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Is it time to upgrade your term policy?

Take advantage of the Term Conversion privilege

Question: What do life insurance policies and real estate both typically have?

Hint: It’s “equity.”

As a term policyholder with New York Life, you understand the value of life insurance and the peace of mind it can bring. But, like renting an apartment, term is a temporary solution. Once your term – or lease – ends, you haven’t built up any equity.

Whole life insurance, on the other hand, can offer that same peace of mind, but offers a permanent solution. Like owning a house, whole life can help you build “equity”: - with guaranteed cash value growth. Additionally, policyholders have potentially tax-free access to that cash value through policy loans - which can help pay for college, a down payment on a house, a wedding, or even serve as a cushion in an emergency.

Like many renters, you may be wondering: How can I buy? The answer’s simple: Term conversion.

With term conversion, you can upgrade all or some of your term policy to a permanent policy and get that lasting protection you’re looking for. Your agent can give you all the details you need about taking advantage of your “conversion privilege” as a policyowner, as well as help you decide if it’s the right solution for you.

Knowledge is power

Educate yourself on the benefits of whole life: Here’s a quick breakdown of the benefits of whole life vs. term, as well as a life insurance needs calculator.

Term: Whole Life:
Guaranteed death benefit Guaranteed death benefit
Generally Federal Income-tax free death benefit Generally Federal Income-tax free death benefit
Premium guaranteed to never increase
Potential growth of cash value through dividends
Tax-deferred cash value growth
Potential Tax-free access to cash value via policy loans

Calculate: How much Life Insurance do I need?

Read more: Compare and contrast: Term and Whole Life Insurance

Advice from a pro

Keep in mind that life doesn’t always go as planned, but New York Life’s whole life can help ensure you and the people you love are protected, no matter what life brings. And, it’s backed by nearly two centuries of financial strength and integrity.

“Term conversions are a way of helping clients realize the dream of having a permanent policy that builds cash value,” says Gary Chipurnoi, a New York City-based agent, who equates term conversions to building a house, but with “one brick at a time.” Converting term slowly, for some of his clients, allows them to build cash value over time.

“When I write a term policy, I like to illustrate conversion by using a rent-to-own situation. Let’s say you rent your apartment today, and you’d like to buy it outright. But maybe you’re not prepared to pay the entire amount all at once,” he explains. “Instead, we’re going to do the next best thing: we’re going to sell you the house, and you’ll pay for it a little over time starting today. Every year, we’re going to convert a little piece. This way, I make sure my clients’ immediate needs are met, and eventually, over time, all of those little bricks will make a house.”


Are you ready to start building your financial house? Term conversion can help you on your way. Contact your agent today to discuss converting your term policy to whole life. All you have to do is click on the “Talk to Us” button on the left side of the page. There, you can “Find an Agent,” including your agents e-mail, address, and phone number.

And, if you don’t have an agent but would like to explore our products and services, fill out the “Consult an Agent” form. We’ll have an agent in your local area get in touch with you at a time that’s convenient for you.

1 Dividends are based on the policy’s applicable dividend scale, which is neither guaranteed nor an estimate of future performance

2 Loans against your policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and loan interest. Withdrawals will also decrease the death benefit.