What Will Be Covered in this Review?In this review, we will be discussing the following information regarding the New York Life Guaranteed Future Income ll Deferred Income Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you have been thinking about purchasing an annuity because you want to make sure that you will not run out of income in the future, then the New York Life Guaranteed Future Income ll Deferred Income Annuity (DIA) could be a viable option for you. This is particularly true if you anticipate living a long life. A deferred income annuity (DIA), which is sometimes also referred to as a longevity annuity, is a type of annuity where you deposit a lump sum with an insurance company in exchange for guaranteed lifetime income that begins at a future date. In some cases, the start of this income stream could be up to 30 or 40 years in the future. Because of that, DIAs can sometimes be used as a pension of sorts for those who don’t have a defined benefit plan through an employer, or those who may lose other pension income due to the loss of a spouse. But, prior to going out and immediately purchasing the New York Life Guaranteed Future Income ll DIA – or any annuity, for that matter – it is essential that you first have an in-depth knowledge of just how the product works, as well as whether or not it will work for you. Throughout the past ten years, or so – and particularly since the great recession of 2008 – annuities have become much more popular, primarily as a method of generating an ongoing income stream for those who are in retirement. Yet, due in large part to this increased demand, there are many insurance carriers that have introduced more products out into the marketplace, and unfortunately, this can make what is already a confusing product even more so! Given that, unless your current insurance or financial advisor has a focus on working with annuities, it is highly recommended that you do some additional research on these products – especially the DIAs – as they can typically require you to commit a large amount of your savings. This is where we come in!
Annuity and Retirement Planning Information That You Can TrustIf this is the very first time you have visited our AnnuityGator.com website, then please allow us to personally welcome you here. We are a team of highly knowledgeable financial pros who are focused specifically on offering very in-depth and unbiased annuity reviews. We have been at this for quite a number of years now – much longer than our competitors – and because of that, we’ve become a go-to source for annuity information. If you have been in the process of compiling more information on an annuity that you’re considering purchasing, then you have more than likely come across a lot of conflicting information about these products online. This really is not surprising, though, as there is a myriad of details available about these products. There is also a wide range of opinions about them, too. It is also possible that you have attended a seminar about annuities recently, where the presenter there discussed the ins and outs of the New York Life Guaranteed Future Income ll Deferred Income Annuity (DIA) or some other similar annuity. It may even have been your attendance at that seminar that has ultimately led you here to our website in search of additional information. While you’ve been online searching for additional annuity details, you may also have noticed that, while there are plenty of very good annuity-related websites out there, some of them will make some pretty bold claims with the goal of “luring” you in. These may include some or all of the following:
- Highest annuity payouts
- Lowest Fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
New York Life Guaranteed Future Income ll Annuity at a Glance
|Product Name||Guaranteed Future Income ll Annuity|
|Issuer||New York Life Insurance Company|
|Type of Product||Deferred Income Annuity (DIA)|
|S&P Rating||AA+ (Very Strong)|
|Phone Number||(800) CALLNYL|
Opening Thoughts on the New York Life Guaranteed Lifetime Income AnnuityWith more than 170 years of service under its belt, New York Life Insurance Company is considered to be one of the largest and most respected insurance companies in the industry today. In 2016, this insurer brought in more than $1.95 billion in operating earnings, and held in excess of $23.3 billion in surplus and asset valuation reserve, making it a strong source of policyholder payments. That same year, New York Life held roughly $538 billion in assets under management, with over $956 billion in just individual life insurance in force. The company is proud of its conservative investment philosophy, and it prudently invests the premiums and fees that it collects on life insurance and annuity products for the long-term. In addition, while dividends are never guaranteed, New York Life has consistently paid out dividends to qualifying policyholders for 163 years. In 2017, the amount of these dividend payments (cumulatively) was nearly $1.8 billion. Based on its financial strength and stability, New York Life has consistently received the highest ratings from the insurer rating agencies, including:
- A++ from A.M. Best Company
- AAA from Fitch Ratings
- Aaa from Moody’s Investors Service
- AA+ from Standard & Poor’s
Before we get into the in-depth details, we have some legal disclosures to present…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. New York Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For more details on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How New York Life Describes the Guaranteed Future Income ll DIA AnnuityNew York Life Insurance Company describes the Guaranteed Future Income ll Deferred Income Annuity as a financial vehicle that can help you to meet the unique challenges of retirement. Like a pension plan, it can provide you with guaranteed income, helping you to build a retirement strategy on your own terms via a customized stream of income payments that will last for your entire lifetime – regardless of how long that may be. As with most DIAs, the Guaranteed Future Income Annuity from New York Life may be best suited for you if you are nearing retirement, but you do not need income (or additional income) now – but you do anticipate needing more income later. This product can help you to lock in that future guaranteed income stream that you need. This flexible premium deferred income annuity allows you to select a future date when your income will begin that is somewhere between two and forty years after the issue date. In addition, during the deferral period – which is the time between your initial investment and your income start date – you have the option to make subsequent contributions to the annuity at any time. This annuity also offers several additional options that can help you to further “customize” your retirement income strategy, and in turn, plan for your future income / financial goals and needs. For more of the in-depth details on the New York Life Insurance Company’s Guaranteed Future Income ll Deferred Income Annuity, you can take a look at the product literature HERE.
How a Financial or Insurance Advisor Might Pitch this Annuity to ClientsKnowing that income will be available far into the future, it is probable that if you’ve been offered the New York Life Guaranteed Future Income ll Deferred Income Annuity by an insurance or financial advisor, they placed a key focus on the fact that you won’t run out of income – regardless of how long you may live. Also, deferred income annuities will oftentimes offer substantially higher income payouts than immediate annuities. This is because your age when you start such payouts is typically older than it would be if you take income from a regular deferred and/or immediate annuity. Therefore, this too is a feature that an advisor might focus on when discussing this – or any – DIA annuity with you. But, before you move forward and make a long-term commitment to this annuity, there are some things that you should know that may or may not make the “tradeoffs” you’ll need to make worthwhile. As an example, by purchasing a deferred income annuity, you will usually be required to forfeit your principal in exchange for the future income stream you’ll receive. So, unlike many other types of annuities that automatically provide a death benefit to your named beneficiary (or beneficiaries), if you die before the receipt of income, the money will revert over to the insurance company. It is also important to note that deferred income annuities are not liquid financial vehicles. When you invest in this type of an annuity, you will usually completely forfeit the initial premium. In addition, because it could be up to four decades before you begin to take your income stream, it is possible that you may not live long enough to collect on the income stream. With that in mind, you really need to determine whether or not you want to take this big of a chance with your retirement savings.
The Annuity Gator’s End Take on the New York Life Guaranteed Future Income ll DIAWhere this annuity may work best: The New York Life Guaranteed Future Income ll Deferred Income Annuity may be a good option for you if you:
- Anticipate a long lifespan
- Will need retirement income in the extended future
- Are seeking a guaranteed income
- Have a shorter life expectancy
- Need to keep your money liquid for potential emergencies
- Do not plan to use the lifetime income feature