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Life Insurance: Financial protection for the future

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ake a moment to think about the people in your life you love and care about. What would their lives look like if something were to happen to you? It’s a scary thought, right?

Life insurance is a topic many people find confusing, complicated, and uncomfortable to think about. It is truly one of the most important types of insurance products you can purchase, though — especially for those who depend on your income such as a spouse/domestic partner, children and other loved ones.

Designed to offer a financial cushion for your beneficiaries upon your passing, life insurance can provide crucial income for daily living expenses, mortgage payments, property taxes, college savings, burial or medical costs, and other debts.

Much like other insurance products, the time to purchase life insurance is NOT when you find yourself in an emergency situation. Purchasing a policy when you are younger and in good health can help to secure a lower premium rate since the cost normally increases as you age and depending upon your health status.

If you currently have a life insurance policy, have you checked if the plan has kept up with inflation? What you purchased five or 10 years ago may not be able to replace your income and all you provide. More concerning, if you are part of the 30 percent of Americans without any life insurance at all*, you are likely putting your loved ones at great financial risk.

Whether you are looking to purchase life insurance for the first time or interested in upgrading existing coverage, having the right policy for your needs can help to provide peace of mind for you and your loved ones. The following are three of the most popular types of life insurance:

  1. Term Life — This insurance product pays a benefit in the event of the death of the insured during a specific timeframe but offers no cash value.
  2. Level Term Life — This type of insurance is similar to term life but is normally for a set period of time such as 10, 15, or 20 years; it also offers no cash value.
    Note: A NYSUT Member Benefits-endorsed level term life insurance policy will automatically convert to our endorsed term life plan when the policy expires; you also have the option of reapplying for a level term life policy if you are under the maximum eligibility age.
  3. Universal Life — This insurance offers a way to protect your family while building tax-deferred cash value; policyholders can usually access a portion of the balance without impacting the guaranteed death benefit.

NYSUT Member Benefits endorses quality life insurance programs (including those listed above) available to NYSUT members and their spouse/certified domestic partner. Many of these plans offer reduced rates not available to the general public as well as additional convenience and savings opportunities through payroll or pension deduction.

Learn more about Member Benefits-endorsed life insurance programs by visiting memberbenefits.nysut.org or calling 800-626-8101.

*Source: USA Today, usatoday.com/money/blueprint/life-insurance/life-insurance-statistics

For information about contractual endorsement arrangements with providers of endorsed programs, please contact NYSUT Member Benefits.