Term life insurance provides a simple, affordable way to provide for your loved ones in the event of
your death. This type of life insurance coverage lasts for a fixed period of time—typically 10,
15, 20 or 30 years.
Like other kinds of life insurance coverage, term life guarantees a financial payout to your
beneficiaries—a “death benefit”—in exchange for your regular monthly premium payments. That
payout is often tax free and paid in a lump sum.
Most term life policies offer guaranteed level premiums. This simply means that your monthly rate is
locked in and will not change. If your monthly
premium for a 20-year term policy is $23 when you sign up, then it will be $23 next month,
next year and so on… right up to the end of the term.
Types of life insurance
There are several different types of life insurance—term life, whole life, indexed universal,
guaranteed issue, accidental death
The list goes on. However, there are two types of life insurance that you really need to understand:
term and permanent.
Unlike a term life policy, permanent life insurance coverage lasts for the rest of your life and has
value component that grows over time. Permanent coverage can be at least 10 times more
expensive than term. Two common types of permanent coverage are whole and universal.
The right type of life insurance for you will depend on your budget and how long you want coverage.
For many people, term life insurance is a sound choice to financially protect your family. When
choosing between a term or permanent life insurance policy, consider the following.
Term life insurance
Whole life insurance
$37 per month*
$412 per month**
Tax-free death benefit
*based on a healthy 30-year-old woman purchasing a 30-year, $500,000 Haven Term policy.
**quote from State Farm based on a healthy 30-year-old woman buying a $500,000 whole life policy.
Choose a policy that’s right for you. Haven Life offers a variety of policy sizes (from
$100K up to $3M) and term
lengths (from 10 to 30 years), so you can personalize your coverage to fit the
needs of your loved ones and your budget.
Applying for a term life policy through Haven Life is simple and user-friendly. Our
online experience will seamlessly take you through questions about your age, health,
lifestyle and medical history so your policy can be appropriately priced. Answer as
honestly as possible. Once your application is submitted, we’ll process the information
in real time to provide you an instant decision on coverage eligibility and your rate.
If approved, you can start coverage immediately.
For the sake of transparency, the majority of our customers need to take a medical exam
to finalize their coverage and rate. In some cases, though, eligible applicants may
qualify for the InstantTerm process, which lets them skip the
altogether. That’s because, in partnership with MassMutual, Haven Life has built
technology that can analyze application information in real time. If the life insurance
company has a good enough understanding of your health and risk, the formality of an
exam may not be needed. (However, it’s very important to be honest when completing the
application. The issuance of the policy or payment of benefits depends on the
truthfulness of answers in the application.)
Once you have coverage in place, you simply need to make your monthly premium payments,
which are automatically drawn from your bank account, and you’re covered. The Haven Term
policy has guaranteed level premiums for the duration of the term, so your monthly rate
will never change.
Haven Life Plus, a
rider included in the Haven Term policy, provides policyholders in eligible states with
access to benefits that help them live easier, healthier and more protected lives. Haven
Life has partnered with like-minded companies to provide the following great services at
no charge or at a discount as part of Plus:
A digital solution for creating legal wills for you and your partner at no charge
through Trust & Will (a $129 value). The service also includes a healthcare power of
attorney and directives.
A secure online safe deposit box for storing, managing and sharing your family’s
important documents at no cost through LifeSite (normally $80 per year).
And you thought all you got with your life insurance policy was a monthly bill.
How does a life insurance policy payout work?
If you pass away at any time during the term of the life insurance policy, your beneficiaries will
need to get in touch with the life insurance company to submit a claim.
Assuming everything is in order, your beneficiaries receives a lump-sum payment from the life insurance
company for the value of the policy (the “death benefit”). For instance, if you purchase a $1
million term life insurance policy, your loved ones will receive an untaxed, $1 million lump sum
payout – usually within a few days.
Haven Life is backed and wholly owned by MassMutual, a leading life
MassMutual’s A.M. Best** rating for financial strength and claims-paying ability.
Combined insurance and annuity benefits paid by MassMutual in 2016*.
A primary beneficiary is first in line to receive the death benefit. At Haven Life, most customers
name their spouse or partner as the primary beneficiary.
A contingent beneficiary receives the death benefit if the primary beneficiary is deceased or the
life insurance company is unable to contact him or her. Most Haven Life customers list their
children or their children’s intended guardians as the contingent beneficiary.
You should revisit beneficiary information periodically - especially after life events. For example,
you will want to review your beneficiary designation if you get married or get divorced, if you buy
a new home or if you have a child.
