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 Life Insurance 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.
Five-Year Term Life Insurance Quick Hits
|Five-Year Term Life Insurance||Quick Hits|
A Good Choice When
Five-Year Term Life Insurance Fact Sheet
Click here (PDF, 67.3 KB) to download the product Fact Sheet for Five-Year Term Life Insurance.
Five-Year Term Life Insurance in Action
Rob (age 30) and Janice (age 29) just bought their first house and assumed a $195,000 mortgage. While Rob and Janice both work and have life insurance through their employers, they wanted to make sure if either of them died prematurely the surviving spouse would be able to stay in the house and raise their 2-year old son. To do so, they both bought a Five-Year Term Insurance policy with a death benefit equal to their mortgage.
Now should the worst happen, Rob or Janice will receive the $195,000 free from any federal income tax, enabling the surviving spouse to stay in their home and focus on raising their son. *This is a hypothetical example
Customize Your Policy
With Five-Year Term Life Insurance, as with nearly every New York Life Insurance policy, you can customize your policy with riders that let you be sure your policy does just what you need it to. Here are some of the many riders available to tailor your Five-Year Term policy to your needs:
The following riders have an additional charge associated with them:
Disability Waiver of Premium Rider
Waives premiums and keeps the policy in force if the insured becomes totally disabled as defined in the rider. You would not need to worry about paying the life insurance premiums. Issue ages 15-59.
Accidental Death Benefit Rider
Provides an additional death benefit if the insured were to die as a direct result of an accident prior to age 70. Issue ages 15-65.
Five-Year Term Rider
Allows coverage on the primary insured, the insured’s spouse and/or children, parents, or business partners. Issue ages 0-75
The following riders are available at no additional cost to you:
Living Benefits Rider
Gives the policyowner access to 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.1 Issue ages 15-75.
Gives a spouse who is the beneficiary the right to purchase a new paid-up life insurance policy on his/her life upon the death of the primary insured, without providing evidence of good health. (Rider Insured's Paid Up Insurance Purchase Option in New York.) Issue ages 15-75.
Please note: All information is subject to the terms and conditions of the particular policy, including any exclusions or limitations.
(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.
In Oregon, the Five Year Term policy form number is 994-60.23
The rider form numbers are as follows:
Accidental Death Benefit: 982-200
Disability Waiver of Premium: 996-235.27
Five Year Term Rider 996-450
Living Benefits: 206-496.27
Spouse's Paid-Up Insurance Purchase Option: 205-375
Last updated date 11/29/2010
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|Five-Year Life Term Life Insurance At-a-Glance|