New York Life Insurance – Company Review

If you’ve been seeking life insurance coverage, it is likely that you have seen ads from several of the large life insurers such as New York Life.

Many such life insurance companies have been in the business for a century or more – which is a good sign, as it can signify financial strength and staying power, as well as the ability to pay its claim obligations.

New York Life Insurance Company has been in business for nearly 180 years. The company traces its history to 1845 when its first life insurance policy was sold with a face amount of $5,000.

Fast forward to the present time, and as of year-end 2022, New York Life had in excess of $710 billion in assets under management, and the company has continued to set records over the past several years – even during a volatile market and economic times.

Why Consider Life Insurance Coverage Through New York Life?

While there are many life insurers to choose from in the marketplace, New York Life Insurance is a strong contender. First, this company is quite solid when it comes to its credit outlook – especially in terms of its financial ratings.

The insurer has earned top ratings from A.M. Best (A++), Standard & Poor’s (AA+), Fitch (AAA), and Moody’s (Aaa). This means that the company is extremely strong in terms of its ability to meet both its current and future financial obligations – including paying its policyholder claims.

When it comes to product offerings, New York Life provides a nice variety, including all of the major forms of life insurance.

Along with all the product offerings, all of the industry-standard life insurance coverage products are provided as well, including:

• Cash Surrender Option: Returns a policyholder’s balance after cancellation.

• Survivorship Policy Option: Extends coverage to a second party.

Other policy options available include one for a return of premium and a term conversion option that provides the company’s term life insurance policyholders with flexibility.  These policies only go up to $1,000,000 of life insurance coverage.

Additional options can be found with mortgage life insurance, as well as whole-life vanishing premium options that provide protection for homeowners with mortgage balances and who wish for their life insurance premiums to decrease as their mortgage balance goes down.

For younger individuals who may have smaller budgets – but who still need coverage – New York Life offers some policies that start with an initial face amount of $5,000. These can provide a great way to get a plan started and then grow with it over time.

With its permanent policies, New York Life offers access to cash value via loans and/or withdrawals, as well as many plans that have guaranteed interest rates, and periodic dividends with paid-up addition options.

Policyholders may also choose plans that include flexible death benefits – which may include level and/or variable options. There is also a wide variety of additional riders that can be chosen to add more flexibility and customization to one’s coverage.

New York Life also offers a nice variety of how policyholders are able to make their premium payments.

In addition to setting up automatic payments from a checking or other type of bank account, customers may alternatively opt to pay via credit card (hello airline points credit card for a free trip somewhere). They can also pay online or pay premiums over the phone.

In addition to the products that it offers, New York Life also provides excellent customer service. There are numerous options for getting in touch with a representative, including phone and email, as well as online chat, click-to-call, Twitter, and Facebook.

This shows that the company is very up-to-date in terms of its communications strategies – and it also makes itself available to its customers in a variety of ways, making it easy for clients and policyholders to get their issues resolved.

This could be one reason why the company has very few complaints on file.

At this time, one of the few drawbacks with regard to company communication is that New York Life does not offer mobile access to their clients’ accounts or documents, nor does the company provide a mobile website for smartphone web browsers.

This means that customers are required to call the company’s customer service center during business hours if they want specific account-related information.

Other Considerations When Purchasing Coverage

In addition to the insurer, there are a number of other factors to consider when you purchase life insurance coverage.

These can include the following:

Type of Coverage

One of the biggest factors in narrowing down your life insurance choice is the type of coverage that you need.

For example, there are two primary categories of life insurance.

These are term and permanent.

With term, you obtain pure death benefit protection, whereas permanent life insurance offers a death benefit component along with either a cash value or investment feature, too.

Because term life is considered to be plain vanilla coverage, it is oftentimes the most affordable type of coverage – especially for those applicants who are young and in relatively good health.

Term life, however, is offered for only certain periods of time – or terms – such as 10 years, 15 years, 20 years, or 30 years.

Permanent life insurance coverage, however, as its name implies, provides permanent protection for the remainder of the insured’s life, provided that the premium is paid.

For those who have “temporary” needs such as paying off a 30-year home mortgage, term life insurance is often the best choice. On the other hand, for those who have an indefinite need for coverage, a permanent policy may be the better option.

Amount of Death Benefit Protection

The right amount of death benefit protection is also important.

Having too little coverage could leave survivors in a financial predicament, still having to pay expenses of the decedent and/or struggling with ongoing expenses following the insured’s death, that in itself is a good reason to look into a burial insurance policy to help protect your family.

Length of Term

For those who are purchasing term life insurance, buying the proper length of coverage is also essential. If, for instance, the need is short-term, then a 10-year plan will likely be sufficient. However, it may be necessary to purchase a 20 or 30-year option for long-term obligations.

Need To be Covered 

The need that is being insured is another factor in choosing which type of life insurance will be best.

For example, is your goal to cover lost income, or are you insuring to pay off a particular debt balance?

This makes a big difference in the amount and the type of coverage that you purchase.

It may also prompt you to increase or decrease your coverage amount on a regular basis as your life changes.

Premium Cost

The cost of your life insurance premium can also make a difference.

Here is where comparing different life insurance policies and companies will serve you well, as the cost of identical coverage can oftentimes be priced vastly different by differing carriers. Therefore, be sure to shop and compare before making your final decision.

Underwriting Guidelines 

The underwriting guidelines can sometimes make the difference between getting coverage or being declined.

This is especially the case for someone who has certain health issues. Therefore, be sure to check the company you are applying through regarding their underwriting guidelines.

How and Where to Obtain the Life Insurance Coverage You Need

In obtaining the life insurance coverage that you need quickly, it is oftentimes best to first compare several different policies and premium quotes.

This way, you will be able to review exactly what is available to you – as well as what you may be charged for this coverage.

The Bottom Line

Life insurance is an essential tool to ensure financial security for loved ones. With myriad options available in the marketplace, it’s paramount to select a reliable and trustworthy insurer. New York Life stands out as a beacon in this regard.

With its nearly 180-year history, robust assets under management, top-tier financial ratings, and a comprehensive array of product offerings, New York Life demonstrates not only financial strength but also a commitment to serving its policyholders.

Although there’s room for improvement in terms of mobile accessibility, the company excels in customer service, offering multiple avenues for client interactions.

As consumers navigate the complex maze of life insurance, factors such as type of coverage, death benefit amount, term length, specific coverage needs, premium cost, and underwriting guidelines become crucial determinants in their decisions.

Comparing and shopping around is vital, and New York Life emerges as a strong contender for those seeking a blend of tradition, strength, and customer-centricity.

As always, prospective policyholders should assess their unique needs and circumstances and consult with professionals to make the most informed decision.

How We Review Insurance Companies: 

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Our goal is to present a balanced and comprehensive perspective to potential policyholders. Editorial transparency remains a cornerstone of our approach.

We actively collect information from insurance companies and place significant weight on customer feedback. By integrating this feedback with our research, we can offer a well-rounded evaluation.

Each company is then rated based on multiple criteria, resulting in a star rating from one to five.

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