What Will We Cover In This NY Life Annuities Review?
In this New York Life annuities review, we will be covering the following details regarding the New York Life Guaranteed Lifetime Income Annuity II including:
- 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.
Today, it is not at all uncommon to spend 20 or more years in retirement. Yet, while that can have a number of positives – such as spending more time with family, and giving you time to do the things that you truly enjoy doing – without a stream of income that you can count on for the long-term, this time in your life may not be quite so enjoyable.
An annuity can help you to make sure that you won’t run out of income – regardless of how long you may need it. But before you move forward with the purchase of an annuity, it is important that you realize that these products are not all exactly the same.
In addition to that, annuities tend to be fraught with page after page of “fine print” regarding how they work, when you can get your money back out, and how much it will cost you for all of the guarantees.
Plus, because some annuities can require you to deposit what could be a large chunk of your retirement savings, you really need to know what you are getting into, and what you can anticipate from the product.
Rather than having to read over every inch of the small print for various New York Life annuities contracts – which can be about as exciting as getting a root canal – we can help you to get a much better idea of whether or not this financial vehicle may be the right one for you.
Annuity and Retirement Income Planning Information That You Can Trust
If you have never been to our website, let us first welcome you here to AnnuityGator.com. We encompass a team of experienced and knowledgeable financial professionals who focus on providing highly informative and unbiased annuity reviews.
While you may have noticed other similar websites on your quest for annuity information, we’ve actually been offering product reviews for many years – far longer than our competitors have. Because of that, we have become a highly trusted source of annuity information online.
It is possible that recently, you have been presented with New York Life annuities, and more precisely with the Guaranteed Lifetime Income II by your current insurance or financial advisor. It could also be that you have attended an annuity seminar where the presenter talked about this or a similar annuity, in return for a “free” lunch or dinner. In this case, though, nothing is truly free. So, if you were persuaded to consider this annuity, it is essential that you first check it out.
In researching annuities online, you may have come across other annuity websites – many of which tout some pretty bold claims about their annuities, such as:
- Highest income payouts
- Low Fees
- Top-rated annuity carriers
But unfortunately, rather than present you with all of the pertinent details about the annuities that they’re marketing, these sites would rather just highlight the good features, in order to get you to provide your contact information.
Yet, as appealing as some of these claims may be, you absolutely, positively need to know both sides of the story when it comes to annuities. This means understanding that, while the Guaranteed Lifetime Income Annuity II, a very popular New York Life annuity, has some positive features, there are also some areas where this annuity will have some drawbacks.
But, even though most insurance and financial services reps try to do what is best for their clients, they may only focus on the positive features of a product, while leaving out the bad and the ugly.
Our New York Life annuities review here on annuitygator.com will present you with both the good and the bad – which in turn, will allow you to make a much more well-informed decision as to whether or not the New York Life Guaranteed Lifetime Income Annuity II will work for you.
So, if you are ready to get started, let’s begin!
New York Life Guaranteed Lifetime Income Annuity II at a Glance
|Product Name||Guaranteed Lifetime 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 New York Life Annuities. The Guaranteed Lifetime Income Annuity
With 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
Over the past decade or so, many employers have eliminated their defined benefit pension plans, which in turn, has erased some of the assurance that people have for getting a set, ongoing income in retirement. Because of that, many people must fend for themselves and set up such an income. Otherwise, they run the risk of living the remaining years of their life not knowing if – or when – their income stream will run out.
An immediate fixed annuity can help to solve this worry. However, not all of these financial vehicles are the same. This is why it can be advantageous to research any annuity that you’re considering, as well as the company that is offering it, prior to committing to it.
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 sell any of the New York Life annuities. 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 Lifetime Income Annuity II
New York Life describes the Guaranteed Lifetime Income Annuity II as a single premium immediate annuity (SPIA) that provides a stream of guaranteed income payments for the life or joint lives of the annuitant(s). It is an irrevocable contract in which New York Life Insurance and Annuity Corporation promises to make income payments to you for as long as you live.
Purchase payments into this annuity can be as low as just $5,000 and as high as $1 million. When the annuity is converted over into an income stream, you have the option of increasing the amount of that payment, anywhere between 1% and 10% per year. This can help to lessen the impact of future inflation and can assist with keeping your purchasing power on pace.
There is also a Changing Needs Option on this annuity, which allows the policy owner the opportunity to decide (at the time of issue) to have income payments adjusted at a particular point in the future. (These adjustments may be up or down).
If the Income Enhancement Option is chosen, the policy owner can increase their income benefits, if interest rates rise, even though the annuity was purchased in a lower interest rate environment.
If you want more of the in-depth details directly from New York Life, you can take a look at the product brochure and fact sheet HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
When it comes to your financial matters, it can be nice to know that you can count on at least some guarantees. The New York Life Guaranteed Lifetime Income Annuity ll offers various guarantees, including one that allows you to continue to receive income for life.
