Policy Purchase Option (PPO) Rider

PPO Protects Your Insurability

The Policy Purchase Option (PPO) rider guarantees the right to purchase another life insurance policy with a face amount up to $100,000¹ periodically, without providing evidence of insurability. This guarantee, which can be exercised on scheduled "Option Dates," is available until you reach age 46 — regardless of your health or occupation.

This rider can be purchased with New York Life's Whole Life, Modified Premium Whole Life, and Increasing Premium Term policies. The new policies you purchase by exercising the PPO rider may be any one of the permanent insurance products offered by New York Life (with the exception of Survivorship policies or policies that offer increasing amounts of insurance).

The PPO Rider:

Guarantees you the right to purchase additional coverage without having to provide a physical examination or other evidence of insurability;
Gives you the flexibility to regularly assess and cost-effectively increase life insurance protection as your needs and circumstances change;
In certain circumstances, provides automatic, temporary additional term insurance protection at no cost;
Offers you the option of including the Disability Waiver of Premium Benefit and/or the Accidental Death Benefit in each new policy (if those same riders are part of the original policy);
Enables parents and grandparents to guarantee insurability for their children and grandchildren, by purchasing policies on the lives of those children; and
Entitles you to an underwriting savings allowance or credit that helps reduce the first year's premium on the new policy you purchase on each exercised Option Date.

Option Dates and Amount
The scheduled Option Dates² when you can purchase additional coverage are the policy anniversaries³ at ages 22, 25, 28, 31, 34, 37, 40, 43, and 46.

The owner's application for the new policy can be submitted to the Company during the 60 days before or 31 days after the Option Date. (The insured must be living.)

¹ Option Amount or $100,000, whichever is less.
² While New York Life will attempt to notify the policyowner 60 days in advance of each Option Date, the policyowner is solely responsible for making timely application on each Option Date, whether or not such notice is actually received.
³ These anniversaries must occur while the rider is in effect, and if they have not been eliminated by a policy purchase on a previous Special Option Date. See the section titled "Special Option Dates."

Any new policy you purchase takes effect on the Option Date on which you exercise the rider. (The maximum available Option Amount is $100,000.) The Option Amount⁴ — which will determine the maximum face amount of any new policy — is selected when the rider is issued. The new policy must have a face amount of at least $10,000, and cannot exceed the Option Amount selected for the rider. The following chart shows how the Option Amount is calculated:

*If you wish, you can select an Option Amount smaller than the maximum Option Amount shown above as long as it is at least $10,000. In determining the maximum Option Amount, in force insurance must be taken into account. Ask your New York Life Agent to help you determine the maximum Option Amount for each policy.

Automatic Temporary Term Coverage and Special Option Dates
For the really important times in your life — when the added responsibilities of marriage and children call for increased life insurance protection — New York Life automatically provides you with temporary additional term life insurance at no cost to you. This additional term coverage is equivalent to the maximum Option Amount shown under your PPO benefit and is effective for 90 days from your wedding day, the birth of a living child, or the date of legal adoption of a child.

Additionally, for a period of three months after your marriage, or the birth or legal adoption of a child, you have the option to purchase additional insurance immediately, instead of waiting for your next scheduled Option Date. However, if you do purchase additional coverage on a "Special Option Date," your next scheduled Option Date will be skipped. This special feature allows you to obtain extra coverage at the times in your life when you need coverage most.

New Policies Purchased with the PPO Rider
The new policy can be any permanent life insurance offered by the Company on the Option Date of purchase, except for those offering increasing amounts of insurance, or insuring more than one person. Your risk classification will remain the same as it was for the base policy, and no evidence of insurability is required.

Your new policy may include any of the following riders, provided that the riders you select are included in the original policy. Except as stated below, other riders may not be included in the new policy, unless agreed to by New York Life.

Disability Waiver of Premium (WP) Rider: This rider, if in effect on the original policy, can also be included in the new policy without evidence of insurability. The waiver of premium on a new policy is available at an additional charge, and is subject to certain qualifications, depending on your original policy.

Additionally, if you are disabled on an Option Date and have a "Disability Waiver of Premium benefit" in effect on your original policy, the PPO rider automatically applies this waiver of premium to your new policy for the duration of your disability.

Accidental Death Benefit (ADB) Rider: If this rider is in effect on the original policy, and is available at the new policy's inception date, it can be included in the new policy, for an amount equal to the face amount of the new policy.

One Year Term Insurance Dividend Option Rider: May be included with the new policy whether or not it is included in the original policy.

Living Benefits (Accelerated Benefits) Rider: If this rider is in effect on the original policy, and is available at the new policy's inception date, it can be included in the new policy.

Savings Allowance
Every time you use an Option Date to purchase a new policy, New York Life provides an underwriting savings allowance or credit that reduces your premium payment in the first year of your new policy.

Termination
The PPO rider terminates⁵ automatically on the policy anniversary when you are age 46. However, if a Special Option Date occurs within three months after age 46, the automatic term insurance will still be in effect on that anniversary along with the right to purchase a new policy on that Special Option Date.

⁴ This amount must equal the lesser of $100,000 or a multiple of the policy face amount based upon your age on the date of policy issuance. Additionally, if you have more than one life insurance policy with a PPO rider, the Option Amount on the second and subsequent policies will be reduced by the Option Amount on the PPO rider from the original policy.
⁵ PPO also ends when the base policy is terminated, surrendered, lapsed, or is continued as extended term insurance or paid-up life insurance.

Contact Your New York Life Agent
Rates and limitations vary with the policy you purchase. Consult a New York Life agent today to find out more about the Policy Purchase Option (PPO) rider. A New York Life agent— professionally trained and experienced— can help you analyze your needs and recommend appropriate solution through insurance and financial products and concepts —at no charge to you. Click here to request a free, no obligation, consultation with a New York Life agent.

Be the first to Comment