appropriate for people who have medical by establishing a record of being a “responsible problems, healthy consumers will generally patient” by showing a history of improving your receive lower rates by taking medical exams health. required by traditional life insurance policies. Keep Multiple Separate Records. Keep copies Avoid Costly Add-Ons. Some options or of your policy and any correspondence you riders to a life insurance policy may provide have with the insurance company in a safe little benefit while significantly adding to the place and keep a record of the name of the cost of the policy. For example, a “waiver of insurance company, policy number, type of premium” option would only pay for your policy and the names of the insured and insurance if you become disabled. It may be beneficiary in a separate safe location. more cost effective to purchase standard disability insurance coverage instead of this To make a claim contact your insurance option. company or agent. You should not need an attorney to make a claim on a life insurance AFTER YOU HAVE policy nor should you need to pay any fees. PURCHASED LIFE INSURANCE Review your life insurance policy and your Use Your “Free Look” time wisely. After a beneficiary designations periodically as your policy is issued, you have a “free look” time personal circumstances change. period to review it and make sure that the policy is right for you. If there are mistakes or GET HELP if the policy is not what you wanted, call the company immediately. If you are not satisfied The Department of Financial Services has no with your policy, return it during the free look authority over insurance companies that are period for a premium refund. not licensed in New York. What You Need to Know About... Improve Your Health Status. Insurance rates To see if an insurance company is licensed in PURCHASING for non-smokers and those in good health at New York, visit www.dfs.ny.gov or call us at the time of purchase are generally lower than 800-342-3736. for other customers. If you have a pre- LIFE existing medical condition that could lead to You can also contact us for help understanding higher rates, you may be able to save money the terms of a policy or to file a complaint INSURANCE against a company or agent.

This guide is provided for www.dfs.ny.gov Important information to consider before, informational purposes only and during and after shopping for or purchas- does not constitute legal advice. (800) 342-3736 ing life insurance. companies and policies. That cash value can be Comparison Shop. Prices for the same coverage SHOULD I PURCHASE LIFE INSURANCE? obtained while the policyholder is alive. There are can vary significantly among companies. Make The main purpose of life insurance is to maintain many types of permanent life insurance, such as use of all shopping guides and resources that are the living standards of your dependents by whole life, universal life and variable life. These available to you, including on the Internet. You replacing your income if you die prematurely. options provide flexibility to the insured regarding may be eligible to purchase group life insurance. Not everyone needs life insurance, and some the death benefit, premium amounts and cash Group life insurance is often available through may need life insurance only at certain times in value. your employer or through an organizations you their lives. belong to. HOW MUCH LIFE INSURANCE TO PURCHASE? Your decision to purchase life insurance should Consider Whether Replacing Existing Policies is To determine how much life insurance to consider the number and ages of dependents, Appropriate. When considering replacing life purchase, you should consider: income, family needs and other sources of insurance policies, the replacing carrier is income your dependents would have if you required to provide you with information to  Your family’s needs, including living expenses, passed away. You should also consider your assist you in making an informed decision. This taxes, mortgage and other loan payments, future need for insurance as you may not be information should be reviewed carefully, since it and college expenses; eligible for insurance later if your health may indicate that the new replacement policy requires payment of new up-front fees, has deteriorates. You should review your life  Cash required to cover expenses incurred higher charges, a longer surrender charge period insurance needs every few years or as your upon your death; income and family responsibilities change. or lower benefits.  The age and health status of you and your Consider No-Commission Policies. Traditional life TYPES OF LIFE INSURANCE dependents; and insurance policies include expenses for agent There are two main types of life insurance: commissions and fees for marketing. “No-load”  Other sources of income available to your or “low-load” policies have fewer such expenses family if you should die, such as savings and Term Life Insurance is designed to provide built into their premiums. These policies can be Social Security benefits. protection for a specific and limited period of purchased from financial advisors (who may time, such as 1, 5, 10, 15, 20, 25 or 30 years, or To assist in estimating how much life insurance charge a flat fee) or directly from several to a specified age. If you die during the term you should purchase, you may want to use an companies. period, the insurance company will pay the interactive worksheet provided by a life insurance death benefit. If you live beyond the term Ask Questions. After choosing an insurance company online. The DFS does not endorse any period, no death benefit is paid. Term insurance company and/or agent, ask for a point-by-point particular website or worksheet. may be a good choice for people seeking explanation of the policy that meets your needs. protection for specific needs that will end at SHOPPING FOR LIFE INSURANCE some time in the future. Identify a Beneficiary. The policy’s death benefit Buy Only from Companies Licensed in New York. will be paid to the person you choose, called a Permanent Life Insurance is designed to provide The Department of Financial Services regularly beneficiary (you should inform the beneficiary protection for your lifetime. This type of policy reviews each licensed company’s finances and about the policy). If you choose no one, the stretches the otherwise increasing cost of claim practices. The Department’s standards are policy will be paid to your estate. insurance over your lifetime. Your excess some of the toughest in the Country. In addition, premiums are invested by the company and policies issued by licensed insurers are covered by Don’t Buy a Guaranteed Issue Policy if You are generate a savings element that varies among a guaranty fund up to certain limits to protect you Healthy. “Guaranteed Issue” life insurance if a company becomes insolvent. policies require no medical exam. While