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. Starting in year eleven, 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.

What can Increasing Premium Term do for you?
Increasing Premium Term Life Insurance can be adapted to fit a wide range of needs:

• A short-term need for substantial protection: Increasing Premium Term can be appropriate when you need substantial coverage for a specific period of time, usually less than five years, such as a student loan or mortgage. For business owners, it can be used to cover outstanding loans, shielding partners from financial hardship in the event of the loss of the other partner.
• Large insurance need, limited budget: Increasing Premium Term can be the solution when protection is essential, but dollars are scarce. People in their 20s and 30s often purchase an Increasing Premium Term policy and later convert it to a permanent plan.
• Supplemental insurance: Increasing Premium Term can be added as a rider to increase the death benefit of an existing life insurance policy.

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.)
• The policy is renewable on an annual basis. Premiums will increase each year. During the first ten years, premiums will increase as stated in the policy. Beginning in the eleventh year, premiums will increase based on your age.
• When you die, the company pays your beneficiaries the death benefit. This money is generally free from federal income tax.

Increasing Premium Term Insurance means...

• Affordable, temporary life insurance protection that may be an ideal way to provide a substantial amount of coverage for a short period of time.
• Guaranteed premiums for the first ten years.
• A guaranteed death benefit, generally free from federal income tax.
• Ability to convert to permanent insurance.

Click here (PDF, 180 KB) to download the product Fact Sheet for Increasing Premium Term Insurance.

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

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