New York Life Insurance Review: A Long History and Superior Financial Strength

This life insurer is a good fit for: People who want an established life insurance company with superior financial strength that offers a wide range of insurance and investment products.

New York Life insurance at a glance

• Average costs: Contact New York Life Insurance Agent
• Term life policy limits: Contact New York Life Insurance Agent
• Whole life policy limits: Contact New York Life Insurance Agent
• Riders/Add-ons: Spouse's Paid-Up Insurance Purchase Option Rider, Disability Waiver of Premium, Living Benefits Rider, Option to Purchase Paid-Up Additions, Chronic Care Option, Accidental Death Benefit, Return of Premium Rider, Money Back Option Rider
• Eligibility: Contact New York Life Insurance Agent
• Discounts available: Contact New York Life Insurance Agent
• Other insurances offered: Term, Whole Life, Universal Life, Individual Disability, Long-Term Care, Annuities, Investments (ETFs, Mutual Funds, 529s), Premier Services (wealth management, small business, estate planning)

Top perks

A++ Superior financial strength rating

New York Life has an AM Best rating of A++ (Superior), which shows its ability to pay claims, debts, and other financial obligations in a timely manner. Founded in 1899, AM Best is the world's largest credit rating agency specializing in the insurance industry. AM Best Rating Services assesses the creditworthiness of and/or reports on over 16,000 insurance companies worldwide. New York Life has earned the highest rating that AM Best offers.

Largest mutual insurer in the U.S. based on revenue

New York Life Insurance was founded over 175 years ago. It is the second-largest life insurance company in the U.S., with over $13 billion in premiums written, and the largest mutual life insurance company in the United States, with over $605 billion in assets under management.

Long history of paying dividends

Since 1854, New York Life has paid dividends every year. Insurance companies pay their customers an annual dividend when the company has more money than expected. Dividends are paid on participating policies and are not guaranteed. New York Life paid out $1.8 billion in dividends to its customers in 2021. Customers can use the dividend to offset the cost of their policy's premiums, increase the policy's value, or just take it in cash if they want.

Offers wide range of life insurance policies

New York Life offers a wide range of life insurance policies and other financial products. It offers term life insurance, whole life insurance, universal life insurance, individual disability, long-term care, and retirement income with annuities. New York Life also offers investments such as ETFs, mutual funds, and 529 college savings accounts. New York Life offers premier services for those with more sophisticated needs, such as wealth management, small business, and estate planning.

What could be improved

No online quotes

There is no option for those interested in New York Life's insurance policies to obtain a quote or purchase a policy online. Anyone who wants to know more about its rates must reach out to one of its agents. This can be frustrating when trying to compare quotes from several companies.

Limited details online

New York Life shares basic details about its policy options or riders on its website. To learn more about its products, you must talk to an agent. This could be useful for those who aren't familiar with life insurance and don't know which type of policy or coverage they need.

Unfortunately, New York Life doesn't offer online quotes, so the only way to get an accurate price estimate is to contact an agent. As is the case with all life insurers, smokers and older adults will pay more than their non-smoking, younger counterparts.

If you want to purchase a policy online: State Farm offers flexible life insurance policies and enables customers to purchase them online without speaking to an agent. State Farm is also number one in J.D. Power's 2021 U.S. Individual Life Insurance Study. The company received a score of 822 out of 1000. The industry average is 776. State Farm, however, is not licensed in all states.

For those who want flexible and affordable policies: Pacific Life offers a variety of term, whole, and universal life insurance policies. It also gives customers the option to customize their policies with a number of riders. But like New York Life, it doesn't offer online quotes.

Yearly Convertible Term

This policy gives you protection at the lowest initial cost and allows you to convert to a permanent policy in the future. Premiums start out lower than those for a level premium product, and then they gradually increase each year.

Level Premium Convertible Term 10-20

This term policy offers you predictable payments. You can lock in level premiums for 10 to 20 years. After the level premium paying period ends, premiums will increase annually.

Million Plus Level Term 10

This policy is if you need $1 million or more of protection. It is a 10-year level premium product. (Premiums increase annually after that.) The conversion period for this product is five years, so the product will work best for someone who plans to convert within the first five policy years or who does not plan to convert at all.

Whole Life Insurance

For those looking to balance cash value accumulation and guaranteed life insurance coverage, this is a popular option. The cash value can be used to supplement retirement income.

Custom Whole Life Insurance

This may be a good choice for consumers who want to pay premiums for a specific amount of time only (as short a period as five years) or want to maximize the cash value growth in a policy. A shorter paying period means higher premiums -- all else being equal.

You can customize your term life insurance policy with the following riders offered by New York Life:

Spouse's Paid-Up Insurance Purchase Option Rider

With this rider, your spouse can use the proceeds from your policy, in the event of your death, to get paid-up insurance without a medical exam.

Disability Waiver of Premium

If you become disabled, New York Life will cover your premiums with this rider option, available at an additional cost.

Living Benefits Rider

This rider allows you to use a portion of your death benefit to pay for treatment or care if you are terminally ill.

You can customize your whole life insurance policy with the following riders offered by New York Life:

Disability Waiver of Premium

With the purchase of this rider, New York Life will waive premiums should the insured become totally disabled, as explained in the policy.

Option to Purchase Paid-Up Additions

This rider allows you to contribute more to your policy when it's convenient for you. It's a valuable way to increase your death benefit protection and build more cash value.

Chronic Care Option

This rider protects policyholders from the financial hardships of chronic care by providing tax-free access to a portion of their base policy benefits should they become chronically ill.

Living Benefits Option

If you are terminally ill, you can use a portion of your death benefit to pay for treatment or care with this option.

Accidental Death Benefit

This rider offers an additional death benefit for your loved ones if the death was caused by an accident. The rider terminates automatically at age 70.

You can customize your universal life insurance policy with the following riders offered by New York Life:

Death Benefit Option 1

This option provides a level death benefit that equals the face amount of your policy.

Death Benefit Option 2

This second option provides a fluctuating death benefit that equals the face amount of your policy plus the policy's cash value, so the total benefit amount is based in part on the potential growth of your policy.

Return of Premium Rider (formerly Death Benefit Option 3)

This rider provides a fluctuating death benefit that equals the face amount of your policy plus the adjusted total premiums you paid into your policy.

Money Back Option Rider

This gives you the ability to get money back if something changes in the future and you no longer need the protection.

Rider features may differ based on the insurance product that they are purchased with. Not all riders are available in every state, and some states vary the terms of certain riders. You will need to speak to a New York Life agent for more information.

To apply for a life insurance policy with New York Life, you will need to go through one of its 12,000 agents. The agent will walk you through the application process and recommend the best life insurance product based on your situation.

New York Life is ranked 9th out of 21 in overall customer satisfaction, according to J.D. Power's 2021 U.S. Individual Life Insurance Study. The company received a score of 777 out of 1000. The industry average is 776.

New York Life's NAIC complaint index, which shows how many complaints it has received relative to its market share, is 0.17, which is very low. The national complaint index is always 1.00. This means a company with a complaint index of 2.00 has a complaint index that is twice as high as expected in the market. New York Life's complaint index is 82% lower than the market, indicating that New York Life's customers have much fewer complaints compared to its competitors.

New York Life Insurance is best suited for people who:

• Want a company with superior financial strength
• Want a company that pays an annual dividend and has a long history of making payments.
• Offers a wide range of insurance and investment products.

But you may want to consider State Farm if you want to purchase a policy online without going through an agent or Pacific Life if you want flexible and affordable policies.