Baystate Brokers - Life Insurance FAQ

How is Baystate Brokers different from other companies?

How much insurance should I carry?

What is the maximum amount I can be insured for?

I think I might have trouble getting insurance. Can you help me with this?

How is Baystate Brokers compensated?

One of the major benefits you will receive by working with Baystate Brokers, LLC is our ability to match you and your specific needs with the right insurance company. While many of our competitors advertise low rates, the hidden secret in the industry is that only 35% of applicants qualify. Most are disqualified because of personal or family medical history. Your actual premium is based on ratings set by insurance company.

Baystate Brokers works with a wide selection of insurers and we make every effort to ensure you are receiving the best rate possible through our providers. In addition, we will continue to service your needs throughout the life of the policy and act as your liaison with the insurance company.

Ultimately, the amount of insurance protection you purchase is based on your own individual wants and needs. Many people choose a needs based approach to pay off the mortgage, leave money for their children's education and provide a monthly income for the surviving spouse. Baystate Brokers takes a comprehensive approach to understand your individual needs and the goals you have with the implementation of insurance. Our philosophy centers on an individuals Human Life Value (see "What's the maximum amount I can be insured for?"), this approach is the primary method to ensure a surviving family’s standard of living is not impacted by a sudden loss.

Most people are under the assumption that the amount of insurance they can request is an arbitrary figure and that the insurance company will issue whatever has been applied for. In reality, there is a maximum amount of insurance that an insurer will accept, unless there are special circumstances.

The purpose of life insurance is not to make the surviving beneficiary rich, but rather to ensure their standard of living is not negatively impacted as a result of death. The general rule is a multiple of ones current income, not taking into account potential salary increases, investment growth, inflation, etc. This chart reflects general life insurance guidelines equal to the present value of potential future earnings which would be lost at the death of the insured.

Many individuals who have chronic health issues, recently went through surgery or don't fit into the criteria of the standard rating tables due to build and health history are concerned that they may not qualify for insurance. In addition, they may have been declined coverage in the past and were totally frustrated with the process. However, there are solutions and in many instances, we are able to get them approved for coverage. We work with a select few insurance companies who are willing to underwrite substandard risks. Although approval is not guaranteed, we can at least conduct an inquiry to have multiple insurers evaluate whether they are willing to make an offer for coverage. In a worst case scenario, there are guarantee issue products which could be considered.

When you decide to enter into an insurance contract, Baystate Brokers, LLC is compensated directly from the insurance company in the form of a commission. There is no fee associated with our services.