FAQs

Life insurance pays out a sum of money to your designated beneficiary, and can help your loved ones:

• Replace lost income.
• Pay for final expenses, estate taxes and/or debts.
• Cover basic living expenses.
• Supplement retirement savings.

Consider what your spouse and dependents would need in order to cover day-to-day as well as larger expenses, to live comfortably and have financial stability, in the event of your death. Don't forget to include savings for college and retirement. Also consider the effect of inflation over time; the amount that will be needed twenty years from now may be significantly higher than it is today.

The Life Insurance Needs Calculator can help you get the right coverage.

In addition to being financially secure, the life insurance company you choose should have a good claims payment history, good customer service and competitive pricing. Sources such as Standard and Poor's, A.M. Best, Moody's, Fitch, and Weiss rate insurance companies. Information from these resources can be found on the internet.

Life insurance may be less expensive than you think. In fact, many people can get term life insurance coverage from a quality company for a surprisingly low price. Life insurance does get more expensive as you get older.

Premium rates for life insurance are typically based on factors such as:

• Age, sex, height, and weight
• Health status, including whether or not you smoke
• Participation in high-risk occupations

The type of policy you purchase will also affect the amount of premium that you will pay. Rates for term insurance are typically lower, at least at younger ages. Premium rates for permanent policies, like GVUL and GUL, are typically higher.

When you purchase life insurance through the workplace, you have the following advantages:

• Competitive group rates
• Convenient payroll deductions.
• Easy access to enrollment support tools and educational tools that can help you make the right decisions about what type and amount of insurance is right for you.
• The confidence that your employer has reviewed and selected the plan.

It’s a good idea to review your coverage every few years to make sure it still meets your financial needs. Check to make sure that all beneficiary and other information are current. It might be time to re-evaluate, if you:

• Recently married or divorced.
• Provide care or financial help to a child or parent.
• Want to ensure that financial resources are available to provide assistance or long-term care for a loved one.
• Purchased a new home.
• Have children or grandchildren who are about to enter college.

Death benefits are generally received income tax-free by your beneficiaries. In the case of Permanent Life Insurance policies, cash values accumulate on an income tax-deferred basis. That means that you would not have to pay income tax on any earnings in the policy as long as the policy remains in effect. In addition, most policy loans and withdrawals are not taxable (although withdrawals and loans will reduce the cash value and death benefit).

The information contained in this website is not intended to (and cannot) be used by anyone to avoid IRS penalties. This website supports the promotion and marketing of MetLife insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.

Your life insurance beneficiary designation serves a very important purpose - making sure your benefits are distributed as you intended. Without a validly named beneficiary, the money in your life insurance policy may be paid to your estate, which means that your family may have to endure the complexity, expenses and costs associated with the probate process.

Visit The Importance of Beneficiary Designation