New York Life Introduces Customizable Term Product
Consumers Have the Ability to Choose Their Own Level Premium Period
NEW YORK, N.Y., April 26, 2011 — New York Life Insurance Company today announced the launch of Level Premium Convertible Term Insurance which provides the quality features and coverage of term life insurance while allowing customers to decide how long they want to make guaranteed level premium payments. This product also offers individuals a conversion option giving policyowners the ability to “convert” the term insurance policy into cash value building permanent insurance.
“This innovative new product combines the benefits of short duration term insurance, typically five years or less, with the ability to customize the duration of the policy. This allows consumers to tailor the product to their individual needs,” said Mark W. Pfaff, executive vice president in charge of U.S. Life Insurance and Agency, New York Life. “For a large segment of families in the middle market who want financial security, this product provides the affordable coverage they need and locks in their insurability until they are ready to convert to permanent life insurance. Life insurance should be the foundation to a family’s financial plan and part of that decision should be a financially stable company committed to delivering on its promise to pay the claim in what can be decades in the future.”
Clients opting to purchase Level Premium Convertible Term obtain all the features of traditional term life, but they now have the flexibility to choose a guaranteed level premium paying period based on their needs.1 This flexibility allows them to choose a level premium payment period based on the age of children or the length of a business plan. The policy offers a wealth of benefits, including a conversion provision giving policy owners the security of life insurance coverage today and the flexibility to convert to a permanent policy as their financial situation allows in the next few years. In addition, Level Premium Convertible Term offers the following features:
- Guaranteed life insurance protection as long as premium is paid;2
- A conversion credit3 that’s applied to the new permanent life policy’s first-year premium;
- Guaranteed renewable coverage through the expiry age;
- A death benefit that is generally income-tax-free; and
- The ability to further customize the policy exists by adding optional features or riders4 such as an option to extend the conversion period to match the level premium paying period chosen or the ability to extend coverage to family members, such as a spouse or children.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States5 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments6 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. Please visit New York Life’s Web site at www.newyorklife.com for more information.
1 Choice of a short duration term product with level premiums for five years or the option to customize the level premium paying period between 10 and 20 years.
2 All guarantees are based upon claims-paying ability of New York Life Insurance Company. The product is not available in Montana and Oregon.
3 Applies to attained age term conversions only. The amount of term premium paid in the first year of the term policy is credited to reduce the first year premium on the permanent policy.
4 Optional features and riders may require additional cost.
5 New York Life is the largest mutual life insurance company based on the Fortune 500 ranked within industries, Insurance: Life, Health (Mutual), Fortune magazine, May 3, 2010.
6 New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.