Best Life Insurance Companies in Lynn

Frequently Asked Questions

• Why should residents of Lynn purchase life insurance?

  Life insurance is recommended for Lynn residents to protect their families financially in the event of a premature death. If the policy has a monetary value, it can be used as a means of saving. It also includes funeral and burial costs. Some types of life insurance proceeds can be used to assist your loved ones with debt repayment or college education funds. Furthermore, the proceeds from a life insurance policy may be left to loved ones or donated to a charitable organization.

• What happens if the designated beneficiary of a life insurance policy in Lynn is a minor?

  Beneficiaries under the age of 18 cannot receive death benefits directly from a life insurance policy in Lynn. The court will appoint a conservator to manage the funds for the minor beneficiary, but it has no authority to prevent the conservator from misusing the funds. To avoid this issue, the policyholder must establish a trust with the minor as the beneficiary and name the trust as the policy's beneficiary. In this way, the policyholder can choose who will serve as trustees.

• Can beneficiaries receive death benefits from a life insurance policy in Lynn if the insured died outside the country?

  If the insured fails to notify the insurance company in Lynn about their overseas trip, the duration of their stay, and the activities they intend to participate in, their claim may be denied. This could be considered information misrepresentation. Nonetheless, the investigation by the life insurance company will cause a delay in the beneficiaries' payouts.

• Is it possible for your life insurance policy to undergo a probate process in Lynn?

  Life insurance policies in Lynn do not go through probate because the proceeds are paid out to the designated beneficiaries without the involvement of the probate court system. However, probate may be required if there are no named beneficiaries or if they cannot be located to receive the life insurance proceeds.

• What are the advantages of establishing an irrevocable life insurance trust in Lynn?

  Setting up an irrevocable life insurance trust in Lynn reduces estate taxes and provides cash for expenses. The amount of insurance needed to justify an ILIT is determined by an individual's financial situation. Massachusetts' estate tax exemption is $1 million. The value of your estate and the balance of your policy's death benefits may be taxable. If you give the majority of your taxable wealth to charities, an ILIT can help your family or other beneficiaries.

• 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.