What Will We Cover in this Annuity Review?In this annuity review, we will be covering the following details regarding the New York Life Guaranteed Period Income Annuity ll:
- 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’ve been in the process of considering the purchase of an annuity because you are seeking guaranteed income in retirement that you know you can count on for a certain period of time, then the New York Life Guaranteed Period Income Annuity ll could be a viable option for you. But, prior to running out and plunking down a large chunk of your retirement savings into this financial vehicle, you should first have a more in-depth understanding about how this product works – and how it may or may not ultimately work for you. Over the past several years, immediate annuities have become much more popular with those who are fast approaching retirement. This is primarily due to annuities’ guaranteed income feature. In some cases, the income that you receive from an annuity can last for the remainder of your lifetime. In other instances, though, you may only require a temporary source of guaranteed income. The New York Life Guaranteed Period Income Annuity ll can get that job done. Due in large part to the increased popularity of – and in turn, demand for – annuities, there are much more insurance and financial professionals who are offering them. This, however, may not necessarily be a good thing. Even though most financial and insurance professionals work hard to do the right thing for their clients, they may not always be able to offer you all of the key details about annuities that you need in order to make a well-informed purchasing decision. But, having a good grasp on both the good and the bad aspects of annuities is necessary for determining whether or not an annuity is really right for you – and if so, which type of annuity may serve you best. This is where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information That You Can TrustIf this is the first time you have visited our website, we would like to personally welcome you here. We are a team of knowledgeable annuity pros who are focused on providing our visitors thorough – yet non-biased – annuity review. We have been at this for a number of years now, much longer than our competitors. So, we have become a highly trusted source of annuity information. If you have been in the process of seeking annuity info online, then it’s likely that you have at some point run across conflicting information regarding these financial vehicles. This, however, is not entirely surprising, because there are many, many annuities out there in the marketplace, and there are numerous opinions – both good and bad – about them. There are also a fair number of “copycat” websites out there on the Internet today that is really only repeating the information that you can find here first. It may also be that you have recently attended an annuity seminar, where the presenter offered you a free lunch or dinner in return for presenting you with details about annuities. In fact, because of going to that event, you may now be looking for more information. And in doing so, you’ve landed right here on our website. If you really want to learn more about the New York Life Guaranteed Period Income Annuity ll, you are in the right place. In fact, we dare say that the website you are on right now is the only place on the Internet where you can find all of the key details that you require about this annuity – including the good, the bad, and even the ugly. But this can provide you will all of the information that can lead you to a more informed buying decision. Oftentimes, when an insurance or financial rep is presenting annuities to their clients, they tend to highlight the good and positive features, while glossing over the potential drawbacks. We want to make sure that you get the whole picture. Just to be perfectly clear, we feel that there are numerous benefits that can be gained from annuities. But this is really only the case if the annuity you purchase is in line with your ultimate financial goals – both short and long-term. This annuity review is here in order to help you with obtaining a more in-depth understanding of how the New York Life Guaranteed Period Income Annuity ll works. So, if you’re ready to dive in, let’s go!
New York Life Guaranteed Period Income Annuity ll at a Glance
|Product Name||Guaranteed Period Income Annuity ll|
|Issuer||New York Life Insurance Company|
|Type of Product||Immediate Fixed Income Annuity|
|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 Period Income Annuity llNew York Life Insurance Company describes the Guaranteed Period Income Annuity ll as an immediate annuity that guarantees income payments for a chosen period of time. The minimum amount of the initial premium can range between $5,000 and $1 million, and the product can be used with either qualified or not-qualified funds. You can choose to receive a set amount of guaranteed income for anywhere between five and thirty years. There are also some special features with this annuity, including:
- Annual Increase Option – The Annual Increase Option allows most of the policy owners to have initial income start at a lower amount, with payments then increasing each year between 1% and 10% throughout the life of the policy. Doing so can help to neutralize the impact of inflation as living expenses increase over time.
- Payment Acceleration (for non-qualified policies with monthly payments) – This feature allows the policyholder, after age 59 1/2, to receive the next scheduled payment, along with two subsequent payments – for a total of three months of income payments all at one time. When this option is exercised, income payments will not be made for the following two months. (Note that this feature may only be exercised one time during the life of the annuity).
- Up to 100% Cash Withdrawal Feature – With this feature, the policyholder, after age 59 1/2, may withdraw up to 100% of the discounted value of the remaining guaranteed payments at any time within the guaranteed payment period. Once this option is exercised, all future income payments through the end of the guaranteed payment period will be reduced by the withdrawal percent that has been elected. As with the above, this option may only be exercised one time during the life of the annuity.
How an Insurance or Financial Advisor Might “Pitch” this AnnuityHaving certain guarantees in life can be nice. This is especially true when it comes to your finances. The New York Life Guaranteed Period Income Annuity ll offers various guarantees – including the receipt of a regular income for a temporary time period that you select (from five to thirty years). But while it can be nice to know that you can fill in the income that you need during a set time frame, the reality is that you may be required to make some “trade-offs” in order to get such guarantees. For instance, if you take a close look at the “fine print,” the cash withdrawal amount is subject to an interest rate adjustment that could decrease the withdrawal amount based in the change in interest rates (as measured by the 10-Year Constant Maturity Treasury Index, or CMT), between the time that you purchase the annuity and the time that you elect to receive the cash withdrawal.
What About Any Taxes, Fees, or Penalties that May Be Associated with this Annuity Product?It is also important to keep in mind that, even though you may be filling in income, for instance, after you retire but before you are eligible for Social Security benefits, if you purchase this annuity and you use features such as the Payment Acceleration and the Cash Withdrawal option before you turn age 59 1/2 – and you exercise these features within five years from the date of the first annuity payment, then a 10% penalty tax (plus interest) may be imposed retroactively on any of the payments you receive prior to age 59 1/2.
The Annuity Gator’s End Take on the New York Life Guaranteed Period Income Annuity llWhere this annuity works best:
- For those who need income for a set period of time (such as to ensure that income will continue after retiring, but before starting Social Security benefits)
- For those who already have a lifetime stream of income in place
- For those who need income to last for an indefinite/unknown period of time – such as for the remainder of their lifetime
- For those who do not plan to use the annuity for income at all
- For those who have less than $5,000 to make the initial premium