AARP/NY Life

New York Life is the largest company that offers long-term care insurance. The strength and stability of the company are valuable assets.

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8.9
Grand Score
8.5
User Score
8.9
Grand Score
8.5
User Score
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You spend a long time—years—preparing for the future. You have retirement funds, life insurance, and do what you can to cover the possible roadblocks that could arise later in life. People don’t often consider the possibility of caring for a spouse or family member who has developed a chronic illness. The illness may not force the person into a hospital. They may be home or in assisted living, not able to fully care for themselves. In most cases, health insurance does not pay for services to assist in this case. 

Long-term care insurance is the best way to protect what you have put away for a rainy day. New York Life now offers NYL Secure Care, a long-term care insurance product that also offers dividends through the AARP. Consider this option if you are looking for long-term care insurance.

Grandfolk Scoring
Cost 10/10
Ease 7/10
Coverage 10/10
Optional benefits 10/10
Limits to coverage 8/10
Years of coverage 10/10
Waiting period 8/10
Customer support 8/10
Accessing benefits 10/10
Cost
What is the monthly fee?
The monthly premium will vary depending on your age and health
Ease
Is it easy to enroll?
Plans must be purchased through a NY Life agent
Coverage
What does the policy cover?
Caregiver training, home modifications, assisted living, and more
Optional benefits
Are additional benefits available?
Yes, including waiver of premium, inflation protection and more
Limits to coverage
Are there any limits to coverage?
The maximum daily rate is $400
Years of coverage
How many years can be covered?
Two, three, five or seven
Waiting period
Is there a waiting period?
Yes, this is determined at the time you purchase the policy
Customer support
How easy is it to reach the company?
It is best to contact your local agent for concerns with the policy
Accessing benefits
How do I access coverage?
Once you are unable to perform two or more activities of daily living
Age Score:
10
50-64 Years
10
65-74 Years
10
75-84 Years
10
85-Above

It's never too early to start planning for your retirement. Even when you do, things can happen that you don't expect, or haven’t planned for. A chronic illness can strike at any time, as can an accident with long-lasting effects. In either case, you don't want to pay for non-medical care from retirement funds. 

New York Life offers a long-term care solution that is flexible to cover the cost of caring for a spouse or family member who is unable to perform two or more activities of daily living (ADLs) such as bathing, dressing, feeding, grooming, working, housekeeping, etc. Any senior in this situation could have excellent coverage from New York Life for those unforeseen illnesses or accidents, which can be taxing emotionally and financially.

Health Score:
6
Great Health
6
Good Health
8
Fair Health
10
Poor Health

For seniors who are in great health, there is value in knowing you are covered by a long-term care policy. If you get sick or have an accident, you will have it available to cover costs that are not usually paid for by Medicare. Non-medical care is expensive. New York Life allows you to choose an amount for care in an assisted living facility or nursing home. It also allows you to choose a percentage of daily benefit to cover in-home care.  

If you are in fair health and just need some assistance around the house or companion care, there is coverage available. For those in poor health who may need nursing home care, there is coverage available for a per day rate. 

Pros:

  • New York Life is a highly rated financially stable company.
  • If you are married, you receive a 15% discount on rates in participating states.
  • There is a three-year rate guarantee.
  • Policyholders become eligible for dividends after their 3rd policy anniversary.
  • NY Life’s long-term care policy is qualified for favorable tax treatment.
  • Due to its mutual structure, the company is owned by policyholders, not stockholders.

Cons:

  • New York Life offers one of the most expensive policies for long-term care.
  • It is extremely difficult to predict parameters for each benefit at the time of purchase.
  • If you do not qualify for the “preferred” underwriting category, you will be limited in the benefits you can select.
  • Their website is large and unwieldy. It is difficult to navigate, and many links are broken.

Bottom Line:

New York Life is the sole company to offer long-term care insurance as well as life insurance to AARP members. This is a recent collaboration, which began in 2016. New York Life has a long and successful history of selling insurance products. It has been around for a very long time. You could say that it even foresaw the market crash of 2008, and had already moved its assets to no-risk options. 

