MassMutual: Upgraded Financial Underwriting Guidelines

06-20-2024

MassMutual continues to review and update their Life underwriting guidelines for competitiveness, demonstrated below in the updates for income replacement multiples and charitable giving needs. 

Income replacement

The income replacement multiples that determine available coverage based on needs are increasing for many ages:  

Age x annual earned income multiple updates

40 times annual earned income for ages 18-40

30 times annual earned income for ages 41-50

25 times annual earned income for ages 51-60

15 times annual earned income for ages 61-67

10 times annual earned income for ages 68-75*

5 times annual earned income for ages greater than 76*

*Individual consideration for additional coverage

These updates reflect increasing retirement and mortality ages in the United States.

Charitable giving

A charity may buy coverage on a client if there would be a measurable financial loss to the charity following the client’s death.

Coverage typically is obtained on financial donors to the charity; however, MassMutual also can consider coverage on current or former board members whose death would financially impact the charity, for example, a loss in fundraising efforts, management functions, or special name recognition.

Clients who pursue charitable coverage should have adequate personal insurance already established.

Life insurance is a versatile product that can help meet different client needs, from financial protection to cash value accumulation. Whether to protect family, a charity, or serve a different purpose, life insurance can fill needs often faced by clients. These updates will further empower financial professionals to help people secure their future and protect the ones they love.