Jeffrey Wade
New York Life Insurance Company (NYLIC) is one of the largest life insurance companies in the United States. The company offers a range of insurance products and services, including whole life insurance, term life insurance, universal life insurance, variable universal life insurance, long-term care insurance, annuities, and disability insurance. In addition to insurance, New York Life also provides retirement plan services and mutual funds. The company has a long history dating back to 1841 and has earned a reputation for financial stability and strong customer satisfaction.
What You'll Learn
New York Life's history and origins
New York Life Insurance Company (NYLIC) was first established in 1841 as Nautilus Mutual Life in Manhattan's Financial District. The company's first president, James De Peyster Ogden, was appointed in 1845, the same year the company renamed itself New York Life Insurance Company to focus on its life insurance business.
In its early years, New York Life sold fire and marine insurance in addition to life insurance. By 1847, the company, along with other insurers of the day, including Aetna and US Life, insured the lives of slaves for their owners, accounting for one-third of New York Life's policies. In 1848, the company's board of trustees voted to end the sale of insurance policies on slaves. During the American Civil War, New York Life sold policies to soldiers and civilians involved in combat and paid claims under a flag of truce.
In the late 1800s, New York Life began employing female agents, and in 1894, it became the first US insurer to offer life insurance to women at the same cost as men. Social reformer Susan B. Anthony was one of the company's first female policyholders. In 1896, the company became the first to insure people with disabilities or in hazardous occupations.
New York Life's growth was fuelled by its introduction of a system that used agents to find new business. In 1892, company President John A. McCall introduced the branch office system, which served as a liaison between New York and field agents.
The company moved into its iconic 34-story New York Life Building at 51 Madison Avenue in Manhattan, designed by American architect Cass Gilbert, in 1929. That same year, New York Life's assets survived the stock market crash due to state regulation and company investment policies that focused on government bonds and real estate rather than common stocks.
Today, New York Life is the largest mutual life insurance company in the United States and the third-largest life insurance company overall. The company has earned the highest financial strength ratings from the four major rating agencies and has consistently paid dividends to its policyholders for over 167 years.
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The company's financial strength and ratings
New York Life Insurance Company (NYLIC) has consistently demonstrated its financial strength and stability, earning the highest ratings from prominent independent agencies. As of 2023, the company boasts the highest financial strength ratings from the four major rating agencies:
- A++ from AM Best
- AAA from Fitch Ratings
- Aaa from Moody's
- AA+ from Standard & Poor's
These exceptional ratings underscore New York Life's strong financial position and its ability to honour its commitments to policyholders. This is further reinforced by their long history of consistently paying dividends, with a record of doing so for more than 167 consecutive years, including payouts of $2 billion in 2023 alone.
The company's financial resilience was notably demonstrated during the turbulent period preceding the 2007-2008 financial crisis. In the face of market instability, New York Life prudently shifted its cash holdings into more secure investments, such as treasury bonds. This proactive approach ensured the company's stability and allowed them to reject assistance from the U.S. Treasury Department during the ensuing financial turmoil.
New York Life's status as a mutual company further bolsters its financial strength. As a mutual insurer, the company is owned by its policyholders and operates for their benefit, rather than answering to shareholders or Wall Street. This structure allows New York Life to focus on long-term decision-making, strategic financial management, and fulfilling its promises to its customers.
The company's financial strength is also reflected in its position as the third-largest life insurance company in the United States, ranked #71 on the 2023 Fortune 500 list based on total revenue. This ranking attests to New York Life's solid financial foundation and its prominent position in the industry.
In summary, New York Life's financial strength and ratings are exemplary, earning the highest accolades from respected agencies. Their consistent dividend payments, prudent financial management, and mutual company structure reinforce their financial stability and commitment to their policyholders.
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Life insurance products offered
New York Life Insurance Company (NYLIC) offers a range of life insurance products to cater to different needs. The company's core product is whole life insurance, which provides lifelong protection and builds cash value over time. Whole life insurance policies come with consistent premiums and guaranteed death benefits, and policyholders are also eligible to receive dividends based on the company's financial performance. New York Life has paid dividends to its customers for over 167 consecutive years.
In addition to whole life insurance, New York Life also offers term life insurance. This type of insurance provides coverage for a specific number of years, and if the insured person passes away during the policy period, their beneficiary receives a tax-free death benefit. New York Life offers several term life policies, including the Level Premium Convertible Term 10-20, Yearly Convertible Term, and Million Plus Level Term 10.
Universal life insurance is another permanent life insurance option offered by New York Life. This type of insurance builds cash value, but provides flexibility in terms of premiums and coverage limits. New York Life offers three universal life policies: Basic Universal Life Insurance, Custom Universal Life Guarantee, and Protection Up to Age 90.
