New York Life Insurance Overview: Financial Strength Availability And History
New York Life is available in all 50 statesand Washington D.C.and has been serving insurance clients since 1845. The company also enjoys superior financial strength ratings from industry analysis firms including S& P, Moodys, and AM Best, making it one of the most reliable life insurance providers in the country.
When it comes to customer service, New York Life earns 4 out 5 Power Circles from J.D. Power and it has an A+ rating with the Better Business Bureau . Public perception data collected by YouGov indicates that 10% of Americans have a negative opinion of New York Life, while 28% have a positive opinion. Perhaps more importantly for the brand, 79% of Americans have heard of New York Life. Combined with lower-than-average complaint numbers according to NAIC, New York Life has established a reputation for superior policy satisfaction.
- In business since: 1845
- S& P Global financial strength rating: AA+
- Moodys financial strength rating: Aaa
- AM Best financial strength rating: A++
- States served: 50, plus Washington, D.C.
Best Whole Life: Northwestern Mutual
- Types of Life Insurance: 3
- Issue Ages: 18-80
While Northwestern Mutual is known for quality overall, its whole life insurance policies are especially popular. The company paid out a record $6.2 billion in dividends to its policyholders for the year 2020. Not only do its policies tend to pay generous dividends, but you get the benefit of working with a financial advisor who can help guide you to the best whole or other type of life insurance policy for your situation.
Excellent ratings for quality and financial strength
Term life, whole life, and universal life insurance offered
Must work with a financial advisor to get a quote
Northwestern Mutual has been in business since 1857, and it has solid ratings that show its commitment to offering quality products and services. Not only does Northwestern Mutual boast an A++ rating from AM Best and an AA+ rating from S& P Global, but it also earned high marks for customer satisfaction in the J.D. Power 2020 U.S. Life Insurance Study.
Northwestern Mutual offers term life insurance coverage, whole life insurance coverage, and universal life insurance coverage. However, due to the fact it employs financial advisors who oversee your full financial picture, you will need to go through a complete financial review to get a quote.
What Are The Different Types Of Life Insurance
Life insurance comes in many different forms from short-term contracts to lifetime coverage. The best life insurance option for you depends on your financial goals, health status, age, and a variety of other factors.
Heres a quick overview of each type of life insurance, and who it is best suited for:
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Reacting To The Changing Marketplaces: 1990s
New York Life reorganized its management structure in 1992. A team of specialists from areas such as service, legal, marketing, and actuarial led by a product manager could move new offerings through the pipeline and out into the market more quickly than in the past. In 1993, New York Life rolled out a variable annuity policy and in 1994 its first variable universal life policy. To tap into a market of more conservative investors, the company began selling a variable annuity product through the banking system in 1995. Bank sales channels had grabbed 25 percent of the annuity market, and New York Life deviated from its traditional agent sales system to take advantage of the trend.
Also in 1995, New York Life merged its group health division with its managed care provider to create NYLCare. The consolidation brought a mixture of healthcare products together, including indemnity coverage and preferred provider and health maintenance organization plans. Available to both large and small groups, an estimated 3.5 million people, through a network of about 175,000 physicians and more than 2,200 hospitals, were expected to be served.
New York Life Term Insurance
New York Life offers four different term life insurance policies, each with somewhat different requirements, restrictions and cost structures. They offer the option of a term conversion, meaning you can convert your coverage to a permanent life insurance policy.
|One-Year Nonrenewable Term|
|15â75 for a five-year policy 15â65 otherwise||18â50 for adults 0â17 for children|
|Minimum Face Value||$100,000 per adult $10,000 per child|
|Premiums and Term Length||Single premium coverage extends one year.||Premiums increase annually policy can be renewed until age 90.||Premiums level for five, 10 or 20 years can renew policy until age 90, but rates increase annually.||Premiums level for 10 years can renew policy until age 90, but rates increase annually.|
New York Life has two separate annual policies: a yearly convertible term policy and a one-year nonrenewable term policy. If you need one year of coverage and both policies meet your needs, we recommend getting quotes for both, as they’re fairly similar.
If you’re looking for two to four years of coverage, we recommend comparing rates for the yearly convertible term against those of a level convertible term policy. While the minimum term length for the level convertible term policy is five years, the total cost of the annually renewable policy may be greater over multiple years.
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Services Offered By New York Life Investment Management
NYLIM offers a range of investment portfolio management services to its clients and wrap-fee programs. The firm has three divisions: the Multi-Assets Solutions team, the Separately Managed Accounts Group and its mutual fund division.
According to the firm’s Form ADV, its SAS Group offers services through “fund-of-funds, customized separate accounts, model portfolio delivery or multi-manager funds structures.” The firm’s SMA Group focuses on fixed-income and equity advisory services for wrap fee programs. The mutual funds division provides investment management by way of several mutual funds.
