YOU ASK:

Where and how does Savings Bank Life Insurance (SBLI) operate?

WE ANSWER:

If you live in Massachusetts, New York or Connecticut, Savings Bank Life Insurance, also widely known under its abbreviation, SBLI, may be the best solution for you.

Advantages of Savings Bank Life Insurance (SBLI)

Savings Bank Life Insurance provides low-cost type of life insurance by minimizing operating costs and the payment of agent commissions.
Purchasing Savings Bank Life Insurance is very convenient: you can do it in the bank lobbies while doing other personal bank transactions, over the phone or through Internet sites.

Although banks are generally prohibited from selling insurance, powerful consumer groups in New York, Massachusetts and Connecticut have managed to win their right to purchase Savings Bank Life Insurance, under recent legislation which allowed one mutual life insurance company to sell this product. In addition to the original three states, Savings Bank Life Insurance is now sold in New Jersey, Pennsylvania, New Hampshire, Maine, Rhode Island and Puerto Rico.

State law has put a limit to the maximum amounts of life insurance one can purchase, but the maximum limits have increased considerably in recent years. Individual term insurance and whole life insurance are offered in amounts up to $1 million. In Connecticut a buyer is allowed a maximum of $5 million of term life insurance and a maximum of $5 million in whole life insurance.

A major drawback, however, is that if you don't live in any of these states, you will not be able to purchase Savings Bank Life Insurance as the company that sells this type of insurance doesn't operate elsewhere.

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