Is it time to upgrade your term policy?

Take advantage of the term conversion privilege.

What do life insurance policies and real estate have in common?


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, 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. Also, like owning a house, whole life can help you build “equity” with guaranteed cash value growth4. 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 for emergency expenses.

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 policy owner, as well as help you decide if it’s the right solution for you.

Knowledge is power.

To help you understand the additional benefits of owning whole life insurance from New York Life, we’ve put together this simple comparison chart below.

Term Whole
Guaranteed term death benefit. Guaranteed permanent death benefit.
Generally federal income-tax free death benefit. Generally federal income-tax free death benefit.
Premiums are usually guaranteed only for the initial term. Premiums are guaranteed to stay level for the life of the policy.
  Potential additional growth of policy value through dividends.1
Inexpensive initially, with costs increasing at each renewal point. Premiums are higher initially, but remain level, regardless of age, for life of policy.
You pay for pure death benefit protection for a certain period, without cash value accumulation.

Term conversion privileges are available with most policies, enabling you to convert to a permanent policy that builds cash value, with no additional medical underwriting.3
Offers tax-deferred cash value growth that is accessible through policy loans or partial surrender of any paid-up additions.2
How much life insurance do you need?

One of the challenges of purchasing a life insurance policy is determining the amount of coverage you’ll need. Our life insurance calculator can help.

Get help from a financial professional.

Keep in mind that life doesn’t always go as planned, but New York Life’s Whole Life insurance can help ensure you and the people you love are protected, no matter what life brings. And, it’s backed by the claims-paying ability of a company with over 170 years of financial strength and integrity.

Are you ready to start building your financial house? Term conversion can help. Contact your agent today to discuss converting your term policy to whole life.

Don’t have an agent but would like to explore our products and services? Contact us to learn more.

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Further Reading
  • 1 Dividends are based on the policy’s applicable dividend scale, which is neither guaranteed nor an estimate of future performance.
  • 2 Loans and partial surrenders decrease the death benefit and cash value. Loans also accrue interest. There may be tax implications for policies recognized as modified endowment contracts (MEC) or if you partially surrender your policy such that the partial surrender exceeds the cost basis of the policy. Distributions including loans from a MEC are taxable to the extent of the gain in the policy and may be subject to a 10% additional tax if the owner is under age 59 1/2
  • 3 Subject to terms and limitations.
  • 4 Guarantees of a whole life policy are based on the claims-paying ability of the issuer.

In Oregon, the policy form numbers are as follows: Yearly Convertible Term: 210-135.27; New York Life Insurance Company One Year Non-Renewable Term: 209-125.27; NYLIAC One Year Non-Renewable Term: 309-125.27; Level Premium Convertible Term: ICC15-216-60P; New York Life Family Protection: 206-110.27; and Whole Life: ICC15216-50P.