Celebrating Mutuality
Taking the Pulse of American Families
MassMutual has focused on families since our earliest days, so we like to know what they are thinking and feeling. In 2018, we commissioned our fourth “State of the American Family” study, a nationally representative survey of American families to better understand how they view the American Dream and the financial aspects involved. For the first time this year, we studied 11 different family structures, including African American, Asian Indian, Chinese American, Korean American, Latino, LGBTQ, Military, families with children with special needs, and members of the “Sandwich Generation” (adults caring for parents and children at the same time). The survey indicated that the concept of the American Dream has increasingly centered on financial security since our survey five years ago with American families.
The study revealed that for today’s families, achieving the American Dream involves three main priorities:
- Achieving financial security
- Enjoying a comfortable retirement
- Helping their children get an education
Yet fewer than half of families surveyed believe they can meet these priorities. The survey’s findings include new insights and guidance that all families can use to make better financial decisions and put themselves on track to achieve their dreams.
Added Benefits for Families with Special Needs
Since 2004, MassMutual’s SpecialCare program has helped families with members with special needs by providing access to information, advice, and financial products and services that can help improve the quality of life for people with disabilities and other special needs. The program is offered through MassMutual financial professionals who have received advanced training and information in estate and tax planning concepts, special needs trusts, government programs, and the emotional dynamics of working with families caring for a person with special needs.
In April 2018, we were the first in the industry to make whole life insurance coverage available to individuals with three of the most common disability diagnoses: Down syndrome, autism, and cerebral palsy. This whole life insurance policy provides permanent coverage at a guaranteed fixed premium with guaranteed cash value growth, and a guaranteed death benefit.
Serving Those Who Serve Our Country
MassMutual recognizes the sacrifices that servicemembers and their families make to protect our country. To offer these individuals financial products that meet their needs when active service has ended, MassMutual has become a participating company of the Department of Veterans Affairs Servicemembers’ Group Life Insurance (SGLI) conversion program.
This initiative allows servicemembers, veterans, and dependent spouses to convert their existing policy to a whole life insurance policy after separating from service. MassMutual employees and financial advisors championed this new offering. “We are a company that supports military members and families,” said Dan Vindigni, Chair of MassMutual’s Armed Forces Veterans and Families Business Resource Group. “Helping military members with an aspect of transition from military life is one way of serving those who serve our country.”
Ready for the Unexpected
Most people don’t expect chronic illness to happen to them. Scott Rider, a MassMutual policyowner, certainly didn’t. Rider was an avid runner and active family man, so his diagnosis of Parkinson’s Disease was a devastating blow. Life changed not only for Rider himself, but also for his family. His wife, Kelly now acts as his caregiver, helping out as simple tasks like tying his shoelaces have become increasingly difficult.
One thing the Rider family hasn’t had to worry about is their financial security. As a former financial professional, aware of the odds surrounding disability, Scott Rider secured disability income insurance when he was much younger. The policy has replaced part of Rider’s income as his illness has progressed and he can no longer work.
“The insurance is a piece of security that I really don’t even know how to express,” says Kelly. The support from that protection, she says, allows her to concentrate on her husband’s care.
Helping Parents Protect Children’s Educational Futures
Parents should be able to fulfill the dream of providing a quality education for their children – even if they can’t be there to see it happen. That’s the goal of MassMutual’s LifeBridgeSM free life insurance program, available to eligible families. MassMutual pays all premiums for a $50,000 10-year term life insurance policy that is issued to a trust that pays for children’s educational expenses in the event that the insured parent or guardian passes away.
Money can be used to pay for tuition, fees, books, campus room and board, and other educational expenses at preschools, private schools, trade schools, or colleges and universities. The only program of its kind, LifeBridge has issued more than 14,000 policies representing more than $700 million in free coverage to income eligible families – with an ultimate goal to issue coverage worth $1 billion.
Retirement Investing, Simplified
Planning for long-term goals like retirement involves many variables for investors to consider, such as how much to invest, how aggressively to invest, and when to begin. Target-date funds take some of the guesswork out of this decision by “targeting” the approximate year an investor expects to retire, and automatically adjusting asset allocation over time. MassMutual recently introduced three new target-date funds for 401(k) and other defined contribution plans, co-managed by T. Rowe Price, Legg Mason, and J.P. Morgan.
These funds reduce risk for savers at the times they’re most vulnerable: just before and just after retirement. According to MassMutual’s 2018 Retirement Savings Risk Study, many pre-retirees and recent retirees are investing at risk levels that are higher than recommended for their age, which could jeopardize years of diligent planning. Target-date funds help savers better manage risk and reward and set themselves up for a secure retirement.
Source:
The MassMutual 2018 Financial Wellness and Community Involvement Study
