New York Life: Exploring No-Underwriting Insurance Options

New York Life is one of the oldest and largest life insurance companies in the U.S., offering a wide range of insurance products, including term, whole, universal, and variable universal life policies. The company provides insurance, investment, retirement, and wealth management services, and has a strong financial rating from major agencies. While New York Life typically requires medical exams for its policies, it does offer some no-exam life insurance options, such as the Secure Wealth Plus plan. These no-exam policies have certain limitations, such as lower coverage amounts and potentially higher costs.

No-exam life insurance

Types of No-Exam Life Insurance

There are three types of life insurance underwriting that do not usually include medical exams:

• Accelerated Underwriting Life Insurance: This process involves the insurance company gathering information about the applicant electronically, and algorithms are used to assess the quote. It offers the convenience of no exam while being competitively priced.
• Simplified Issue Life Insurance: This is a streamlined approach where applicants fill out a health and lifestyle questionnaire, and no medical exam is required. The cost tends to be higher as the insurer has minimal information.
• Guaranteed Issue Life Insurance: This type offers coverage with no medical exam or health questions. It is intended for those in poor health who want minimal coverage, usually for funeral expenses. These policies have low maximum coverage amounts and graded death benefits.

Who is No-Exam Life Insurance For?

Cost of No-Exam Life Insurance

The cost of no-exam life insurance is based on factors such as age, lifestyle, coverage goals, and medical history. It tends to be more expensive than policies with full medical underwriting. The average monthly cost for $500,000 of term life insurance without a medical exam for a 40-year-old is $17 for a 10-year term, $26 for a 20-year term, and $42 for a 30-year term.

Pros and Cons of No-Exam Life Insurance

Pros:

• No hassle of a medical exam.
• A fully online application and approval process is sometimes available.
• Some policies can be competitively priced.
• Often results in a quick decision.

Cons:

• Maximum coverage amounts may be capped.
• A no-exam option might not be available for older individuals or those with health issues.
• Certain types of instant coverage, like guaranteed issue life insurance, can be expensive.

Examples of No-Exam Life Insurance Providers

• Pacific Life
• Protective
• Symetra
• Corebridge Financial
• Legal & General America
• Transamerica
• AARP
• Country Financial
• Nationwide

Simplified Issue life insurance

A simplified issue policy is a permanent policy, offering coverage for your whole life. However, it is generally more expensive than traditional term life insurance or whole life insurance. This is because insurers don't have the opportunity to evaluate your risk based on a medical exam, so they charge more for your premiums to protect themselves.

When applying for a simplified issue life insurance policy, you may be asked questions about your current health status, any recent hospitalisations or medical procedures, whether you've been diagnosed with any serious illnesses, your driving record, and any criminal history.

Guaranteed Issue life insurance

Coverage and Cost

Benefits

Drawbacks

One potential drawback of Guaranteed Issue Life Insurance is that it may not offer sufficient coverage for individuals seeking higher amounts of life insurance. In such cases, a traditional life insurance policy with full medical underwriting may be more suitable. Another consideration is that Guaranteed Issue Life Insurance policies have a limited benefit period, typically with restricted benefits during the first two years.

Providers

Several providers offer Guaranteed Issue Life Insurance, including New York Life Insurance Company, in collaboration with AARP, and Corebridge Direct. It is important to research different providers and compare their products, premiums, and benefits to find the best option that meets your unique needs.

Accident protection insurance

New York Life, one of the oldest and largest life insurance companies in the US, offers accident protection insurance as part of its life insurance plans. The company's Accident Death and Dismemberment (AD&D) Insurance provides financial protection for covered accidents, including serious injuries or death. This insurance helps employees and their families stay financially secure and better prepared during life-changing events.

New York Life's AD&D insurance provides payment in the case of serious injury or death due to a covered accident. It also offers living benefits for non-fatal catastrophic injuries, which can include home and vehicle modification, physical therapy, rehabilitation, spouse job training, and childcare. This insurance helps cover unexpected expenses not typically covered by other insurance benefits such as life, disability, health, or workers' compensation.

New York Life's accident protection insurance is available as part of its Group Benefit Solutions (NYL GBS) and can be included in an employer- or employee-paid comprehensive benefits strategy. This insurance option offers substantial guaranteed-issue coverage, with no medical questions or exam requirements for employees.

In addition to accident protection insurance, New York Life offers a range of life insurance options, including term, whole, universal, and variable universal life policies. The company also provides long-term care, disability insurance, investment, and retirement financial products.

Permanent life insurance

There are four types of permanent life insurance:

• Whole life insurance: This is permanent life insurance, designed for the long term, with steady cash value growth. Whole life can be a versatile tool to help meet several needs. The death benefit provides cash to beneficiaries when the insured passes away, and the insured can access the cash value as their protection needs change. However, accessing the cash value of a whole life policy will reduce the available cash surrender value and the death benefit.
• Universal life insurance: Universal life offers a combination of long-term coverage and flexibility regarding the timing and amount of premium payments, within limits. Some universal life policies accumulate cash value, but interest rate changes may affect cash value accumulation and premiums, so it's important to monitor this type of policy closely.
• Variable universal life insurance: Variable universal life also provides the potential for lifetime insurance protection and offers flexible premiums. The main difference is that premiums can be invested in variable portfolios, so the cash value will fluctuate depending on investment performance. Loss of principal is possible.
• Custom whole life insurance: This gives the choice to limit the premium-paying period to a certain number of years, while maximising the cash value of the policy.

The benefits of permanent life insurance include long-term coverage, the opportunity to generate cash value, and tax-advantaged growth. However, permanent life insurance may not be the most cost-effective option if coverage is only needed for a limited time.

Frequently asked questions