Everything you need to know about life insurance.

There's a lot of information out there about life insurance, but you don't need to understand all of it to get started. The basic premise is simple: Life insurance gives you peace of mind while you're alive, and financial support for your loved ones when you're gone. It's something you should have if there are people in your life depending on you for everyday living expenses, college tuition, or retirement income.

Life insurance can make a huge difference for you and your family, not just financially but emotionally, too. And purchasing a policy sooner, rather than later, will give you more options and flexibility, and improve your future financial security.


Term Life Insurance provides a death benefit for a set period, typically between 10 and 30 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 Life Insurance provides 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.

Life insurance terms to know.

  • Cash value

The amount of money in a whole life policy that accumulates as you pay premiums. You can access it via loans or partial withdrawals for a variety of financial needs, like unexpected expenses or to pay for your child's college tuition. This money grows tax deferred.

  • Convertibility

A benefit provided by some carriers that allows you to upgrade from a temporary term life policy to a whole life policy if your life changes, without going through additional medical exams.

  • Dividend

A share of the company's divisible surplus that is paid to an eligible policyholder. A divisible surplus is the extra money a mutual company has after paying claims, paying expenses, and setting aside reserves for future claims and benefits. Dividends can help your cash value and coverage grow. They are not guaranteed, but New York Life has paid them every year since 1854.

  • Beneficiary

The person or entity that receives the benefit amount upon the death of the insured.

  • Rider

An add-on, generally available for purchase, that you can choose to incorporate into your policy to further customize coverage.

Guarantees of the policy are based on the claims-paying ability of the issuer.