Many people think that life insurance is only for people with families. While it’s true that life insurance can help provide for the needs of dependents, life insurance also can be an important part of a well-thought-out estate, business succession, or charitable giving plan. And permanent life insurance offers a number of living benefits as well, such as the opportunity for tax-deferred cash value accumulation. For all of these reasons, life insurance can be important for someone starting out—or for someone who's starting over.
Whole life insurance is a permanent life insurance. You receive coverage for your entire life, as long as premiums (which are a set amount per period) are paid when due. Whole life policies accumulate cash value tax-deferred.
Term life insurance policies provide coverage for a specific amount of time—such as one year, 10 years, or 20 years. Term premiums are often initially less expensive than whole life premiums, but once the term of the policy is complete, coverage terminates, unless policy owner elects to renew the policy often at a much higher rate. There is no accumulation of cash value for term life policies.
Universal Life insurance is designed to offer customizable death benefit protection with non-guaranteed planned premiums and a non-guaranteed death benefit. Depending on the product selected and the amount of premium you pay, Universal Life insurance can allow you to keep your coverage for as long as you need it: to age 80, 90, 100 or longer. Because of the policy’s flexible and non-guaranteed nature, it is important to fund your policy properly and actively manage your policy to reflect changes in interest crediting rates and policy charges over the duration of your policy. This 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 withdrawals are made, or if current interest rates or charges fluctuate.
Variable Universal Life Insurance combines the premium and death benefit flexibility of a Universal Life policy with investment opportunities. You may allocate your premium amongst a variety of professionally managed investment divisions plus a fixed account. Of course, with investment opportunities comes risk along with the potential for reward.
These products are offered by prospectus through NYLIFE Securities LLC. (member FINRA/SIPC) and a Licensed insurance Agency. Be sure to request one and read it carefully before investing as both the product and investment options prospectuses provide complete information you need to know regarding charges, expenses and risk factors.
Survivorship Life insurance—available as whole life or universal life—covers two people and provides payment of the proceeds when the second insured individual dies. Survivorship Life insurance is often used to help meet estate planning or business continuation goals.
An annuity is a unique financial vehicle designed to help you accumulate money for your retirement and/or turn a lump sum into a guaranteed stream of income payments. Deferred annuities offer the advantage of tax deferral and can be used to accumulate money for retirement. Income annuities are often immediate annuities used to generate a stream of income payments that are guaranteed to last for as long as you need them to—even for the rest of your life.* Some of the different types of annuities are:
With a fixed deferred annuity, the interest rate on your policy is guaranteed never to fall below a certain fixed rate. * For many people, this provides a measure of security.
(A fixed deferred annuity is subject to charges for early surrenders or withdrawals. In addition to paying income taxes that may be due, distributions prior to age 59½ may also be subject to a 10% federal tax penalty.)
*Guarantees are dependent upon the claims-paying ability of the issuing insurer.
Individual disability insurance is available through one or more carriers not affiliated with NewYork Life Insurance Company, depending on carrier authorization and product availability in your state or locality.
A lifetime income annuity is an annuity in which income payments begin—one period after the annuity is purchased. It is designed to provide you with guaranteed, predictable income monthly, quarterly, semiannually, or annually, no matter how long you live, and regardless of how the financial markets perform.
All guarantees associated with annuity contracts are based on the claims-paying ability of the issuing insurance company. Withdrawals may be subject to regular income taxes, and if made prior to age 59½, may also be subject to a 10% IRS tax penalty. In addition, early surrender charges may apply.
A variable deferred annuity offers the advantage of tax deferral and can be used to accumulate money for retirement. The policy's accumulated value—and sometimes the amount of monthly annuity benefit payments—fluctuates with the performance of your variable investment account options. There are fees, expenses, and risks associated with the contract. Please be aware that assets allocated to the investment divisions are subject to market risks and will fluctuate in value.
Offered through NYLIFE Securities LLC (member FINRA/SIPC), a Licensed Insurance Agency, and a New York Life Company.