Living in the state of New York comes with many perks. You’ve got the beauty of the country, the coastline, the lakes and one of the world’s cultural hubs at your doorstep. While enjoying these cultural and outdoor adventures with your family, remember to consider how they will be protected if you are no longer there to support them. New York life insurance is an ideal way to provide a significant amount of income for your family after you’ve passed away, but many people aren’t sure whether it is necessary or when to buy it.
A local independent agent in the Trusted Choice® network who specializes in life insurance can answer your questions and help you evaluate your personal needs. A member agent can help you compare policies and review several different New York life insurance quotes. Find an agent today for help choosing the right life insurance policy for you.
Statistics on New York Life Insurance
- In 2011, New York residents owned 8 million life insurance policies.
- The average coverage amount is $173,000 per policyholder.
- The total number of life insurance policies purchased in 2011 totaled $140 billion.
- $26 billion was paid to New Yorkers in life insurance benefits.
Why Do I Need New York Life Insurance?
Some people are torn over the decision to purchase life insurance, but it’s actually similar in many ways to any other insurance policy. The difference is that instead of receiving a direct payout, those you name as beneficiaries will benefit.
In reality, any insurance policy is about making the choice to prepare for the unexpected. Life insurance can provide reassurance that your family will be able to maintain the same standard of living, and continue to manage expenses, education and bills once you are gone. But life insurance is also a very flexible tool that can be structured to meet other goals as well.
Here are some of the most common reasons people choose to purchase life insurance:
- Income replacement: If you have a family that depends on your income, they can face financial challenges if you pass away unexpectedly. Life insurance can provide a buffer to help replace that lost income.
- College funding: If you have children, most likely you want to ensure that they can successfully complete their education. Your life insurance proceeds can be invested in your children's tuition.
- Mortgage protection: Your life insurance proceeds can be used to pay off your remaining mortgage, relieving your spouse or partner of the burden of mortgage payments.
- Business continuation: Business owners often buy life insurance to ensure that their passing will not leave the company reeling. For example, a policy can be structured so that a co-owner is the beneficiary, providing the funds for that partner to purchase the portion of the business owned by the deceased.
- Final expenses: Life insurance can cover medical care expenses, the costs involved in hiring professionals to put affairs in order and funeral costs.
What Are My New York Life Insurance Options?
Choosing the right kind of insurance can be frustrating. Should you choose term life or whole life? What’s the difference between whole life and universal life? There are pros and cons to each type of life insurance, but you really need to analyze your personal needs, and the needs of your family to make the best choice.
For example, here are some typical reasons for purchasing different types of life insurance:
- Term life: This coverage lasts for the length of a set term, and makes the most sense if you have a specific need, such as:
- Coverage for 15 years until your children are through college.
- $25,000 of coverage for end-of-life expenses.
- Permanent life: There are two primary types of permanent life insurance. Both differ from term insurance in that they last your entire lifetime, they pay a death benefit no matter what, and they have a cash savings and investment component that can provide cash flow in retirement.
- Whole life: This type of policy has a fixed face value, and works well for those who want the security of knowing the amount of benefits paid cannot decrease.
- Universal life: This permanent policy is similar to whole life, but it has more flexibility. The policyholder can choose to pay the premium out of the cash value, temporarily halt payments and make other choices to tailor the policy to specific needs and goals.
How to Compare New York Life Insurance Quotes
Choosing the right life insurance policy is a very personal decision. It all starts with gathering information and getting your questions answered. A Trusted Choice member agent can help you get the information you need to make an informed choice that will meet your personal and family goals. Your agent can also help you compare a range of New York life insurance quotes from various companies to ensure you are getting the best value.
To get your questions answered and get the right New York life insurance coverage for your needs, contact a Trusted Choice member agent today.