New York Life Insurance Company is the third largest life insurance company in the United States and the largest mutual life insurance company in the country. the company has excellent financial ratings and has maintained a solid reputation since 1841.
The company’s primary product is whole life insurance, although new york life offers multiple long-term care insurance options, including one backed by aarp.
Reading: New york life long term care insurance reviews
The aarp-backed new york life long-term care insurance plan is available to aarp members who are eligible for the program for health reasons. new york life pays royalties to aarp for the use of its intellectual property, and these fees are used for aarp’s general purposes.
life in new york: an expensive ltc insurance option
new york life has one of the most expensive long-term care insurance options available. while they do offer the potential for dividends from the plan, they are unlikely to ever make up for the high premium.
Because of the high cost of the policy, some advisers design plans without crucial features like inflation benefits or include benefit increases that regularly increase the premium.
The company has three traditional long-term care insurance products and asset-based “hybrid” options. these products are only offered through captive agents working for new york life.
otherwise, the policy’s features and benefits compare well with all leading companies. In addition, New York Life is a highly rated and respected insurance company.
Like any other long-term care insurance product, premiums are calculated based on the benefits and options you select at the time of application. this estimate includes your age, health, gender, tobacco use, and other factors.
features and benefits with new york life long-term care
(both safe care and aarp plan)
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association
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Daily profits from $50 to $400 per day
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home care monthly benefit option
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shared care benefit with a third pool of money
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return of premium less claims
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Five different inflation options, including 3% plain, 3% compound, 5% compound, increases based on the Consumer Products Index (CPI), and options to purchase additional benefits based on cpi
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three deletion periods: 90, 180 or 365 days
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caregiver training
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home modifications
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international benefits: Pays for care outside the United States, up to 100 times the daily benefit for center services.
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alternative care plan: This allows the policyholder to request benefits or services not listed in the policy, based on company approval
“my care”
“my care” is new york life’s third traditional long-term care product. the two significant differences in this product are the use of “deductibles” instead of elimination period days and a built-in 80/20 coinsurance.
Most long-term care insurance policies use “elimination periods,” which are once-in-a-lifetime deductibles based on days, not dollars. many companies use calendar days, not dates of service, so you would be using up your deductible days with little or no cost in some situations. however, there are no elimination periods with “my care”, but there are cash deductibles.
Deductibles range from $4,500 to $21,000 of costs incurred, and the deductible also grows with inflation. 80/20 coinsurance means the policy pays only 80 percent up to the monthly benefit.
For example, you have a monthly benefit of $5,000 and your bills are $5,000; the policy will pay up to $4,000 after the deductible.
inflation benefits – be careful
New York Life’s biggest drawback is cost, which makes it uncompetitive with most other products. Inflation options are part of what makes New York living uncompetitive and often undesirable for most consumers.
remember, new york life is typically sold with no guaranteed inflation (such as 3% compounded) due to the very high cost. Agents or advisers typically recommend the company’s future call options (or no inflation) since the price is much lower without guaranteed inflation benefits. however, these options terminate at age 70 and are not available at the time of claim. In addition, NY Life charges for the additional benefit purchased at your reaching age, so the premium increases each time you purchase and becomes more expensive over time.
“Guaranteed call options”, “future call options” or “ipc offers” should not be confused with automatic inflation protection. the new york life purchase option is called a “cpi offer”. the policyholder would have the option to purchase more coverage based on the Consumer Products Index. if the taker accepts the offer, he will increase the premium with each option exercised. the policyholder would be purchasing an increasing premium long-term care insurance policy. furthermore, the offer is not available once you start receiving benefits.
if the policyholder continues to purchase additional benefits to keep up with the rising cost of long-term care, they will inevitably pay more in premiums over time if the policyholder had started with the inflation option automatic.
An automatic inflation protection option will be the best choice for most consumers.
dividends
note: new york life agents discuss dividends. they’ve only paid dividends once with long-term care insurance. Don’t rely on future dividends coming close to paying for cost differences between New York Life and other companies.
complaints
If you’re a new york life long-term care policy owner looking for help filing a claim, ltc news offers free, no-obligation support, including help finding quality caregivers and facilities. Since most agents have little to no experience in this area, this assistance can be beneficial to the entire family: filing a long-term care insurance claim.
federal regulation and consumer protection
all long-term care insurance contracts are governed by irs regulations §7702b(b). Any insurance contract that meets the guidelines set forth by the Internal Revenue Service is considered long-term care. all insurance products that meet these federal guidelines contain consumer protections and regulated benefit triggers, in addition to tax advantages.
new york life long-term care insurance products meet federal guidelines.
association
new york life offers member long-term care insurance policies in available member states. Partnership policies provide additional dollar-for-dollar asset protection. remember, asset-based “hybrid” products are not partner certified.
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what is a long-term care partnership policy?
find state-specific information
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Each state has a state-specific page that lists the current and future cost of long-term care services, available tax incentives, information about care providers, and other important information: ltc cost of care calculator news.
Looking for long-term care insurance?
When shopping for long-term care insurance coverage, keep in mind that many state and federal regulations affect long-term care insurance. products and premiums are regulated by each state’s department of insurance. Due to regulation, an insurance agent, agency or financial adviser cannot give a consumer a special discount that is not otherwise available.
remember, new york life products are only offered by captive agents.
Use all the tools and resources available at ltc news to assist you in your research: long-term care planning resources.
There are more similarities than differences when it comes to features and benefits. however, options and benefits vary from company to company, and premiums can vary between companies by more than 100% when comparing like benefits.
subscription
Long-term care insurance is medically underwritten and each company has underwriting rules that determine insurability and rate class. An experienced long-term care insurance specialist will understand these underwriting rules when she helps you select the best company and policy options.
what is subscription? How does current health affect the ability to obtain long-term care insurance?
new york life underwriting is considered “moderately conservative” compared to other insurance companies. the company offers three classes of fares, preferential, select standard and standard.
the company’s preferential rate is very broad. includes health issues that other companies would place on a more traditional “standard” rate. the effect of this means that there is no discount for having excellent health.
on the other hand, new york life’s “select standard” and “standard” rates have even broader underwriting criteria at an even higher cost. the company’s “standard” rate is more comparable to a “sub-standard” rate with other companies and, in addition to being very expensive, reduces the percentage of benefits available for home care to 80%.
A long-term care insurance specialist can help you determine insurability and the rate class you would likely fall into.
be sure to discuss your pre-existing health concerns with a specialist, agent or advisor before applying with new york life. make sure they are quoting the correct subscription rate class.
ltc insurance product comparison
Since your health is a primary consideration in determining your eligibility for coverage, it’s always best to start planning before you retire, when your health is usually at its best. an experienced long-term care insurance specialist will ask you various questions about her health to provide you with accurate quotes and professional recommendations.
Please note: Since each company has different underwriting rules, you may be eligible for coverage with one company and not another.
When comparing long-term care insurance, you need to understand the differences between new york life and other companies.
There are variations between policy language and benefits among the many companies that offer long-term care insurance; however, the main features and benefit options are comparable from company to company.
Premiums and underwriting criteria vary dramatically between insurance companies.
status variations may apply.
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