New York Life Insurance: What's The Longevity?

New York Life Insurance Company (NYLIC) is one of the oldest and largest life insurance companies in the United States. The company has been in business for over 175 years, offering a wide range of insurance products and services to its customers. NYLIC provides both short- and long-term protection plans, including term life insurance, whole life insurance, universal life insurance, and long-term care insurance. The company's insurance policies are designed to financially protect families and individuals by offering guaranteed death benefits, accessible cash value, and flexible premium payments. In addition to its core insurance business, New York Life also has a strong commitment to community engagement and social responsibility, contributing to various charitable initiatives and supporting families in need. With its financial strength, diverse product offerings, and long-standing reputation, New York Life Insurance has established itself as a trusted and reliable choice for individuals and families seeking comprehensive financial protection.

Long-term care insurance

Long-term care is the help you may need if you are unable to perform basic everyday tasks independently, such as eating, dressing, or bathing. This type of care is often needed due to a chronic illness or physical impairment but is most commonly required as a result of a cognitive issue, such as Alzheimer's disease.

Cost of Long-Term Care

Long-term care can be expensive, with the national average for a home health aide at $23.27 per hour, which equates to over $24,000 per year for 20 hours of care per week. A private room in a nursing home averages $103,660 per year. These costs can quickly add up and have a significant impact on your retirement savings.

New York Life offers several long-term care insurance options:

• NYL My Care: A cost-effective traditional long-term care insurance plan that simplifies choosing the kind of care you want.
• NYL Secure Care: A traditional long-term care insurance plan that can be customized with specific benefits.
• Asset Flex: A linked-benefit or hybrid plan that combines long-term care insurance with life insurance, providing broader coverage and greater flexibility.

Additionally, long-term care insurance offers:

• Protection from Inflation: Your policy can be protected from inflation, ensuring your coverage remains adequate.
• Flexibility: You can choose the type of care you want, whether it's at home, in a facility, or a combination of both.
• Cost-Effectiveness: Long-term care insurance is more affordable when purchased before age 50, and the premiums remain the same for decades.

When to Start Planning

The best time to buy long-term care insurance is when you are younger, healthier, and more likely to be approved for coverage. As you age, premiums increase, and health issues may disqualify you from coverage. It's recommended to start planning for long-term care in your 40s and 50s.

Whole life insurance

Guaranteed Lifetime Protection

Guaranteed Cash Value Growth

Tax-Free Access to Cash Value

You can access the cash value of your whole life insurance policy at any time without any restrictions. Properly structuring the policy allows you to access this cash value income tax-free, making it an efficient source of funds for the future.

Fixed Premiums

With whole life insurance, your premiums are locked in at the time of purchase and will never increase due to age, health status, or economic changes. This provides stability and predictability for your financial planning.

Long-Term Financial Security

Versatility

Customization Options

New York Life offers different types of whole life insurance, including Custom Whole Life Insurance, which gives you the choice to limit your premium-paying period while maximizing the cash value of your policy. Additionally, there are various riders (add-ons) available to customize your coverage further.

Peace of Mind

With its guaranteed benefits, fixed premiums, and long-term coverage, whole life insurance provides peace of mind, knowing that your loved ones will be taken care of financially, no matter what.

Universal life insurance

Customization Options

When you purchase a universal life policy, you can choose from three death benefit payout options:

• Your beneficiary receives a payout equal to the policy's face value.
• Your beneficiary receives the policy's face value plus its cash value.
• Your beneficiary receives the policy's face value plus the sum of premiums paid (minus any partial surrenders).

The payout structure you select will impact the policy's cost, so it is important to compare rates for the different options before choosing. Additionally, you can choose your payment schedule (monthly, quarterly, biannually, or annually) and adjust your premium payments if your circumstances change.

Benefits of Universal Life Insurance

Risks and Considerations

While universal life insurance offers flexibility and higher potential returns, it also comes with greater risk. If the cash value becomes depleted and cannot cover the policy's monthly charges due to premium payments or withdrawals, your policy may lapse. To prevent this, New York Life includes a no-lapse guarantee rider with each policy, allowing you to make a premium payment large enough to cover the full amount needed instead of letting your policy lapse.

Variable universal life insurance

One of the key advantages of variable universal life insurance is its growth potential. By investing the policy's cash value in the financial markets, you have the opportunity to increase its value over time. This can be used to fund important life expenses or leave a more substantial legacy for your loved ones. Additionally, variable universal life insurance offers tax advantages. Your beneficiaries typically do not pay federal income taxes on the death benefit they receive, and the cash value of the policy grows tax-deferred.

There are two main types of variable universal life insurance offered by New York Life: Variable Universal Life Accumulator II and New York Life Market Wealth Plus. Variable Universal Life Accumulator II offers long-term protection, flexibility in premium payments, and the potential to grow your assets with various tax advantages. It also features an expedited underwriting process and a wide array of investment options. New York Life Market Wealth Plus is another option available in all states.

Term life insurance

Duration of Coverage

Renewable and Convertible Policies

Many term life insurance policies offer the option to renew your coverage after the initial term ends. However, keep in mind that renewal premiums will generally be higher, and there may be an age limit for renewals, typically up to age 80 or 90. Additionally, term life insurance policies are often convertible, allowing you to switch to a permanent life insurance policy if your needs change.

Death Benefit Protection

In the unfortunate event of your death during the term, your beneficiaries will receive a lump-sum death benefit. This benefit can help cover funeral costs, pay off debts, provide income for your spouse, or fund your children's education. It is important to note that term life insurance does not build up cash value, so there is no cash payout if you outlive the policy.

Premium Structure

With term life insurance, your premiums are locked in for the duration of the coverage you select. If you choose to renew, the premiums will increase annually. The cost of term life insurance is generally lower than permanent life insurance, especially initially. However, the cost of temporary coverage increases over time.

Riders and Customization

Calculating Your Needs

Determining the amount of term life insurance you need depends on your personal circumstances and financial obligations. Factors to consider include your annual salary, the number of dependents, outstanding debts, and future expenses like college tuition or retirement needs. New York Life provides planning tools and calculators to help estimate the coverage you may require.

In conclusion, term life insurance is a valuable option for individuals seeking short-term financial protection for their loved ones. It offers flexibility, affordability, and peace of mind during critical periods of your life. By understanding the features and considerations of term life insurance, you can make an informed decision about whether it aligns with your specific needs and goals.

Frequently asked questions