Beginning in 1845, New York Life Insurance has an impressive record.
This mutual firm has paid dividends out for the last 166 years in a row and provides a wide range of products sold through a carefully selected network of financial advisors.
With a solid financial rating and excellent customer reviews, it’s easy to see why this company is one of the top insurers in the United States.
In this review:
- Company Ratings
- Life Insurance Products Offered
- Life Insurance Riders Offered
- Eligibility & Application Process
- Pros & Cons
NewYork Life Insurance Company Ratings
- AM Best: A++
- Moody’s: AAA
- Fitch: AAA
- BBB: A+
New York Life Insurance Products Offered
New York Life offers several different products. And you’re able to customize your policy completely.
A term life policy is usually seen as a short-term option.
You choose a term between 10 and 20 years and pay your premiums throughout.
If you die during this timeframe, your policy pays out. If you don’t, the policy expires, and you must start again.
Unlike most companies, New York Life allows you to convert both its term life policies.
You may opt for coverage of $10,000 or more.
The firm provides two term life options:
- Yearly Convertible: If you’d like the maximum flexibility to convert to a permanent policy, this could be a good option. You receive the benefit of lower premiums and renew the plan annually.
- Level Plan Convertible: These plans allow you to keep the level of your payments until your plan expires or you change to permanent coverage.
Whole life insurance is more expensive but covers you for your lifetime.
The death benefit is guaranteed, and the policy accumulates a cash value.
Any growth in the cash value is tax-deferred. You may also earn dividends on the money.
The minimum face value is $25,000 unless otherwise stated.
There are three options:
- Value Whole Life: This policy is a good option for those nearing retirement. Your death benefit is guaranteed, and your premiums will not increase.
- Whole Life: With this plan, New York Life also guarantees your coverage. The premiums may increase, but so should the policies’ cash value.
- Custom Whole Life: These plans give you the maximum flexibility. Choose your coverage, length of coverage, and schedule your payments for maximum benefits. The minimum face value for these plans is $50,000.
If the cash value is secondary to the length of coverage for you, a universal life plan may be a better option.
The policy covers you for life and is more flexible than whole life.
With the cash value component removed, it may also prove more cost-effective.
The policy’s minimum face value is $25,000 unless otherwise stated.
There are a few choices when it comes to the death benefit with universal life coverage:
- Level Death: Your beneficiaries receive an amount equal to your policy’s face value.
- Fluctuating: These policies pay out the face value and cash value of the policy.
- Return of Premium Rider: This policy pays out the face value and the total of the adjusted premiums that you paid into the plan.
Select any of the following options:
- Universal Life: The most basic plan provides high value and long-term coverage. You make the rules about how much coverage and how long you pay in premiums.
- Custom Guarantee: This policy entails the payment of a set premium for as long as you live. New York Life guarantees the death benefit as long as your payments are up to date.
- Protection Up to Age 90: If you require coverage totaling $1 million or more, this cost-effective package may suit you best.
Variable Universal Life
Variable universal life combines long-term coverage and a cash value.
You may decide where to invest your money so that you can take the reins regarding growth.
After 12 years, you can add a rider that guarantees the accumulated growth of the policy.
With this in place, you’re assured of your payout, irrespective of the stock market’s movements.
You can customize this plan according to your needs.
New York Life Insurance Riders Offered
New York Life Insurance stands head and shoulders above the rest because of the number of life insurance riders it offers.
These additions allow for a level of customization seldom seen in other companies.
Accidental Death Benefit
You can add this rider to a whole life insurance policy. It covers you in the event of death by accident.
You may add chronic care to a whole life policy. This benefit allows you to draw on some of your death benefits if you are chronically ill.
Disability Waiver of Premium
This can be added to a whole or term life package. With this rider, if you become disabled, your policy achieves a paid-up status. New York Life then pays your premiums for a set term.
Again, you’re able to add this rider to a whole or term life plan. The rider covers you should you contract a terminal illness. It allows you to draw a portion of the death benefit to pay for treatments.
It’s not available in every state, so be sure to check if you’re eligible before trying to add it.
Option to Purchase Paid-Up Additions
This rider makes it possible for you to add extra payments to your whole life plan. These additional payments will form part of the cash value and increase your overall benefits.
This rider may be useful for those who feel that they may develop health issues later. You may add this to life policies to allow you to get extra coverage at a later date without another medical exam.
This rider allows your spouse to purchase life insurance using your death benefit after you pass. The critical factor here is that they needn’t undergo a medical exam. This may prove useful when your spouse is elderly and unable to qualify for reasonably priced insurance.
New York Life Insurance Eligibility and Application Process
New York Life makes it as simple as possible to qualify for policies.
The maximum issue age for a policyholder is 75 years for term life and 90 for permanent policies.
That provides a broader range of coverage than what most life insurance companies offer.
Eligibility Depends Upon:
- Where you live
- If you’re a legal resident of the United States
- How healthy you are (those with pre-existing conditions may receive limited coverage)
The process would be more straightforward online.
However, New York Life wants its clients to get the best advice, so qualified financial advisors process your documents.
Once you’ve completed everything, the advisor will tell you whether you must provide proof of insurability.
This will either be in the form of a medical exam or by providing access to your medical records.
The advisor will send the forms to the underwriting department, who will consider the risks and then issue you with an offer.
Pros and Cons of New York Life Insurance
- There are several policy options and riders
- You may opt for accelerated death benefits
- Some packages allow for money back at the end of the term
- You may convert your term policy to a permanent one up to the age of 75
- The company provides level premium guarantees
- The company has a well-established history of paying dividends
- You may opt for a guaranteed growth in cash value
- Offers accelerated death benefits and critical illness options
- You’re not able to access quotes online
- There are few details on the website