NYLIAC Survivorship Universal Life Insurance
Life gives you a lot of choices—especially when you're looking for ways to help protect the people you love and the lifestyle you've established. Whether you're buying a home, starting a family, or launching a business, basic insurance protection can be the financial cornerstone for your life.
But things can change along the way. That's why universal life insurance provides essential permanent life insurance coverage combined with a unique degree of flexibility. It gives you the ability to adapt coverage and payments to meet your changing needs without compromising the continued insurance coverage you require.
Your life—and your goals—need protection and a product that can adapt to the changes you may face. A universal life policy from New York Life Insurance and Annuity Corporation (NYLIAC)1 can give you just that.
NYLIAC Universal Life Offers:
- A death benefit that is usually free from income taxes
- Cash value that accumulates tax-deferred and can be accessed in times of need2
- Flexible life insurance protection that can change with your needs over time
- Premium payments that can be tailored to suit your budget
- A choice of three life insurance benefit options
- A No Lapse Guarantee Rider3
- Significant business benefits from insurance protection
- The ability to customize your coverage with policy riders
Death Benefit Protection
Universal life policies, backed by the financial strength of NYLIAC, provide the traditional life insurance protection that you need to protect your loved ones, ensure their continued financial security, and help protect your business upon your death. Beneficiaries receive policy death benefit proceeds generally free from income taxes and probate delays.This immediate cash source can help pay final expenses, cover outstanding debts, and help ensure business continuation.
Permanent Protection and Flexible Payments
NYLIAC universal life products are designed to give you added flexibility while preserving the benefits of a permanent life insurance policy. You have the freedom to choose the amount of coverage that suits you best—and choose a payment amount that works within your budget. You can also increase or decrease the face amount of your coverage4 and vary the frequency and amount of your premium payments5 to best meet your individual and business goals.
Cash Value Accumulation
Your NYLIAC universal life policy has the potential to earn cash value, which can increase the death benefit your beneficiaries receive. Provided it's sufficient, your cash surrender value can be accessed through policy loans and partial surrenders2 to buy a home, fund a child's education, or supplement retirement income.
In addition, if cash value accumulation is a high priority for you, you can increase your regular premium payments or make additional unscheduled payments into your policy.6 Paying additional premiums provides you with the opportunity for greater cash value accumulation—which can then be used2 if needed in the future.
Life Insurance Benefit Options
NYLIAC universal life policies offer a choice of three life insurance benefit options. Because your policy can be purchased for a variety of business or personal uses, it's important to select a life insurance benefit option in line with your intended policy use. The life insurance benefit options are:
is the policy's face amount, and is generally a level amount.
- Option 2
is the face amount, plus the cash value that has accrued within the policy, usually resulting in a higher death benefit for your beneficiaries.
- Option 3
especially valuable in a split-dollar business arrangement, equals the policy's face amount plus the adjusted total premium (total premiums paid, less any partial surrenders).
No Lapse Guarantee Rider3
The flexibility of a universal life policy—specifically your ability to change payment dates and premium and coverage levels—is a valuable feature, but it's also dependent on your policy having enough cash surrender value to cover the monthly policy charges. You can mitigate this risk by electing the No Lapse Guarantee Rider on the universal life policy you choose.This rider ensures that if you fund the policy at a premium level required to maintain the guarantee, the policy will not lapse, even if the cash surrender value is not sufficient to cover the policy's monthly charges. This feature can allow your coverage to be continuous through any circumstance.
Potential Business Benefits
If you're a business owner, you're likely aware of the potential financial pitfalls if anything happens to you, a co-owning spouse, or a key employee. With its ability to conform to your needs, universal life can be an ideal insurance fit for you.
For example, owning life insurance may enhance your financial stability when applying for a bank loan, because a death benefit may decrease your credit risk. And with a universal life policy, you have the option of decreasing or even skipping premium payments5 if your cash flow fluctuates, or to accommodate increased overhead costs.
Universal life policies can also be purchased to cover the lives of key employees or business partners. This helps to ensure the continuity of your business if they pass away unexpectedly.
Your NYLIAC Universal Life Policy Choices
NYLIAC offers you several universal life policy choices.
