Term Life Insurance in New York

The death benefit

If you die while the policy is in force, the insurer pays the benefit to your beneficiaries. If you outlive the term, coverage ends and no benefit is paid.

The premium

Premiums are usually level for the length of the term. Your age, health, tobacco use, the amount of coverage and the length of the term all affect the price.

No cash value

Term insurance provides a death benefit and does not build cash value, which is why it usually costs less than permanent coverage for the same death benefit.

After the term

At the end of the term you can let coverage end, renew if the policy allows it (usually at a higher premium), or convert to permanent coverage if the policy has a conversion option.

Parents

Income replacement while children are young and depend on you.

Homeowners

Coverage that lasts as long as the mortgage, which can help a family keep the home.

Business owners

Protection for business loans, and a way to fund an agreement between partners. See life insurance for business owners.

Anyone with a temporary need

Obligations that end on a known date, such as a loan or a spouse's remaining working years.

1. Add up what must be paid

   Mortgage and other debts, education costs and final expenses.

2. Estimate the income to replace

   The number of years until children are independent or a spouse can adjust.

3. Subtract what you already have

   Savings, existing policies and employer group life insurance, which usually ends if you leave the job.

4. Match the term to the longest need

   Choose a length that covers the longest obligation, such as the mortgage or the youngest child's path to independence.

Conversion option

Whether, and until when, you can convert to permanent coverage without new medical evidence.

Renewability

What happens to the premium if you keep the policy after the term ends.

Riders

Optional features such as waiver of premium or accelerated death benefit for serious illness. Availability and terms vary by insurer.

Underwriting

Fully underwritten policies and simplified-issue policies differ in process, price and maximum amount. Simplified processes may cost more or limit the amount.

Insurer strength

The financial strength ratings that independent agencies give each insurer.

New York requires that recommendations about life insurance be in your best interest (Regulation 187). If a new policy would replace an existing one, New York's replacement rules (Regulation 60) require disclosures so that you can compare before you decide. At or before the application we explain our role and how we are paid, and you can ask for details of our compensation (Regulation 194).

How long should my term be?

Long enough to cover your longest obligation. For many people that is the mortgage or the years until the youngest child is independent. We compare several lengths so you can see the trade-off.

Is term life insurance cheaper than whole life?

For the same death benefit and the same person, term premiums are usually lower, because term covers a limited period and does not build cash value. Whole life lasts for life and costs more.

What happens if I outlive my term?

Coverage ends and no benefit is paid. Depending on the policy you may be able to renew, usually at a higher premium, or convert part or all of it to permanent coverage.

Can I convert a term policy to permanent insurance?

Many term policies include a conversion option for a limited time, without new medical evidence. The rules vary by insurer, so we check them before you buy.

Do I need a medical exam for term life?

It depends on your age, the amount and the insurer. Many policies involve a health questionnaire and a records review, and some require an exam. Simplified options exist for certain ages and amounts.