Modified Premium Whole Life Insurance At-a-Glance

Whole Life insurance has helped provide essential financial protection to families for generations. It provides a foundation upon which you can build your family’s financial future. Modified Premium Whole Life insurance offers the same guarantees as traditional Whole Life insurance. It differs from Whole Life insurance because it features a lower initial premium that remains level for the policy’s first five years. The premium increases in year six and remains level as long as you own the policy.

Modified Premium Whole Life is well suited for those who want a large amount of insurance protection with a moderate amount of cash value accumulation, and a lower premium in the early policy years.

In addition to a death benefit, Modified Premium Whole Life builds cash value and is eligible to receive dividends¹. The cash value that accumulates in the policy can be accessed during your lifetime to fund needs such as a child’s education or a new home². It is a flexible product that can be customized to meet your family’s unique needs.

Modified Premium Whole Life has the same highlights of a whole life policy:

• A guaranteed death benefit
• Tax-deferred cash value accumulation.
• The ability to borrow from cash value, generally, on a tax-free basis²
• The potential to earn dividends as declared by the company¹

Modified Premium Whole Life can be used to help protect your family, your mortgage or to help supplement retirement income. It is especially useful for business planning needs, offering a lower initial premium at a time when cash flow might be tight during the early years of a business.

Modified Premium Whole Life Quick Hits

Modified Premium Whole Life Insurance	Quick Hits
	Premiums are lower than for a Whole Life insurance policy in the first five years A guaranteed death benefit, generally free from federal income tax Tax-deferred cash value accumulation Eligible to earn dividends as declared by the company1 Ability to borrow from cash value on a generally tax-free basis2
A Good Choice When	You want a large amount of insurance protection with a moderate amount of cash value accumulation You want to keep policy premiums lower in the first five years. You need traditional insurance protection or have business planning needs

Modified Premium Whole Life in Action

Greg and Tina Yang are partners in an importing business and want to protect their interests. Because the business is only two years old, cash is still a little tight. After meeting with their insurance agent, they decide to purchase a $750,000 Modified Premium Whole Life insurance policy. With the lower initial premium, the Yangs were able to purchase a larger policy than if they had chosen a traditional Whole Life insurance policy. They also added a $500,000 term rider, which will help them protect their interests as their business grows.

Customize Your Policy

You can choose from a wide variety of policy riders to meet your specific needs

Accidental Death Benefit — Provides additional death benefit equal to the face amount of the policy if you were to die as a result of an accident, up to $300,000 maximum, prior to age 70.

Children's Insurance — Provides level term insurance on the children of the insured that can be later converted to permanent life insurance policy.

Disability Waiver of Premium — Helps give peace of mind by assuring that valuable insurance coverage is not lost when the policyowner is unable to pay premiums due to a disability. With this rider, New York Life will waive premiums should the insured become totally disabled, as explained in the rider.

Dividend Option Term — Combines a decreasing term rider with the paid-up additions dividend option. Each year, the amount of term insurance decreases automatically by the same amount as the increase in permanent insurance provided by the paid-up additions. This helps make more insurance coverage available at an affordable cost. The remaining term insurance can be converted to any Whole Life policy New York Life makes available on an attained age or original age basis.

5 Year Term — Allows you to purchase additional term insurance on you, your spouse, your child, your parent or a business partner. Premiums are guaranteed to remain level in the first 5 years. In years 6 - 10 premiums increase and are expected, but not guaranteed to remain level.It can be converted to permanent life insurance during the conversion period without providing additional evidence of insurability.

Increasing Premium Term — Provides additional coverage through low-cost term in insurance for which premiums increase each year. It can be converted to a permanent life insurance policy on an attained age or original age basis.

Insurance Exchange — Provides for the transfer of policy coverage to a successor insured, subject to evidence of good health.

Living Benefits Rider — Gives you access to a portion of the policy's eligible death benefit during your lifetime should the insured be diagnosed with a terminal illness with a life expectancy of 12 months or less. (State variations exist.)

Option to Purchase Paid-Up Additions — OPP is an economical way to increase your death benefit protection and build more cash value. OPP premiums are used to purchase additional paid-up life insurance coverage that has cash and loan value, and is eligible for dividends¹.

Policy Purchase Option — Guarantees the contractual right to purchase additional insurance at certain ages and at critical junctures in your lifetime, when your insurance needs are likely to increase, such as marriage, or the birth or adoption of a child without having to provide evidence of insurability.

Spouse's Paid-Up Insurance Purchase Option⁴ — Gives your spouse/beneficiary the right to purchase a new paid-up life insurance policy on his/her life without evidence of insurability at the time of the your death

Survivor Purchase Option — Allows your policy beneficiary to purchase a new paid-up life insurance policy without proof of insurability on a designated insured you’ve selected at issue at the time of insured's death.

Upromise Rider — Provides for the one-time deposit of the Upromise contribution amount of $25 for each Whole Life policy into the Upromise College Savings Account³ that 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.)

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 at the current variable loan interest rate and decrease the death benefit and cash value by the amount of the outstanding loan and loan interest.
³ All contributions will be held in a trust account with Upromise, Inc. for the benefit of Upromise members. Upromise, Inc. is not affiliated with New York Life or its subsidiaries.
⁴ Rider Insured's Paid-Up Insurance Purchase Option in New York.

Questions about this article or about New York Life, our subsidiaries and the products that we offer? Please call this toll-free number 800-710-7945 to arrange for a discussion with a New York Life agent or a NYLIFE Securities LLC financial services professional.

This material is for informational purposes only. Neither New York Life nor its agents provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.
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