Whole Life Insurance
Whole Life Insurance is a permanent policy, which gives you guaranteed protection for your loved ones that lasts a lifetime. With whole life insurance, unlike term, you build guaranteed cash value, which you can use however you want. Participating whole life insurance is eligible to earn dividends,1 which can be used to increase the death benefit and the cash value of the policy. Or there are other options you could choose, such as using dividends to help pay premiums.
Market & Competition
Brand Value
- MassMutual’s historical distribution has led with an individual financial advisor focused on high-net-worth individual, business owners, and the C-Suite
- Prior education of the business owner can lead to a higher perceived value when discussing permanent whole life with a participating dividend, in the worksite
Product
- Whole Life is fastest-growing voluntary benefit in 2022 according to LIMRA
- Newer product in voluntary benefits space means there is a lot of shelf space available, and market share open
New Carrier
- MassMutual is new in the worksite marketplace with only 7 years
Market Need
- Long term care related benefits and expenses continue to be solved for with associated benefits under a whole-life policy
- Washington Cares Act introduced state-mandated requirement for long-term care by consumers; this has led other states to consider passing similar requirements
Product Differentiators
- Guaranteed death benefit
- Guaranteed level premium
- Guaranteed Cash Value accumulation
- Compounding cash value accumulation based upon annual dividend
- MassMutual has paid a dividend every year since 1869
- Triggered by 2 ADLs and pays a lump sum to assist with Long-Term care (or other health) related expenses
- Payable tax-free
Access to a cash reserve to be used for any need, at any time, by the certificate holder
Here are some important things to understand about the cash value you grow in your policy:
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- Cash Value grows tax-deferred within your policy.
- Cash Value can be used penalty-free for any future use that you determine (ex: a down payment on a home, purchase of a car, vacation, paying down debt, education needs, etc)
Policy provides for a participating dividend that pays out annually based upon financial performance of MassMutual
- GI for all size groups
- 10 – 24 eligible employees: 5 enrolled minimum with $50k GI
- 25 – 99 eligible employees: 10 enrolled minimum with $100k GI
- 100+ eligible employees: 10 enrolled minimum with $150 GI
- Perpetual Guaranteed Issue (GI):
- GI is extended beyond the initial offer to all employees that elect a minimum of $10k of benefit at initial enrollment