An affordable way to protect yourself and your family
A death benefit that, in most instances, is free from federal income tax
Guaranteed renewable coverage through the expiry age
The privilege to convert to a permanent policy that builds cash value, with no additional medical underwriting Term life insurance provides affordable pure life insurance protection for a specific period of time. This means that with term, you have a death benefit, though not the cash value accumulation you get with a permanent life insurance policy. However, term policies can be converted to permanent life insurance as your needs change, subject to the terms and conditions of the policy, while providing valuable life insurance protection.
If you die while the policy is in force, your beneficiaries will receive the amount of the death benefit. However, unlike permanent life insurance, which provides coverage for your entire life so long as premiums are paid, term coverage has a “contractual expiry age,” meaning that even if you have renewed your coverage throughout your life, once you reach the policy’s expiry age, you are no longer insured. You can avoid this lack of coverage by taking advantage of the policy’s conversion privileges.
Why Term?
You know you need insurance protection. But what happens if you’re just starting out in life and can’t afford permanent life insurance, or if you don’t have a significant amount of disposable income for insurance protection? Perhaps you do have insurance, but need additional coverage for a fixed period of time; for instance, to cover a debt you’ve recently assumed.Getting a Term life insurance quote can be an affordable way to get the protection you need.
Valuable, Affordable Protection
Term premiums are initially lower than they would be for an equivalent permanent policy, which could allow you to purchase more insurance protection than you might have been able to afford otherwise. The initial premium is guaranteed for a certain amount of time, depending on the kind of policy you purchase. Once that guarantee period ends, the policy usually can be renewed without submitting proof of good health, but at a higher premium.
When Term Can Be the Way to Go
Limited Funds for Permanent Life Insurance— In situations where life insurance is essential but funds are limited, term life insurance can serve as a stopgap. For instance, if you need to protect your family, but don’t have the money to purchase a permanent policy, term insurance can provide affordable life insurance protection.
Temporary Need for Protection— Term insurance is often purchased for protection when a loan is taken. A term policy in the amount of the loan helps ensure that the debt is repaid in the event of your unexpected death, and may help lower your credit risk with lending institutions.
As a Supplement to Permanent Life Insurance— An excellent way to use term insurance is by supplementing permanent coverage with an additional amount of term insurance, either in the form of a policy rider on a permanent policy or as a separate term policy to help ensure thatyour coverage is always adequate.
Conversion Privileges for Enhanced Protection
The conversion privilege, which usually is available in the first several years of the term policy (though some policies allow for longer conversion periods), allows you to convert your term coverage up to the same amount of permanent life insurance without having to submit proof of good health. This is an important feature since you never know when your insurance needs, or your health, will change. If permanent life insurance quote is not in your budget now, the conversion privilege guarantees your insurability later. Also, depending on your budget, you may be able to convert some of your existing term policy to permanent life, while still preserving your conversion privileges and maintaining the amount of life insurance protection you need.
Permanent Possibilities
One major advantage to purchasing a term policy from New York Life is that almost our entire portfolio of permanent insurance products is available to you when you convert.
You can choose the product that best fits your needs, your budget and your long-term goals. With other insurers, you may be limited to converting your term policy to only one or two permanent plans they choose to make available, which may not be appropriate for you or your family.
New York Life allows conversion to whole life, universal life, variable universal life* and survivorship life. All products from New York Life and its subsidiaries that are available for conversion are also available to new clients. Unlike some other carriers, we do not offer a product that is not available for new customers, so you never get short-changed on the innovations available with our policies.
Attained Age Term Conversions are available to permanent insurance products except Asset Preserver®. Conversions to Universal Life Lifetime Guarantee and Survivorship Universal Life Lifetime Guarantee products are limited to the first five policy years of the original term policy. Original Age Term Conversions can be made from Increasing Premium Term and 20 Year Level Premium Term policies to Whole Life, Modified Premium Whole Life and Custom Whole Life policies.
*Offered by NYLIFE Securities LLC (Member FINRA/SIPC). A Licensed Insurance Agency.
Flexible Renewal Options
After the initial term period has ended, New York Life offers renewal until age 90 (age 70 or 80 in New York, depending on the term product), without additional underwriting. Other insurers may require re-entry, which would require new underwriting, including medical exams.
Increasing Premium Term (IPT) can be an ideal solution for those who know that life insurance protection is important, but who can’t currently afford permanent life insurance protection. Premiums you pay are guaranteed for the first 10 years. Premiums in the 11th and later years are not guaranteed, and therefore, are subject to increase. New York Life’s redesigned IPT product is competitively priced and offers a conversion credit with Attained Age Term Conversions in the first 10 years where available. The conversion privilege on IPT is generally available for 10 years or to the policy anniversary at the insured’s age 55, whichever is later, 3 for Attained Age Term Conversions. Original Age Term Conversions are available for the first 10 policy years.
