How much life insurance you will need varies with your age and responsibilities. The first consideration should be the standard of living you would like to leave your dependents. It's a good idea to consider the amount of assets and sources of income available to your dependents when you pass away. Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources such as social security benefits, available cash, savings bonds, etc.

Not to be grim, but everybody on the planet at one time will pass away. In the event of your death, it's important that your dependents are well cared for. But life insurance issues can be complicated, and if you are not careful, you could end up spending large sums of money every year on premiums that are not well suited to you, your family or your lifestyle.

According to the New York State Insurance Department, there are about 140 insurers who currently write New York life insurance policies. Over $188 billion are generated annually through these insurers.

Before purchasing a New York life insurance policy, it's a good idea to analyze your need for life insurance. One approach to determine how much life insurance one should carry is to assess the various needs of the family in the event of the death of a wage earner. Life insurance satisfies a number of these needs by providing a fund that can be used to:

• Pay off last debts such as medical bills and funeral expenses
• Meet estate taxes and other expenses in settling an estate
• Provide life income for the surviving spouse
• Pay off a mortgage
• Pay for education
• Provide funds for retirement
• Provide a monthly for dependents until they can care for themselves

The three concepts on which New York life insurance premiums are based are: mortality, interest and expense.

For the first aspect, an insurer usually uses a mortality table to determine the average life expectancy for each age group. Factors included in this figure are whether the insured is a smoker or drinker or engage in dangerous activities.

The second aspect involves the investment of your premiums. New York life insurance companies assume they will earn a particular rate of interest from these investments as profit.

Thirdly, after company expenses (such as operating costs of selling insurance, investing the premiums, and paying claims) are taken into consideration, the insurer then arrives at a premium amount.


Your marital status, number of dependents, family size, income, and wealth all play a role in determining the amount of life insurance that is right for you. The purchase of New York life insurance is an important decision for both you and your family. The reasons for your life insurance purchase should be based upon your needs or wants. The first steps include determining your current need for life insurance and deciding how much you wish to or are able to spend. Buying life insurance forces you to think about the future, too, because unlike most purchases, you can't always buy life insurance when you need it; to purchase most types of life insurance products, you have to be in reasonably good health.


There are two types of life insurance which can be purchased in New York- term insurance and permanent (whole life) insurance.

TERM INSURANCE, as you probably surmised, provides protection for individuals who need large amounts of coverage for a specified period of time. This period could range from one year to a specific number of years such as 5, 10, 20 years. Additionally, the period could be to a specific age up to 80 years old. Premiums for term insurance New York life insurance policies are generally locked in for the specified period of time under the policy terms. The company will pay the face amount of the policy to your beneficiary if you die during the term period. No benefit is payable once the set term is reached. Term life insurance provides good coverage for young New York families raising children or paying off mortgages, for example.

Currently term insurance rates are very competitive and among the lowest historically experienced. In fact, it is a widely held belief that term insurance is the least expensive pure life insurance coverage available.

PERMANENT INSURANCE (Whole Life or Ordinary Life) is designed to provide coverage to New Yorkers for their entire lifetime. To keep the premium rate level, the premium at the beginning stages of coverage are generally much higher than those found in term insurance. This extra premium builds cash value- a reserve- which helps pay for the policy in later years as the cost of protection rises above the premium. New York whole life policies stretch the cost of insurance over a longer period of time in order to level out the otherwise increasing cost of insurance.

There is a savings element generated with this type of policy- sometimes called cash value life insurance. The size of the cash value build-up differs from company to company. The cash value of the policy can be accessed while the policyholder is alive.

When buying New York life insurance, it's helpful to know the rules and regulations. For example, did you know that New York law requires a minimum free look period of 10 days and a maximum of 30 days? "Free look" provisions allow you to cancel a policy without penalty within a set time period. No matter what you decide on for your New York life insurance needs, it is important to review your life insurance program every few years to keep up with your changing financial and family circumstances and responsibilities.

Be sure to read your policy very carefully, and ask for an explanation of anything you do not understand. Also make sure to take full advantage of the free look provisions that are provided on the policy cover page.


As with any purchase, it's a good idea to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Getting quotes from the internet is one of the most convenient methods of researching and obtaining the best deals in New York life insurance- and you can do it from the convenience of your home! The internet's influence in the marketplace is growing rapidly. Quoting agents are actively marketing their services to consumers via a growing number of Web sites.

Don't shop by price alone. When looking for New York life insurance quotes, you want a company that answers your questions and handles claims fairly and efficiently. There are many sources for finding great rates and service, but one of the easiest and most effecient is the internet. And for the best quotes, newyorklifeinsurance.com is the place you want to go. Don't delay…do it now! Your family's future may be at stake.

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