The Drawbacks Of New York Life
New York Life is a leading insurer. Resultantly, its challenging to find drawbacks to purchasing a policy from the company.
However, the company does have one unfavorable policy quirk. You can only purchase policies under $25,000 of premium from New York Life agents.
This circumstance limits the availability of agents for clients. It also makes it harder for an agent to recommend a New York Life policy.
At Top Whole Life, were firm believers in an independent insurance model, where all agents can sell to all clients. This kind of policy allows for increased competition and, in the end, offers more value to customers.
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 insureds death, that in itself is good reason to look into a burial insurance policy to help protect your family.
How We Reviewed New York Life Insurance
12 companies compared
Advertiser Disclosure:
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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Is New York Life A Scam
New York Life is one of the most respected insurance providers in the country and the largest mutual life insurance provider anywhere. Its renowned not only for its policies but its employee training services. Its not a scam or pyramid scheme.
In 2019, New York Life featured as #71 on Forbes Fortune 500 List and the Americas Best Large Employers list. They remained the largest mutual life insurance company in the United States during that year.
Free Life Insurance Comparison
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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina.He has also earned an MFA in screenwriting from Chapman Univer… |
Written byJeffrey Johnson Insurance Lawyer |
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Benjamin Carr was a licensed insurance agent in Georgia and has two years’ experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms literally on the frontline of journalism. |
Former Licensed Life Insurance Agent |
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Aarp Life Insurance Review 2021
AARP life insurance
- Rated 4.5 stars out of 5 by NerdWallet.
- Offers small selection of New York Life term and whole life policies to AARP members.
- No medical exam required to apply.
The AARP Life Insurance Program features a selection of policies issued by New York Life Insurance Company for the groups members.
The AARP advocates for older people and has more than 37 million members. Anyone age 50 or older can join. The nonprofit has a taxable subsidiary, AARP Services Inc., which earns money on sales of insurance and other products it endorses.
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.
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Civil War Risks And Postwar Expansion: 1860s
The Civil War presented the company with its first major crisis, since it had developed a sizable southern business. President Abraham Lincolns prohibition of commerce with the Confederatestates during the war cut off communication between the home office and its southern policyholders, creating a host of problems, including lapsed payments and unpaid claims. The company compensated for these losses, however, by issuing policies to soldiers and civilians involved in combat. One of the few companies to take on such war risks, New-York Life managed continued growth despite its southern losses. In fact, the company sold more than half of the 6,500 new life insurance policies issued in New York City in 1862.
After the war, New-York Life expanded quickly with the nations booming economy. The company recovered its southern business by paying benefits on death claims left unsettled during the war and by allowing former customers to renew their lapsed policies. As the nation pushed westward, so did the company, establishing agencies in Utah, Montana, and Nevada in 1869 and in San Francisco in 1870. New-York Life also became an international name during this era, opening offices in Canada in 1868, Great Britain in 1870, Paris in 1884, Berlin in 1885, Vienna in 1887, Amsterdam in 1891, and Budapest in 1894.
Paid New York Life Riders
You can purchase additional;Accidental Death Benefit;coverage of up to $300,000. However, most people choose to purchase a full life insurance policy rather than accidental coverage.
You can also add;Childrens Insurance;to your term insurance. This rider would pay a benefit if your children were to pass.
You can ensure coverage for your children with the;Childs Protection Benefit;rider. With this rider, your child will not have to pay for life insurance coverage until they turn 25.
Meanwhile, the;Chronic Care;rider allows you to access part of your policy if you become chronically ill.
With a;Disability Waiver of Premium;rider, you will not pay premiums for your entire life if you become disabled. This rider is an important added benefit. Its inexpensive but provides significant value.
The;Payer Protection Benefit;rider is similar to the Disability Waiver of Premium rider. However, it applies when the person who pays for the policy is different from the person whos insured.
