And MASSMutual employees should consider life insurance as part of their retirement planning - to protect loved ones, pay off debts and leave a legacy - to give them financial security in their absence - says Tyson Mavar, representative of the Retirement Group, part of Wealth Enhancement Group.
Life insurance can give you peace of mind in retirement - protecting your family and your wealth from the unexpected - Wesley Boudreaux, of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Life insurance for retirees - especially MASSMutual types.
2. Financial dependents, outstanding debt and savings are key factors determining life insurance needs.
3. The role of life insurance in securing a financial future and leaving a legacy for loved ones.
More than 60% of Americans who feel confident they understand life insurance are insured. Nonetheless, life insurance covers less than 20% of those who do not know about life insurance. See if life insurance is a good asset for retirees if you work for MASSMutual and are considering retiring. Life insurance buyers can get free price quotes from their preferred insurers before making a commitment. But, despite the variety and ease of getting coverage, more than two out of every three Americans say they lack adequate life insurance. MASSMutual employees must consider whether life insurance is necessary for retirement.
Financial Dependents:
MASSMutual employees with financial dependents must secure them at any age or position. A retiree with a spouse and children who depend on their retirement income might profit from an active life insurance policy. A full four in five (44%) American households would be broke within six months if the primary wage earner were to lose his or her job. More than a quarter (28%) would go broke in a month. The insured's dependents would not be left broke if they died; they would keep their income. 75% of Americans with life insurance say they would still feel financially secure if their main wage earner died. But only about half of uninsured Americans say they would be financially safe in such circumstances. And even though life insurance is commonplace, just owning a policy does not necessarily provide adequate protection.
More than 100 million Americans are underinsured or uninsured, according to estimates. Taken together, MASSMutual employees then need to determine how much life insurance they need. That depends on your standard of living, monthly contribution, overall financial position, and situation. Ideally, you would have enough life insurance to replace lost income on death. Even so, MASSMutual employees know that buying insurance beyond this scenario is possible - and it is your job to determine what coverage meets their needs.
Outstanding Debt:
MASSMutual employees with outstanding debt that passes to beneficiaries upon death should buy life insurance now. Around forty percent will leave a financial burden to a loved one. Life insurance would relieve your beneficiaries of financial responsibility should you die unexpectedly. For instance, you should buy a policy that lets you repay a mortgage loan. Should you be unable to pay off your mortgage on your own with your income, you may want to buy coverage at least equal to that amount. This way, MASSMutual employees can lock in the mortgage balance should they die.
Savings:
MASSMutual employees who have not left a substantial inheritance for their beneficiaries can buy life insurance as a supplement. As savings aren't restricted to cash account balances either, the prospect of buying a policy for hundreds of thousands of dollars for less than USD 100 a month might be tempting. MASSMutual employees should research insurance benefits, limits, and price ranges before purchasing to avoid overspending and understating.
A study by research and consulting firm LIMRA found that life insurance ownership among Americans age 55 and older has steadily increased over the past decade. In 2011, only 63% of this age group had life insurance coverage - by 2021, it was 70%. That shows more MASSMutual retirees realize life insurance can protect their heirs financially. The study also noted that reasons for getting life insurance in this age group included replacing lost income, paying for funeral expenses and leaving an inheritance.
Whether MASSMutual employees need insurance depends on their situation. If you have dependents and beneficiaries, life insurance could give them income when you die. Your buying life insurance could spare your family obligations that would have been passed down if you were in debt. A life insurance policy could be an alternative if you cannot save a large nest egg for your heirs. MASSMutual employees uncertain whether to buy coverage should seek professional financial advice. Get a free cash flow analysis when you contact The Retirement Group to see which option best fits your needs.
Now picture your retirement as a garden that you have grown over time. You've sodded the seeds of financial security and watched them grow into wealth. As a garden needs protection so does your retirement - and life insurance can put a fence around your financial legacy.
Consider life insurance like the evergreen hedges that preserve your garden. Like hedges protect your garden from outside dangers, life insurance covers your family from financial strain should you die. That way, your labors will continue to feed your family - giving them a source of income and paying off any debts you may have left behind.
As each plant in your garden has a purpose, so does life insurance in retirement. It may replace lost income, pay down outstanding debts such as a mortgage, or provide a substantial cushion for your beneficiaries. Sow in your financial garden and bolster it with the right life insurance coverage - and you plant a seed that will bear fruit in your absence.
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- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
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- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Also, as you consider retirement, plant a garden of financial security with life insurance. A well-tended garden brings joy and security, too - and so will life insurance - the assurance that your family and your legacy will thrive long after you retire from work.
Sources:
1. Rodeck, David. 'Do You Need Life Insurance in Retirement?' Investopedia , 22 June 2023, https://www.investopedia.com/articles/personal-finance/010716/do-you-need-life-insurance-after-you-retire.asp .
2. 'Life Insurance Statistics in 2025.' The Zebra , March 2024, https://www.thezebra.com/resources/research/life-insurance-statistics/?utm_source=chatgpt.com .
3. 'What is a Life Insurance Retirement Plan (LIRP)?' Aflac , 24 Aug. 2023, https://www.aflac.com/resources/life-insurance/life-insurance-retirement-plans-lirp.aspx .
4. 'Life Insurance Benefits for Retired Workers.' Bureau of Labor Statistics , Sept. 1990, https://www.bls.gov/opub/mlr/1990/09/Art2full.pdf .
5. '10 Reasons Why You Need Life Insurance in Retirement.' GBS Life , 15 June 2016, https://www.gbslife.com/media/28501/10-reasons-retirement.pdf .
What is the primary purpose of the 401(k) plan offered by MASSMutual?
The primary purpose of the 401(k) plan offered by MASSMutual is to help employees save for retirement in a tax-advantaged way.
How can employees at MASSMutual enroll in the 401(k) plan?
Employees at MASSMutual can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.
What types of contributions can employees make to their MASSMutual 401(k) accounts?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and possibly catch-up contributions if they are age 50 or older.
Does MASSMutual offer a company match for 401(k) contributions?
Yes, MASSMutual offers a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.
What is the vesting schedule for the company match at MASSMutual?
The vesting schedule for the company match at MASSMutual typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.
Can employees at MASSMutual take loans against their 401(k) savings?
Yes, employees at MASSMutual may have the option to take loans against their 401(k) savings, subject to plan rules and limits.
What investment options are available in the MASSMutual 401(k) plan?
The MASSMutual 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and possibly company stock.
Are there any fees associated with the MASSMutual 401(k) plan?
Yes, there may be fees associated with the MASSMutual 401(k) plan, such as administrative fees and investment management fees, which are outlined in the plan documents.
How often can employees change their contribution amounts in the MASSMutual 401(k) plan?
Employees can typically change their contribution amounts to the MASSMutual 401(k) plan on a regular basis, often at any time during the year.
What resources does MASSMutual provide to help employees manage their 401(k) investments?
MASSMutual provides various resources, including online tools, educational materials, and access to financial advisors to help employees manage their 401(k) investments.
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