New York Life Insurance: Making Money, Explained

New York Life Insurance Company offers a range of insurance products, including term, whole, universal, and variable universal life insurance. The company also provides additional services such as wealth management, investment planning, and retirement income planning. New York Life's insurance premiums are based on various factors, including age, health, gender, and coverage amount. The company has a strong financial stability rating, and its policies are eligible for dividends. However, New York Life has been criticised for its limited online presence, lack of transparency about its offerings, and the need to purchase policies through agents.

New York Life's whole life insurance policies

New York Life offers several types of whole life insurance policies, including the basic whole life policy and the custom whole life policy. The basic whole life policy has level premiums, cash value, and the opportunity to receive annual dividends. The custom whole life policy allows policyholders to pay their premiums for a specific period of time (at least five years), after which the policy will be paid up. This type of policy can help to maximize cash value growth as the policyholder earns interest on a larger amount for a longer period of time.

The cost of whole life insurance depends on various factors, such as the features of the policy, the amount of coverage needed, and the age of the policyholder. Generally, the younger the policyholder is when they purchase the policy, the lower their monthly payments will be. New York Life agents work with customers to create a policy that fits their budget and financial goals.

Universal life insurance policies

Universal life insurance is a type of long-term insurance that offers flexible protection. It can be thought of as a middle ground between term life insurance and whole life insurance, providing long-term protection that can potentially build cash value and can be customised to the policyholder's needs.

Universal life insurance is a policy that can cover you for an extended period of time, often longer than a temporary term life policy, but it is customisable. It gives you access to cash value to help protect the future of your family or business. The most unique feature of universal life is the flexibility it offers: you can set your own payment schedule and level of coverage, and make adjustments in the future as your needs change.

Universal life insurance is highly customisable, so you can adjust the coverage to fit your budget. The cost will depend on the policy chosen, the benefits preferred, the amount of coverage needed, how the policy is funded, and the length of time covered.

Universal life insurance offers long-term death benefits for loved ones, helping to support them financially if the policyholder passes away while the policy is active. It also builds cash value over time, which can help fund key expenses such as a down payment on a home or college tuition. You can access these funds by taking out a loan from your policy or by taking out cash through a partial surrender.

When you purchase a universal life policy, you choose how much to contribute with each payment, how much coverage you want, and for how long. You have the flexibility to change these features if your needs change. You can also choose to take out some of the cash value through a partial surrender, borrow cash from the policy and repay it, or leave all the cash in the policy to maximise the potential death benefit.

Variable universal life insurance policies

The cash value of variable universal life insurance grows on a tax-deferred basis. However, as with other types of universal life insurance, you'll be subject to ordinary federal income tax rates if you withdraw more than the amount you paid in premiums. Variable universal life insurance policies often come with fees and additional tax implications that can make them more expensive to maintain than other types of life insurance.

New York Life offers one variable universal life insurance policy: the Variable Universal Life Accumulator II. This policy allows you to either choose your own investment options or use a model-portfolio approach and choose fund combinations selected by financial advisors, depending on your risk tolerance and confidence in investing.

Term life insurance policies

Term life insurance is a type of temporary coverage that is generally more affordable than permanent life insurance. It covers the insured for a set period, usually 10, 15, or 20 years, and provides a guaranteed death benefit to the beneficiaries if the insured passes away within that period. This benefit can be used to cover funeral costs and everyday expenses.

New York Life offers several term life insurance policies, including the Level Premium Convertible Term 10-20, Yearly Convertible Term, and Million Plus Level Term 10. The Level Premium Convertible Term 10-20 policy allows the insured to purchase coverage for a 10- or 20-year period with fixed premiums. After the term ends, the premiums will increase annually if the coverage is renewed. This policy can be converted into a whole life policy during the first five years, providing permanent protection without the need for another medical exam.

The Yearly Convertible Term policy is a more affordable option, with the lowest initial cost, but the premium increases each year the coverage is renewed. This policy allows the insured to convert to a permanent policy annually, making it suitable for those who need immediate coverage but are not yet ready to commit to a long-term policy.

The Million Plus Level Term 10 policy is designed for those who require a minimum of $1 million in protection. It offers level premiums over a 10-year period, after which the premium increases annually if coverage is renewed. During the first five years, this policy can also be converted into permanent coverage.

While term life insurance policies do not build cash value, they can be converted into permanent life insurance policies, which offer this benefit. Term life insurance is a good option for those seeking short-term protection or those who want to lock in lower premiums for a set period.

Dividends and financial stability

New York Life is a mutual company, which means it is owned by its policyholders. Customers who buy certain permanent policies, such as whole life insurance, are entitled to vote in board elections and receive annual dividends. The company has paid dividends for 168 consecutive years, the second-longest of the 91 companies reviewed by Investopedia. In 2021, New York Life paid out $1.8 billion in dividends, and in 2025, it is set to pay out a record $2.5 billion.

New York Life has an A++ (Superior) rating from AM Best, the highest possible financial strength grade from the leading credit rating organisation for life insurance companies. It is the fourth-highest-rated company in the S&P Global ranking of North American life and health insurance companies. The company has also received excellent ratings from Moody's and Standard & Poor's.

New York Life's whole life policies are eligible for annual dividends, although these are not guaranteed. The company has paid dividends for 168 consecutive years, the second-longest streak of the 91 companies reviewed by Investopedia. This is one reason why Investopedia chose New York Life as its best whole life insurance company.

New York Life's financial stability is further demonstrated by its low complaint ratio. In 2020, the company's complaint ratio for its individual life insurance segment was 0.24, significantly better than the industry standard of 1.0. This indicates that New York Life received fewer complaints than expected for a company of its size.

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