Best Life Insurance Companies in Lawrence

Frequently Asked Questions

• How does a life insurance’s free look period benefit Lawrence consumers?

  Individuals in Lawrence benefit from the free-look period of life insurance because it allows them to try out a policy and helps them understand it, even if they have already purchased it. After receiving the policy, they have 10 days to reevaluate it and cancel it, if desired. If a client returns a life insurance policy during the free-look period, the insurer is required to refund the premium.

• Can an insurer refuse a claim if a Lawrence life insurance policyholder committed suicide or if there was material misrepresentation in their application?

  Yes, insurers can deny claims if a Lawrence life insurance policyholder committed suicide or if there was a material misrepresentation within two years of the policy purchase. Material misrepresentation occurs when policyholders lie about a medical condition or situation that would cause an insurance provider to deny coverage. Understating one's age for a lower premium permits the insurer to deduct from the death benefit the premiums they would have charged if the actual age had been declared.

• What happens to a Lawrence life insurance policy if the insurance company fails?

  A guaranty association may continue coverage on a Lawrence life insurance policy from a defunct insurance company as long as the premiums are still paid or the policy has a cash value. The association may do it directly, but more often than not, the insurance is transferred to another insurer. Policyholders should continue to pay the premium in order to keep their coverage active.

• How can a Lawrence life insurance policyholder maintain coverage if they move out of state?

  A Lawrence life insurance policyholder who relocates outside of Massachusetts may continue to have guaranty association coverage if their insurer is a member of their resident state's guaranty association. Even if the policy was purchased elsewhere, this guaranty association will typically provide protection during the liquidation order. If the policyholder lives in a state where their previous insurer was not licensed, they are frequently covered by the state guaranty association where the insolvent insurer was domiciled.

• Should a Lawrence resident decide to buy a life insurance policy based on its projected future cash surrender value?

  No, a Lawrence resident should not buy life insurance based on its projected future cash surrender value. They should instead look at guaranteed values that are based on the company's guaranteed interest rates, which do not fluctuate with market conditions. Future values are only estimates, and they may change as market prices fluctuate.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.