New York Life Insurance Company is the third-largest life insurance company in the United States and the country's largest mutual life insurance company. The company has outstanding financial ratings and has maintained a solid reputation since 1841.

New York Life’s core product is whole life insurance, although they offer multiple Long-Term Care Insurance options, including one with a sponsored endorsement with AARP.

New York Life currently ranks 78th on the Fortune 500 list and has many outstanding ratings, including:

• A++ from AM Best.
• AA+ from S&P Global.
• Aaa from Moody’s Investors Service.
• AAA from Fitch Ratings.

Long-Term Care Insurance with New York Life

While New York Life has an impressive financial track record and ratings, we did not recommend them as a top choice in our annual Long-Term Care Insurance review.

Instead, New York Life has a neutral rating. Companies with neutral ratings provide comprehensive coverage and ensure consumer safety and stability; however, they may have minor drawbacks that prevent them from being a top LTC Insurance provider.

In New York Life's case, their Long-Term Care Insurance policies are some of the most expensive in the industry. Because of the price, some policyholders may be prevented from including all the benefits they need in a policy.

This could significantly reduce the longevity of the policy and put policyholders at risk of too little coverage or cause them to skip out on essential policy features like inflation benefits. Compared to other providers, New York Life does not offer outstanding coverage at a competitive price.

We'll discuss more nuances in coverage with New York Life throughout this review. But to start, we'll give you an overview of New York Life's coverage options. There are a few different LTC Insurance products to choose from:

• My Care
• Secure Care
• Asset Flex (Hybrid Long-Term Care Insurance plan)
• AARP endorsed plan

Key Features & Benefits 

Outside of the price drawbacks, New York Life offers comprehensive coverage with various benefit options:

• Partnership-certified policies. The Long-Term Care Insurance Partnership Program provides dollar-for-dollar asset protection to qualifying policies. What this means is if you use all the benefits within your policy, then you can qualify for coverage through Medicaid without losing your assets or income to Medicaid spend-downs or estate recovery.
• Daily benefits from $50 to $400 a day.
• A monthly home care benefit is available.
• Shared care benefits. A shared care benefit occurs when a couple purchases Long-Term Care Insurance policies together. If one of the spouses ever uses all the money within their policy, they would gain access to a third pool of money (shared with their spouse) to cover the remaining long-term care costs. This can greatly extend the lifespan of a policy.
• Return of premium. A return of premium rider option returns paid premiums minus claims to the policyholder's estate after they pass away.
• Five inflation options. New York Life offers several inflation benefit options, including:
• 3% simple inflation
• 3% compound inflation
• 5% compound inflation
• Consumer product index (CPI) inflation
• Options to purchase additional inflation benefits based on CPI
• Three elimination period options, including 90, 180, or 365 days.
• Caregiver training, which could help family members or other informal caregivers step in when needed.
• Home modifications. Some individuals, especially those receiving home care, may need to make changes at home to accommodate their needs, such as walk-in showers or wheelchair accessibility modifications.
• International benefits. These benefits can pay for care outside the United States and may offer up to 100 times the daily benefit of the facility services.
• Alternate plan of care. This benefit allows policyholders to request benefits or services not listed directly in their policy per the company's approval. 

Too Costly for Proper Inflation Benefits

Even though New York Life offers five inflation benefit options, its policies are often too expensive to take advantage of these benefits. 

Inflation options are one of the greatest advantages to Long-Term Care Insurance; they're an essential part of qualifying for the Partnership Program as well as ensuring your policy keeps up with inflation and the rising cost of living and care.

However, since inflation benefits greatly increase the cost of New York Life's policies, many LTC Insurance Specialists and agents recommend against adding them. This means New York Life policies often don't come with the standard 3% compound inflation benefit built into their policies. 

Instead, agents may recommend adding the guaranteed inflation benefit option, which allows policyholders to buy more benefits in the future. Guaranteed purchase options, future purchase options, or CPI offers are not the same as automatic, standard inflation benefits.

In fact, these guaranteed purchase options have many flaws. For one, New York Life only offers this option until age 70, and policyholders aren't eligible for these benefits at the time of claim. 

New York Life also charges a higher rate for extra purchased benefits, meaning the older you are and the worse your health condition when you try to extend your benefits, the higher the premium you will incur. 

