Best Life Insurance Companies in Worcester

Frequently Asked Questions

• How do you find a deceased parent's life insurance policy in Worcester?

  To find a deceased parent's life insurance policy, check the National Association of Insurance Commissioners's website using the Life Insurance Policy Locator tool. If your deceased parent's insurer has changed its name or been merged and sold off to another, ask the new insurer from the MA Division of Insurance Consumer Service Unit by calling 617-521-7794. Another way of locating the policy in Worcester would be to contact the Unclaimed Property division of the State Treasurer's Office at 617-367-0400.

• Should you pick the life insurance with the lowest cost in Worcester?

  Instead of choosing life insurance with the lowest cost, balance the affordability of the life insurance with your needs and goals. One helpful advice is to obtain coverage worth 10 times more than your income in a year. For example, if your annual income in Worcester is $100,000, you should buy a policy with a coverage of $1,000,000. Note that this might not be enough if you plan to fund your children's college education or pay for your home mortgage.

• Can you borrow funds from your life insurance in Worcester?

  You can only borrow funds from your policy in Worcester if you have universal or whole-life insurance with a cash-value component. Depending on the insurance company's requirement, you can be eligible to get the funds when your payments have reached a certain minimum. However, there is a limit as to how much amount you can take out, and most of the time it is 90% of the policy's cash value.

• When a policy in Worcester is terminated, can you claim investment loss on a tax return if you receive less than what you have paid?

  When you surrender a policy in Worcester, you cannot claim investment loss on a tax return just because the amount on the premiums you have paid is more than what you can get. The same also happens if you have lapses in premium payments and would like to terminate the policy and get back what you have paid. The reason for this is that life insurance is not treated as an investment asset under tax laws.

• Why can't some beneficiaries in Worcester receive proceeds from life insurance?

  If the proof of death is not sufficient, as in cases when the death occurred overseas, insurance companies in Worcester may delay or deny payment of benefits. Beneficiaries may also face problems with the payout if there are lapses in the payment of the life insurance premiums or the policy is terminated. If the deceased policyholder made some mistakes on their insurance application or withheld information, the insurance company may not provide benefits at all.

• 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.