New York Life Insurance Review: Term, Whole, Universal, Variable Life – Business Insider
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Bottom line: New York Life offers term, whole, universal, and variable life insurance. It’s been around since 1854 and is known for its high marks in customer satisfaction. However, New York Life doesn’t offer online quotes.
New York Life insurance pros and cons
New York Life insurance policies
JD Power Customer Satisfaction Rating
#9
AM Best Financial Strength Rating
A++ (Superior)
JD Power Customer Satisfaction Rating
#9
AM Best Financial Strength Rating
A++ (Superior)
More Information
Life insurance provider with policies available across the US
New York Life was established in 1854 years ago in New York. It currently ranks #9 in J.D. Power’s life insurance customer satisfaction survey. It is also one of our top picks for the best life insurance companies in 2022.
New York Life offers term and permanent life policies. If you opt to purchase a term policy, you can choose between New York Life’s yearly convertible term, level premium convertible term, and million-plus level term policy. A permanent policy pays a death benefit, allows you to build cash value, and may also pay dividends depending on the policy you choose. New York Life offers whole life, universal life, and variable universal life policies.
Additionally, you can supplement your insurance with individual disability coverage and long term care coverage. You also have the option of adding riders to your policy at an additional fee. If you purchase New York Life’s Custom Guarantee, you have the option to receive back your money if you no longer need protection — free of additional cost.
Yearly convertible term — This term life policy starts at the lowest cost then gradually increases each year. It’s also convertible, meaning that you can switch from term life to a permanent policy without a medical exam.Level premium convertible term 10-20 — This term life policy gives you the option of paying your premiums for a 10 to 20-year term period. Premiums stay the same throughout your policy and will increase after your policy ends.Million plus level term 10 — This term life policy offers $1 million in coverage. Premiums stay the same throughout a 10 year period and gradually increase when your term is up. After five years, you can convert your policy to a permanent life insurance policy.Whole life insurance — This permanent policy pays a death benefit, builds cash value, and has the potential to pay annual dividends. Custom whole life insurance — This policy allows you to choose how long you pay premiums (as short as five years) and maximize the cash value growth in your policy. However, shorter paying periods mean higher premiums.Universal life insurance — This policy offers a death benefit, the ability to build cash value, and flexibility over when and how often you pay your premiums.Custom guarantee — This policy is a good option for customers who need death benefits but don’t necessarily need to build cash value. Custom guarantees allow you to pay level premiums for as long as you’d like. Protection up to age 90 — This policy is an excellent option for those who need a significant amount of life insurance protection — at least $1 million of coverage — for a period of time before the age of 90. Variable universal life insurance — This permanent life insurance gives you agency over your investments. This policy provides access to different tax-advantaged investing options that align with your goals and risk level. Like universal life, you can also adjust the amount and frequency of your payments.
There are two types of life insurance: permanent life and term life. Term life insurance lasts for a specified period. When it’s up, you can reapply for coverage, but the premiums most likely will go up as you age.
Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.
New York Life offers these additional policies and rider options:
Individual disability insurance — This add-on policy offers coverage in the event you become too sick or injured to work. Long term care insurance — This add-on policy will help you pay for assisted care when you no longer can take care of yourself. Spouse’s paid-up insurance purchase option rider — This rider will allow your spouse to proceed with your policy in the event of your passing.Disability waiver of premium — If you become disabled or too sick to work, disability insurance will cover your premiums.Living benefits rider — This rider will pay a portion of your death benefit for treatment or care if you are terminally ill.Option to purchase paid-up additions (whole life) — This rider allows you to contribute more to your policy. This will increase your death benefit coverage and build more cash value. Chronic care option (whole life) — This rider allows tax-free access to a portion of policy benefits if you become chronically ill. Accidental death benefit — This rider would offer an additional death benefit if your loved one’s death was caused by an accident.Death benefit option 1 (universal life) — This rider offers a level death benefit that equals the amount of your policy. Death benefit option 2 (universal life) — This rider offers a fluctuating death benefit that equals the amount of your policy plus your policy’s cash value. Return of premium rider (universal life) — This rider offers a fluctuating death benefit that equals the amount of your policy plus the adjusted total premiums you paid on your policy.Money back option rider (universal life) — If you no longer need protection, this rider gives you your money back. (Comes with most Custom Guarantee policies)
New York Life insurance vs. the competition
New York Life, Northwestern Mutual, and MassMutual are nationwide carriers that specialize in life insurance. All three companies offer term, whole, universal, and variable life insurance, as well as add-on coverages like disability income coverage and long term care coverage. New York Life provides excellent customer service and a wide range of policy options to fit your life insurance needs. However, it ranks lower in customer satisfaction than its competitors. In addition, New York Life does not offer online quotes.
Is New York Life trustworthy?
We checked the NAIC Complaint Index for complaints against New York Life. The company has significantly fewer complaints filed against it compared to other top insurers.
New York Life’s financial stability is strong, with an A.M. Best rating of A++ (Superior). While it’s a legitimate insurance provider, it’s important to do your own research to ensure New York Life is the right insurance company for you.
New York Life — Frequently asked questions (FAQ)
Where is New York Life available?
New York Life is available in all 50 states.
Can I withdraw money from my New York Life insurance policy?
You can access your cash value via loans or partial withdrawals for your financial needs. This account is tax-deferred.
How much does New York Life cost?
Several factors make up your insurance premiums like your age, gender, health, lifestyle, and occupation. To obtain a quote, get in touch with a New York Life agent by filling out this form.
What is the best way to contact New York Life during the pandemic?
You can either reach out to your financial professional via phone or video chat, call New York Life’s service line at 1-800-225-5695, or review your information online.
Alani Asis
Personal Finance Reviews Fellow
