Your life insurance questions answered.
Do I need life insurance?
Most likely, yes. Especially if you have someone depending on you for financial support.
How does life insurance work?
Life insurance is an agreement between you and your insurance company. You make regular payments, called premiums, and the insurance company pays your beneficiaries a tax-free lump sum when you pass away.
With some policies, you get additional benefits to use during your lifetime, like accessing the policy's cash value, which can be used to help pay college tuition or for a down payment on a home. However, accessing the cash value will reduce the policy's available cash surrender value and death benefit. If you have a terminal illness, you can also accelerate the death benefit and use it for healthcare needs.
Which type of insurance is best?
There are several different types of policies, but there are two basic broad categories of life insurance: term life and whole life. The best choice for you depends on your needs. It may even be a combination of products.
Term life insuranceprovides a death benefit for a set period, typically between 10 and 20 years. This is straightforward insurance, and it's what most people start out with. Certain term life policies can be converted to long-term policies at a future point. This is a useful benefit if your life changes and you need additional protection.
Whole,universal, andvariable universallife insuranceall provide protection for the long term. In fact, whole life provides permanent coverage. Some policies have more guarantees than others, and some give you the opportunity to grow your policy's cash value.
How much does it cost?
Thecost of life insuranceis based on several factors: your age, gender, health, lifestyle, and occupation. Regardless of your budget, a financial professional should be able to find a solution that covers your needs at a price that suits your wallet.
Life insurance terms to know.
New York Life has received the highest financial strength ratings currently awarded to any U.S. life insurer by Standard & Poor's (AA+); A.M. Best (A++); Moody's (Aaa); and Fitch (AAA). Source: Individual Third-Party Ratings Reports as of 10/18/2022.
FAQs
Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.
How long does it take New York Life to pay out life insurance? ›
Please contact your human resources department for more information. Q: If my claim is approved, when will I get paid? A: Once your claim is approved, we process payments immediately. It takes about seven days for direct deposits to show up in your bank account or 7 – 10 business days to receive a check in the mail.
What is the catch for no exam life insurance? ›
What is the catch for no-exam life insurance? Because insurers don't have health data on you, your premiums will probably be higher and the amount of your death benefit will likely be smaller — especially in the first few years. In addition, there are usually age caps on who can take out a no-exam policy.
What is the hardest insurance exam to pass? ›
Each insurance licensing exam presents its own challenge. Between Life and Health, students say that the Health insurance exam is the more difficult. Health insurance policies are simply more complicated than life insurance policies. The Property insurance exam is easier than the Casualty insurance exam.
Is the NY insurance exam hard? ›
Pass Rates and Recommended Study Time
Nevertheless, the passing score for all exams is 70%, and utilizing exam study tools can help you gauge whether or not you are on target to pass on the first try. The average exam-taker should expect to spend about 35 to 40 hours studying to pass the life and health insurance exam.
What is insurance in one word answer? ›
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
How to prepare for life insurance interview? ›
Basic Information. The first step is to provide basic information about yourself. That includes your name, age, hometown, and Social Security number as well. Life insurance companies will also ask about marital status and number of children, which can help them understand who you are looking to protect.
What is the cash value of a $10,000 life insurance policy? ›
Most whole life insurance policies mature at 121 years, although some mature at 100 years. Say, for example, that you purchase an insurance policy with a face value of $10,000. Once the policy matures, the cash value of the policy should equal $10,000.
Can you borrow money from your New York life insurance policy? ›
You can borrow from your policy's accumulated cash value by taking a loan at a competitive interest rate. You can use these funds any way you wish — to make a down payment on a home, to finance a new car, or even to start a business.
Do you get money back if you cancel life insurance? ›
Do you get your money back if you cancel your life insurance? The answer to this is usually no. Protection insurance is a simple product that protects you financially against death and illness while you pay premiums. If you don't pay your insurance premiums, you aren't protected.
Top life insurance companies
| Company | Best for | J.D. Power Score in 2023 U.S. Individual Life Insurance Study |
|---|
| Guardian | Life insurance coverage without a medical exam | 784/1,000 |
| Mass Mutual | Whole life insurance | 809/1,000 |
| Mutual of Omaha | Digital accessibility | 805/1,000 |
| Nationwide | Customer satisfaction | 840/1,000 |
3 more rowsA fully underwritten option will also allow you to apply for higher coverage amounts if you need them — most no-exam options cap coverage at $1 million to $3 million. And depending on your health profile, you may have more affordable options if you're willing to take a medical exam.
Is blood work required for life insurance? ›
When you apply for life insurance, you'll usually need a medical exam. This checks to see if you have a disease or are at risk for one. They will also look for any current drug use. The exam may involve questions about your medical history and a physical, blood test, urine test and electrocardiogram (EKG).
How to pass the NY insurance license exam? ›
You must score at least 70% correct overall to pass your insurance license exam. You don't have to reach this mark for each individual section, so long as the overall score is 70%. Your score will be shown upon completion, so you'll instantly know whether you passed or not.
How long is the NYS insurance exam? ›
Depending on which line of insurance you are testing on, the amount of time and number of questions on the exam vary. Exams will last 1 to 2.5 hours and can have 50 to 150 questions. What score do I need to pass my state exam? For all insurance exams, you need a score of 70% or higher to pass.
Is the NYS insurance exam online? ›
The fastest way to schedule your exam is online at PSI or call (855) 579-4637. Your exam may be taken at a physical PSI examination center or via a remote online proctored exam.
How much does it cost to get a life insurance license in NY? ›
A full fee is charged when a license is issued for a licensing period of more than one year; a half fee is charged when a license is issued for a period of one year or less. For New York residents the full fee is $80, half fee is $40.
