Mass Mutual and 0 premium life

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Just found this article. Is this interesting or what, huh???

Owensboro Independent Schools and MassMutual Team Up to Enable Families to Apply For Free Life Insurance
LifeBridge(SM) Program Puts Money In Trust to Pay for Children's Educational Expenses
OWENSBORO, Ky., May 7 /PRNewswire/ -- The MassMutual Financial Group today announced that it is teaming up with the Owensboro Independent School District and The Kentucky Commission On Women to offer its eligible families free $50,000 term life insurance policies under MassMutual's philanthropic LifeBridge(SM) Free Life Insurance Program. If an insured parent or legal guardian passes away during the 10-year term of the policy, Massachusetts Mutual Life Insurance Company (MassMutual) will put $50,000 in trust to pay solely for the educational expenses of dependent children.
"We're trying to help ensure that all children have the same access to educational opportunities," said Marcus Bosley, of Marcus W. Bosley & Associates, Inc., and a MassMutual financial representative. "This is an opportunity to make a valuable program available to eligible families in Owensboro at no extra cost. This is an absolutely free program. MassMutual pays all the premiums."
Mr. Bosley and Nancy Eskridge, State Commissioner for the Kentucky Commission on Women and a Board Member of the Owensboro Independent School District are providing the free program as a community service. "Our goal is to ensure that eligible parents have the peace of mind that there will be money available for their children's education should they pass away during the term of the policy," said Ms. Eskridge.
Owensboro Independent School District is sponsoring a LifeBridge application meeting. The meeting will be held at Owensboro High School, 1800 Frederica Street, Owensboro, KY on Thursday, May 10, 2007 from 3 p.m. to 7 p.m. Eligible individuals should call 270-686-7671 to schedule their 15- minute appointment to apply.
LifeBridge applicants must meet all program criteria and be:
-- between the ages of 19-42 (inclusive);
-- a permanent, legal U.S. resident;
-- the parent or legal guardian of one or more dependent children under the age of 18;
-- currently employed - either full- or part-time - and have a family income of between $10,000 and $40,000 on their most recent income tax return; and
-- in good health, as determined by MassMutual's guidelines.
Each LifeBridge policy has a 10-year policy term. If the insured parent or legal guardian dies during that time, the $50,000 life insurance benefit will be paid to a trust administered by the MassMutual Trust Company, FSB on behalf of the children. The trust pays the educational expenses of the children directly to the educational institution.
Various types of schools qualify for reimbursement including pre-school, private school, vocational school, community college, universities, art and music schools or graduate schools. Some of the expenses covered include books, tuition, and on-campus room and board.
well it looks like this "free insurance" disease is spreading.

"Just wait Ethel, we might get it for FREE somewhere"! Why Buy???
MassMu has had this program for quite a while now so it is not new. It' is only good for 10 years, there are qualifiations as to income, etc., and there is underwriting. TTBOMK the entire DB goes to the estate and can only be used for educational purposes. There are no 3rd party 'investors' here, that I know about.

I may be wrong, but as one of the few LARGE mutual companies left after a wave of demutualization in recent years (most other MUs are tiny in comparison to NYL, MONY, etc.), MassMU is one of the 'good guys' in the ins. biz and I don't see them doing something shady or underhanded.

You are right, Al. Mass has been doing this for a few years now. Good PR if you ask me.

What they lose on this is more than made up in consumers who purchase additional coverage.

Kind of like the free samples at the grocery store. My guess is the store sells a lot more hot dogs, soda's, bun's & chips on days they offer free samples of hot dogs.
Absolutely correct Al. This has been around for awhile, but it is not a shady, secret, 3rd party investment product. As Somarco says it probably has a payoff in the long run to Mass Mutual that is a highly respected insurer, a la samples in the supermarket.