In the competitive world of life insurance, finding a reliable provider with a proven track record is essential. This New York Life insurance company review will provide a comprehensive analysis to help you decide if it deserves a spot on your list of the best life insurance companies. New York Life boasts a long and distinguished history, consistently receiving top financial strength ratings. They offer a wide range of products, including term life for temporary coverage needs and whole life insurance for building cash value alongside a death benefit.
We'll delve deeper into these options, exploring their pros and cons, customer satisfaction ratings, and other key factors to consider before making your choice.
New York Life insurance review
Great whole-life insurance with reliable annual dividends.
New York Life is a reputable firm that is ideal for anyone looking for permanent life insurance, especially if they prefer to consult with an agent rather than gather information online. New York Life's whole life plans are particularly appealing because the company has paid dividends to qualified customers for the previous 168 years. New York Life is also a fantastic choice for elderly, offering coverage to applicants up to the age of 90. However, if you want a robust online experience or a term policy that lasts more than 20 years, you should search elsewhere.
Pros and Cons
Pros
- Excellent financial stability.
- Policies qualify for payouts.
- A wide range of riders
- Policies are offered for candidates over 90 years old.
- Very few issues about its size.
Cons
- Term policy terms are set at 20 years
- It was difficult to find some information on the website.
- There are no online quotations for term life insurance.
- Does not have a mobile app
Company Overview
New York Life was started in 1845 and is based in New York City. As of 2021, it is the country's second-largest life insurance provider, accounting for slightly less than 7% of total market share. Throughout its 177-year existence, New York Life has established itself as a respected life insurance provider, with a top-tier financial stability rating from AM. Other third-party sources provide the most reliable and accurate indications of client satisfaction.
Furthermore, New York Life is a mutual corporation, which means it is entirely owned by its consumers. Since 1854, the corporation has provided annual dividends to policyholders, and in 2021, New York Life will pay out $1.8 billion in payouts. The company is licensed to sell life insurance in all 50 states and Washington, D.C.
| AM Best Rating | NAIC Score (avg.) | Years In Business | Policy Types | Accepts Credit Cards |
|---|---|---|---|---|
| A++ | N/A | 177 Years | Term, Universal (UL), Variable Universal (VUL), Whole | No |
Pros and Cons Explain
Pros Explained
Excellent financial stability: New York Life is the oldest insurance firm we examined. It has received an A++ (superior) rating from AM Best, the highest possible financial strength grade.
Policies are eligible for dividends: Annual dividends are available on New York Life's whole life policies, albeit they are not guaranteed. The company has paid dividends for 168 straight years, the second-longest streak among the 91 companies we studied. This is one of the reasons we chose it as the best whole life insurance provider.
New York Life provides a wide range of riders for policy customization, including various living benefit riders that allow you to obtain a portion of your death benefit early. It's also one of the few top life insurance companies that offers a disability income rider, which replaces your income if you become disabled and unable to work.
Policies are offered for 90-year-old applicants: Only six of the 91 organizations we reviewed considered applicants over the age of 85. That's why we ranked it first overall on our list of the best life insurance companies for seniors.
Very few criticisms about its size: According to the National Association of Insurance Commissioners, New York Life had less complaints than one would expect for a life insurance firm of size.
Cons Explained
It is difficult to find certain information on the website: When we reviewed New York Life's website, we discovered that it provides limited information regarding its offers. For example, there are no coverage amounts available for term life. When we called customer service, they directed us to a local agent.
Term policy terms are capped at 20 years: If you're looking for life insurance, you should know that New York Life limits term lengths to 20 years. For instance, the majority of our top-rated term life insurance companies provide term lengths of up to 30 or 40 years.
There are no online quotations for term life insurance. New York Life does not provide an online quote generator for term life insurance. Many competitors, including Nationwide and State Farm, provide online quotations.
Does not offer a mobile app: If you want to pay your premiums and manage your policy while on the go, New York Life may not be the ideal option. It does not have a mobile app, as competitors such as MassMutual do.
Complaint Index.
In comparison to other insurance firms of similar size, New York Life got much fewer complaints than expected. In fact, it placed in the top quarter of the 91 insurance companies we examined, with less complaints than some other well-known carriers, such as Mutual of Omaha and Transamerica.
How do we know this? We looked at the National Association of Insurance Commissioners' (NAIC) Complaint Index, which compares an insurance company's client complaints to its size. An index of 1 indicates that an insurer received the expected number of complaints based on the number of policies it underwrites. Companies with a complaint score above 1.0 have more complaints than expected, while those with a complaint score below 1.0 have less complaints than expected.
