Life Insurance in New York

New York, like most states, does not regulate life insurance on the policy level the way that states Departments of Insurance regulate other insurance such as health or auto. However, there are certain provisions that do vary from state to state regarding regulations pertaining to free-look time frames, illustration requirements, underwriting, and medical exam requirements. You should be aware of these rules as you shop for Life Insurance in New York.

Why Do I Need Life Insurance in New York?

You may wonder why do I even need life insurance in New York? Take a look at these figures.

New York is ranked 19th out of 50 states and the District of Columbia in Life Expectancy, with a life expectancy of 77.7 years. In detail what that mean is for every 100,000 people in New York, over 1,000 between the ages of 55 and 64 pass away every year. Between the ages of 65 and 74, that number comes close to tripling at almost 2,500, and at 75 to 84 almost 6000 New York residents die for every 100,000 in the state. More on mortality by age, sex and race, and the leading causes of death in New York can be found at: http://www.cdc.gov/nchs/pressroom/data/NewYork09.pdf

For more reasons why you should apply for Life Insurance in New York, and for help in finding the best kind of life insurance for your needs, at the best value, take a look at our Family Guide to Life Insurance.

Life Insurance in New York Specifics

The insurance industry in New York is regulated by specified title of The State Insurance Code of New York. The state uses this code to regulate claims and provide certain provisions to protect Life Insurance in New York consumers, such as:

Free Look: According to the State Code a “free look” provision must be included in every Life Insurance in New York plan. The free look allows you to change your mind even after you have signed the contract with the insurance company and received all policy documents. Most companies give at least a 10-day cancellation without penalty period. In some cases it may be as much as 30 days.

Grace Period: The New York State insurance code requires that all Life Insurance in New York companies allow a 30-day grace period on late payments. If you miss a premium payment for any reason, you must be given 30 days to bring the account current before the insurer can cancel the policy for non-payment.

Death Benefit Processing: According to the State Code, Life Insurance in New York companies are required to process any death benefit claim as soon as possible. If all documentation is in order this usually means within 2 months. The Life Insurance in New York code also allows for the accumulation of interest on death benefits that are not paid in a timely manner.

Life Insurance in New York companies are also protected to some degree by State Statutes. These regulations are put in place to prevent insurance fraud. Insurance fraud is a serious crime, and affects the rates everyone in the state pays for Life Insurance in New York. Insurance companies can challenge any information you put on an Life Insurance in New York application for up to 2 years.

If any discrepancies or misinformation is discovered, the life insurance policy may be terminated immediately. Allowances for misstatement of age are given, and may be corrected without penalty at any time while the New York State Life Insurance policy is in effect.

Life Insurance in New York State Resources

New York Department of Insurance -  The purpose of the Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and the Life Insurance in New York industry.
http://www.ins.state.ny.us/

Life Insurance Company Guaranty Corporation of New York -  State guaranty associations are there to provide protection and continuing Life Insurance in New York coverage, even in the event that a life insurance company becomes insolvent.
http://www.nylifega.org/

Life Insurance in New York Company Ratings – These companies provide ratings for Life Insurance in New York Companies based on financial strength and past performance.
http://www.moodys.com/cust/default_alt.asp
http://www2.standardandpoors.com
http://www.ambest.com/

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