Life insurance is a critical component of a well-rounded financial plan. Whether you’re reevaluating your needs or purchasing a policy for the first time, now is a great time to explore your options. After carefully evaluating key metrics for different types of life insurance from various companies, we’ve determined that Ameritas is the best life insurance company in New York.
Summary: Life Insurance Ratings in New York
We analyzed policy costs, renewal options, and conversion features to determine the best term life insurance in New York.
Why You Can Trust Forbes Advisor
We assessed the cost, renewability, and conversion options available. Our editorial team is committed to providing unbiased ratings and information. Advertisers do not and cannot influence our ratings. You may read more about our editorial guidelines and the methodology behind these ratings below.
Best Life Insurance Companies in New York
Best Overall: Ameritas (5.0)
Our ratings take into account factors like a product’s cost, features, user-friendliness, customer service, and other category-specific attributes. All ratings are determined solely by our editorial team.
Editor’s Take: The Ameritas Value Plus Term policy earns our best overall ranking because of its competitive term life rates and generous policy conversion options.
-
Pros*
- Competitive term rates are among the lowest in our analysis.
- The policy can be renewed until age 95 (at higher rates every year after the level term period ends).
- Choice of any Ameritas permanent policy if you convert within the first five years.
-
Cons*
- You must purchase the conversion extension rider to convert to a permanent policy after the first five years of the term policy.
Life insurance riders available
- Accelerated death benefit
- Accidental death
- Child term life
- Conversion extension
- Waiver of premium
Great for Financial Strength: Prudential (4.5)
Our ratings take into account factors like a product’s cost, features, user-friendliness, customer service, and other category-specific attributes. All ratings are determined solely by our editorial team.
Editor’s Take: We are impressed by Prudential’s superior financial strength (A+), which gives us confidence that it will be able to pay claims for many years to come.
-
Pros*
- Superior financial strength.
- Has a higher maximum issue age (80) than most competitors in our analysis.
-
Cons*
- You can only convert to a permanent policy within the first five years of your term policy unless you purchase the conversion extension rider.
Life insurance riders available
- Accidental death benefit rider
- Child life insurance rider
- Chronic and terminal illness rider
- Disability rider
- Early/enhanced cash value rider
- Estate protection rider
- Guaranteed policy split rider
- Lapse protection rider
- Overloan protection rider
- Waiver of monthly deductions
- Waiver of premium rider
Great for Low Level of Consumer Complaints: SBLI (4.5)
Our ratings take into account factors like a product’s cost, features, user-friendliness, customer service, and other category-specific attributes. All ratings are determined solely by our editorial team.
Editor’s Take: SBLI stands out to us because it has a very low level of complaints compared to most competitors. We also like the 25-year term option, which is not available with most competitors.
-
Pros*
- Superior AM Best financial strength rating (A+) means buyers can be confident in the company’s ability to pay claims.
- Low customer complaint ratio compared to others in our analysis.
- More term options than some competitors due to its 25-year term option.
-
Cons*
- Term life rates are OK, but not among the best in our analysis.
Life Insurance Riders Available
- Children’s term life insurance rider
- Accidental death benefit rider
- Waiver of premium rider
Great for Life Insurance Riders: Guardian (4.0)
Our ratings take into account factors like a product’s cost, features, user-friendliness, customer service, and other category-specific attributes. All ratings are determined solely by our editorial team.
Editor’s Take: We picked Guardian because of its wide variety of life insurance riders. These options allow you to customize a policy to meet your needs, but usually at an extra cost.
-
Pros*
- Very low level of consumer complaints.
- Avaliable in all 50 states.
-
Cons*
- Policy details are difficult to find online.
Life insurance riders available
- Term conversion rider
- Waiver of premium rider
- Waiver plus rider
- Guaranteed renewability rider
- Accelerated terminal illness rider
- Accidental death rider
- Charitable benefit rider
- Accelerated benefit or living benefit rider
- Guaranteed insurability rider
- Paid-up additions (PUA) rider
- Index participation feature
- Renewable term rider
Best for Low Term Rates: Penn Mutual (4.0)
Our ratings take into account factors like a product’s cost, features, user-friendliness, customer service, and other category-specific attributes. All ratings are determined solely by our editorial team.
