Universal Life Insurance Information
NYLIAC1 Protector® is a universal life insurance policy that provides a lifetime of life insurance protection for your family or business, while allowing you the flexibility to make changes to your policy when your financial needs or objectives change. The coverage you choose is often available at a more affordable price than other permanent life insurance products. If your coverage needs change — after the birth of a child or the purchase of a new home, for example — you can adjust your coverage amount2 to meet those needs. You can also tailor your premium payments3 to suit your budget and choose from three life insurance benefit options. With Protector, you’ll have a flexible permanent life insurance policy, brought to you by a company that’s in the business of making and keeping long-term promises to its customers.
1 NYLIAC Protector® is issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation), a wholly owned subsidiary of New York Life Insurance Company.
2 Increases may be subject to underwriting.
3 The policy will terminate if at any time the cash surrender value is insufficient to pay the monthly deductions. This can happen due to insufficient premium payments, if loans or partial surrenders are made, or if current interest rates or charges fluctuate.
Choosing a No Lapse Guarantee Rider for Your Policy
Your Protector policy’s life insurance coverage depends on maintaining enough cash surrender value to cover your monthly policy charges. If you’re willing to place some limitations on your policy’s flexibility, you may want to safeguard your coverage by purchasing the No Lapse Guarantee rider* with your policy.
The No Lapse Guarantee rider:
- Ensures that if you fund your Protector policy at the premium level required to maintain the guarantee, the policy will not lapse, even if the cash surrender value is not sufficient to cover the policy’s monthly charges.
- Offers a choice of durations to fit your individual needs.
- Includes a “catch-up” provision that provides some flexibility in case you need to reactivate the guarantee after missing required premiums within the first 10 policy years.
* Failure to satisfy the Cumulative Required No Lapse Guarantee Rider Monthly Premium Test will cause the rider and the guarantee to become inactive and increases the potential that the policy may lapse for insufficient cash surrender value. At the end of the guarantee period, if only the required premium has been paid, the policy may lapse for insufficient cash surrender value. See the rider form for more details.
How Does Protector Work?
Protector provides the permanent life insurance you need to help protect your loved ones or business upon your death. Beneficiaries receive your policy’s life insurance benefit proceeds generally free from income taxes and probate delays. This immediate cash source can protect your family, help pay final expenses, cover outstanding debts and help ensure business continuation. Your Protector policy may also accumulate cash value, which can increase the life insurance benefit your beneficiaries receive. Your cash surrender value can generally be accessed tax-free through policy loans and partial surrenders4 to help with a down payment for a home, fund a child’s education or supplement retirement income. Increasing the amount of your premium payments or making additional unscheduled payments into your policy5 can potentially lead to greater cash value accumulation. Protector is designed for you. It is an affordable, attractive alternative to other permanent life insurance products. Other products may provide permanent protection, but the premiums are often higher than those for Protector.
Managing Your Policy
Your Protector premium payments are applied to your policy’s cash value after a premium expense charge is deducted. Your cash value earns interest, and your monthly policy charges and expenses are deducted. Because you have the flexibility to adjust the amount and frequency of your premium payments, it’s important to keep a close eye on your policy to make sure your premium funding is sufficient to cover your monthly policy charges; otherwise the policy can lapse. Protector helps you mitigate this risk by offering a No Lapse Guarantee rider that you can include with your policy at issue. Please see “Choosing a No Lapse Guarantee Rider for Your Policy” to learn more about this important benefit.
4 Partial surrenders and unpaid loans, including loan interest, will reduce the cash surrender value and life insurance benefit, and may be subject to income tax and a 10% IRS tax penalty if the policy is a modified endowment contract and the policyholder is not yet age 591?2. Please consult your tax advisor for more information.
5 If a life insurance policy is classified as a modified endowment contract (MEC), there may be adverse tax consequences. Please consult your tax advisor for more information.
A Lifetime of Flexible, Affordable Protection
Value and Affordability — Protector offers the life insurance protection you need, with the potential for cash value accumulation, at an affordable price.
Permanent Protection — Your Protector policy provides protection for your entire lifetime, as long as the policy remains in force.3
Flexibility — Protector is a truly flexible product featuring a range of options to customize your policy.
Premium Payments — Adjust the amount and frequency of premium funding as needed.3
Coverage Amounts — Increase or decrease your policy’s face amount based on current circumstances and priorities.2
Life Insurance Benefit Options —Choose from three life insurance benefit options based on your objectives.
Guarantees — Add the No Lapse Guarantee rider and ensure your policy will not lapse as long as you fund it at the premium level required to maintain the guarantee.6
Tax Advantages — Protector’s life insurance benefits are distributed to beneficiaries generally income tax-free. Your policy’s cash value grows tax-deferred and can be borrowed against,4 generally on a tax-free basis.
A Variety of Options — New York Life Insurance and Annuity Corporation (NYLIAC) offers a range of policy riders you may purchase to help manage your financial needs.
6 Failure to satisfy the Cumulative Required No Lapse Guarantee Rider Monthly Premium Test will cause the rider and the guarantee to become inactive and increases the potential that the policy may lapse for insufficient cash surrender value. At the end of the guarantee period, if only the required premium has been paid, the policy may lapse for insufficient cash surrender value. See the rider form for more details.
Solutions For Your Business
If you’re a business owner, you’re likely aware of the potential financial pitfalls if anything happens to you, a co-owner or a key employee. With its ability to conform to your needs, Protector can be an ideal insurance fit for you and your business partners.
Establishing a business can be an uncertain venture, and owning life insurance can enhance your financial stability. The flexibility of Protector can help provide the cash flow options you may need to establish, grow and protect your business. If there is enough cash value that has accumulated within the policy, one partner can use the cash value to buy out the other in the event of an early retirement. Or, if one partner passes away, the life insurance benefit can provide the capital needed for the surviving partner to purchase the business back from the deceased partner’s estate.
Additional Riders Add Even More Flexibility
Add even more flexibility to your coverage by taking advantage of these valuable options available for purchase with your policy.
The Guaranteed Insurability rider gives you the opportunity to purchase additional insurance on scheduled option dates, without providing evidence of insurability. This gives you the flexibility to regularly assess and increase your coverage as your needs and circumstances change.
The Other Covered Insured rider enables you to build on the coverage of your Protector policy by adding additional term life insurance. You can also add coverage on your spouse, children or business partners — up to nine people. The term coverage can be converted later to permanent insurance, making it all the more valuable.
You can ensure your policy will be protected if you are suddenly unable to work due to a disability with the Monthly Deduction Waiver rider. This rider waives the monthly cost of insurance, any rider charges and administrative fees if you should become totally disabled, as explained in the rider, and total disability has continued for at least six months. It gives you peace of mind that your life insurance coverage will continue, even if you are unable to keep up with your premium payments.
SMRU 00383086CV (Exp.3/31/10)
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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.
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