Haven Term policyholders can list up to 10 primary beneficiaries and 10 contingent beneficiaries.
Life insurance that’s
Is term life insurance worth it?
Some people have doubts about term life insurance. Here’s why:
What you’re hoping for – the absolute best-case scenario – is that you have coverage in place and
your family will never have to use it. Once the term is up, the coverage ends… and you don’t get the
premiums paid back.
Of course, not everyone feels good about that, but here’s why you should:
You pay for coverage during the years you have financial dependents
It protects the most important people in your life
So let’s say you get term life insurance. You might be wondering what happens when you reach the end
of your coverage term period.
Well, coverage ends.
Your family only gets money from the life insurance company if you die. That’s why not seeing that
money again is the best-case scenario: it means you’re still alive. It’s like car insurance – the insurance company doesn’t send back the money you paid just because
nothing bad happened. You’re paying for coverage in case something does go wrong. Term life insurance is the same – the plan is not to die, but you get life insurance just in case.
What about return of premium life insurance?
Return of premium (ROP) life insurance works exactly as the name indicates: as long as the insured outlives
the term period, the life insurance company returns most or all of your premiums paid.
So why don’t we hear more rave reviews about this coverage option? While return of premium coverage
can be a nice fit for some families, it has downsides that make it one of the less popular forms of
term life insurance. In fact, according to insurance industry research group LIMRA’s 2017 U.S.
Retail Individual Life Insurance Sales Survey, as of March 8, 2018, RoP coverage represents only 2%
of all annual term life insurance sales.
While return of premium is seemingly a win-win, that coverage comes at a price. Specifically, a
higher premium. Typically, people choose a medically underwritten term life insurance policy over a
return of premium policy because the premium rates are lower, and they’d rather keep the extra money
in their pockets each month.
Life insurance that’s
How much does a term life insurance policy cost?
Example premiums are for a healthy 32-year-old woman purchasing a Haven Term policy, issued by MassMutual. Coverage is available up to $3 million.
Some age limitations apply. Subject to underwriting approval.
Factors that impact the cost of life insurance
1. Type of life insurance you buy
Term life insurance is generally the most affordable, while permanent policies will cost at least
10 times more per month.
2. Length of coverage
If you choose term life insurance, the shorter the term length, the less coverage costs. That
doesn’t mean, however, that you should select a 15-year policy over a 20-year policy. The right
term length will cover your family until debts are paid off or the kids are adults.
3. Your age
The best life insurance quotes usually go to younger applicants. Obviously, you can’t turn back
the clock, but what you can do is get life insurance now, instead of waiting, so you lock in a
better rate while you’re young and healthy.
4. Your health
The healthier you are, the less you pay for coverage. Some health factors are within your
control. For example, people who don’t smoke or use tobacco products pay significantly less for
life insurance than those who do.
Calculating your life insurance needs
Deciding how much term life insurance you need is part art, part science.
A common rule of thumb is to buy a policy that’s five to 10 times your annual salary. As far as
estimates go, that’s a good place to start. But why leave it up to guesswork?
An online life insurance calculator will take into consideration your age, income, debts and family
structure to recommend the right amount of coverage for you and your loved ones.
It’s that simple.
Choosing the right life insurance term length
Choosing the right term length for your new life insurance policy depends on the age of your
dependents, debts and other financial obligations like a mortgage. For example, choose a term length
that lasts until your debts are paid off, your partner is at or near retirement and your kids are
financially independent adults.
We find that most Haven Term policyholders have coverage that’s around 20 years and $700,000. They
are people who are probably a lot like you; they have a spouse, a mortgage and children.
Individuals with only a few years left on their mortgage, private student loans or
Those closing in on retirement
Caregivers to aging parents
So should you get a 15-year or 20-year policy instead of a 30-year policy to save yourself some cash?
Almost certainly not.
The length of your term should be based on the amount of time your dependents will need coverage. You
don’t want to get life insurance only for the coverage to end while you still need it.
Life insurance that’s
How to pick the best life insurance company for you
A life insurance policy is only as dependable as the paper it’s written on. Choose a life insurance
company that’s well respected and has received reputable ratings, which serves as an indicator of
financial strength and claims-paying ability.
Haven Life offers:
Term life insurance coverage issued by MassMutual, an A++ rated life insurer by A.M. Best*
A simple online application process
Affordable term life insurance rates
Additional benefits like a digital will at no charge with the Haven Life Plus rider - included
with the Haven Term policy
Expert and friendly customer support via phone, chat, email and text
*MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15).
The rating is as of April 15, 2019 and is subject to change. MassMutual has also received different
ratings from other rating agencies.