Given that, especially as many retirees worry about running out of income in retirement, it is likely that an insurance or financial advisor who is presenting you with this annuity will focus on its income guarantee.
But, even though this may put your mind at ease, the reality is that you may be required to make some “trade-offs” in order to get such guarantees. In the case of this particular annuity, because it is an immediate annuity product, you will have to convert the funds over into income within the first 12 months of purchase – which means that you can miss out on long-term tax-deferred or tax-free income growth here.
In addition, with an immediate annuity, as with most other annuities, you will be committed to the contract once your free look period has expired. In this case, though, you will be either restricted or barred altogether, from getting any refund or your principal. So, this hits home even more than you absolutely have to consider an annuity a long-term commitment.
In addition to that, if you purchase an immediate annuity, and you pass away soon afterward, you won’t receive any of the benefits of the future payments that were expected. So, while you could end up receiving income for an indefinite period of time, keep in mind that this could be very long or very short.
What About Any Taxes and/or Fees on the Guaranteed Lifetime Income Annuity II from NYL?
You could also face some taxes and/or fees on the Guaranteed Lifetime Income Annuity II from New York Life. Here, if you purchase an immediate annuity with after-tax dollars, then each of your annuity income payments that are made will consist of both a taxable income portion and a return of premium portion (which is non-taxable).
The Annuity Gator’s End Take on the New York Life Annuity: Guaranteed Lifetime Income
Where this annuity works best:
Although an immediate annuity may not be the ideal solution for everyone’s needs, this product could be a good option for you if you are seeking the following key benefits:
- A reliable income stream right away (or one that starts within 12 months after purchasing the annuity)
- A place to move funds from an IRA, 401(k), or other types of retirement plan so that you can convert it from a lump sum of savings into income
- A solution to the worry about running out of income in retirement
Where it works the worst:
Even though the Guaranteed Income Annuity II from New York Life Insurance Company offers some nice benefits, this particular annuity may not be for you if you:
- Have less than $5,000 to deposit
- Feel that you may need some (or all) of your funds for other needs
- Do not plan to use the annuity for income
If you have been thinking about purchasing an immediate fixed annuity, but you have been hesitant to move forward because you just aren’t sure if it is the right one for you, it is important that you obtain a good understanding of just exactly how the product works.
The good news is that if you are considering New York Life annuities, the Company’s Guaranteed Lifetime Income Annuity II assures you that you will have an income for as long as you need it, based upon the income payout option that you choose.
This income may also be set to cover two lives – so in this case, for instance, both you and your spouse could be covered with a known income stream for as long as each of your lives. In addition, there are also potential legacy options here for your named beneficiaries.
Even so, though, the only way to really know whether or not this annuity will work well for you and your situation is to have it tested. We can perform this testing for you, using our annuity calculator, and we will provide you the results at no charge or obligation. If you are interested in this information, just simply let us know here through our secure online contact form.
Do You Need Any Additional Information on the New York Life Guaranteed Lifetime Income Annuity II? Did You Happen to Notice Any Mistakes in this Annuity Review?
We realize that this annuity review was a tad bit on the long side – and for that, we thank you for sticking with us. But we would much rather provide too much detail on an annuity than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it on to anyone else that you think may benefit from it, too.
Also, as humans will often do, we also understand that information about annuities can change quickly. Therefore, if you happened to notice any details in this review that were out of date or that need correction, please let us know that as well, and we will get it fixed quickly.
Are there any other annuities that you would like to also see reviewed?
If you have been shopping for annuities, it is possible that you’ve been presented with several different options. So, if you’ve come across any other annuities that are not included in our review database, please let us know that, too so that we can do our research and analysis, and add it to our site.
The Annuity Gator
I have NYL annuity similar to this. I researched for 2 years and went to 3 different advisors, basically wife and I get guaranteed 5.5% return on principle and about 2% dividend which will probably increase as interest rates normalize.
I put about half of my 401k into this and sleep easy at night.
There is no way in 2019 you get guaranteed income on principle of 5.5.
If that were the case, nobody would buy a bond in this economy. And 2 percent dividend. Is this product still available and what are the real guarentees??
Hi Mark– Thank you for your comment.
We would be happy to help with any of the questions you have regarding the New York Life Guaranteed Lifetime Income Annuity. We can also help you determine if this annuity is right for you. We will be in a better position to know that after getting some additional information from you. Rather than sending sensitive personal and financial details back and forth via email, though, it would be best to discuss via phone. Please feel free to reach out to us directly at (888) 440-2468. Or alternatively, you can contact us by going to https://annuitygator.com/contact/ and letting us know what time works best for you.
We look forward to chatting with you.