It depends on where you are in your life and who depends on you financially. When you're starting a family, you probably want to have enough to replace your income, so your spouse or partner and children have the support they need. Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses, outstanding debt, and the legacy you would like to leave your loved ones.
The amount of money in a whole life policy that accumulates as you pay premiums. You can access it via loans or partial withdrawals for a variety of financial needs, like unexpected expenses or to pay for your child's college tuition. This money grows tax deferred.
A benefit provided by some carriers that allows you to upgrade from a temporary term life policy to a whole life policy if your life changes, without going through additional medical exams.
A share of the company's divisible surplus that is paid to an eligible policyholder. A divisible surplus is the extra money a mutual company has after paying claims, paying expenses, and setting aside reserves for future claims and benefits. Dividends can help your cash value and coverage grow. They are not guaranteed, but New York Life has paid them every year since 1854.
The person or entity that receives the benefit amount upon the death of the insured.
An add-on, generally available for purchase, that you can choose to incorporate into your policy to further customize coverage.
Guarantees of the policy are based on the claims-paying ability of the issuer.
For just pennies on the dollar, life insurance can provide immediate financial protection that is hard to match in any other way. This benefit will allow families, and even businesses, to more easily cope with the financial challenges that often result from a premature death.
One of the primary reasons people get life insurance is for the peace of mind that comes with making sure their loved ones will be taken care of if anything happens to them.
In general, you should figure out how much life insurance you need by calculating your long-term financial obligations and then subtracting your assets. The remainder is the gap that life insurance will have to fill.
New York Life has received the highest financial strength ratings currently awarded to any U.S. life insurer by Standard & Poor’s (AA+), A.M. Best (A++), Moody's Investors Service (Aaa), and Fitch (AAA). Source: Individual Third-Party Ratings Reports as of 10/15/20