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Free term life from MassMutual

By Jay MacDonald · Bankrate.com
Tuesday, April 19, 2011
Posted: 9 am ET

I'm as skeptical as the next guy when it comes to free offers, but Massachusetts Mutual's new LifeBridge program, which puts aside $50,000 in term life insurance absolutely free toward your children's education in the event of your untimely demise, appears to be the real deal.

If you qualify, MassMutual will place $50,000 into a 10-year trust. Should you pass away within the life insurance term, the benefits are paid directly to your children's pre-school, private school, trade school or college/university to cover tuition, fees, books, on-campus room and board and other educational expenses.

One particularly nice touch: Your children have 10 years after your death or until age 35 to use the trust money, whichever is later.

To be eligible to apply, you must be:

  • Between the ages of 19 and 42.
  • The parent or guardian of one or more dependent children under age 18.
  • A permanent legal resident of the United States.
  • Employed full or part time with a total family income between $10,000 and $40,000.
  • The only parent or guardian in your household to apply.
  • In good health as determined by MassMutual's life insurance underwriting guidelines.

 You will not be eligible to apply if you:

  • Have been diagnosed with heart disease, cancer, HIV or Type 1 diabetes.
  • Currently abuse drugs or alcohol or have abused them within the last 10 years.
  • Are currently on probation.

Additional underwriting, including a blood and urine test, will be required. The only type of death that would void the life insurance policy is a suicide within two years of the policy's effective date.

You can find more information and an application form on the MassMutual website.

The premature death of a parent is a life-altering event. Kudos to MassMutual for coming up with a compassionate promotion to assist the most vulnerable families among us while at the same time raising awareness about the importance of planning for life's worst-case scenarios.

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3 Comments
sighthndman
April 19, 2011 at 2:33 pm

to ngan and everyone else wondering the same:

I don't have access to their minds, but I imagine the income limit is to make sure that they are truly making a charitable contribution and providing insurance to people who would truly have a difficult time paying for it. I don't know what their underwriting costs, but if they weren't doing that (thinking back to my days in group life) this would be a not too expensive benefit to offer (from the point of view of a large corporation), given the age and "actively at work" clause. Underwriting, of course, adds to the expense, and putting the money into trust doesn't subtract because they have to put the whole principal into trust and accumulate it with interest.

Jay MacDonald
April 19, 2011 at 11:54 am

Well, as with most things in business, there's a profit motive behind this promotion. The free offer will benefit those who qualify, but the underlying message is, you may want to make some plans in case the worst-case scenario happens and one very cost-effective way to provide for your spouse and children is with life insurance. Presumably MassMutual will realize a sufficient bump in business from the promotion to more than compensate for the free term policies it is underwriting.

ngan
April 19, 2011 at 9:58 am

I would qualify, except for the income part. we make way over the max. But that's ok, we already have life insurance. Do you know why they have an income limit?