Perm Life Insurance

Who might use whole life insurance?

Whole life offers permanent protection that helps accumulate value. If you are looking for lifelong coverage that provides peace of mind while meeting obligations that will not end, then whole life insurance is the right option for you.

What else should I know about whole life insurance?

It is a versatile option that grows with you—it builds tax-deferred cash value—providing funds that you can withdraw or borrow, like a loan, and will help fund the bigger things in life. For example, the cash value can be accessed at a certain time to help with college tuition or a down payment on a house. More importantly, it also creates a legacy for your loved ones, guaranteeing payment to a beneficiary after you pass away.

Your premiums are lower the earlier you start and will never increase, plus your loved ones can rely on a death benefit. Another benefit, there is a tax advantage because the cash value is tax deferred, plus the policy holder may or may not be eligible for dividends. Dividends not guaranteed.
Case Study: Michael & Andrea
Michael and Andrea wanted to purchase life insurance that provides the protection they need plus growth opportunity. As a result, they decided to purchase a Perm policy that offers a tax-free death benefit for their children should they pass away and tax-deferred earning potential for themselves. This benefit would not only create legacy, but diversify their retirement portfolio that would give Michael and Andrea the option to access cash value income tax-free, during their lifetimes while protecting their children’s financial future.
Case Study: Isabella
Isabella is close to retirement and feels good about her savings and financial plan. However, she is looking for a smart way to increase her savings and decrease her tax burden so she can do even more in retirement. After considering her life insurance options, she chose a Permanent policy.

With her company’s retirement plan maxed out, insurance adds more opportunities to potentially grow her retirement portfolio with tax advantages that are not available with traditional plans. It also allows her to access the cash value of a policy, without penalty and without income taxes, whenever the need arises¹ and won’t count against her when she qualifies for Medicare or Social Security. Lastly, a Perm life policy gives her the opportunity to grow cash value while providing flexibility as she gets older and her priorities shift.

1Distributions are taken through loans and withdrawals which reduce a policy’s cash surrender value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax free.
Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified endowment contract (MEC).

A MEC policy is one in which the life insurance limits exceed certain high levels of premium, or the cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract, and an additional 10% federal income tax may apply for withdrawals made prior to age 59½.

Riders (add-ons) may be available to customize your Whole Life Policy

Disability Waiver Premium

Rider is designed to step in when you cannot make your regular payments due to disability. Additional Cost.

Chronic Care

If chronically ill, you may access a portion of the death benefit to assist with covered costs associated with long-term care.

Living Benefit

If terminally ill, you may access a portion of the death benefit to cover medical treatment and/or required care. Additional charge should rider get exercised.

Accidental Death Benefit

The option to add an additional death benefit to the policy in the event you die due to an accident. Charge involved throughout life of policy up through 70 years of age.

Option to Purchase Paid-Up Additions

Option to make additional premium payments to build greater cash value while increasing the death benefit. Expense charge added to premiums at time of payment.

Disability Waiver Premium

Rider is designed to step in when you cannot make your regular payments due to disability. Additional Cost.

Chronic Care

If chronically ill, you may access a portion of the death benefit to assist with covered costs associated with long-term care.

Living Benefit

If terminally ill, you may access a portion of the death benefit to cover medical treatment and/or required care. Additional charge should rider get exercised.

Accidental Death Benefit

The option to add an additional death benefit to the policy in the event you die due to an accident. Charge involved throughout life of policy up through 70 years of age.

Option to Purchase Paid-Up Additions

Option to make additional premium payments to build greater cash value while increasing the death benefit. Expense charge added to premiums at time of payment.
  • You can access cash value via loans or withdrawals through surrenders. When accessing cash value via loans, the total outstanding loan balance (which includes accrued loan interest) reduces your policy’s available cash surrender value and life insurance benefit. The amount you borrow will accrue interest daily. When taking a withdrawal through surrenders, you are surrendering any available Paid-Up Additional Insurance for its Cash Surrender Value. This means that your Policy’s Cash Value, available Cash Surrender Value and Death Benefit will be reduced by the amount of the withdrawal.
  • Dividends are not guaranteed. Not all participating policy owners are eligible for dividends.
  • Guarantees are based on the claims paying ability of the issuer.
  • Most riders are available at an additional cost. Premiums and available benefits vary based on coverage levels and riders selected. Option to Purchase Paid-Up Additions involves an up-front expense charge.
  • Available to insureds ages 0 through 59. In Maryland and Montana, this rider is not available until the insured has reached his or her fifth birthday. The benefits of this rider depend in part on when disability occurs in relation to age 60.
  • The Chronic Care Rider is not available in California. Receipt of accelerated death benefits may affect eligibility for public assistance programs and may have income tax consequences. You should consult your tax advisor regarding your circumstances. This is a Life insurance rider providing for an accelerated payment of the base policy face amount in the event that you are certified chronically ill as described in the policy.
  • Various states have established different life expectancy periods once a terminal illness is diagnosed. There are maximum benefit levels set for this rider. A charge is applied when the rider is exercised. Your agent can provide more specific information. Receipt of accelerated death benefits may affect eligibility for public assistance programs and may be taxable. You should consult your tax advisor regarding your circumstances.
  • Rider features may differ based on the insurance product that they are purchased with. Not all riders are available in every state, and some states vary the terms of certain riders. Additional limitations and conditions may apply. Please speak to your New York Life agent for complete information.

Universal Life Insurance

What is universal life insurance?

Offers flexible long-term protection that can be customizable to fit your needs which potentially builds cash value.

With a Universal life policy, you have the flexibility to select the benefits you want or need with the ability to adjust the policy later as your needs change. 

What is universal life insurance?

Offers flexible long-term protection that can be customizable to fit your needs which potentially builds cash value.

With a Universal life policy, you have the flexibility to select the benefits you want or need with the ability to adjust the policy later as your needs change. 

Riders (add-ons) may be available to customize your universal life policy:

Death Benefit Options

You decide how the death benefit gets paid (dependent on cash value and premium payments).

Return of Premium

A benefit that fluctuates in value depending on face value of policy and total paid premiums.

Chronic Care

Should you become chronically ill, the death benefit could be paid during your lifetime to cover costs associated with your care and health needs.

  • 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 taken, or if current interest rates or charges fluctuate.
  • The cost of the Return of Premium rider is added to the cost of insurance charge.
  • The Chronic Care Rider is available at an additional cost.
  • The Chronic Care Rider is currently unavailable in California.
  • In order to keep the Money Back Option Rider active, the policyholder must maintain an annual premium that would keep the policy enforce up to age 100 (divided by 12).
  • Dividends are not guaranteed. Not all participating policy owners are eligible for dividends.
  • A partial surrender will reduce the potential amount of the policy’s death benefit.