Although itis highly rated by industry rating companies and is rated A- by the BBB, there are still complaints against the company. Furthermore, the endorsement of the AARP does not necessarily mean you will be getting a good deal. In fact, the AARP receives compensation from New York Life, but has have not considered how this endorsement works to the disadvantage of its 37 million members. The rates for the long-term care insurance product NYL Secure Care are two times higher than rates for the leading long-term care insurance.Compared to other companies, New York Life offers the most expensive policy and is far from competitive. 

Be a smart consumer. Get a second opinion, and be sure you understand how NY Life compares in all categories.

Frequently Asked Questions:

What elimination periods are offered? 

New York Life offers the option of 90, 180, or 365 days. This is the period during which you would be responsible for eligible long-term care services before you would receive benefits from your policy. The longer the elimination period, the lower the premium.

Please explain the optional benefits that are available. 

One optional benefit available is the Legacy Benefit Rider, purchased at time of enrollment, which can return premiums you have paid to your estate. You can also opt for inflation-protection, so the value of your policy keeps pace with the cost of care. 

What happens if I need to cancel the policy? 

You can cancel your policy at any time by discontinuing the premium. However, you will not be able to recoup any premiums you have paid.

More Information:

Product Details

Overview:  New York Life offers long-term care insurance that allows you to choose the number of years of care, a maximum daily benefit for care in a facility, or cost of in-home care. Plans can be personalized to each situation. Additional riders are available.

Package Details:A long-term care policy with New York Life requires the owner to select the number of years of care to be covered. This can be two, three, five or seven years. The owner also indicates a maximum per day rate for nursing home care or assisted living facility.

Depending on what is chosen, the maximum benefit pool is calculated by multiplying the per day rate and the number of years of coverage, for a total pool of dollars. There is a separate calculation for in-home care, which is a percentage of the per day rate for a facility. 

Each policy owner must also choose an elimination period, the length of time the senior or family member would be responsible for eligible care before insurance kicks in. The base policy includes some form of inflation protection, but it can also be added as a rider. 

Other Services:Life Insurance, investments, estate planning

Additional Company Details

Contract Details: Long-term care policies can be tailored to each person’s needs. They can provide a large pool of benefit dollars, or limited to provide modest coverage. These policies use a unique patented approach to inflation protection that ties annual increases in benefit levels to annual changes in the Consumer Price Index. In addition, NY Life offers optional riders/amendments that can extend coverage, provide additional benefits for couples, and include an optional Return of Premiums Upon Death Rider. 

Warranty:  Most states require insurance companies to give you a 30-day period in which you can review your signed policy. Should you decide not to keep it, you should receive a full refund. Be sure to check with your state for details.

Accreditations: New York Life is a large company that is consistently rated very well among industry ratings companies. The company is not BBB accredited but maintains an A- rating. 

Its other accolades include being named onFortunemagazine’s List of the World’s Most Admired Companies in 2016; Fortune Magazine’s Fortune 500 for 2016; DiversityInc’s Top 50 Companies for Diversity; Working Mother Best Companies for Multicultural Women 2016; and National Business Incusion Consortium’s Best of the Best List, among many others.

Company Details: New York Life has been in business since 1845, starting as the Nautilus Insurance Company in New York City. Its name was changed to New York Life Insurance Company in 1849. The company sells life insurance, annuities and long-term care insurance, and provides asset management support. New York Life maintains excellent ratings from the four independent rating companies (Standard & Poor’s, AM Best, Moody’s and Fitch). In 2015, the board of directors approved the largest dividend payout to participating policyholders in their 170-year history—a total of $1.7 billion. 

New York LIfe is one of the largest insurance companies in the U.S. and the world, and is ranked as a Fortune100 company. Itcurrently holds over $300 billion in assets.The company was well situated before the 2008 financial crisis. In 2007, the company grew concerned about financial trends and markets, so financial advisors moved most of the company’s assets to no-risk investments. When the market crashed, it was the only company left standing among the debris of other companies.  

There have been complaints against the company, some needing BBB intervention. That doesn’t mean that complaints aren’t handled to the customer’s satisfaction. 

Contact:

New York Life
51 Madison Ave.
Room 251
New York, NY 10010-1603
Tel: 800-695-4785
Website: https://www.nylaarp.com/LongTermCare

Donna McDurfee - Senior Advisor

Donna is senior researcher with Grandfolk® providing in-depth product and service reviews to empower senior buying decisions.