Standard Whole Life Insurance
New York Life’s standard whole life insurance policy is available from birth to age 90, but the minimum policy death benefit varies.
- $50,000 if you’re under 18
- $25,000 if you’re over 18
- $100,000 if you’re over 18 and in a Preferred risk class
With a standard whole life policy, premiums are level and paid until you reach age 100, at which time you no longer have to pay premiums, but coverage remains in force. The policy’s cash value increases over time as a portion of your premiums go into it, and it grows at a guaranteed interest rate. The interest rate on guaranteed cash value is 4%. You can borrow against the policy’s cash value by taking out a policy loan, which is charged interest at a rate NYL determines quarterly.
Whole life insurance policies qualify for dividends from New York Life, although they aren’t guaranteed. You can receive these dividends in several ways:
- Receive as a check.
- Use to pay a portion or all of your premiums.
- Leave on deposit with New York Life to earn interest.
- Use to purchase paid-up additions from New York Life. Paid-up additions allow you to increase the size of your policy’s death benefit without increasing your premiums by essentially paying for the additional coverage all at once.
Whole life insurance policies come with a variety of riders, which are essentially add-ons to your coverage that offer additional benefits.
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Choosing The Right Mutual Fund
There are plenty of mutual funds to choose from. Each fund has its own specific investing strategyand its own risks and rewards. You may want to factor those in when thinking about your goals, your timeframe, and your risk tolerance. A NYLIFE Securities Financial Services Professional can help you find the right balance.
Companies Like New York Life
Lets take a look at some insurance agencies and companies similar to New York Life in case youre interested in doing a comparison.
Symmetry Financial Group is an insurance marketing organization based out of Swannanoa, North Carolina.
SFG specializes in several life insurance markets, primarily the mortgage protection insurance market. The company also offers final expense insurance, a type of whole life insurance designed to cover medical bills and funeral expenses after the policyholders passing.
Bankers Life was established in 1879 in Chicago, Illinois. The company is a subsidiary of CNO Financial Group.
Bankers Life offers life insurance, long-term care, annuities, Medicare , critical illness insurance, as well as vision and dental plans. It targets the senior market, typically people age 60 and older who are near retirement.
People Helping People
People Helping People was established in 2009 in Northridge, California. The company serves the middle markets for insurance-based financial planning. It focuses on term insurance, index universal life insurance, and fixed indexed annuities.
American Income Life
American Income Life, a wholly owned subsidiary of Globe Life Insurance, is a major provider of supplemental life insurance. The company was founded in 1951 and is headquartered in Waco, Texas.
Equis is a marketing organization for independent insurance agents and agency builders.
Freedom Equity Group
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Gender Score At New York Life Insurance Company Vs Northwestern Mutual
Employees at New York Life Insurance Company rate their Gender Score a 85/100, with Sales as the department that rate their experience the highest.
Employees at Northwestern Mutual rate their Gender Score a /100, with Finance as the department that rate their experience the highest.
- New York Life Insurance Company
- Northwestern Mutual81
Can I Get Life Insurance If Im A Smoker
Yes, you can. Most life insurance companies offer life insurance to smokers, but rates are typically much higher. Some companies offer better rates for smokers than others, while some even offer an incentive to quit smoking, offering lower rates for a period of time while the insured works on kicking the habit.
Life insurance policies also may have contingencies for those that are considered high risk, including individuals with a family history of heart disease or cancer, or with an existing medical condition. Many policies require a medical exam as well to determine your insurability. If you qualify for coverage, rates could be significantly higher.
Overall, smokers and those with high-risk health factors will pay higher premiums, but coverage is available at most major life insurance companies.
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New York Life Life Insurance
New York Life offers a wide range of life insurance policies with something for everyone. You can choose a shorter-term life insurance policy, or combine planning for your loved ones with your own investment or retirement needs by choosing a whole or universal life insurance policy from New York Life.
What Doesnt Life Insurance Cover
Life insured typically does not cover death as the result of suicide within two years of opening the policy. After the contestability period, suicide is typically covered on most policies. Life insurance also does not pay out a benefit if the insured lied on any of the medical questions asked when applying for the policy.
Some policies do not cover death as a result of high-risk activities, such as bungee jumping or skydiving. Exact coverage details will be determined by your policy, and it’s best to meet with an insurance professional to determine what activities may not be covered.
And, though it is awful to think about, if a policyholder is murdered by one of the life insurance policy beneficiaries, there is no payout to that beneficiary. Instead, the payout may be directed to a contingent beneficiary but this all depends on the circumstances surrounding the crime.
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New York Life Insurance
New York Life earned 4.5 stars out of 5 for overall performance. NerdWallets ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings.
