New York Life is a major provider of life insurance, annuities and other financial products. Their annuities are popular for people who are planning for retirement or want a backup income source that is available when needed.
Overall, New York Life has a good reputation and is the largest mutual life insurance company in the country. The company started in 1845 as Nautilus Insurance Company, and it was renamed New York Life Insurance Company in 1849. Since then, it has grown and expanded its financial products. The company sells policies throughout North America and contributes over $220 million to charities every year.
Types Of New York Life Annuities
Although the company offers everything from guaranteed period income annuities to secure term choice fixed annuities, the two main products are fixed deferred annuities and guaranteed income annuities. Fixed deferred annuities offer tax-deferred growth for contributions and guaranteed income in the future. Guaranteed income annuities provide the promise of lifetime income in the future with some flexibility on early withdrawals and coverage amounts.
Pros Of New York Life Annuities
With the two main products listed above, buyers have the most advantages. They are both ideal for retirement planning. For those who are concerned about outliving their retirement income, a guaranteed income annuity is a great solution. The tax-deferred option is good for people who want to contribute more during their working years without losing any money. Both options offer access to the money early if necessary. For example, someone who needs funds for surgery or cancer treatment may wish to receive some of the money immediately.
Cons Of New York Life Annuities
One of the main disadvantages of New York Life’s annuities is that they can be as much as20 percent higher than other companies offering similar products. However, not all companies offer the same flexible and guaranteed income benefits that New York Life offers. Also, it takes time to build a balance for a good income. New York Life may not be the ideal choice for someone who is on a budget and is planning to retire within the next 10 years.
New York Life Annuity Complaints
Most of the complaints about New York Life annuities are associated with the cost. However, there are also several complaints circling the web about agents. Not all of the agents are direct employees of New York Life. Some of the company’s representatives have been reported as dishonest or withholding information. There are a few complaints regarding compensation. Some individuals said that their annuity was not worth as much as they were told in the beginning when it was time to start collecting income.
There are a few complaints about elderly individuals’ income streams being cut off. However, their policy terms may have differed at the time of signing. When reading many of the complaints, it is apparent that some people did not choose the right agents to help them pick an ideal type of annuity or did not choose the right type of annuity for their needs when shopping on their own.
Is A New York Life Annuity Worth The Investment?
Overall, New York Life annuities are reliable savings vehicles that yield a guaranteed future income. While they may not be ideal for budget shoppers, they are valuable for people who have more to invest now or those who start investing early and make normal contributions over time.