Of the handful of life insurance companies that you can tell names (of more than 800) of, New York Life Insurance Company is certainly one. While many will have spoken in favor of this company, few will also speak against it. That may pretty much confuse you.
While we would ask you to decide for yourself whether you should go with this company or not, we would confidently like to say they stand out of the bunch when it comes to insurance.
We think staying for 173 years in the market surviving all its volatilities is one of the biggest credits they should have. On one hand, this indicates they have had a tradition of best managerial skills and, on the other, they also have been able to win their customers’ satisfaction in a big way.
A Precursor of Customer-Focused Business
It is worth noting that today’s life insurance industry owes greatly to New York Life Insurance Co. for a series of customer-focused and innovative policies that they introduced.
Dividing share of profit (known as dividend payment) was an innovation by this company. They also introduced policy non-forfeiture, gender-neutral rating system and disability benefit. All these go in favor of NYLC.
At least 3 important factors indicate NYLC to be one of the most reliable insurance companies you may keep in your trust list.
Great financial strength.
Wonderful customer service.
They are not only one of the oldest life insurers in the USA, but also largest as well. Wikipedia mentions them to be the 3rd largest insurance company in the U.S. They are also one of the biggest companies globally and enlisted among the Fortune 500 companies. As of 2016, assets under the company’s management amounted to $537.8 billion USD.
Customer service should be the most important field of focus when you would want to take out your policy from a company. This is what makes or mars a company’s credibility. We looked into this when reviewing this company. We studied several consumer forums to see how much customers were satisfied with New York Life Insurance Company.
Of them, Consumer Affairs and Free Advice Insurance, both review sites, that allow verified users to review and rate the companies should find mention here.
Customers on Consumer Affairs reward 4 out of 5 stars to this company. Most of the customers seem satisfied as 26 of the 59 raters reward them 5 on 5 stars. Thirteen customers award them 4 out of 5, twelve customers give them 3. Only 2 customers award them with 2 stars while 6 give them 1 star. (As of 2nd April, 2018)
On the other hand, Insurance Free Advice Insurance shows that 75% of this company’s customers are satisfied with them. Sixty-eight percent of them are extremely satisfied with this insurer, 4% are very satisfied and 3% say they are somewhat satisfied.
70% of the consumers say they will ‘definitely renew’ their policies with New York Life Insurance Company. They also confirm they are going to recommend the company to their family and friends. This rate is pretty high.
However, 18% customers are dissatisfied with NYLC as their insurer. They are ‘definitely’ not going to renew their policies with them.
It is also remarkable that a total of 24% of the buyers say they will ‘definitely not recommend’ NYLC to others.
Let’s see what rating agencies say about New York Life Insurance Company.
Fitch awards NYLC their highest rating AAA for their financial strength. Moody’s Investors also awards them their highest possible rating of Aaa. A.M. Best also confers their superior grade A++ on New York Life Insurance Company while Standard and Poor’s awards them A++, another best possible rate.
Very few life insurance companies enjoy such best ratings from these globally recognized agencies.
You will find the reflection of the positive ratings in the customers’ direct reviews. We have excerpts direct from customers on two trusted sources: Better Business Bureau (BBB.org) and Consumer Affairs for you here.
While choosing the reviews we focused on 3 factors that reflect on:
The company management.
Customer service of the company.
And the payout experience of the customers.
M B. of Hoffman Estates, IL says on Consumer Affairs:
My father-in-law had a policy with NYL for a while. When he passed away, NYL processed the claim very quickly and paid covered amount to my mother-in-law. Yes, they paid and did not deny claim at the time of her need.
Willis of Auburn, NY
I purchased a $100K whole life policy from them 38 years ago with a quarterly premium of $464. Last policy year, I received $900 in guaranteed cash value increase and, on top of that, a yearly dividend of $6,706, or a total increase of $7,606.
Linda of Jackson, NJ
Anytime I need help or have an issue they are there. They are very pleasant and helpful. Several times I needed help paying my premium and had to borrow from the insurance to do it. It was very simple and uncomplicated. Representatives are very helpful and it took only a matter of minutes. Also were very helpful in helping me to adjust my insurance to make it more affordable for me.
In order for you to know the opposite side of the coin, we also have excerpts that speak of negative experience of the customers of New York Life Insurance Company.
