Life Insurance NYC

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    Buying Life Insurance In NYC: A Consumer’s Guide

    Considering the high cost of living, it can be difficult to maintain financial security as a New York resident, especially if you’re the breadwinner of your family. 

    If you were to pass away unexpectedly, your loved ones should have a way to cover their daily living expenses, rent/mortgage, and other costs without having to move to another state. One of the best ways to accomplish this is by getting a life insurance policy. Your dependents can use proceeds from the policy to stay financially afloat even if you won’t be there to support them. 

    This guide will brief you on everything you need to know about getting life insurance coverage in New York. We'll also talk about the essential life insurance laws and regulations in the state.

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    Facts About Life Insurance Coverage In NY

    The life insurance industry is one of the biggest contributors to the NY economy. Here are some facts about life insurance in NY:

    • Premiums written by life/annuity insurance firms reached $114.6 billion in 2019.
    • Life insurance death benefit payouts totaled $46.4 billion in 2019.
    • The life insurance industry provided 199,165 jobs in the state in 2018.

    How Much Is Life Insurance Coverage In New York?

    Typically, a healthy 30-year-old woman living in New York can expect to pay $38 per month for a 20-year term life insurance policy with a coverage amount of $1,000,000. Men pay about $10 more than this amount.

    While this is the average rate, your age, health, hobbies, lifestyle, and desired benefit amount will impact the cost of your premiums. If you choose to buy a permanent life policy with an investment component, that will also drive up the cost of insurance.

    It's best to get quotes directly from New York life insurance companies to learn how much you will pay. If you're wondering about which companies you should buy life insurance policies from, here are the top 10 firms in New York, according to the Life Insurance Information Institute:

    • MetLife
    • Equitable Holdings
    • New York Life
    • Prudential Financial Inc.
    • TIAA
    • MassMutual
    • AIG
    • Principal Financial Group Inc.
    • Guardian
    • John Hancock

    It's a good idea to check if companies are licensed to provide life coverage in your state. Just call the New York Guaranty Corporation at 212-202-4243 to confirm if your insurer is properly licensed.

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    Insurance Regulations In New York

    There are specific laws that apply to life insurance policies written in New York. Here are some of the rules you should know about.

    Free-Look Period

    The free-look period allows you to cancel your coverage without any subsequent charges. In New York state, you're given a free-look period of 10-30 days for new policies. Meanwhile, replacement life policies get a free-look period of 60 days.

    Timely Payment Of Benefit Claims

    The claims process shouldn't be tough on dependents or beneficiaries. In New York, insurers are obligated to release the death benefit within 30 days from when the claim was made. Companies are required to pay interest if they take longer than this.

    Grace Period

    Forgetting to pay your premiums doesn't automatically cancel your coverage. In New York, a company is legally required to wait 31 days before canceling your policy due to late payments.

    Additionally, New York law states that a company should provide proper notice before they can cancel your policy due to nonpayment.

    Contestability Period

    Companies are allowed to contest any of the information you provided them within two years from the life policy issue date. If they find any form of misrepresentation, they can cancel your policy, refuse to pay the benefit, or subtract money from the benefit based on the premiums you were supposed to pay.

    Suicide Clause

    Insurers may deny death benefits for persons who died from suicide within the first two years of the policy's effective date. However, they may be required to refund the premiums, if the policy states so.

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    New York Life Insurance Resources

    Buyers should learn about their insurance options, review ratings, and ask questions before purchasing a policy. If you need more information on getting insurance coverage in the state, you can tap into the following resources.

    New York Department Of Financial Services

    This organization educates New Yorkers about life insurance policies and reviews complaints. It also supervises and regulates the activities of nearly 1800 companies in the state. 

    Life Insurance Company Guaranty Corporation Of New York

    Customers of insurance firms that have filed for bankruptcy can seek help from a guaranty association. The association also helps dependents locate old or lost life insurance policies.

    Rating Firms

    Before you purchase a life policy from a specific company, you should first review their ratings and financial performance. Here are some rating firms that review insurance companies:

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    Final Thoughts

    Buying life insurance products is a major decision that requires thought and care. Aside from understanding the terms and conditions of the policy, you should also learn about the laws and organizations that protect buyers in your state. This will help you make the most out of your insurance and ensure that your beneficiaries won’t have any trouble claiming the proceeds from your policy.

    If you need more information about getting insurance coverage in NY state, get in touch with Wesley LLC. We'll help you assess your life insurance needs, get quotes, and understand your investment options.

    Written By Cameron McDowell
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