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New York Life Investment Management Client Types And Minimum Account Sizes
For the most part, NYLIM tends to work with affiliated insurance companies, institutions, investment companies, pooled investment vehicles and wrap fee programs.;Through these wrap fee programs, the firm indirectly has a collection of individual clients. However, the vast majority of NYLIM’s AUM comes from investment companies.
The minimum size for an account managed at NYLIM varies based on the division that the account exists in.;
- Multi-Assets Solutions;Group:;Minimum is set on a client-to-client basis
- ;$100,000
Value Whole Life Insurance
New York Life’s value whole life insurance is essentially its standard whole life policy, but your cash value grows at a lower guaranteed rate. Value whole life policies are available if you’re younger than 90. While policies don’t have a minimum face value, there is a minimum annual premium of $20,000.
Value whole life insurance is a product that carries the features of whole life insurance, by building cash value at a guaranteed rate. But it also has much lower premiums for permanent coverage, particularly for those over age 50. In this sense, it’s similar to guaranteed universal life insurance, except those policies build little to no cash value. So, if you want permanent coverage and a cash value policy but cheaper rates, value whole life insurance offers components of both policies.
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Variable Universal Life Insurance Accumulator
New York Life also offers a variable universal life insurance policy, which is similar to a standard universal life policy, except you’re allowed to choose how your cash value is invested from a set of alternatives.
If the investments you choose perform well, your cash value can potentially grow at a faster rate, but there’s the added risk that the investments will perform poorly. In addition, NYL’s variable universal life policy only comes with a five-year no-lapse guarantee. And you would need to add a guaranteed minimum death benefit rider in order to ensure your beneficiaries receive a guaranteed payout.
Variable universal life insurance policies are available if you’re under the age of 80 and have a $50,000 minimum face value .
Find Cheap Life Insurance Quotes In Your Area
Editor’s Rating
Good for
- A wide variety of permanent life insurance policies to fit different risk profiles and financial objectives
- Large selection of survivorship policies for parents
Bad for
- No-exam life insurance policies, particularly if you want one with a higher face value
- Consistent customer support, as experience varies by agent
New York Life, a mutual life insurance company, offers a wide range of whole and universal life insurance policies, with options to fit many different financial objectives and price ranges. New York Life also offers term insurance policies, mostly similar to those of competitors, with periods up to 20 years.
If you’re interested in permanent life insurance, New York Life has great options, but we recommend carefully reviewing their agents before working with one, as customers have a range of experiences depending on the representative.
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Special Marketing And Sales Training Programs
New York Life prioritizes agent training and expertise in their sales programs.;
With its NYLIC University, New York Life offers comprehensive agent training that includes not only education and skills that will help them succeed in the company but training in real-world scenarios with the New York Life sales principles.
New York Life offers professional designations as well as reimbursement for tuition when agents pursue valued designations through NYLIC University.;
These include:
- Master of Science in Financial Services
- Chartered Financial Consultant
- Chartered Leadership Fellow
As a new agent, you will not only be responsible for using your new education to sell plans but also for creating marketing plans and providing unique solutions to premier clients.;
For those who have completed their MBA in the last two years before being hired or have previous business-specific management experience, New York Life will consider you for a Management Fast Track Program.;
Those who succeed in the program can be fast-tracked to management within the first 12 months of being an agent with New York Life.
Building The Business: 1840s
Life insurance was an infant industry when New York Lifes predecessor, Nautilus Insurance Company, began operations in the 1840s. Marine and fire insurance were important, but people hesitated to assign a cash value to human life, and often associated life insurance with gambling.
As the economy became more industrial and the population more mobile, society recognized the need to secure a familys welfare against the loss of a breadwinner. In 1840 New York State passed a law allowing a married woman to insure her husbands life with immunity from having the benefits seized by his creditors. Such legislation recognized the use of life insurance in a developing industrial economy and widened its potential market beyond wealthy speculators.