On BBB, a place where customers complain about insurers, we have these feedback:
By John C.
My wife and I were misrepresented from the start. We were sold a Universal Whole Life policy that supposedly I could never outlive. We were lied to. The policy is currently out of money and ready to lapse, even if I tripled the monthly payments. We receive statements all the time, but nothing telling us that it was out of money. Then all of a sudden, Bang! We get a lapse notice. How is this possible?
By Enlightened I
My mom bought the NY Life Insurance w/ AARP for what the future might be & to help her only adult daughter (me) when she did pass from working a very low wage job with many hours and maintaining good health as a ****** *****r Survivor with loads of determination!! She bought their plan & paid regularly. After getting ill, going into the hospital–she then died suddenly. I immediately contacted this company with her info. and I learned that my poor Mom got “T_A_K_E_N” by these vandals that call themselves “INSURANCE”!!! All they were suppose(d) to send was $6,000.00 & they REFUSED to follow-thru with what they “promised” & write a check for ONLY $6,000!!!
By Jane S.
My husband had a New York Life Policy for almost 50 years. I went down to the Agency and I was told he was with a Client, so I left the Policy and the Death Certificate, He came out to my house and proceeded to tell me that he had paperwork for me to sign and he was irate that I had left there? I said well, you were busy, so I came home, He said I have some documents for you to sign, I said ok, So I signed the documents, I ask why $10,000 over a period of 50 yrs hadn’t created more dividends and interest since we never took any of that out? He said well $10,000 doesn’t create much? I said I thought it would have crated more than $4000. He said well it didn’t. Ok, So he was condescending to me and he said we are just trying to help you.
Thus, New York Life Insurance Company is no holy book.
They sell the following life insurance products for you:
Term Life Insurance:
In the term insurance category, you can get the following products from them:
Level Term Life Insurance: It is available in 10, 15 or 20 years level periods.
Annual Renewable Term: While many life insurance companies have suspended this once-popular life insurance, New York Life has retained it.
Simplified Level Term: If you want to buy no medical exam life insurance, you may check NYL for sure.
Whole Life Insurance: They have 3 versions of whole life insurance for the buyers:
Standard Whole Life Insurance comes with promise of fixed rate throughout your life and cash value accumulation. It also contains possibility of your share of dividends. You can have riders added to your policy.
Custom Whole Life Insurance comes with guaranteed cash value and promise of dividend. This policy enables you to pay up the premiums at your earliest convenience and lets you stay insured throughout your life’s duration. You can also add riders to your policy.
Custom Survivorship Whole Life Insurance is a unique idea from New York Life Insurance. It brings peace of mind and security to couples who might be wondering what would happen to their children in the event of both passing away. This second-to-die policy has two people covered and pays out when the second of the insureds dies.
New York Life has other products like long term care insurance, group insurance, disability insurance, supplemental health benefits,
Is New York Life Insurance Trustworthy?
Consumer-recommendation: As we checked consumer reviews we found that New York Life Insurance has the fewest complaints in comparison to commendations in their favor. For example, on consumerreviews.com only 3 of the first 20 reviews were found negative. That is to say, the only 1.5% of the reviewers raise their voice against this company. In comparison with many other of their competitors, the rate seems surely low. The rest speak highly of them. So, from consumer experience, New York Life Insurance surely wins.
Product Variety: They have the widest range of insurance products tailored to meet everyone’s demand. They have almost every variety of whole and term life insurance products that you can think of.
Dividend Share: In spite of turbulent political and economic situations, New York Life Insurance have always managed to share their dividends, the share of surplus profit of the company, to their customers.
50 State Service: That they work in all 50 states including the District of Columbia goes in their favor. You will have their service wherever you may be.
No Third-Party Selling: New York Life Insurance sells their products through their own representatives. As a result, when you buy your insurance from them, you can stay sure that you will have better service and understanding of the policy.
The Bottom Line
While we ask you to shop around to find the best rates for your insurance, we also ask you to check the reliability of the insurer for yourself. Our straightforward opinion about New York Life Insurance is, you pick their name among others while you shop. And we have the substantial reasons for our opinion:
Firstly, New York Life Insurance has the least complaints from the consumers.
Secondly, they have a historic record of paying dividends to their policyholders.
Thirdly, financially they stand on a rock-solid foundation.
So, happy life insurance.