This puts policyholders at risk of buying a policy with an increasing premium. 

If the policyholder continues to purchase additional benefits to keep up with the increasing cost of long-term health care, they will inevitably end up paying more in premiums over time compared to someone who started with an automatic, standard inflation option instead. 

This is why LTC News lists New York Life as a neutral provider. Regular inflation benefits are the best option for getting the most out of a Long-Term Care Insurance policy, but New York Life's prices can make inflation benefits cost-prohibitive for most consumers.

Out-of-Pocket Costs for Policyholders with NYL’s “My Care” Product

New York Life uses unique rules for their "My Care" LTC Insurance product. Instead of the standard elimination period, these policies use a cash deductible and 80/20 co-insurance structure. 

These features are often not good news to consumers. The 80/20 co-insurance structure means your policy will pay 80% of the cost of care while you, the policyholder, are responsible for the remaining 20%.

This can be misleading for policyholders who see a specific benefit amount and expect the policy to pay it out. When in reality, their policy only covers 80% of that benefit amount, leaving them to foot 20% of the bill. 

These are not standard practices in Long-Term Care Insurance. In fact, most insurers cover 100% of the cost of care based on the benefit amount. 

For example, in a regular policy, if you had a monthly benefit amount of $2,000, and your care cost exactly $2,000 that month, your policy would cover 100% of the cost. 

Using the same example, New York Life would only cover 80% of your care costs. This means your policy would only cover $1,600, leaving you to cover the remaining $400. 

In addition, instead of the standard elimination period, a waiting period before LTC Insurance benefits kick in, usually between 0-90 days, policyholders with New York Life must pay care costs out of pocket to meet the policy's cash deductible. 

Deductibles can range from $4,500 to $21,000 of incurred costs, and the deductible also grows with inflation. This means the more benefits in your policy, the more out-of-pocket costs you'll incur. 

Most other insurers use an elimination period based on days instead of deductibles. This means that as soon as you file a claim for care, your waiting period starts, and the policy covers care once the waiting period is over. 

AARP Endorsement

One of the bigger selling points of Long-Term Care Insurance with New York Life is their partnership with AARP. The AARP/New York Life branded policy is available to AARP members who are health-eligible for the program. 

It's important to mention that New York Life pays AARP for this endorsement. New York Life pays royalty fees to AARP for the use of its intellectual property, and AARP uses these fees for general purposes.

Dividends

One of the most talked about features of Long-Term Care Insurance with New York Life is the possibility and availability of dividends. A dividend is an amount of money paid out to policyholders each year based on the company's overall yearly profits.

Dividend amounts can vary depending on the company's profitability. Dividends are not guaranteed; however, New York Life has a record of paying out dividends for 171 years, the longest of any mutual life insurer. 

Dividend availability with New York Life depends on how long you've had a policy with the company. Dividends may be paid out as a reduction in premium costs for policyholders. 

Those with the "My Care" solution may be eligible for dividends after three years, while those with the "Secure Care" solution may be eligible after ten years. 

Some general insurance agents and New York Life agents advertise dividends as a way to reduce costs or make premiums "disappear" once the policyholder reaches their 80s. 

However, these claims can be misleading. Most actuaries and Long-Term Care Insurance Specialists agree that the probability of significantly reducing your premium or having your premium "disappear" through dividends is highly unlikely. 

In fact, dividends are not even guaranteed. Even if you do receive a dividend, the amount can vary depending on the company's financial stability and profits. 

Policyholders should never rely on or plan to rely on the promise of dividends when deciding on the benefits within their policy. It's most important to pick a policy with a premium you can afford and benefits that make the most sense for you rather than betting on the promise of dividends to reduce future costs. 

How Hard Is It to Qualify for a Policy with New York Life?

Your ability to qualify for a new Long-Term Care Insurance policy with New York Life depends on three main factors:

• Do you need long-term care? Individuals who currently need long-term care services are not eligible for a new LTC Insurance policy.
• Do you have pre-existing health conditions? Individuals with pre-existing conditions must prove that they are well-managed. In some circumstances, specific health conditions could prevent you from qualifying for new coverage.
• How old are you? Older adults may have a harder time qualifying for new coverage. Health generally declines with age, and some companies have age limits on starting new policies.

