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Life insurance can provide two types of financial benefits: death benefits for our loved ones and some policies include additional benefits for us while we’re living.

Death Benefits

First and foremost, life insurance is designed to pay a death benefit to our beneficiaries when we die. It can protect the financial future of those we love and who are dependent on us (our spouses, children and parents). Life insurance can also replace part or all of what we would have earned if we die unexpectedly.

Policy death benefits can provide funds to protect our families in ways like these:

  • help pay for food, clothing and other regular living expenses
  • pay off the mortgage on our house and other debts
  • provide funds to pay our children’s college and other educational expenses
  • pay funeral, medical and estate administration expenses

If we die unexpectedly, life insurance death benefits act like a kind of “financial safety net” to help maintain our families’ financial security. Life insurance death benefits provide cash that may help surviving members adjust to their new situation. These death benefits are usually Federal income tax free under the Internal Revenue Code.

Life insurance can help us during our life too

Additional Benefits
Some life insurance policies include additional benefits that policy owners may use during their lifetimes. Generally, these policies have cash surrender values. How much cash surrender value a policy has depends on many factors and varies from policy to policy.

The cash surrender values can enhance the policy owner’s financial position and provide financial flexibility in a variety of ways, including but not limited to1:

  • provide funds to meet unexpected financial emergencies
  • provide supplemental retirement income
  • be used to pay hospital and medical costs in the event of chronic or terminal illness

Life insurance is a flexible financial tool that can strengthen our finances in many ways. It has the ability to help us during our life and to help our families when we die.  It can protect our families and replace our future earnings if we die unexpectedly. Its ability to provide both death benefits and additional benefits makes it a versatile financial tool that can help us and our families during our life and beyond. 

1Cash value can be accessed by taking policy loans and withdrawals.  Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.

Life insurance products are issued by ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Variable universal life insurance products are distributed by Voya America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the Voya® family of companies.