Editor’s Take: Penn Mutual is one of our favorites because of its great term life insurance rates across a variety of term lengths and coverage amounts.
-
Pros – There are generally excellent rates for Penn Mutual’s basic term life policy, even for older buyers. Convertible term allows you to convert any time up to age 70. If you convert, you can choose from any Penn Mutual permanent life insurance policy available.
-
Cons – You’ll have to pay for the convertible term policy if you want that feature. The convertible term policy is much less price competitive. No accelerated death benefit available.
Life insurance riders available
- Accidental death
- Children’s term insurance
- Disability waiver of premium
- Disability waiver of premium with automatic conversion rider
What Is the Average Cost of Life Insurance for Companies in New York?
Source: Forbes Advisor research. Rates are based on buyers who are healthy and qualify for the best rates.
How to Find the Best Life Insurance in New York
To find the best life insurance in New York, follow these tips:
- Compare life insurance quotes from several New York life insurance companies to find the true best value.
- Consider coverage features, like life insurance riders and living benefits.
- Ask about an accelerated death benefit that will allow you access to your death benefit while you’re still living, if you become terminally ill.
- Ask about term life conversion options so that you can convert to a permanent policy in the future if you want to.
- Ask about the rules around renewing once the level term period ends.
New York Life Insurance Laws
If you’re a New Yorker shopping for life insurance, here are some important laws.
- New York’s life insurance laws are governed by Article 32 of New York Consolidated Law
- There is a 10-day free look period on all policies.
- There is a 61-day grace period after the first payment of a policy.
- The insurance company is required to pay accrued interest on the death benefit beginning from the date of the insured’s death.
- New York guarantees up to $500,000 in lost benefits per person
Source: Fidelity Life
Why Is Life Insurance in New York Different?
When shopping for life insurance in New York, you may notice there are quite a few companies that don’t sell policies in your state. The life insurance industry is regulated at the state level, which means that insurers must determine if they can sell in a particular state and, if so, which products will be approved by the state to sell. This generally doesn’t cause problems for companies since most states have standardized laws and regulations for the life insurance industry. There is usually not much need for variation of product terms and conditions from state to state.
“However, New York stands out with unique regulations and consumer protection laws for the life insurance industry. As a result, life insurance companies have had to adapt themselves and their products to comply with New York regulations or to choose not to do business in New York,” says Daniel Adams, Forbes Advisor advisory board member. Adams explains that companies have adapted by creating separate life insurance companies that offer products specifically designed for approval and sale in New York. As a result, New Yorkers will see different life insurance companies, products and premiums than residents of other states.
Methodology
To find the best term life insurance in New York, we used our own research and data provided by AccuQuote, a national online life insurance agency. AccuQuote has been in business for over 30 years and works only with insurance companies that have top financial strength ratings. We evaluated 20 companies on these measurements:
- Cost (80% of score): Because price is the primary concern of many term life insurance shoppers, we gave weight to this category. We scored costs based on each company’s rates for 30- and 40-year-old men and women for 10, 20 and 30 terms and for coverage amounts of $250,000, $500,000, $1 million and $2 million.
- Guaranteed renewability (10% of score): Companies earned points if their term life policies can be renewed at the end of the level term period.
- Term life conversion (10% of score): Companies earned points if their term life policies can be converted to permanent life insurance.
Best Life Insurance in New York Frequently Asked Questions (FAQs)
Is life insurance more expensive in New York?
Average life insurance costs are slightly higher in New York than nationwide. For example, the average monthly life insurance cost for a 30-year-old in New York is $45 compared to the national average for a 30-year-old of $34.
How much per month is a million-dollar life insurance policy in New York?
A 30-year, $1 million coverage term life insurance policy costs around $50 per month, or $600 per year in New York, for a healthy female age 30. The same policy for a healthy male in New York costs $62 per month or $744 per year.
