New York Life & Annuity

[sedunham]

I was just about to buy an immediate annuity from thm, but then I saw that Weiss rates them B+ with Negative outlook. I have been told that NYL&A is one of the top 4 or 5 companies in terms of financial strength. Should I be concerned?

 

[Josh]

You probably want to consider some other options (feel free to contact me if you need a referral), but NYL is a solid company. On top of that, most traditional life and annuity products are covered by state guarantee funds. You should probably focus more on other features of the product such as the rate, guarantees, and surrender period.

 

[LGilmore]

As far as safety goes, you aren't going to do much better than NYL. I've never known NYL to promise more than they can deliver.

 

[sedunham]

Thanks for the replies. I found that Ohio (where I live) covers 250k. This is probably obvious, but the pertinent state is where I live, not where NYL is incorporated?

 

[scagnt83]

Thanks for the replies. I found that Ohio (where I live) covers 250k. This is probably obvious, but the pertinent state is where I live, not where NYL is incorporated?

You are correct, it is the state the Owner of the Policy lives in.


NYL is a very strong company. They have a AA+ from S&P & AAA from Fitch.
They are one of the top 10 most stable Life Insurance companies in my opinion (and the opinion of most rating agencies). (probably more like top 5)
And Wiess uses different criteria than other rating agencies, and their ratings do not have the same meaning as other agencies.

But here is the thing.
The difference between AA+ & AA, or AAA & AA; is very minuscule.
To use an analogy; you are basically splitting the smallest hair you can find.

Yes the state guaranty funds are there. But that is not the most important thing.
The most important thing is that insurance companies are required to invest enough capitol into Treasuries, so that they can meet all of their contractual obligations.

So any guaranteed amount from a life insurer, is backed by the claims paying ability of the USA.

That doesnt mean you shouldnt worry about ratings at all. It just means that you should find a well rated company with a strong track record.


But the most important thing is the benefit to you!!!
aka: how much per $100k they will pay you each year.
NYL actually has very competitive rates at the moment. I think they are around 6.5% for a 65 year old on a life only payout.
Although there is another carrier that is currently offering 6.8% for life only.

You wont get a bad product from NYL or a bad rate. But you might be able to find a slightly better rate if you shop around some.
If you would like a comparison to what your agent ran let me know, I do business in OH.