Long-Term Care Insurance companies use a practice called underwriting to determine the risk of insuring each applicant. If an applicant has too many poorly managed health conditions, they pose a greater risk than a healthy individual.

Because they pose a greater risk to the company, they are charged a higher premium and may only be eligible for coverage at a certain rate class.

Each insurer uses different criteria in their underwriting process. New York Life offers three rate classes: preferred, select-standard, and standard. Their underwriting guidelines are considered “moderately conservative”, and may offer more flexibility than other leading insurers.

Unlike some other companies that offer discounts for their "preferred" rate class, New York Life's "preferred" rate class is more similar to other companies' "standard" rate. This means there is no discount for having excellent health. 

New York Life's other rate classes, "standard" and "sub-standard," use very broad underwriting criteria at a higher cost.

New York Life's "standard" rate class is most similar to other companies' "sub-standard" rate classes. In addition to being very expensive, policyholders in this rate class are limited to only 80% of the available benefits for in-home care. 

If you're concerned about your ability to qualify for a new policy, consider working with a Long-Term Care Insurance Specialist. These experts are well-versed in each insurer's specific criteria.

A specialist can look at your needs, budget, preferences, and health status to recommend the best LTC Insurance provider available to you, regardless of what company it is.

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Filing a Claim with New York Life

If you have a policy with New York Life, LTC News can help you file a claim. Navigating the claims process alone can be stressful and confusing, especially when trying to find quality care at the same time.

That's why LTC News has partnered with Amada Senior Care, a leading in-home healthcare agency. With the help of Amada's experts, you can get no-cost, no-obligation help processing a claim with any Long-Term Care Insurance provider.

Amada's experts will not only help you file a claim but also help you find high-quality care that meets your or your loved one's needs. They may even be able to offer care at a discounted rate.

Is Long-Term Care Insurance with New York Life Safe?

New York Life is considered a safe and reputable choice for Long-Term Care Insurance. However, some insurance agents have been known to make misleading claims about dividends.

These agents may claim that your insurance premium will disappear in your 80s due to the abundance of dividend payouts. Actuaries and Long-Term Care Insurance Specialists consider these claims to be highly unlikely.

These experts do not recommend relying on New York Life's dividends to offset the cost of premiums, as these returns are not guaranteed to help you make your money back.

Outside of Long-Term Care Insurance, New York Life has faced controversy over premium increases on their life insurance products. This is not the case for their Long-Term Care Insurance products.

All Long-Term Care Insurance policies in the U.S. are regulated under IRS regulation Section 7702(b). These strict regulations help protect policyholders and keep LTC Insurance policies safe for consumers by ensuring the following:

• Regulated benefit triggers.
• Tax advantages.
• Protection against excessive premium increase.
• Clear coverage expectations.

New York Life's Long-Term Care Insurance products meet federal guidelines. 

Shopping for Long-Term Care Insurance: Is New York Life A Good Option for Coverage?

At the end of the day, the best Long-Term Care Insurance option for you or your loved one depends on needs, budget, and preferences. A Long-Term Care Insurance Specialist can help you weigh your options and select the best overall provider, where you can get the coverage you need at a price that works for you.

New York Life is a financially reputable company that offers comprehensive and safe Long-Term Care Insurance policies, with three products to choose from. However, it is also one of the most expensive providers, making its policies prohibitive to many individuals.

If you already have a policy with New York Life and need help filing a claim or getting the best care available, LTC News's partner Amada Senior Care can help.

Amada Senior Care is a top home care agency in the United States, offering cost- and obligation-free help with LTC Insurance claims and finding the best care provider for you or your loved one.

If you're more inclined to solve things on your own, LTC News also offers a free Cost of Care Calculator. Our calculator tool provides the current and projected national median cost of memory care, home care, assisted living, nursing homes, and adult day care centers.

This tool can help you plan for long-term care by showing how much each type of care costs and how many benefits you should look for in an LTC Insurance policy. It can also help you compare the prices of different levels of care in your area.

After you've figured out what type of care you need, you can also use LTC News's Care Directory to find high-quality home or facility care close to home.

Our directory contains thousands of verified long-term care providers, streamlining the process of searching for and comparing different providers near you.

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