Term life insurance or short-term life insurance provides affordable protection, often with a guaranteed premium, for a set period.1 The premium for term insurance is initially lower than the premium for a comparable whole life insurance policy; however, the premiums can increase at each renewal. This initial lower premium usually makes term insurance an ideal choice for individuals with a temporary need for life insurance protection.
When choosing a term policy that's right for you, you'll want to be sure to work closely with an agent to understand all the features it offers. Consider the following:
You can check the financial health of insurers by reading what the independent ratings agencies say about them. A.M. Best, Fitch, Moody’s, and Standard & Poor's are companies that annually publish ratings of insurance companies.
1The guarantees of a Term policy are based on the claims-paying ability of the issuer.
2 Premiums are usually lower for term life insurance than they are for permanent life insurance for the same amount of coverage in the early years.
3 Subject to certain conditions and limitations.
New York Life policy form numbers: Yearly Convertible Term (ICC18218-135P); Level Premium Convertible Term (ICC18218-60P) SMRU: 1700121