5-Year Termcan be an affordable answer for young families, especially with the c conversion privilege. Premiums are guaranteed to remain level for the first five years. They then increase and are expected (but not guaranteed) to remain level for the next five-year period. The Attained Age Term Conversion period is generally available until the later of the policy anniversary at the insured’s age 55 or the 10th policy year.4 5-Year Term is also available as a rider on a 5-Year Term, Whole Life or Modified Premium Whole Life policy. This means you can have additional coverage on yourself, children, parents and/or business partners, all under one policy.
Family Protection Insuranceis a unique and affordable option for families seeking coverage for two adults and their children within one policy. Each adult may select their own face amount between $100,000 and $500,000, and all eligible children between 15 days and 17 years old are covered for $10,000 at no additional cost. Premiums are level and guaranteed for the first 10 years, and increase annually thereafter. Family Protection Insurance policies are eligible for Attained Age Term Conversions. Adults may convert until the later of the 10th year or age 55, and children have one option to convert until age 25. Adults may also increase their coverage (up to a maximum total of $500,000 each) without proof of insurability every two years for the first 10 policy years. If both adults die or make full use of the Living Benefits Rider within the first 10 policy years, an additional benefit of $200,000 will be paid. Family Protection Insurance gives you the opportunity to address your family’s basic insurance needs with one policy.
Term to Age 90(Issued by one of New York Life’s subsidiaries, New York Life Insurance Company of Arizona (NYLAZ)) may be a good choice for those looking for a longer-term guarantee. Premiums are guaranteed to remain level for the first 10 years, and then, beginning in year 11, they increase annually. Term to Age 90 has an Attained Age Term Conversion privilege for 10 years or to the policy anniversary at the insured’s age 55, whichever is later.3 (Term to Age 90 is not available in New York or Maine.)
3 For issue ages 15-45, the final date for conversion is the anniversary at age 55; for issue ages 46-65, the final date for conversion is the 10th policy anniversary.
4 For issue ages 15-45, the final date for conversion is the anniversary at age 55; for issue ages 46-65, the final date for conversion is the 10th policy anniversary; for issue ages 66-70, the final date for conversion is the anniversary at age 75; for issue ages 71-75, the final date for conversion is the 5th policy anniversary.
20-Year Level Termmay be a beneficial solution for those who want a level premium for a longer length of time. Premiums are guaranteed to remain level for the first 20 years. Starting in year 21, premiums will increase annually and are guaranteed. A conversion credit is offered with an Attained Age Term Conversion within the first 10 years where available. The Attained Age Term Conversion privilege is generally available for the first 10 policy years or until the policy anniversary at the insured’s age 30, whichever is later.5
(Original Age Term Conversions are available for the first 10 years.)
Personalize Your Coverage with Riders
New York Life offers a variety of riders, including Waiver of Premium, Spouse’s Paid-Up Insurance Purchase Option (SPPO),6 Living Benefits Rider,7 Children’s Insurance, Policy Purchase Option, 5-Year Term Rider, Accidental Death Benefit, and Upromise Rider.8 They offer an ideal way to build on your term policy “foundation” and expand coverage for yourself and your family, without compromising term’s affordability. Additionally, if you convert your term policy to permanent life insurance, many of the same riders are available to help ensure that your New York Life policy can grow to meet your changing needs, circumstances and budget.
5 Conversion periods vary upon issue age.
6 Rider Insured's Paid-Up Insurance Purchase Option (RPPO) in New York.
7 Not available in all states.
8 All Upromise contributions will be held in a trust account with Upromise, Inc. for the benefit of Upromise members. Upromise, Inc. is not affiliated with New York Life or its subsidiaries.
Ruthe Schwartz, is an agent licensed to sell insurance through New York Life Insurance Company and may be licensed with various other independent unaffiliated insurance companies.
Ruthe Schwartz is a Registered Representative of and offers securities products & services through NYLIFE Securities LLC, Member FINRA/SIPC, a Licensed Insurance Agency.
Money In Motion Inc is not owned or operated by NYLIFE Securities LLC, or its affiliates.
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* Offered through NYLIFE Securities LLC (Member FINRA/SIPC)
Neither Money in Montion Inc, its employees nor NYLIFE Securities LLC render tax, legal or accounting advice. Please consult your own professional advisor before making any decisions.