Over a three-year period, New York Life had an average NAIC Complaint Index of 0.183 for individual life insurance. That implies it received far fewer complaints than is typical for a company its size.
Third-Party Ratings
New York Life also has the highest possible financial strength rating (A++) from AM Best, the top credit rating agency for life insurance firms. AM Best evaluates firms based on their balance sheet, debt, and operational performance. New York Life is one of nine carriers of the 91 we analyzed that received the highest letter grade from the rating agency.
In addition, J.D. Power's 2021 Individual Life Insurance Study ranks New York Life somewhat higher than average in terms of overall customer satisfaction. It received a score of 777 out of 1,000, one point higher than the industry average of 776 out of 1000. New York Life placed ninth out of 21 insurance firms.
Competition of New York Life Insurance
Before selecting a life insurance provider, it's a good idea to evaluate numerous options. In the table below, we compare New York Life to two other significant insurance companies with comparable offers and sizes (based on market share and yearly premium).
| Insurance Company | Our Coverage Options | 2022 Dividends Shared | Online Application Availability | Our AM Best Rating | NAIC Complaint Index | Our J.D. Power Ranking |
|---|---|---|---|---|---|---|
| New York Life | We offer Term, Whole, Universal, and Variable Universal coverage. | We distributed $1.9 billion in dividends. | Currently, we do not provide an online application process. | We are proud of our top-tier A++ rating. | Our average over three years is 0.183. | We hold the 9th position in J.D. Power’s ranking. |
| Northwestern Mutual | Our range includes Term, Whole, Universal, and Variable Universal options. | We shared a substantial $6.5 billion in dividends. | We do not have an online application option at this time | Our financial strength is also rated at an excellent A++. | Our three-year average complaint index is a low 0.063. | We are ranked 3rd by J.D. Power, reflecting our commitment to quality. |
| Prudential | We provide Term, Universal, Variable Universal, and Indexed Universal coverage. | Dividends are not offered in our plans. | Yes, we offer the convenience of online applications. | Our financial reliability is reflected in our A+ rating. | Our NAIC Complaint Index over three years averages at 0.511. | Our service quality places us at 15th in J.D. Power’s ranking. |
Policies available.
New York Life sells a limited number of life insurance policies. Here are the many forms of life insurance and the various policies that can be purchased.
Term Life Insurance
Term life insurance offers coverage for a set number of years. If you die during the insurance period, your beneficiary will get a death benefit, which is tax-free money that can be used for any purpose.
New York Life sells the following term life insurance policies:
Level Premium Convertible Terms 10-20
New York Life's Level Premium Convertible Term 10-20 policy allows you to buy term insurance for ten or twenty years. Your rates stay constant for the duration of the term; however, if you choose to renew the coverage, your premiums will increase on an annual basis. This insurance allows you to change your term coverage into a whole life policy within the first five years of ownership. Converting your term life insurance allows you to acquire permanent, lifetime coverage without having to take another medical test in the future.
Yearly Convertible Term
This policy allows you to convert to a permanent policy every year. This may be a decent alternative for folks who need quick coverage but aren't ready to commit to a long-term insurance yet. Yearly Convertible Term insurance have the lowest starting cost, but your premium will increase each year you renew the term coverage.
Million Plus Level, Term 10.
This coverage is intended for individuals who require at least $1 million in protection. It offers level premiums for the first ten years, and then increases on a yearly basis if you renew coverage. During the first five years, you can convert your term policy to permanent coverage.
Whole Life Insurance
Whole life insurance is a sort of permanent coverage, which means it will protect you throughout your lifetime. Whole life premiums stay steady throughout the policy's term and provide a guaranteed death benefit to your beneficiary in the event of your death. These policies generate monetary value that can be withdrawn or borrowed.
When you buy whole life insurance from New York Life, you'll be eligible for dividends based on the company's financial success, which can help your cash value and death benefit rise faster. As previously stated, the corporation has continuously paid dividends for the past 168 years. Here are the whole life insurance offered by New York Life:
Whole Life Insurance
New York Life's basic whole life policy features consistent premiums, cash value, and the option to collect annual dividends.
Custom Whole Life Insurance
The Custom Whole Life Insurance policy from New York Life allows you to pay your premiums for a set amount of time (at least five years), after which the policy is paid up. You will, of course, pay higher premiums during this period, but this type of plan may assist you avoid paying premiums after retirement. Choosing the Custom Whole Life Insurance policy can also help you maximize your cash value growth by earning interest on a higher amount over a longer period of time.