- NYLIAC Protector® is designed with lower insurance costs and policy expenses, and allows for lower premium payments and cash value accumulation. It better accommodates individuals and business owners whose primary concern is competitively priced death benefit protection.
- NYLIAC Survivorship Universal Life (SUL) insures two individuals under one insurance policy and pays the life insurance benefit at the death of the second insured. As a result, the cost is more affordable than it would be to purchase two separate policies. This can be particularly helpful to married couples interested in business continuation or estate planning, including providing for a dependent with special needs.
Customize Your Policy with Additional Riders7
In addition to the No Lapse Guarantee Rider, NYLIAC universal life policies offer you other optional riders as well:
Life Extension Rider extends the life insurance benefit beyond the policy anniversary on which the insured is age 100. (For Survivorship Universal Life policies this occurs when the younger insured is or would have been age 100.) The policy's life insurance benefit is based on the Life Insurance Benefit Option in effect at that time. Without the rider, at age 100, the life insurance benefit will equal the policy's cash value.
Living Benefits Rider gives the policyowner access to a portion of the policy's eligible death benefit if the insured is diagnosed with a terminal illness and has a life expectancy of 12 months or less. For NYLIAC Survivorship Universal Life, this rider is available only after the first insured's death.
Accidental Death Benefit Rider provides additional death benefit funds if the insured dies as a direct result of an accident.8
Other Covered Insured Rider provides level term insurance coverage on the insured's spouse, children, and business partners. Coverage is convertible until the earlier of the policy anniversary when the rider insured is age 70, the policy anniversary on which the primary insured is age 100, or the primary insured's death.8
Additional riders may be available depending on the universal life policy you choose. Your New York Life agent can provide you with policy-specific riders, and let you know which ones may be suitable for your needs.
Our Family of Products Can Help Protect Your Family
At New York Life, we understand the importance of having enough money to meet your financial obligations and pursue your personal goals. That's why we offer a variety of competitively priced insurance and financial products to help you meet your goals—whether they include income protection for your family, long-term care preparation, or retirement planning. Your financial future is important to us because it is important to you. Moreover, our agents—among the best trained in the industry—are duly committed to the clients they serve. Please speak to your agent about all of your financial and insurance needs, and how New York Life can help.
The Strength Behind Our Promises
Since 1845, New York Life, the parent company of NYLIAC, has provided quality insurance products for individuals, families, and businesses. A Fortune 100 company,9 New York Life and its affiliate, NYLIAC, have earned ratings for financial strength over the years that are among the highest offered by each of the four major independent rating agencies:
Our reputation for financial strength, integrity and humanity has been of paramount importance to us for almost 160 years. Talk to your New York Life insurance professional today and find out why we call ourselves The Company You Keep®.
1 New York Life Insurance and Annuity Corporation (NYLIAC) is a wholly owned subsidiary of New York Life Insurance Company.
2 Policy loans and/or partial surrenders may affect the death benefit. Policy loans and/or partial surrenders may also incur a 10% IRS tax penalty if the policy is a modified endowment and the policyholder is not yet 59½. Partial surrenders may be taxable.
3 Failure to satisfy the Cumulative Required NLGR Monthly Premium Test will cause the rider and the guarantee to become inactive, and increase the potential that the policy may lapse for insufficient cash surrender value. At the end of the guarantee period, if only the required premium has been paid, the policy may lapse for insufficient cash surrender value. See the rider form for more details.
4 Increases may be subject to underwriting.
5 The policy will terminate if at any time the cash surrender value is insufficient to pay the monthly deductions. This can happen due to insufficient premium payments, if loans or partial surrenders are made, or if current interest rates or charges fluctuate.
6 If a life insurance policy is classified as a modified endowment contract (MEC), there may be adverse tax consequences. Please consult your tax advisor for more information.
7 Not all riders are available in all jurisdictions; some variations may exist.
8 Not available on NYLIAC Survivorship Universal Life.
9 New York Life is ranked #65 on the Fortune 500 listing published in Fortune Magazine on April 14,2003.
New York Life Insurance Company
New York Life Insurance and Annuity
Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
The Company You Keep®