Life
Life insurance in New York
Life insurance pays a cash benefit to the people who depend on your income when you die. Term life covers a set number of years and costs the least. Permanent life lasts for life and builds cash value. Most people with a mortgage and children need term, sized to the debt and the years of income being replaced.
Who this is for
- Anyone whose income supports another person
- Homeowners with a mortgage that would outlive them
- Business partners funding a buy-sell agreement
- Parents wanting coverage locked in while they are young and healthy
Who it is not for
- People with no dependents, no debt anyone else is liable for and enough assets to cover final costs
- Anyone being sold permanent coverage as an investment before they have term in place and a funded retirement account
What it covers and what it does not
| Covered | Not covered |
|---|---|
| A tax-free death benefit paid to your named beneficiary | Suicide within the first two policy years, in most contracts |
| Death from illness or accident, once the contestability period passes | Material misrepresentation on the application, discovered within two years |
| Cash value growth, on permanent policies only | Lapse for nonpayment, which ends the coverage |
Every policy differs. This table describes what these policies generally do, not the terms of any specific contract.
New York requirements
- New York regulates life insurance more tightly than most states. Some products sold elsewhere are not available here, and New York versions of national products often differ in pricing and features.
- Only insurers authorized in New York may be used. We cannot place you with a carrier that is not authorized here.
- New York’s free-look period lets you cancel a new life policy and receive a full refund within a set window after delivery. The exact window is printed on your policy.
What it costs
A healthy nonsmoker in their thirties can often buy a 20-year, $500,000 term policy for less than a phone bill. Premiums rise steeply with age and with tobacco use, which is the main argument for buying earlier rather than later.
What moves the number
- Age at issue
- Tobacco use
- Health, height and weight, and family medical history
- Term length and benefit amount
- Whether the policy requires a medical exam
Common questions
How much coverage do I actually need?
A common starting point is enough to clear the mortgage and other debt, plus several years of the income your household would lose. We will work through the actual number with you rather than applying a multiplier and calling it done.
Term or whole life?
For most households the honest answer is term, because it buys the most protection per dollar during the years dependents actually need it. Permanent coverage has real uses, including estate planning and funding a buy-sell agreement, but it should be a considered choice and not the default.
Can I be turned down?
Yes. Underwriting looks at health, history and occupation. If one carrier declines, another may not, which is one of the practical advantages of working with an independent agency rather than a single company.