Security Mutual Life Introduces Monthly Benefit Term

BINGHAMTON, N.Y., Jan. 24, 2011 /PRNewswire/ -- Many term life insurance buyers who seek coverage to meet a singular need often overpay for their insurance.  This term buyer overpays because he or she must pick a lump sum death benefit that will cover the specific financial obligation if he or she were to die soon after obtaining coverage.  As time goes by, the original lump sum may exceed what is necessary to cover the remaining obligation.  Thus, monthly benefit term may be less expensive than lump sum coverage because the buyer can design the policy around his or her specific needs.

Security Mutual recently introduced a new term insurance product that helps provide this type of buyer with a solution:  a term insurance product that pays death benefits monthly, rather than in a lump sum.  This new product offers coverage for whatever number of years best suits the needs of the particular client.  Monthly benefits range from a minimum of $1,000 per month to a maximum of $50,000 a month.  The minimum term is 15 years, and the maximum term is the lesser of 40 years (35 for smokers) or 85 minus the issue age.  By way of example, if an insured under a 20-year $2,000/monthly benefit life policy were to die 132 months after issue date, the policy beneficiary would receive $2,000 a month for the next 108 months (9 years)—the balance of the term (11 years).

Monthly benefit term can work well in many contexts.  For example, a homeowner who would like to cover a mortgage obligation can select a term that matches the years remaining on the mortgage.  A parent with young children can select a term that is tied to the year that his or her youngest child is expected to graduate from college.  An individual who is concluding a divorce can select a term that matches his or her obligation to pay alimony or property settlement installments.

About Security Mutual Life Insurance Company of New York:  Security Mutual was founded in 1886.  Today it is one of the leading mutual life insurance companies in the United States.  It does business in all 50 states.  Security Mutual Life is rated "A-" (Excellent) by the A.M. Best Co., the oldest and largest company devoted to issuing financial strength ratings of insurance companies.  A.M. Best rating is current as of the date of publication.  Ratings reflect a rating agency's opinion of a company's financial strength and ability to meet its obligations to its policyholders.  A rating is not a recommendation of a company or any specific policy form.  A.M. Best's "A-" (Excellent) rating is the fourth highest on a 15-step rating scale.  Ratings are subject to change.

Policy Form Nos. 2107-NY, 2107-C-NY, Series 2107 & 2107-C.  The hypothetical example contained herein is for illustrative purposes only and does not guarantee or predict the results of this product.  The example does not take into account the investment objectives, financial situation or particular needs of a specific person.  Product availability and features may vary by state.  Contact a Security Mutual Life representative for state availability.

SOURCE Security Mutual Life Insurance Company of New York

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