Trusted Guidance and Protection | New York Life Insurance (2024)

FAQs

What not to say when applying for life insurance? ›

LYING ABOUT DRUG USE OR TOBACCO & ALCOHOL USE

An applicant for life insurance must disclose lifestyle habits, good and bad, including use of alcohol or use of tobacco.

The case against New York Life, which was filed in 2021, alleged that the insurer engaged in self-dealing by including the company's Fixed Dollar Account as the default investment option, as well as several of its MainStay-brand mutual funds.

Financial Questions

Life insurance companies typically gather information on your finances, including your annual income and any history of bankruptcy. Current and past bankruptcies can be a risk factor to insurers, since they can indicate difficulties in keeping up with premium payments.

They can include engaging in risky hobbies and behaviors like skydiving; having a history of DUIs or speeding tickets; having a dangerous job like roofing; having a criminal record or a less than ideal financial history; being a smoker; and failing a drug test.

It may be tempting to adjust your answers on an application to get a better rate, but lying on a life insurance application constitutes insurance fraud. Intentionally omitting health information may result in your application getting denied or possible death benefits not being paid to your beneficiaries.

Founded in 1845, New York Life Insurance Company (NYL) is one of the nation's well-established insurers that offers a large range of coverage options. Read on to learn more about New York Life, what it offers policyholders, the many types of plans you can buy, and more.

Minimum Life Insurance Coverage Amount

For most term life insurance companies, the smallest life insurance policy offered is for $100,000 in coverage. However, some companies, such as Genworth Life Insurance Company and AIG American General Life Insurance, offer term coverage in the amount of $50,000 or even $25,000.

Unsurpassed financial strength ratings for our industry

All four of the major credit rating agencies (Standard & Poor's, AM Best, Moody's, and Fitch) have awarded us the highest financial-strength ratings currently given to any U.S. life insurer².

Does New York Life pay out? ›

Your loved ones are guaranteed to receive a payout (death benefit) after you pass away. Whole life insurance also has cash value that is guaranteed to grow, tax-deferred, over time.

Q: If my claim is approved, when will I get paid? A: Once your claim is approved, we process payments immediately. It takes about seven days for direct deposits to show up in your bank account or 7 – 10 business days to receive a check in the mail. Q: How do I set up direct deposit?

When initially underwriting a life insurance policy, life insurance companies sometimes check up to 10 years of an applicant's medical records.

Life insurance companies usually pay out within 60 days of receiving a death claim filing. Beneficiaries must file a death claim and verify their identity before receiving payment. The benefit could be delayed or denied due to policy lapses, fraud, or certain causes of death.

Typically, it takes four to eight weeks for traditionally underwritten policies to be approved and issued. For instant life insurance policies that use accelerated underwriting, it's possible for coverage to go into effect on the same day.

Not all life insurance companies check credit history as a part of their underwriting process. In fact, most only check it in certain uncommon situations. For example, USAA may pull your credit report it if you're applying for a large amount of coverage or if you have a history of bankruptcy.

If you believe that you or a loved one may have inaccurate information on an application for life insurance, you should contact the insurance company immediately to submit an amended application. You don't want the beneficiary's claim denied due to life insurance application mistake.