Based on these ratings, New York Life is among NerdWallets Best Life Insurance Companies for 2021.
Must Sell To Friends And Family
Like many traditional life insurance organizations, New York Life follows the Project 100/200 method to find prospects.
In short, New York Life helps you put together a list of friends, family members, and business associates whod make good prospects for life insurance.
Then, your job is to approach them and show them how you could possibly help.
While this strategy is fundamentally sound and effective, it bothers many people as it comes off pushy like a MLM.
Many do not want to sell to their friends and family, and be that guy thats always bothering them to buy insurance.
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Diversity Score At New York Life Insurance Company Vs Northwestern Mutual
Employees at New York Life Insurance Company rate their Diversity Score a 75/100, with Sales as the department that rate their experience the highest.
Employees at Northwestern Mutual rate their Diversity Score a /100, with Finance and Operations as the two departments that rate their experience the highest.
- New York Life Insurance Company76
- Northwestern Mutual
Reputation & Customer Experience
To judge reputation and customer experience of a given life insurance carrier we look at a few factors.
First, we use the National Association of Insurance Commissioners yearly complaint ratio. This is based on information gathered by the NAIC that spans providers in most of the different categories of insurance in the US.
Some of these include life, accident, health, and property & casualty. The individual state insurance departments compile the complaints against any given carrier for the year and voluntarily hand the data over to the NAIC.
The NAIC then gathers and codes the information, making it available to the public through a variety of reports.
The one we use is the closed complaint ratio report. This report compares the company’s share of closed complaints by premium type to the company’s overall US market share, effectively levelling the playing field and assigning the company a score based on the amount of complaints considering its size.
This is essentially a “complaint share.” The scale goes from 0.0-2.0, with 1.0 being the national average for insurance company complaints.
Northwestern Mutual and New York Life both have a below average complaint ratios for 2017, at .03 and .2 respectively.
This is very good for both companies given their size and significant market share, but Northwestern Mutual in the end has the superior score.
Both organizations have an A+ score with the Better Business Bureau, but they are both unaccredited as well.
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What Are The Top Life Insurance Companies
Northwestern Mutual got high praise from six out of the seven sites reviewed and even ranked or tied for first place on lists compiled by Nerdwallet, Forbes, and Business Insider. Bankrate noted how Northwestern Mutual earned the top spot on J.D. Powers 2019 U.S. Life Insurance Study. U.S. News & World Report said the company offers a variety of coverage options and a low-tech but personalized method of determining coverage needs, and its financial advisers are available to help customers through the process.
While Investopedia considered Northwestern Mutual the company with the best whole life policies, the site named New York Life as the provider with the best term policies, based on the fact they offer term life insurance that can convert to permanent life later on. The site added that New York Life also offer customizable add-ons for disability or terminal illness, which you can utilize in order to build the type of coverage that best fits your needs.
Prudential, the largest life insurance company by assets, got the Best Overall honor from Investopedia, which commended the companys excellent ratings for financial strength and long company history.Nerdwallet showcased the companys tailorable term policies and its wide variety of permanent life insurance products. Prudential also got an A+ rating from AM Best and an AA- rating from Standard & Poors. The company ranked high on Policygenius list of the best life insurance companies overall.
How We Reviewed New York Life Insurance
12 companies compared
New York Life has been helping clients find flexible life insurance coverage for more than 175 years. Where the company stands out from the competition is with flexible life insurance options. You can customize term policies for any term length between 10 and 20 years with a guaranteed premium, or renew each year with no-penalty cancellation. The company doesnt fare as well online, however, with no web-based quote tool and limited online resources.
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World Conditions Creating Volatile Environment: 1900s
The boom of the 1880s and the 1890s did not go unchecked. New-York Life entered the 20th century at odds with progressive reformers, who accused the rapidly growing insurance companies of mismanagement and malfeasance. In 1905 the New York state legislature convened an investigative committee under the leadership of William W. Armstrong to examine the states insurance companies and make recommendations for regulatory reform. With the legal assistance of future U.S. Supreme Court Chief JusticeCharles Evans Hughes, The Armstrong Committee heard testimony from the industrys most powerful executives, including John A. McCall.
The Armstrong Committee found New-York Life free from many of the abuses common in other companies, but it also recommended curbing the practices that had pushed the industrys expansion since the Civil War. In 1906 New York outlawed the sale of tontine policies, prohibited excessive commission for agents, and limited the amount of new business a company could do each year. The company officers actively lobbied for revision of these laws. Under the vocal leadership of Darwin Kingsley, who had become president in 1907, the company achieved some success in having its new business ceiling increased and agent incentives reinstated later in the decade.
During the Russian Revolution of 1917 the companys assets in Moscow were seized. Soon after, New York Life began its withdrawal from Europe, a reaction to unfriendly regulation and a volatile world economy.