As its name implies, 5-Year Term insurance provides life insurance protection where the initial premiums are guaranteed and remain level for the first five years.

Generally an affordable form of life insurance, term coverage provides pure insurance protection only. It does not accumulate cash value, nor is it eligible for dividends.

5-Year Term can be appropriate when coverage is needed for a well-defined period of time. If the insured were to die, insurance proceeds could be used to help pay a mortgage, fund a child's education or ensure business continuation by helping to cover business expenses.

What can 5-Year Term do for you?
5-Year Term Life Insurance provides pure insurance protection that can be suitable in a number of situations. For example:

• Short-term need for protection:
  5-Year Term is often used to protect needs that last for a well-defined period, such as a student loan or mortgage. For business owners, it can be used to cover outstanding loans, shielding partners from financial hardship.
• Large insurance need, limited budget:
  Because it is an affordable form of life insurance protection, 5-Year Term can be the solution when protection is essential, but dollars are scarce. People in their 20s and 30s often purchase a 5-Year Term policy and later convert it to a permanent plan. The conversion privilege guarantees their insurability at a later date — even if they become uninsurable.

How does it work?

• A life insurance agent will help you determine the amount and type of insurance needed to cover a short-term insurance need. (You may also use New York Life's Life Insurance Calculator to learn more on your own.)
• During the first five years, the premium is guaranteed to remain level. At the end of the first five years, you may decide to renew your policy. Your premiums will increase and usually, but not always, remain level for the next five years. (New York Life offers a Modification of Premium Guarantee rider which can be added to your 5-Year Term policy to assure level premiums for the second five-year interval.)
• You may continue to renew the policy every five years. Premiums will continue to increase and are expected — but not guaranteed — to remain level within each five year period.
• You can convert all or part of the policy into permanent life insurance without having to furnish evidence of insurability. Permanent insurance builds cash value and is eligible for dividends.
• When you die, the company pays your beneficiaries the death benefit. This money is generally free from federal income tax.

5-Year Term Insurance means...

• Affordable, temporary life insurance protection.
• Guaranteed renewable life insurance.
• A guaranteed death benefit, generally free from federal income tax.
• The ability to convert (generally for 10 years) all or part of the policy to permanent cash value insurance, without having to furnish evidence of insurability, or proof of your good health.

Click here to get the full product details about 5 Year Term Insurance.

Issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.

 Rate This
Rating: 0/0 (0 votes cast)

 Be the first to Comment