Despite such natural threats, the company grew quickly and established an adequate reserve for paying out dividends and benefits to policyholders. This success was in large part due to the companys most innovative contribution to the young industry, the use of agents to sell policies. Previously, insurance sales had centered on a home office that served local merchants and elites wealthy enough to protect their property and lives. New-York Lifes use of agents to seek out new business greatly expanded the market, and the company soon established agencies in New England, the southern states, and as far west as California.
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Found 3369 Of Over 3973 Reviews
“Great training& leadership to make me successful in this new career”;
“Training program is one of the best”;
Cons
“100% commission only with a less than 3% chance of succeeding in the industry”;
“Very hard to build your book of business and you really depend on your friends and family working with you and becoming your clients”;
Tips For Financial Planning
- Looking for;a traditional financial advisor who works with individuals and provides financial planning services?;SmartAssets free tool matches you with financial advisors in your area in five minutes. If youre ready to be matched with local advisors who will help you achieve your financial goals, get started now.
- If your primary financial planning goal is building a secure retirement, a good first step is to see if you’re currently on track. Use the SmartAsset retirement calculator to see if your current savings will be enough to provide the retirement income you need.
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Industry On The Rise: 1950s
Wartime production and the postwar baby boom revived the insurance industry, and New York Life tailored its products and investments to take advantage of these economic and demographic changes. With the development of group insurance in the first half of the 20th century and the passage of the federal Social Security Act in 1935, people began to buy insurance less for its one-time benefit to surviving family members and more for its lifelong investment security. New York Life introduced its first group insurance policies in 1951 and expanded its coverage in group and personal policies to include accidents and sickness as well as death. Two years later it offered the employee protection plan, a combination of individual life andgroup sickness coverage designed for small businesses. The success of its group plans sustained New York Lifes remarkable growth since World War II. In 1974 it created a pension department and began selling employee protection insurance, another policy plan popular with small businesses. In the 1970s alone, New York Lifes group insurance sales increased by 152 percent.
Building Relationships To Protect Your Family’s Future
New York Life Insurance Company
Our Take
New York Life Insurance has a reputation for great customer service, and uses local advisors to work with you offering personalized service. They have a history of paying dividends to policyholders and a good selection of plans. New York Life is a top pick when you are looking for permanent life insurance with level premiums and a good option for anyone on a budget looking for life insurance.
- Pros and Cons
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Money back option on some plans
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Offers accelerated death benefits, critical illness options
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Convertible term life options available up to issue age 75
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Level premium guarantees
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Guaranteed Cash Value Growth plans available
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Accelerated death benefits, including chronic illness
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Strong track record of paying dividends to policyholders
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Website does not offer details about age limitations
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No online quoting
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Premiums can increase after set terms
- Kinds of PlansTerm life, whole life, universal life, variable universal life
- Number of Plans10
New York Life Insurance Company
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Over 175 Years Of Helping People Act On Their Love
At the heart of New York Life is a commitment to be there for our customers when they need uswhether today or decades into the future. We have delivered on that promise for over 175 years by investing wisely, growing a portfolio of strategic businesses, and remaining true to our mission as a mutual company, accountable only to our customers, not to outside investors. For our customers, that means having the confidence that comes with knowing they can build a better future for themselves and those they love.
At the heart of New York Life is a commitment to be there for our customers when they need uswhether today or decades into the future. We have delivered on that promise for over 175 years by investing wisely, growing a portfolio of strategic businesses, and remaining true to our mission as a mutual company, accountable only to our customers, not to outside investors. For our customers, that means having the confidence that comes with knowing they can build a better future for themselves and those they love.
Always Good To Seek A Second Opinion
Prior to joining New York Life or any other field marketing organization to sell insurance, its a wise choice to consider other options to fully weigh which option is best suited for your career goals.
If youd like to take a look at another insurance sales option, take a look at how my agency operates here.
And learn more about my Agent Success Stories in addition to my highly-reviewed insurance sales books.
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