Deciding on the right New York Individual Life Insurance policy usually depends on your future goals. Whether you wish to provide a tax free income for your beneficiaries, have funds for the payment of the final expenses or estate taxes, replace the income that is lost if you die, or provide a significant charitable contribution, we can help you chose the policy that will fit your needs at an affordable price.
Individual Life Insurance can be important for:
- A source of savings – If not paid out by death benefit, some types of life insurance can have a cash value.
- Final expenses – using life insurance to pay for funeral and burial expenses.
- Income for dependents – a life policy can provide much needed income for your dependents when you die. Many times this is used for children, but can also be used for a partner that has a loss of income.
- Inheritance – using a life insurance policy as a inheritance even if you don’t have substantial assets to pass on to your beneficiaries.
- Used to pay taxes
- Making a charitable contribution
Life Insurance options in New York
Generally age and health are the most important factor in the premium you will pay. Although you can purchase a policy at any age, the younger you are the more affordable the policies will be. All life insurance policies are designed to pay a benefit when someone dies. The two most common types of life insurance are Term and Whole (or Permanent) policies.
Term Insurance is usually the most affordable type of coverage. The term of the policy usually lasts between 1 and 30 years and pays only if a death occurs during the policy term. Most term policies have no other benefit provisions. Term policies can be level term which means the death benefit will remain the same throughout the duration of the policy, or they can be decreasing term which mean the death benefit drops over the course of the policy’s term. When the policy term ends, you may or may not qualify for new coverage based on your health, and based on your age, the cost of the premium may be too high to be affordable.
The advantage of Whole or Permanent Insurance is the death benefit and premium will usually remain the same during the duration of the policy. These policies can also build cash value which may be withdrawn or loaned similar to a savings account. The 3 types of New York whole life insurance are traditional whole life, universal life, and variable universal life, and there are variations within each type.
Our agents at J.D. Chapman Agency can guide you through the different types of New York life insurance policies available and help you chose the policy that will best fulfill your unique needs and goals.