Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
NY has special law for among of coverage each child can get, does any other state have the same ?
The following is the NY statute:
Insurance - Article 32 - § 3207 Life insurance contracts by or for the benefit of minors; on the lives of minors, limitations on amount. :: 2016 New York Laws :: US Codes and Statutes :: US Law :: Justia
I have been unable to find a state by state guide so you will have to check each state's life insurance statutes to find the answer to your question.
Much ado over nothing.
Only one thing, the law does not make clear if it is the greater/lesser of $50,000 or 50% of what is in force on the parent. It lists both limits but does not say which is the cap. For instance, if a parent had a $1,000,000 policy, are they limited to $500,000 on a child or $50,000? I don't see where the law makes it clear which cap applies.
Many companies have similar guidelines and many go so far as to require coverage be equal on all children.
Also in an amazing show of restraint, NY did not require domestic companies to apply this rule in all states in which they do business, merely NY.
Doesn't surprise me that NY has that law...as they try to legislate every aspect of a person's life. Most, if not all, life insurance companies have their own specs as far as how much life insurance can be placed on a juvenile...typically, the parent(s) have to have a multiple of 5 or more on their lives.
My uneducated guess would be 50% of the parent. $50k is not much - especially in the wealthy parts of NY.