Whole Life Insurance News

Whole Life Insurance

Whole Life in Action X and Y, both 25, have been married for two years. They recently had their first, baby, Sophie, six months ago. While they each had $200,000 of term coverage, after the baby was born, they wanted a more permanent solution to their long-term insurance protection needs. They each converted their term policies to whole life policies and added $100,000 term riders to each policy. (Riders are available in most jurisdictions at an additional cost.) They now know they are covered in the event of their death and can begin to increase their permanent coverage as their insurance needs grow.

Customize Your Policy- Whole Life is a highly customizable product. You can choose from a wide variety of policy riders to meet your specific needs:

Accidental Death Benefit Provides additional death benefit equal to the face amount of the policy if you were to die as a result of an accident, up to $300,000 maximum, prior to age 70.

Child's Protection Benefit Protects the ability to continue paying for insurance purchased on your child. In the event of the death or disability of a premium payer, New York Life will waive the premiums on the child’s policy until the policy anniversary closest to the child's 25th birthday.

Children's Insurance Provides level term insurance on the children of the insured that can be later converted to permanent insurance.

Disability Waiver of Premium Helps give peace of mind by assuring that valuable insurance coverage is not lost when the policyowner is unable to pay premiums due to a total disability. With this rider, New York Life will waive premiums should the insured become totally disabled, as explained in the rider, and total disability has continued for at least six months

Dividend Option Term Combines a decreasing term rider with the paid-up additions dividend option. Each year, the amount of term insurance decreases automatically by the same amount as the increase in permanent insurance provided by the paid-up additions. This helps make more insurance coverage available at an affordable cost. The remaining term insurance can be converted to a permanent life insurance policy without evidence of insurability.

Insurance Exchange Provides for the exchange of policy coverage to a successor insured, subject to evidence of good health.

Level Premium Convertible Term 5 Rider Provides a level term insurance benefit for you, your spouse, your children parents, or business partners. Premiums are guaranteed and level for the first five years. Thereafter, premiums increase annually. It also offers a conversion privilege that is generally available for 10 years (varies at issue ages over 65), giving you the ability to upgrade the term insurance into cash-value-building permanent insurance, backed by the financial strength of New York Life Insurance Company.

Living Benefits Rider Gives you access to a portion of the policy's eligible death benefit during your lifetime should the insured be diagnosed with a terminal illness with a life expectancy of 12 months or less. (State variations exist.)

Option to Purchase Paid-Up Additions OPP is an economical way to increase your death benefit protection and build more cash value. OPP premiums are used to purchase additional life insurance coverage that has cash and loan value, and is eligible for dividends. Dividends are not guaranteed.

Policy Purchase Option Guarantees the option to purchase additional insurance at certain ages and at critical junctures in your lifetime, when your insurance needs are likely to increase, such as marriage, or the birth or adoption of a child.

Spouse's Paid-Up Insurance Purchase Option Gives your spouse/beneficiary the right to purchase a new paid-up life insurance policy on his/her life without evidence of insurability at the time of the insured's death (Rider Insured's Paid-Up Insurance purchase Option in New York.)

Survivor Purchase Option Allows your policy beneficiary to purchase a new life insurance policy without proof of insurability on a designated insured you’ve selected at issue.

Upromise Rider Provides for the one-time deposit of the Upromise contribution amount of $25 for each Whole Life policy into the Upromise College Savings Account³ that you designate.

Yearly Convertible Term Rider Allows you to purchase additional insurance on you, your spouse, children, parents or business partners. It can be converted to cash-value-building permanent life insurance during the conversion period without providing additional evidence of insurability. The conversion privilege is generally available until the later of 10 years or the policy anniversary at age 55, (varies at issue ages over 65). Premiums increase annually and are guaranteed for the first 10 years.

(These are only partial descriptions of these riders. Not all riders are available in every state, and some states vary the terms of certain riders. We encourage you to speak to your New York Life agent for more complete information.)

¹ Loans against your policy accrue interest at the current variable loan interest rate and decrease the death benefit and cash value by the amount of the outstanding loan and loan interest.
² Dividends are based on the policy's applicable dividend scale, which is neither guaranteed nor an estimate of future performance.
³ All 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.