Universal Life Insurance
Universal life (UL) insurance is another sort of permanent life insurance policy. Universal life, like whole life, accumulates cash value; however, the premiums and coverage limits are flexible. Universal life insurance can be a smart choice if you want the freedom to skip a monthly payment or pay more one month than the next. You may also be able to adjust your policy's death benefit based on your financial needs and the policy's performance.
Warning! The disadvantage of flexible payments is that if you do not make enough premium payments, or if interest rates are higher than predicted when your insurance was issued, you may have to pay more premiums in the future.
Some insurance companies, including New York Life, provide universal life policies that are structured similarly to term life policies.
New York Life offers three UL insurance, which include:
Basic Universal Life Insurance.
New York Life's Basic UL policy offers lifelong protection with the opportunity to customize your coverage limits, length of coverage, and premiums based on your specific needs. Choosing this insurance can help you keep your expenditures under control because you can reduce your coverage limits (and hence your premium) if you no longer require the level of protection you first purchased.
Custom Universal Life Guarantee
At New York Life, we offer a Custom Universal Life Guarantee policy that ensures a guaranteed death benefit without cash value accumulation. It's designed for those who require coverage for a specific duration, not for a lifetime. Premiums are fixed, and any changes to the policy may affect the guarantee period.
Protection Up to Age 90
Our unique Protection Up to Age 90 policy provides coverage until the age of 90, similar to term insurance, with a minimum death benefit of $1 million. It's an ideal solution for substantial protection needs.
Variable Universal Life Insurance
Our Variable Universal Life (VUL) insurance offers permanent protection with investment opportunities in subaccounts. However, it carries market risks and potential fees and taxes. The cash value grows tax-deferred, but withdrawals over the premium amount are taxable.
Variable Universal Life Accumulator II
The Variable Universal Life Accumulator II is our exclusive VUL policy, offering investment flexibility through self-selected options or advisor-recommended portfolios.
Available Riders
New York Life provides a variety of riders to enhance your policy:
- Guaranteed Insurability Rider: Allows additional coverage purchases without further medical exams.
- Child Rider: Offers a death benefit for the loss of a child.
- Disability Waiver of Premium Rider: Waives premiums if you become totally disabled.
- Disability Income Rider: Provides income if you're temporarily unable to work due to disability.
- Accidental Death Benefit Rider: Delivers an extra death benefit for accidental death, available up to age 70.
- Terminal Illness Accelerated Death Benefit Rider: Permits early death benefit access for terminal illness care, with a fee upon use.
- Long-Term Care Accelerated Death Benefit Rider: Enables death benefit use for long-term care expenses, with capped benefits.
- Chronic Illness Accelerated Death Benefit Rider: Allows early, tax-free death benefit access for chronic illness diagnosis, with additional cost and certification requirements.
- Critical Illness Accelerated Death Benefit Rider: Pays a lump sum for qualifying critical illness diagnoses.
- Paid-Up Additions Rider: Lets you increase your death benefit and cash value with additional payments.
- Money Back Option Rider: Provides a refund option for universal life policies, included in most Custom Universal Life Guarantee policies with a premium threshold.
Riders may vary by state and policy, and some may incur additional fees. Our offerings are designed to cater to diverse needs, ensuring peace of mind and financial security.
Customer Support at New York Life
At New York Life, we maintain a straightforward approach to customer service. Should you need assistance, our team is available at 1-800-225-5695 from Monday to Friday, 9 a.m. to 7 p.m. ET**. Additionally, you have the option to directly reach out to your personal agent, whose contact details can be found using our agent locator tool.
Pricing Structure
Our life insurance premiums are tailored to each individual, taking into account age, health, policy type, and gender. We recommend comparing quotes from various providers to secure the most favorable rate. Please note, New York Life requires direct contact with an agent for price estimates, as we do not offer online quoting.
For transgender and non-binary individuals, your gender identity will not affect your eligibility for insurance. However, due to the lack of a standardized approach in the industry, you may need to select "male" or "female" on the application form to align with our underwriting guidelines.
Determining if New York Life is Suitable for You
New York Life stands out for those seeking universal or whole life insurance solutions. Our policyholders are entitled to annual dividends on whole life policies, and we offer an extensive range of riders for policy customization. It's important to note that our term policies are available for durations up to 20 years, which may influence your decision based on your coverage needs.