If you’re a responsible partner and parent, you’ll be looking to the future and considering life insurance if you don’t already have coverage in place.
While you should take great care of your finances while you’re alive, it’s equally vital to make provisions for when you’re not around.
Life insurance policies give you peace of mind and come in flexible forms, so you don’t need to overcommit yourself now to safeguard the future of your family.
History of New York Life Insurance
New York Life is the third biggest life insurance company in the US and the leading mutual company in a crowded market. Starting life as Nautilus Mutual Life in 1845, the company’s initial specialism was fire and marine insurance.
Renamed New York Life Insurance Company in 1849, life insurance was predominantly aimed at slave owners insuring their slaves. While this seems unsavory today, it was commonplace in the mid-1800s. New York Life was forward-thinking, and the board of trustees voted to abolish this practice in 1848.
Growth continued throughout the American Civil War with both soldiers and civilians investing in coverage during this volatile period. Introducing a branch office set-up in 1892, New York Life began extending coverage to women, the disabled, and people with hazardous jobs needing to protect the interests of their families.
The New York Life Building on Madison Avenue opened in 1928. As the stock market plummeted, New York Life remained in a strong position. They had diversified into government stocks and real estate, so most assets were safeguarded.
As the 20th century progressed, New York Life began investing further in real estate and established a mortgage-loan program targeted at veterans. By 1970, New York Life offered annuities and mutual funds as well.
Pivoting again during the financial crisis just like during the stock market crash, New York Life pushed cash into treasury bonds to stave off financial stress.
Although much of the competition decided to trade publicly, New York Life opted to continue as a mutual fund, which is still the case today. The company is now working in global asset management with over $570 billion in AUM (assets under management).
New York Life has no outside shareholders and is owned by its policy owners. As such, dividends are paid from a colossal operating income of $1.95 billion.
New York Life offers mutual funds (both institutional and retail) as well as securities products through its affiliates.
Insurer Ratings and BBB Grade
New York Life is among the most robust institutions in terms of financial strength, and this is backed up by the highest possible ratings from the major insurer rating agencies.
While the ratings vary, that’s only regarding the way these rating agencies express their judgment. AM Best Company gives New York Life an AA++ rating, while Standard and Poor’s AA+ is also the highest possible rating. New York Life is rated as Extremely Strong (the highest rating) by Fitch Ratings and Moody’s Investors Service.
Relying on ratings from these companies saves you the time and trouble of doing your own due diligence concerning trust and financial strength. It allows you instead to focus on the particular type of life insurance policy that suits you best.
Life Insurance Products Sold By New York Life
Whatever your requirements and whatever your budget, New York Life has life insurance to match.
Whether you want the affordability of term life insurance, the security of universal life coverage or a single premium plan ideal if you have an inheritance or windfall, you can choose from no less than six broad types of life insurance with many variations within those categories.
- Term Life
- Custom Universal Life Guarantee
- Universal Life
- Whole Life
- Variable Universal Life Insurance Accumulator
- Instant Legacy Premium Universal Life
Term life insurance provides death benefits, but you won’t get cash value building up. This results in a premium far lower than permanent life insurance policies.
Coverage is provided for a predetermined period, and the amount of protection varies accordingly.
New York Life has four different term policies:
- Nonrenewable One-Year
- Yearly (Convertible)
- Family Protection
- Level (Convertible)
You can expect a minimum face value starting at $100,000 and going up to $250,000.
New York Life’s annual term policies perform in the same way except for the convertible policy, and you’ll be able to renew coverage.
Premiums stay level for a set period with the level convertible policy. You can switch to a permanent policy during the first ten years of coverage without needing a subsequent medical exam. Coverage can be renewed on a yearly basis until you reach 90 years old.
If you want coverage for your whole family, New York Life provides from $100,000 per adult to a maximum of $1 million. Children are covered up to $10,000 which would be enough for final expenses.
You can take out term insurance from the age of 15 up to 90. Each policy varies with age.
Check the riders closely to make sure the policy is right for you and your family.
Custom Universal Life Guarantee
A custom universal life guarantee gives you the benefits of a permanent life insurance policy, but you won’t build up any cash value. The advantage of this is that premiums are lower since you don’t get the investment part of the policy.
Cash value is quite low at just 2.5% interest crediting, but this is guaranteed. The cover is up to a predetermined age as long as it doesn’t exceed 121.
Premiums remain level throughout, and there’s a $100,000 minimum face value.
Universal life policies are similar to whole life policies but are usually slightly more flexible.
You’ll get all the benefits of permanent coverage with a universal life policy from New York Life, but cash value accumulates at a greater rate. A built-in advantage is the ability to use this if you are struggling to pay premiums at any stage.
Premiums will vary depending on the payout option you select.
At 2.5% interest credit as a guaranteed minimum, cash value grows in line with the face value of the policy.
Although extremely flexible, these policies are risky. You can take out a no-lapse rider to offset some of this risk, but make sure that this is the type of coverage you need before committing.
Whole life insurance gives you the security of coverage for the duration of your lifetime.
New York Life has three variants of whole life insurance:
All similar in terms of coverage, you’ll get a guaranteed rate of cash value, level premiums, and dividends along with lifetime protection.
The policies only really differ in terms of payment scheduling and how quickly cash value builds up.
There’s a starting minimum face value of $50,000.
Variable Universal Life Insurance Accumulator
Much like a regular universal life insurance policy, with this particular policy, you can exercise at least some control over how cash value is invested.
As long as you’re under 80 and are happy with a $50,000 minimum face value, this policy is worth exploring.
Instant Legacy Premium Universal Life
If you want less risk than you’ll find with standard universal life insurance, this single premium policy is available with just one lump sum payment.
Coverage is guaranteed for your whole lifetime.
There’s a guaranteed interest credit of 4% with a minimum single premium in place of $10,000 with a maximum of $125,000. The age range is 18 through 85, and the policy matures at the age of 100.
You won’t need a medical exam, and underwriting is straightforward.
Other Products and Services
Although they are life insurance specialists, New York Life does have a range of other policies available including long-term care insurance.
The company also offers direct-to-consumer policies through New York Direct.
With annuities and mutual funds also on the roster, you can approach New York Life for all your investment needs, not just life insurance coverage.
How To Get The Best Life Insurance Quotes From New York Life
You may or may not consider New York Life to be your best option for life insurance coverage after reading this review. It’s meant only to give you an overview.
We highly recommend getting in touch with us if you have any specific questions or if you’d like a personalized quote.
We have no vested interest in New York Life since there are so many outstanding insurance carriers, and there’s also no right or wrong answer to the best company for life insurance coverage. All you need to be concerned with is finding the right company for you.
Call us today, and we can help you get that decision right.
Final Verdict on New York Life
You always need the full overview of a company before committing to life insurance or any other type of coverage.
With so many variables, it’s impossible for us to say whether New York Life is the best company for you and your family, but the company certainly excels in terms of variety of policies and also flexibility.
If you don’t want the hassle of additional medical exams, the instant legacy premium universal life coverage is a great solution.
New York Life is a solid choice catering for all risk profiles and various financial objectives. The no-exam policies and survivorship policies are also strong, and customer support is consistently excellent.