dividends that can be used to increase the value of the policy

Some things to consider about Whole Life Insurance:

  • Premiums are initially more costly than Term Life, but are guaranteed not to increase
  • Dividends are not guaranteed
  • Loans and withdrawals can reduce the death benefit payout

Your MetLife representative can help you determine whether Whole Life Insurance makes sense for you and your family.

 

Universal Life Insurance

Universal Life Insurance is a form of permanent life insurance. It can provide affordable guaranteed protection and flexibility. A Universal Life insurance policy provides flexibility that allows you to change, within limits, the death benefit and the timing and amount of your premium. You can build your policy's cash value, or pay a lower premium and focus more on guaranteed protection.

MetLife's Guarantee Advantage Universal Life insurance can be right for you if you want:

  • Protection that can last a lifetime
  • The flexibility to choose between two policy designs:
    • Protection plus cash accumulation, or
    • Focus on affordable guaranteed protection
  • An option for a lifetime of guaranteed monthly income for your beneficiaries


Some things to consider about Universal Life Insurance:

  • Cash value growth is based on periodically-declared fixed interest rates. Should rates fall, cash accumulation could suffer, and higher premiums may be needed
  • Changing your policy's premium or death benefit can affect your policy's performance and guarantees, possibly requiring higher premiums later.

Your MetLife representative can help you determine whether Guarantee Advantage Universal Life insurance makes sense for you and your family.

 

Variable Universal Life Insurance

Variable Universal Life Insurance is a form of Permanent Life Insurance with flexible terms and investment possibilities.

Capitalizing on life's opportunities can be just as important as preparing for life's uncertainties. MetLife's Equity Advantage Variable Universal Life insurance gives you the chance to do both-all in one policy.

Variable Universal Life Insurance has flexible terms that allow you to change, within limits, the death benefit and the timing and amount of your premiums. It also lets you invest your cash value in professionally-managed funding options that reflect the performance of underlying investments such as stocks and bonds.

Variable Universal Life Insurance can be the right choice if you want:

  • Protection that can last a lifetime
  • Flexibility to accommodate life changes
  • Cash value with market growth potential

Some things to consider about Variable Universal Life Insurance:

  • As with any investment, the value of the funding options will fluctuate with changes in market conditions. There is growth potential, but also risk of loss.
  • Skipping or postponing premiums can affect your policy's cash value and death benefit, and may cause increased premium requirements later.

 

Survivorship Life

Whether your goal is to leave an inheritance, protect your business, or provide a lasting benefit to a charity, MetLife can help. MetLife's Legacy Advantage Survivorship Universal Life insurance is a "survivorship" policy. It covers two people, usually spouses, under one policy, but provides a benefit only after the second person passes away, which is typically when estate settlement matters arise. It can be an important part of your estate plan.

A Survivorship life insurance policy can be the right choice if you want to:

  • Leave an inheritance for your heirs, a charity or a university
  • Make it easier to control how your estate is distributed
  • Maintain coverage for both insureds' entire lives, even well beyond age 100

Keep in mind that Legacy Advantage Survivorship Universal Life insurance generally covers two people at a cost lower than covering two people with two individual policies.

Things to consider about Survivorship Life Insurance:

  • A benefit is paid only at the death of the second insured person, not the first
  • Its primary purpose is to help you and another person plan your legacy

 

Details

Legacy Advantage Survivorship Universal Life insurance policy can help you design an effective legacy strategy.

A Legacy Advantage Survivorship Universal Life insurance policy can help you:

  • Ensure that funds are readily available for fees, taxes and other estate expenses
  • "Equalize" your estate among beneficiaries where assets are hard to divide (such as a business or real estate)
  • Leave an asset to a charity or university, while still providing a benefit to your heirs
  • Provide funding beyond your lifetime for the care of your Special Needs dependent

 

Source: MetLife