• Understand how New York laws will affect your family's life insurance plan.Family portrait of young family on picnic image by YURY MARYUNIN from Fotolia.com
  
  Life insurance is a financial product that allows you to purchase a death benefit on a monthly, quarterly or annual basis basis by paying premiums. These premiums are invested by the insurance company to provide for the future benefit. The death benefit is purchased on the life of an individual----called the insured----and the death benefit is paid to a beneficiary. If you live in New York state, there are some specific laws that pertain to life insurance you may want to know about.
  
  

Free Look Period

• New York enforces a 10-day free look period on all life insurance policies sold in the state. This means that if you want to buy a life insurance policy in New York, you have 10 days to look it over before buying the policy. You can return the policy anytime within those 10 days for a refund of your modal (first) premium payment.
  
  

Grace Period

• New York allows a 31-day grace period for all life insurance policies. If you fail to make your insurance policy payment on time, you have 31 days to make the payment. During this time, the policy will remain in force as long as you bring it current by the 31st day after the premium is due. If you fail to bring the policy current, the insurance company can cancel your policy. If your policy has a cash surrender value, you will receive the surrender value of the policy.
  
  

Death Claims

• New York life insurance companies have 30 days after they receive proof of death of the insured to pay a death claim. If they do not pay the claim within this time, the insurance company must pay interest on the death benefit from profits generated in the insurance company's general account.
  
  

Regulation 60

• If you are switching life insurance policies or you are exchanging a life insurance policy for an annuity contract, you must be provided with regulation 60 paperwork. This paperwork will detail the differences between the policy you currently have and the new policy that you will be purchasing. A side-by-side comparison can be done so that you can make an informed decision.