NU Online News Service, Aug. 1, 12:13 p.m. – SBLI USA Mutual Life Insurance Company Inc., New York, is introducing a new 30-year term insurance policy for consumers in New York state.
SBLI is one of the first insurers that has received permission from the New York State Insurance Department to enter the state’s 30-year term life market since April, when Gov. George Pataki, a Republican, signed Senate Bill 6132 into law. The bill cuts the cost of writing 30-year term policies in New York, by extending the same treatment once accorded to policies with terms of up to 20 years to policies with terms of up to 30 years.
Many of SBLI’s New York customers asked for a 30-year term product, because a 30-year product can continue to protect policyholders who are nearing retirement age, when financial liabilities are often the highest, according to M. Nasim Ali, SBLI’s executive vice president of sales and marketing.
SBLI expects the typical purchasers of the 30-year term policies to be consumers in their 20s or 30s who are just starting families and might be making big college loan and mortgage loan payments when the children are in their 20s.
“Thirty years from now, children will be on their own, mortgages will probably have been paid off and hopefully retirement will be within reach,” Ali says.
Features of the 30-year term policy include seven health classifications for underwriting; coverage amounts ranging from $100,000 to $1 million; and availability for applicants ages 18 to 50.
The policy is convertible to whole life up to age 75 without evidence of insurability; and it’s also renewable up to age 80 without evidence of insurability, SBLI says.