Increasing Premium Term Life Insurance At-a-Glance

Increasing Premium Term is temporary life insurance protection at an affordable initial premium. This type of policy is renewable each year which means you may renew the policy annually (until the expiry age which varies by state) without providing evidence of insurability, or proof of your good health. As long as you pay the premium, the policy remains in force. Like all term insurance, Increasing Premium Term provides pure insurance protection only. It does not accumulate cash value, nor is it eligible for dividends.

Premiums increase each year you renew the policy. The amount of this increase is guaranteed in the policy for the first ten years. Each year, premiums on the renewed policy will typically be higher, because they are based on your age at the start of the renewal period. You may convert all or part of an Increasing Premium Term policy into a permanent, cash value policy without furnishing evidence of insurability.

Increasing Premium Term Life Insurance Quick Hits

Increasing Premium Term Life (IPT) Insurance Quick Hits

Renewable annually, which means you may renew the policy annually (until the expiry age which varies by state) without providing evidence of insurability, or proof of your good health.

Premiums increase each year. The amount of this increase is guaranteed in the policy for the first ten years.

Premiums on the renewed policy will typically be higher, because they are based on your age at the start of the renewal period

A Good Choice When

There are limited funds: in situations where life insurance is essential but dollars are scarce, IPT could serve as a stop-gap. Young people starting their careers can choose IPT, then covert to a permanent policy as their finances improve.

There is a need for supplemental insurance. IPT is an affordable way to increase total insurance coverage. IPT can also be added as a rider to a permanent plan to boost death benefits.

There is a need for family coverage. Optional riders such as the Children’s Insurance can be added to the policy to extend coverage to your children (see “Available Riders” below for more Information.)

Download the Fact Sheet for Increasing Premium Term Life Insurance (PDF)

Increasing Premium Term Life Insurance in Action

After meeting with their New York Life agent and analyzing their needs, Jose and Jennifer Olivera knew they each needed $400,000 in life insurance to protect their family. While they wanted to purchase permanent insurance their budget only allowed them to each buy $200,000 of whole life insurance. To make up the difference, they each purchased $200,000 of Increasing Premium Term insurance. Which they will convert to permanent insurance in a few years as their income increases. *^{This is a hypothetical example}

Customize Your Policy

You can choose from a wide variety of policy riders¹,² to meet your specific needs

The following riders have an additional charge associated with them:

Waiver of Premium Rider

— Waives all future premiums and keeps the policy in force if the Insured become totally disabled as defined in the rider. You would not need to worry about paying the life insurance premiums. Issue ages 15 to 59.

Accidental Death Benefit Rider

— Provides an additional death benefit if the Insured were to die as a direct result of an accident. Issue ages 15 to 65.

Children’s Insurance

— Provides level term insurance coverage on the insured's children. Issue age 16 to 50.

The following riders are available at no additional cost to you:

Living Benefits Rider

— Lets the policyowner take a portion of the policy’s death benefit if the Insured is diagnosed with a terminal illness with a life expectancy of 12 months or less. Issue ages 15 to 65.¹

Spouse’s Paid Up Insurance Purchase Option

— Gives spouse-beneficiary the right to purchase a new paid-up life policy on his/her life without evidence of insurability upon the death of the insured. Issue ages 15 to 65. (Rider Insured's Paid Up Insurance Purchase Option in New York)

Upromise Rider²

— Provides for the one-time deposit of a Upromise Contribution Amount of $25 for each term policy in the Upromise College Savings Account³ you designate.

(These are only partial descriptions of these riders. Not all riders are available in every state, and some states vary the terms of certain riders. We encourage you to speak to your New York Life agent for more complete information.)

¹State variations exist

²Not available in all states

³ All contributions will be held in a trust account with Upromise, Incorporated, for the benefit of Upromise members. Upromise, Incorporated, is not affiliated with New York Life or its subsidiaries.

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