Life Insurance Awareness Month is an ideal time to assess your life insurance needs, but make sure you ask the right questions first

SPRINGFIELD, Mass., Sept. 5 /PRNewswire/ -- Most people don't like to think about their mortality, but avoiding it could result in financial hardship for your loved ones. In fact, research shows this is an issue with which many Americans wrestle. Forty-four percent of all U.S. households (48 million) either don't own life insurance or believe they should own more. Among those who already own some life insurance, 40 percent believe they don't have enough(1).

Life insurance offers unique, basic and essential financial protection, and it can help put to rest uncertainties about the future well-being of those who depend on you. But when buying life insurance, it's important to ask the right questions to find the right fit for you. Since September is Life Insurance Awareness Month, now is a great opportunity to review your own personal financial situation to determine if you need life insurance and what policy is best for you.

"Purchasing appropriate life insurance can be one of the most important decisions a person can make, yet it can be a complex decision," said William F. Glavin, executive vice president, U.S. Insurance Group, Massachusetts Mutual Life Insurance Company (MassMutual). "That's why it's important to be well-informed and to ask yourself some basic questions before you make your purchase."

MassMutual recommends asking yourself these five questions as you evaluate your life insurance needs:

    1.  Do I need life insurance?  In general, if you have individuals or
    loved ones who are dependent on you, the answer is yes.  Life insurance
    can help provide security against the loss of income for those who depend
    on you financially.  For example, if you die, life insurance can help pay
    for the cost of your mortgage, your child's college education or your
    spouse's retirement.  Various events in your life -- including getting
    married, having a child and buying a home -- will have an impact on your
    life insurance needs.  In addition to pure protection, some life insurance
    policies contain a cash value component that can be accessed through loans
    or withdrawals(2).  These funds can be used for a variety of purposes,
    including supplementing retirement income, funding education costs or
    starting a small business.

    2.  How do I determine how much I need?  Identifying your goals helps
    here.  For example, if you want to protect your family's fundamental costs
    of living -- including mortgage, rent, medical bills or college tuition --
    in the event of your death, your life insurance coverage should be
    adequate to cover your short- and long-term financial obligations.  As you
    make these calculations, you should also take into account such factors as
    the loss of your future income, inflation and the rise in educational
    costs for your child.  Visit http://www.massmutual.com/calculators to use
    an online calculator to help determine your potential life insurance
    needs.

    3.  What kind of life insurance should I buy?  There are two basic types
    of life insurance: term life and permanent life.  Determining which type
    of life insurance best suits your situation depends upon your own specific
    needs and financial goals.

    Term life covers you for a specific time period (such as 10, 20 or 30
    years).  Term life insurance provides a death benefit only if you die
    during the period specified in the policy.  If you survive beyond the end
    of the term, you will no longer have coverage.

    Permanent life will cover you for the duration of your life provided that
    you pay the premiums necessary to keep the policy in force.  In addition,
    permanent life policies offer benefits in the form of the policy's cash
    value, which can be accessed through withdrawals and loans during your
    lifetime.  However, borrowing too much cash value from the policy may
    cause the policy to terminate.  There are three basic types of permanent
    life insurance policies: whole life, universal life and variable life.
    The best choice for you depends upon your unique situation.

    * Whole life.  A policy in which premiums generally remain level over the
      life of the policy and must be paid regularly in the amount indicated in
      the policy.  Policy premiums, death benefits and cash values are
      guaranteed.  The cash value increases at a fixed, guaranteed rate.
      Generally, whole life is a "participating" policy, meaning the owner is
      entitled to share in any annual distribution of the company's surplus.
      This is commonly known as a dividend.  Dividends are not guaranteed.

    * Universal life.  A policy that allows you, after the initial payment, to
      pay premiums at any time, in any amount, subject to certain minimums and
      standards.  Premium payments are credited to the policy's account value
      that earns interest at a current rate, which changes monthly.  This type
      of policy remains in force as long as there is sufficient account value
      to pay the insurance and policy charges.  Some universal life policies
      offer guaranteed death benefits.

    * Variable life(3).  A policy that provides death benefits and account
      values that vary with the performance of the policy's separate accounts.
      Premium payments can be allocated to a variety of separate account
      options offering different degrees of risk. Like universal life,
      variable life policies remain in force as long as there is sufficient
      account value to pay the insurance and policy charges.  Some variable
      life policies also offer guaranteed death benefits(4).

    4.  How do I purchase life insurance?  Because matching the right
    insurance product to an individual's needs and goals can be complicated,
    you may want to consider using the services of a skilled financial
    professional.  To find an agent, ask for referrals from friends or family
    members, or visit the Web site for the Life and Health Insurance
    Foundation for Education at http://www.life-line.org.  Also, regardless of
    the agent you choose, consider buying life insurance from a company with
    strong financial strength ratings, as that is an indicator of your
    insurance company's ability to pay its claims in full.

    5.  What happens if I delay my decision to buy life insurance?  You should
    never feel pressured to purchase life insurance; the decision needs to be
    the right one for you and your family.  However, it's important to keep in
    mind that when you purchase life insurance, two of the primary factors
    that determine your premiums are your age and your current medical
    condition.  In general, life insurance premiums are higher as you get
    older.  If you have a medical condition that worsens over time, your
    premiums may go up or you may be denied coverage(5).

For more information on purchasing life insurance or Life Insurance Awareness Month, visit http://www.massmutual.com/liam. To contact a MassMutual financial professional, visit http://www.massmutual.com/cfp.

About MassMutual

MassMutual Financial Group is the fleet name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates, with more than 13 million clients and over $395 billion in assets under management at year-end 2005.

Founded in 1851, MassMutual is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; MassMutual International LLC; and MML Investors Services, Inc.

MassMutual is on the Internet at http://www.massmutual.com.

Securities offered by registered representatives of MML Investors Services, Inc.

(1) "Facts About Life 2006," LIMRA International.

(2) Policy withdrawals are not subject to taxation up to the amount paid into your policy (your cost basis). If the policy is a Modified Endowment Contract, policy loans and/or withdrawals will be taxable to the extent of gain and are subject to a 10% tax penalty. Policy loans and/or withdrawals also reduce the cash surrender value and policy death benefit).

(3) Variable life insurance policies are sold by prospectus. Before purchasing a variable life insurance policy, investors should carefully consider the investment objectives, risks, charges and expenses of the variable life insurance policy and its underlying investment choices. For this and other information, obtain the prospectuses for the variable life insurance policy and its underlying investment choices from your registered representative. Please read the prospectuses carefully before investing or sending money.

(4) Guarantees are based on the claims paying ability of the issuing company or companies.

(5) The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. Generally, surrender charges apply for up to twenty years of the policy. Those charges may decrease the value of the policy substantially depending on how early the policy, or any portion of it, is surrendered or accessed. While the policy allows for access to the cash value in the short-term, through loans and withdrawals, there are costs and risks associated with those transactions. You should know that there may be little to no cash value available for loans and withdrawals in the policy's early years. Additionally, unless required by law, you generally cannot reinstate a variable life insurance policy once it's surrendered.

MEDIA CONTACTS:

Mark Cybulski

413-744-5427

____________________________________________

Source: Massachusetts Mutual Life Insurance Company

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