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Life Insurance in New York State
Life Insurance in New York State
Get the 4-11 before shopping for life insurance in New York.
Availing life insurance is one of the important things people should consider. New York residents should especially consider securing life insurance due to the high cost of living in specific parts of the state. The high cost of living predisposes families and individuals to difficulty in making ends meet- especially when the primary breadwinner suddenly passes.
This guide helps navigate the cost of life insurance in New York. Additionally we'll explore the companies and protections that the state provides for shoppers and policyholders.
You will learn as you read this article about:
- Average life insurance cost in New York
- New York Life insurance companies
- Payment grace period in New York
- Timely payment claims in New York
- The primary cost of death in New York, 2017
- The state insurance department of New York information
- State guaranty association of New York
Average Life Insurance Cost in New York
There are various factors to consider in life insurance cost for each policyholder such as age, health, and the term and benefit amount of their chosen policy.
A healthy 35-year-old New Yorker male typically pays $65 a month for his term life insurance policy.
According to the National Association of Insurance Commissioners, in 2017, New York state had $229 billion in life insurance purchases.
New York Life Insurance Companies
New York state is home to the most life insurance companies- although some may be doing business through a subsidiary. The table below summarizes the largest life insurance companies by market share:
| COMPANY | MARKET SHARE |
|---|---|
| MetLife | 35.70% |
| AXA | 12.20% |
| New York Life Insurance | 10.60% |
| Prudential | 4.30% |
| TIAA | 3.90% |
| MassMutual | 3.80% |
| Principal | 3% |
| AIG | 2.30% |
| John Hancock | 2.10% |
| Lincoln | 1.90% |
Table is referenced from Policy Genius.
Free Look Period in New York
Policyholders are allowed to cancel their life insurance within a specified period without penalty through free look periods. Free look periods are set by the states and individual carriers.
The free look period in New York state is set with a minimum of 10 days and a maximum of 30 days. Replacement policies have a 60-day free look period.
Payment Grace Period in New York
A cushion that allows policyholders to pay for their premiums after their due date without the policy being cancelled is called a "grace period". In New York state, policies that have regular premiums have a 31-day grace period. Furthermore, policies where the premium amount or payment frequency changes have a grace period of 61 days.
Timely Payment Claims in New York
If a claim is filed, life insurance companies are given 30 days to award the claimed payout. Interest will be paid on the benefit if a claim takes longer than 30 days.
Primary Cost of Death in New York, 2017
In most cases of death, life insurance will payout, whether it is a natural death such as heart disease or death from outside sources such as murder.
Death rate for common health conditions like heart disease, flu and pneumonia, and firearms is higher in New York.
| COMPANY | MARKET SHARE |
|---|---|
| MetLife | 35.70% |
| AXA | 12.20% |
| New York Life Insurance | 10.60% |
| Prudential | 4.30% |
| TIAA | 3.90% |
| MassMutual | 3.80% |
| Principal | 3% |
| AIG | 2.30% |
| John Hancock | 2.10% |
| Lincoln | 1.90% |
| MORTALITY DATA | DEATHS | RATE | U.S. RATE |
|---|---|---|---|
| Drug overdose | 3,921 | 19.4 | 19.8 |
| Firearm | 772 | 43.7 | 11.8 |
| Homicide | 577 | 3 | 6.2 |
Table is referenced from Policy Genius.
Unclaimed Life Insurance in New York
There are cases when beneficiaries are not aware that they had a policy, or how to find life insurance policies. This leads to unclaimed benefits. For people who are looking for lost policies, they may inquire at the Department of Financial Services for options. For people who are looking for lost policies, they may ask for options at the Department of Financial Services.
State insurance department of New York information
If you need help in navigating your insurance options, or to file a complaint, you may contact the New York Department of Financial Services. The DFS was established in 2011 after the New York State Insurance Department and the New York State Banking Department merged.
Contact information:
New York State Department of Financial Services
1 State Street
New York, NY 10004-1511
(800) 342-3736
https://www.dfs.ny.gov/
State Guaranty Association in New York
If a life insurance company goes under, a guaranty association provides protection to its policy holders.
In New York, this protection is provided by the Life Insurance Company Guaranty Corporation of New York.
Contact information:
Life Insurance Company Guaranty Corporation of New York
18 North Broadway, Suite 208
Tarrytown, NY 10591
(212) 202-4243
When you apply to purchase life insurance, your request goes through underwriting, which is how the insurance company determines your eligibility and premiums. The average underwriting process takes about three to four weeks.
Permanent life insurance lasts a lifetime and includes an investment portion that can be used later in life. Because of this extra cash component, you'll pay substantially more for permanent policies than for term life policies.
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Want to know when a person decides to leverage the cash surrender value option? Check out the details regarding cash surrender value and how it is calculated.
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The survey gives you an understanding of how the life insurance industry feels about Covid-19. We strongly recommend people begin to look at Term Life, Whole Life, or UI sooner than later.
Whole life insurance is perpetual life insurance that provides lifelong coverage. There are people who use the term “whole life insurance” very broadly to define any life insurance that offers lifelong coverage. Nevertheless, there are other types of permanent life insurance which provides lifelong insurance.
The article informs users on who can be a beneficiary of your term life insurance, whole life insurance or universal life insurance policy.
What it means to be a beneficiary
Is it possible for anyone to be your life insurance beneficiary?
Life insurance with no beneficiary
Updating your beneficiaries
Process of paying out life insurance beneficiaries
Possibility of a denied death benefit of life insurance beneficiary
Life insurance policy beneficiaries and paying taxes
To know how much life insurance will cost you, get the figures with our free, user-friendly life insurance calculator. No matter if you are still contemplating or have already decided to compare and buy the perfect life insurance for you, it is essential to figure out how much you need and how much it would cost would greatly help you ensure your choice. Utilize our free life insurance calculator and find helpful tips to calculate the cost of the policy that best fit your needs.
Term life insurance is a type of life insurance that is fulfilled for a specific number of years – called as the term, before it expires. If an enrolled individual – the policy holder – dies before the specified term is over, his/her beneficiary, who is typically an immediate family member, receives a death benefit: a tax-free lump sum of money which is used for funeral expenses, pay any unfinished loan or properties bought by the member, or to fulfill other financial obligations of the beneficiary.