Custom Whole Life Insurance at-a-glance
New York Life Custom Whole Life Insurance policy is the first whole life insurance product that lets you select how long you pay premiums1 and it is designed to maximize the cash value accumulation in the policy. Its unique design allows you to coordinate the paid-up date of your policy precisely with your personal financial goals and timetable, and access your policy’s cash value in the form of periodic payments via policy loans or partial surrenders.2
Should the entire death benefit no longer be needed, the cash values may be used to supplement retirement income, provide additional education funding, or for other purposes. Periodic payments can be structured so that you can obtain the payments income tax-free.
Whole Life insurance has provided essential financial security to families for generations. Custom Whole life shares the highlights of a Whole Life policy, including:
- A level premium guaranteed never to increase
- A guaranteed death benefit
- Tax-deferred cash value accumulation
- The ability to borrow from cash value, generally on a tax-free basis3
- The potential to earn dividends as declared by the company4
Custom Whole Life helpful facts
What is it?
Custom Whole Life insurance is the first whole life insurance policy that lets you select how long you pay premiums. Like whole life it offers a number of guarantees, including, lifelong death benefit protection as long as you pay your premiums when due. The policy is designed to maximize cash value accumulation and to allow you to coordinate the paid-up date of your policy with your individual financial goals and timetable. Once your policy is paid-up, you can access your policy’s cash value in the form of periodic payments, which can be used to supplement retirement income, provide education funding or other purposes.
- A guaranteed death benefit, generally free from federal income tax
- A level premium that is guaranteed never to increase
- Ability to select how long you pay premiums
- Tax-deferred cash value accumulation
- Eligible to earn dividends as declared by the company4
- Ability to borrow from the cash value on a generally tax-free basis3
A good choice when
- You want to pay premiums for a specific number of years to time to your unique financial needs
- You want to access the cash value in your policy during your lifetime to achieve a specific financial objective (i.e., to supplement retirement income, help with education funding, or for any purpose you choose)
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. Available for purchase.
Child's Protection Benefit — Protects the ability to continue paying for insurance purchased on your child. In the event of the death or disability of a premium payer, New York Life will waive the premiums on the child’s policy until the policy anniversary closest to the child's 25th birthday. Available for purchase.
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 total disability. With this rider, New York Life will waive premiums should the insured become totally disabled, as explained in the rider, and total disability has continued for at least six months
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 a permanent life insurance policy without evidence of insurability. Available for purchase.
Insurance Exchange — Provides for the exchange of policy coverage to a successor insured, subject to evidence of good health. There may be a cost to exercise the rider.
Extension of Premium Paying Period Rider — While this rider is in effect, the insured may increase the premium-paying period of the base policy to which this rider is attached. This change can only be elected once, and the election must be within the first five (5) policy years.
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.)5 There’s a cost to exercise the rider.
Option to Purchase Paid-Up Additions — OPP is an economical way to increase your death benefit protection and build more cash value. OPP premiums, which are subject to upfront expense charge, are used to purchase additional life insurance coverage that has cash and loan value, and is eligible for dividends, if declared. Dividends are not guaranteed.6
Policy Purchase Option — Guarantees the option 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. Available for purchase.
Spouse's Paid-Up Insurance Purchase Option7 — 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 insured's death (Rider Insured's Paid-Up Insurance purchase Option in New York.) Available for purchase.
1 In no case can the premium paying period be less than 5 years or extend beyond age 75.
2 Loans against your policy accrue interest at the current variable loan interest rate. Loans and partial surrenders decrease the death benefit and cash value.
3 Dividends are based on the policy's applicable dividend scale, which is neither guaranteed nor an estimate of future performance.
4 These are only partial descriptions of riders. Not all riders are available in every state and some states vary the terms of certain riders. Please speak to a New York Life agent for complete information.
5 Various states have established different life expectancy periods once terminal illness is diagnosed.
6 Rider Insured’s Paid-Up Insurance Purchase Option in New York.
All guarantees are based upon the claims paying ability of New York Life Insurance Company. In Oregon, the Custom Whole Life policy form number is ICC12213-50. The rider form numbers are as follows: Accidental Death Benefit: 208-200; Child’s Protection Benefit: 208-325; Disability Waiver of Premium: 208-225; Dividend Option Term: 208-265; Extension of Premium Paying Period: 209-203; Insurance Exchange: 978-432; Living Benefits: 206-495.27; Option to Purchase Paid-Up Additions: ICC11213-330; Payer Protection Benefit: 210-327; Policy Purchase Option: 208-413; Spouse’s Paid-Up Insurance Purchase Option: 205-375.
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.