New York Life Insurance Company: Insurance Basics
Knowing Them to a Tee
New York Life Insurance Quotes Company
does not provide insurance policies or quotes directly. Instead,
we match your information with a licensed, New York life
insurance professional who will offer you their best quote. Any questions regarding general New York life insurance policies, terms, contracts, etc. should be addressed to this professional who contacts you.
The main reason for owning life insurance or standard
life insurance from New York life insurance companies is to provide income replacement to your
beneficiaries when you die. But if you are interested in
estate planning, cash accumulation, wealth transfer, and
estate tax liquidity, life insurance can also help you achieve
these goals.
Policies from New York life insurance professionals are now available from more than 2,000 New York life
insurance companies in the United States, as well as from
financial institutions like banks. Because it's just as important
to understand the companies behind the products as it is to
understand the products themselves, New York Life Insurance Quotes Company carries insurance company
ratings to help you monitor the financial strength of
individual insurers.
Assessing your life
insurance needs
The main types of life
insurance on the market today fall into two categories: term
and permanent.
Simply put,
life insurance from a New York life insurance company provides death benefit protection for a specified
period of time (for instance, you might buy a 10-year term
policy). Generally speaking, if you're looking for coverage
for a short period of time, term life makes more sense.
If you are interested
in using the policy as a form of savings, permanent
insurance is a better fit. Most New York life insurance policies
will require that you meet certain medical criteria.
Term life insurance
Non-Guaranteed Term
Life
Non-guaranteed term life
provides coverage only for a short time (usually a year) and
is a pure death benefit protection. The risk with term life
is that your health might deteriorate and you may be unable
to get another policy once the term is up. Premiums can also
increase dramatically as you age, but term life insurance
is usually a good choice for young people who can't afford
the higher expense of permanent insurance, or for people covering
specific needs that will disappear in time, such as a car
loan or a mortgage.
Annual Renewable and
Convertible Term
Annual renewable term
insurance offers a longer term, usually for 10, 20, or 30
years. By buying a longer term policy, your costs can be stretched
out to avoid the annual increases found in non-guaranteed
term life.
Convertible term is like
annual renewable term but it also offers conversion to a permanent
policy in the future — when regular term premiums might
become cost-prohibitive or if your health declines. Convertible
term policies usually provide the maximum protection with
the smallest amount of cash required. This is a good choice
especially for young people who are unable to afford the higher
cost of permanent insurance right now but need maximum life
insurance, and also want to have the option of converting
to permanent coverage in the future.
Permanent life insurance
Whole Life or Ordinary
Life
Similar to annual renewable
term and convertible term, whole life policies stretch the
cost of insurance out over a longer period of time in order
to level out the otherwise increasing cost of insurance. In
this case, however, it is spread not over a few years but
over your entire life. Your excess premium dollars are invested
by the company. Because you aren't personally managing that
investment, your selection of an insurance company is vitally
important.
With this type of policy,
however, the inflexibility of premium payments could become
a burden if your expenses increase or if you lose your job.
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