Why Term Life Insurance in New York
Many New Yorkers may be going through pivotal changes in their life. Some of you may be recently married, have children, and/or recently bought your first home. With this mind, you may find now is the right time to consider life insurance.
Term life insurance in New York helps protect your loved ones if anything were to happen to you. With life insurance, an individual can ensure that their loved ones have food on their table and a roof over their head in the event of an untimely death.
Term life insurance can help pay off any existing debt or expenses at your passing such as:
- Mortgages or Rent
- Car loans
- Credit card debt
It can even help cover any future expenses such as your children’s college tuition. Therefore, life insurance is simply a smart way to take care of your responsibilities if you were no longer here. That being said, let’s look at Term Life Insurance in more detail.
How Term Life Insurance in New York Works
Term Life Insurance is typically one of the most popular life insurance products for New Yorkers looking for insurance protection. The reason it is so popular is because it is often times the most suitable product for their needs.
In addition, Term Life Insurance is typically very affordable while at the same time offering an abundance of coverage.
Now guaranteed Term Life Insurance covers you for a specific amount of time (a term). Typically, many companies offer a term period for:
- 1 year
- 5 years
- 10 years
- 20 years
- 25 years
- 30 years
You select the length of your guaranteed renewable term insurance when you apply for a policy. The longer the guaranteed term lasts, the higher the premium will be.
Now during that term period, your premium is generally guaranteed to remain the same and never increase. Let’s say for example you select a guaranteed renewable term insurance policy that lasts for 10 years. During those 10 years your premium is guaranteed for the next 10 years.
Now you may be wondering what happens if you want to keep your policy longer than the term period. You do have the option to keep your policy longer than the term period. That is why it is called “renewable.” However, every year after the term period is over, your premium will increase drastically.
This is why it is recommended to select a term period for as long as you need insurance or sometimes longer. The premium increases so much that in many cases it is better to cancel that policy and buy a new term policy altogether.
In the event you want coverage for a longer period of time, such as for your lifetime, cash value life insurance also called permanent insurance may be more cost effective and typically makes more sense.
Although guaranteed renewable term insurance offers coverage after the term period, you will lose the right to renew the policy at a certain age. This is why if you are looking for lifetime coverage, a permanent insurance policy will make more sense. Keep in mind however, many companies do offer the option to convert your term policy into a permanent policy as an option.
Term life insurance is typically appeals to folks looking for coverage for a specific amount of time and purpose. For example, someone who needs life insurance until their kids become adults and can take care of themselves. Another example is someone who just bought a house and wants to make sure in the event of their untimely death, their mortgage will be paid off.
One other reason why folks would consider term life insurance is term insurance offers the largest amount of protection for your buck. This is true when you compare term life insurance to permanent insurance.
Now that we have covered the most basic and one of the most common forms of life insurance for 30 and 40 year olds, let’s talk about pricing.
Term Life Insurance Rates for New Yorkers
The cost of term life insurance for healthy New Yorkers can be very affordable! For many New Yorkers, the cost can amount to a couple of bucks a month!
Just to give you an idea of how affordable term life insurance can be, I listed rates for a $100,000 of term insurance.
Let’s look at the table to see how much $100,000 of term insurance may cost you:
| Monthly Rates For $100,000 of Term Insurance | ||
|---|---|---|
| Age | Male | Female |
| 30 | $13.18 | $12.24 |
| 31 | $13.20 | $12.40 |
| 32 | $13.31 | $12.49 |
| 33 | $13.60 | $12.49 |
| 34 | $14.28 | $12.66 |
| 35 | $14.44 | $13.03 |
| 36 | $15.16 | $13.55 |
| 37 | $15.64 | $14.11 |
| 38 | $16.08 | $14.63 |
| 39 | $16.87 | $15.40 |
| 40 | $17.60 | $15.85 |
| 41 | $18.90 | $16.60 |
| 42 | $20.05 | $17.15 |
| 43 | $21.62 | $18.24 |
| 44 | $23.38 | $19.80 |
| 45 | $24.70 | $20.72 |
| 46 | $26.96 | $21.71 |
| 47 | $28.98 | $22.99 |
| 48 | $31.11 | $24.99 |
| 49 | $33.11 | $26.20 |
That’s right, a standard 30 year old can get $100,000 of term life insurance for about $13 a month. A standard 40 year old can get $100,000 of term life insurance for about $17 a month. As a matter of fact, you can even save more if you qualify for a term policy with a Preferred or Super-preferred rating!
Give me a call today to find out more!
Now let’s talk about underwriting and qualifying for a term life insurance.
Underwriting & Qualifying for Term Life Insurance in New York
Like any life insurance policy, term life insurance policies are underwritten based on your age, health, and gender. Unlike burial insurance & final expense life insurance where all you need is to answer a few medical questions, term life insurance can have more requirements.
In some instances, underwriting for term life insurance may require a paramed exam. In a typical paramed exam, a medical professional visits your home and takes your height & weight and asks you about your health history. In addition, they will also take your blood pressure as well as both blood & urine samples.
In addition, a company may even require an Attending Physician Statement (APS) or your medical records from your doctor.
However, many companies today have moved towards Accelerated Underwriting for healthy individuals. Accelerated Underwriting allows you to forgo the medical exam and the need for an APS. Accelerated Underwriting allows for people with good health to obtain term life insurance much faster.
Without Accelerated Underwriting, a term life insurance policy may take weeks before you are approved. That being said, there is one carrier I recommend if you are interested in Accelerated Underwriting – Protective Life Insurance Company.
I Recommend Protective Life Insurance Company for Term Life Insurance in New York
Protective Life Insurance has offered affordable life insurance for over 110 years. They offer quality term life insurance as well as future conversion options. Protective Life Insurance Company has an A+ financial rating with A.M. Best.
More importantly, Protective Life Insurance offers Accelerated Underwriting. Their program is called Protective Life Underwriting Solution or “PLUS.” If you select a Protective Term insurance policy, you may be able to qualify.
One added bonus of Protective Life Insurance Company is they reduced the rates on their term life insurance!
