Best Life Insurance in New York 2021

Last modified: February 14, 2021

No matter where you live and what you do, getting life insurance is integral to protect yourself and your family. It is particularly important for New Yorkers because the life standard rate in New York City is 129% higher than in other states, meaning families would struggle to make ends meet if the primary breadwinner is no longer alive. 

Fortunately, the life expectancy rate is also among the highest, which means you can find affordable life New York life insurance policies. We recommend purchasing the policy as soon as you can, as it gives you the financial security you and your family need. 

To help you find the best Life Insurance in New York, We have reviewed the top New York life insurance companies so you can get the right information without going through all the hassle. 

In this guide, you will find out the cost of life insurance in New York, along with available companies and protections the state provides for policyholders.

Let’s get started. 

Life Insurance Facts 

The average life expectancy in New York is 81.2 years, which is above the national average of 78.6 years. When we examined New York life expectancy by county, Rockland tops the list for men with 80.79 years, and Nassau tops the list for women with 84.09 years. 

Here are some life insurance facts that we collected for New York City:

  • Life expectancy for males: 77 years old 
  • Life expectancy for females: 82 years old
  • Percentage of the adult population with life insurance in 2019: 57% 
  • State rank for life expectancy: 81 years 
  • Average life insurance premium: around $65 per month
  • Most popular New York life insurance policy: Health insurance 
  • Most popular New York life insurance plans: Term and whole life insurance 
  • Contestable period: one to two years 

Average Cost 

The New York life insurance cost varies according to different factors, including health, job, lifestyle, and age of the policyholder. The average cost of life insurance is $126 per month. Keeping this in mind, the New York life insurance monthly cost is between $56 and $65 per month. 

However, NYC life insurance companies might give different rates depending on the factors and the term of the life insurance policy you select.  It is best to compare NY life insurance quotes from various insurance companies to determine the average life insurance cost per month or average cost a year you would have to pay. 

You should also evaluate your yearly and monthly expenses, the crime rate of the area you live in, and the valuables you own. Making a comparison will help you find the most affordable life insurance in New York.

Here are the average prices by cities and states in the US: 

City/State Price
New York $56
Arizona $51
Florida $52
Chicago $53
Michigan $51

Important Factors to Consider When Looking for Insurance in New York

The reputation of the insurance company you are considering is highly important. It is crucial that you properly investigate the company before deciding. Here are some factors to consider when looking for insurance: 

Third-Party Ratings 

Before deciding on a New York life insurance company, always check its third-party ratings. You should not solely rely on these ratings though as many companies often pay to be included in these lists. 

Financial Stability 

The company’s paying ability and financial stability must be considered to ensure the company would pay you after you file a claim. You have to invest in reliable life insurance in New York to reap the benefits. Here are a few things I recommend you consider:

  • Financial strength rating 
  • Years of market experience 
  • Number of states the company has an operating license
  • Maximum coverage for death benefits

What Life Insurance Factors Can Impact Your Policy?

Let’s take a look at the term life insurance factors that affect the amount of premium you can afford:

Age

Age is the most significant factor affecting the premiums of New York life insurance policies. The premiums are low for young adults and get higher as you age. 

Family Medical History

New York insurance requirements consider the family medical history to set the premium. If there are hereditary diseases, your premium costs will be high. 

Lifestyle

The lifestyle of the policyholder is also considered, including your job and extracurricular activities. If you are into high-risk hobbies, like extreme sports, then you have to pay higher premiums. Similarly, if you have a high-risk job, like at a construction site, then the premium will be higher. 

Overall Health

Your overall physical health has an impact on the rate of premium you have to pay. If your health is poor, you would pay a higher premium no matter how long or short the policy term is. 

Be sure to consider these life insurance factors that affect premiums and New York life insurance company rating before making your final decision. 

Returning Period for Policy in the State?

Every state has different rules when it comes to the returning period for a life insurance policy. Let’s have a look:

Is there a return period for the insurance in the state?

According to New York insurance laws and regulations, the insurance company has to return any due unearned premiums to the agency responsible for the premium within the next 60 days from the cancellation. 

What is the free period?

The free period allows you to cancel your insurance within the specified time limit without any penalty. The New York free look period life insurance is 30 days maximum and 10 days minimum. There is a 60-day free look period on replacement policies. 

What is the grace period?

The grace period works as a cushion that enables late payments on your premiums without cancelation of policies. 

A grace period is a cushion that allows for late payment of premiums without the policy being canceled. There is a 31-days grace period in New York and a 61-days grace period on policies in which the payment frequency or premium amount changes. 

Are the claims paid in time?

According to New York laws, the insurers have 15 days to acknowledge the claim, 15 days to start their investigation on the claim, and 15 days from receiving the proof to deny or accept the claim. Companies have 30 days to pay the beneficiaries. 

What happens in the case of an unclaimed policy?

You might be wondering who gets life insurance money in case of an unclaimed policy. It depends on the unclaimed life insurance laws of the state. The New York life insurance claim time limit is 30 days from the day the claim is filed, and the insurer receives the proof of death. 

If the beneficiary’s name is not available, the insurer must turn the money to the state of the last known address of the beneficiary according to New York life insurance beneficiary law

Who should you never name as your beneficiary?

You should never name disabled individuals, minors, and in some cases, your spouse or estate as your beneficiary. It is best to outright avoid naming minors as the life insurance payout would be the responsibility of the individual appointed by the court, which could be an expensive and cumbersome process. 