The company also provides variable universal life insurance, which offers permanent protection with a fixed death benefit and flexible premiums. The cash value in variable universal life insurance is invested in subaccounts that can gain or lose value based on market performance. New York Life's Variable Universal Life Accumulator II policy allows customers to choose their own investments or follow fund combinations selected by financial advisors.
New York Life also offers group and voluntary life insurance products for businesses, helping employers provide financial security for their employees and their loved ones.
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Other insurance products offered
New York Life offers a range of insurance products to cater to the diverse needs of its customers. In addition to its core product, whole life insurance, the company provides several other types of insurance policies, each designed to provide financial security and peace of mind.
One such product is term life insurance, which offers coverage for a specific number of years. New York Life's term life policies include the Level Premium Convertible Term 10-20, Yearly Convertible Term, and Million Plus Level Term 10. These policies provide flexible options, allowing customers to choose the duration of coverage and convert their term policies into whole life insurance if needed.
Universal life insurance is another permanent insurance option offered by New York Life. This type of policy provides flexible coverage limits and premiums, enabling customers to adjust their plans according to their changing needs. New York Life offers three types of universal life policies: Basic Universal Life Insurance, Custom Universal Life Guarantee, and Protection Up to Age 90.
The company also specializes in variable universal life insurance, which combines permanent coverage with flexible premiums. The Variable Universal Life Accumulator II policy allows customers to invest the cash value in subaccounts, similar to mutual funds, offering potential gains or losses based on market performance.
Additionally, New York Life provides long-term care insurance and annuities, catering to customers seeking financial protection for extended periods. These policies are ideal for individuals who want to ensure their financial stability and access to necessary care during their golden years.
The insurance giant also offers group and voluntary insurance products for businesses, helping them provide financial security to their employees. These products include group term life insurance, group disability insurance, and individually owned voluntary life insurance, long-term care insurance, and retirement strategies.
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New York Life's corporate responsibility initiatives
New York Life is committed to corporate social responsibility and has outlined its priorities in its 2023 Corporate Responsibility Report. The company's core values are embedded in its responsibility to deliver peace of mind and financial security to its policy owners, their families, and communities.
The company's corporate responsibility initiatives focus on several key areas:
Diversity, Equity, and Inclusion
New York Life fosters a diverse and inclusive work environment, encouraging employees to bring their authentic selves to work. They recognize that their differences help drive innovation and provide financial security and peace of mind to their policy owners. The company continues to explore new ways to emphasize its commitment to DEI, with initiatives such as employee resource groups that promote intersectionality and allyship.
Integrity
Integrity is central to all facets of New York Life's business. The company understands that its operations are dependent on the trust and belief of its customers that it will never take chances with their future.
Ethical Practices
New York Life has implemented an Ethics Hotline, administered by an independent third-party partner, which allows employees and the public to report any concerns about possible unethical or unlawful behavior. The hotline is accessible 24/7, both online and via a toll-free number.
Community Support and Philanthropy
The company has a strong legacy of serving young people and communities through the New York Life Foundation. The foundation invests in programs that benefit young people, particularly in educational enhancement and childhood bereavement support. It has developed initiatives such as the Grief-Sensitive Schools Initiative, which provides resources and tools to support grieving students and their families in K-12 schools.
New York Life also provides community impact grants to support various initiatives, including children's food programs, children's hospitals, senior services, and community builds. Since 2008, the company has awarded nearly $11 million in direct funds to local communities through these grants.
Employee Support and Benefits
New York Life offers a range of benefits and programs to support its employees and their families, including a pension plan, income protection, student loan repayment, tuition reimbursement, and employee assistance programs. The company also provides flexible work arrangements and time off for parents and adoptive families, recognizing the importance of work-life balance.
Environmental Sustainability
New York Life is committed to responsible investing and has incorporated sustainability into its mission. The company has a long-term view and core values of humanity, integrity, and financial strength, which are reflected in its concern for the markets and environment in which it operates.
Overall, New York Life's corporate responsibility initiatives demonstrate its commitment to its customers, employees, and communities, with a focus on financial security, peace of mind, and making a positive impact.
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Frequently asked questions
New York Life is an insurance company that offers a range of insurance products and services, including life insurance, annuities, and mutual funds. It is the third-largest life insurance company and the largest mutual life insurance company in the United States.
New York Life offers a variety of insurance products, including whole life insurance, term life insurance, universal life insurance, variable universal life insurance, long-term care insurance, group term life insurance, group disability insurance, and individually owned voluntary life insurance.
New York Life has a strong financial stability rating and a long history of paying dividends to its policyholders. It is also a mutual company, which means it is owned by its policyholders and has no outside shareholders. The company focuses on fulfilling its promises and putting its customers' needs first.
