mcu credit union life insurance

Exploring Life Insurance Options with MCU Credit Union

Finding the right life insurance to protect your family can be confusing. With so many policies and providers to choose from, it’s tough to know where to start. That’s why partnering with a trusted financial institution can help simplify the process. In this article, we’ll look at the life insurance options available through MCU Credit Union.

About MCU Credit Union

MCU is a full-service credit union based in New York City with over $3 billion in assets. They offer a complete range of financial services including banking, lending, investing and insurance. MCU has a long track record of serving municipal employees and their families since 1916. They now serve over 260,000 members across all 50 states.

MCU partners with the Family Security Plan to provide members with access to life insurance and other supplemental insurance products. This collaboration gives members affordable insurance tailored to their needs and budget.

Types of Life Insurance Offered by MCU

MCU provides both permanent and term life insurance options

• Whole Life Insurance – This is a permanent policy that builds cash value and lasts for your entire life. Premiums are fixed and coverage never expires as long as you keep paying premiums.

• Term Life Insurance – This provides pure death benefit protection for a set period of time such as 10, 15, 20 or 30 years. It does not build cash value. Premiums are generally lower than whole life in the early years.

Benefits of Getting Life Insurance Through MCU

There are several advantages to obtaining life insurance through a credit union like MCU:

• Group Buying Power – Credit unions can negotiate competitive pricing through group contracts not available to individuals. This makes premiums more affordable.

• Personalized Service – MCU insurance experts provide personalized guidance to ensure you get adequate coverage.

• Policy Review – MCU can review your existing life insurance to see if coverage aligns with current needs.

• Policy Portability – You can take the coverage with you if you change employers, retire or leave the credit union.

• Convenient Payroll Deduction – Premiums can be easily paid via payroll deduction for simplicity.

• Access to Other Products – MCU offers auto, home, health and other insurance so you can bundle for discounts.

Factors That Affect Life Insurance Costs

The cost of life insurance depends on several key factors:

• Age – Premiums increase as you get older due to higher mortality risk. Buying early provides lower locked-in rates.

• Health – Poor health, medical conditions and family history of illness raise premium costs.

• Lifestyle – Dangerous hobbies, tobacco use and high-risk occupations also increase rates.

• Policy Type – Whole life premiums are pricier than term policies with the same death benefit.

• Amount of Coverage – Higher death benefits mean higher premiums. Buy only what you need.

• Length of Term – Term policy premiums are higher for longer terms like 30 years versus just 10 or 15 years.

Getting Quotes for Life Insurance

MCU makes it easy to get life insurance quotes. You can call their insurance experts at 1-855-368-6928 or request quotes online.

To get accurate quotes, be prepared to provide:

• Your date of birth
• Information on your health history
• Details on any life insurance you currently have
• Your desired coverage amount
• Beneficiaries

Comparing quotes for both term and whole life policies at different coverage limits ensures you understand all options. MCU has financial representatives available to explain policy differences and recommend appropriate solutions.

Purchasing the Right Amount of Coverage

Determining adequate life insurance coverage involves assessing several factors:

• Income Replacement – Consider the income you provide that your family would lose upon your death. Typically 10-15 times your salary is recommended.

• Debt Coverage – Factor in any debts like mortgages, loans, credit cards or college costs for children.

• Final Expenses – Include projected funeral and medical costs which can be $10,000 or more.

• Emergency Fund – Some coverage for daily living costs for family members transitioning after your passing.

Also consider any savings, spousal income or life insurance you already have in place. These reduce the required coverage. Discuss your needs with MCU agents to finalize the right policy amount.

Who Needs Life Insurance?

Here are some common life stages that demand life insurance:

• Getting Married – Protect a new spouse who would be financially impacted by your death.

• Having Children – Kids bring new financial dependents to care for if you pass away.

• Starting a Business -Protect any business partners or shareholders if you die.

• Retiring – Supplement retirement income that would cease for a surviving spouse.

• Estate Planning – Create an inheritance for children or grandchildren.

Any life change that adds financial dependents is a trigger to evaluate life insurance. MCU agents can advise on when coverage is prudent.

Using Life Insurance for Retirement Planning

Permanent life insurance also offers retirement planning benefits:

• Cash Value Growth – The savings or cash value component grows on a tax-deferred basis. This can supplement retirement income.

• Fund Access – Many policies allow penalty-free withdrawals or policy loans that provide liquidity in retirement.

• Avoid Probate – Payout proceeds directly to beneficiaries instead of passing through probate.

• Estate Planning – Create an instant inheritance by naming beneficiaries.

Consult with financial planners on smart integration of permanent life insurance into your retirement plan.

Filing a Life Insurance Claim

In the unfortunate event life insurance is needed, beneficiaries should take these steps:

• Obtain a Death Certificate – This documentation is required to start the claims process.

• Contact MCU – Notify them as soon as possible after the death occurs.

• Complete Claims Forms – MCU will provide the specific claim forms and instructions.

• Submit Documents – Supply the death certificate, policy contract, information on beneficiaries and any other details requested.

• Track Claim Status – Follow up on the claim and provide any additional information requested until the payout is received.

It’s generally advisable to consult with an attorney, accountant or financial planner for guidance on handling payout proceeds.

Frequently Asked Questions

1. Does MCU offer health insurance?

No. MCU currently only provides life, disability, accidental death and other supplemental insurance products.

1. Can I insure grandchildren or parents through MCU life insurance?

Yes. MCU’s family policies allow adding coverage for grandparents, parents and grandchildren for a small weekly premium.

1. What is the process for increasing my life insurance coverage?

Contact MCU for a quote on higher coverage. You’ll need to complete new application forms and go through underwriting to qualify for expanded coverage.

1. How long does it take to get life insurance through MCU?

After submitting your application, coverage can take 1-2 weeks. For larger policies, underwriting may require 4-6 weeks.

1. Can I cancel my MCU life insurance policy anytime?

Yes, you can cancel a policy anytime you choose. However, life insurance is a long-term coverage so this is not generally advisable.

Protect Loved Ones with Life Insurance from MCU

Finding the right life insurance is simplified with MCU Credit Union. Their combination of group buying power, personalized service and ability to bundle policies provides real value. Consult with their experts to protect your family’s financial future with peace of mind. Explore options for coverage up to $2 million by getting a free quote today.