Leading Causes of Death in New York

A common cause of death in New York is heart disease, with an annual death rate of 44,092. Let’s have a look at some of the leading causes of death in New York, as highlighted by the stats of the state:

  • Heart Disease
  • Cancer
  • Stroke
  • Accidents 
  • Chronic Lower Respiratory Disease
  • Alzheimer’s Disease: 
  • Diabetes
  • Septicemia
  • Kidney Disease
  • Chronic Liver Disease/Cirrhosis

What if a Life Insurance Company Goes Bankrupt?

The most common question the policyholders ask is, “What if my insurance company in the state goes bankrupt?”

The economic crises we’ve experienced before have prepared the insurance industry better for any market volatility. Ever since the market crash in 2008, there hasn’t been any insurance company that has declared bankruptcy. 

In case of bankruptcy, numerous safeguards protect the policyholders from becoming insolvent. If your life insurance company is declared insolvent, your policies will be transferred to a solvent life insurance company by the New York life and health insurance guaranty association

Best Life Insurance Companies in New York

Here is an overview of the best New York life insurance companies to help you shortlist your choices:

Company Key features Best for Pricing
MassMutual
  • Excellent online tools
  • Immediate application approval
  • Variety of riders
  • Families or younger adults
  • $19.80/month
New York Life
  • Well-established company with 175 years of market experience
  • Outstanding financial ratings
  • Four different types of life insurance coverage to choose from
  • Term Life insurance
  • Excellent customer service
  • $11.75/ month
Guardian
  • Flexible underwriting
  • offers coverage for tobacco users and HIV patients
  • Smokers and HIV patients
  • $11/ month
Northwestern Mutual
  • Outstanding ratings for financial strength and quality
  • Lower rates for term life insurance for seniors and smokers
  • Can combine permanent and term coverage
  • Whole life insurance
  • Seniors and smokers
  • $41 to $50/month
MetLife
  • Timely claim process
  • Affordable prices
  • Different insurance policies for workplaces
  • Companies and employees
  • $29/month
Prudential Financial
  • Customized coverage
  • Universal and term life insurance
  • Individuals and institutions
  • $13 to $41/month

Detailed Reviews

Now, let’s have a detailed look at the top life insurance companies: 

MassMutual Life Insurance 

MassMutual New York State is an excellent life insurance option for families and younger adults as it offers a range of life insurance options and fair pricing. The insurer also pays dividends to the eligible policyholders. MassMutual has low complaints and a good ranking for customer satisfaction.

Pros:

  • Pays dividends to policyholders
  • Term insurance convertible options 
  • Outstanding online tools 
  • Range of riders available 
  • Quick application and approval process 

Cons:

  • Riders and policy details online are limited
  • Conversion policies have time limits
  • Medical underwriting on all policies 
  • Higher rates for smokers 

New York Life Insurance 

New York life insurance company offers flexible options for term life insurance that can also be converted into permanent insurance later on. It provides you with a customization option, and it has high ratings for financial strength. 

Pros:

  • Excellent financial rating 
  • Fewer than average complaints 
  • Accelerated death benefits 

Cons:

  • Online quotes not available 
  • No-exam coverage not available 

Guardian Life Insurance 

Guardian life insurance in New York has been serving policyholders since the 1860s. The insurer offers various permanent and term policies, with various riders, including student loan repayments and living benefits. This company is a good option for individuals in good health. 

Pros:

  • Comprehensive policies 
  • Excellent online support
  • Dividends offered in some policies
  • Good rates if smokers and HIV patients

Cons:

  • Low approval rates for pre-existing conditions
  • Online quotes not available 
  • Strict underwriting not suitable for individuals with poor health

Northwestern Mutual Life Insurance

Northwestern Mutual is ideal for people looking for quality. The most popular policies offered by this company is whole life insurance. Throughout 2020, the insurer paid $6.2 billion dividends!

Pros:

  • Offers universal, whole, and term life insurance coverage
  • Outstanding financial strength and quality ratings
  • Fewer complaints than average
  • Great dividends payout

Cons:

  • Limited riders 
  • Not much information on the website

MetLife New York Life Insurance

MetLife is the oldest and biggest life insurance companies in the country. While it doesn’t offer individual coverage anymore, there are many riders and plan options available. 

Pros:

  • No medical exam required
  • Group policies can be converted
  • Great financial strength and customer satisfaction rating
  • Term-to-universal conversion offered

Cons:

  • Limited coverage options
  • No credits for term-to-whole conversion
  • Only group insurance available

Prudential Life Insurance

Prudential has been rated as the best overall life insurance company. It is in the market for 140 years and offers a wide variety of life insurance policies. It has outstanding ratings for customer satisfaction and financial strength. 

Pros:

  • Instant quotes online for term life insurance
  • Multiple riders available 
  • One of the best ratings for financial strength 

Cons:

  • No online quotes available for permanent life insurance

Conclusion

Now you are equipped with all the information you need to buy the New York life insurance that meets your requirements and budgets. Be sure to consider the factors I have highlighted in the article and compare insurance providers’ policies and rates to find the best policy.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

What insurance companies are there in New York?

There are hundreds of insurance companies in New York, but the top life insurance companies include Guardian, New York Life, MassMutual, and Northwestern Mutual. 

What is the best age for life insurance?

It is highly recommended to purchase life insurance during your 20s as you are in the best of health, which means you’ll get a lower premium. 

Who has the cheapest insurance in New York?

The cheapest insurance company in New York is Guardian and Banner Life.  

Is New York car insurance higher?

In New York, car insurance is higher as it has a high insurance fraud rate and is also a no-fault state. 

Do you have to have full coverage in New York?

No, you do not need full coverage in New York, but you should have enough to protect yourself and your family in case of any losses.