Independent Review of the New York Life Guaranteed Future Income ll Deferred Income Annuity
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
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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 Trust
If 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!
But, even though these claims may initially sound enticing, it is critical that you verify their validity before you move forward with buying an annuity. In doing so, you may have to read through a plethora of annuity fine print – or you could just read on right now.
If you’re interested in knowing more about the Guaranteed Future Income ll DIA from New York Life Insurance Company, then you are in the right place. In fact, dare we state that this is the only place online where you will be able to get all of the key details on this annuity – both the good and the bad. This, in turn, can assist you with making a much more well-informed decision about whether or not this annuity fits in with your overall financial goals.
Often, financial and insurance advisors who offer annuities will paint a nice, rosy picture for you regarding the opportunity to earn a high return, while also keeping your principal safe in case of a market downturn. But unfortunately, these same advisors may also be conveniently leaving out some of the details that could be considered as drawbacks – which is information that any potential buyer needs to know!
One reason for this knowledge is so that you can anticipate how the annuity may (or may not) perform in certain situations. Another is that, once you have committed to an annuity, it can be extremely difficult – and expensive – to get out of it if you change your mind.
Just to be entirely clear here, we want to state for the record that we do believe that annuities can be an essential component in your overall retirement income planning – as long as it fits in with your overall financial goals and needs.
That being said, this annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable regarding the New York Life Guaranteed Future Income ll DIA annuity and why it may or may not work for you.
So, if you’re ready to begin, let’s dive in!
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 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
With a deferred income annuity, the ups and down of the stock market will not affect the amount of future income you will receive. When you initially purchase a DIA, you decide when you wish to start receiving your income, and the insurance company will then guarantee you a set income that will start at your chosen date in the future.
Many deferred income annuities will allow you to make subsequent contributions into the contract. However, the way that these are factored into your future income can vary from one DIA to another. It can also be dependent on the frequency of such subsequent contributions into the annuity.
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 Annuity
New 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 Clients
Knowing 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 DIA
Where 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
Where this annuity works the worst:
This annuity may not be a good option for you if you:
- Have a shorter life expectancy
- Need to keep your money liquid for potential emergencies
- Do not plan to use the lifetime income feature
Because deferred income annuities (DIAs) will oftentimes provide a higher amount of income (as versus an immediate annuity), these financial vehicles can be attractive to many who are retired or who are approaching that time in their lives. However, just like with any other financial or insurance related product or service, the appropriateness will vary – sometimes significantly – from one investor to another.
If you are still leaning towards making a purchase of the Guaranteed Future Income ll DIA from New York Life Insurance Company, you can definitely be assured that you will have an income stream in the future that you can count on.
Yet, even with the nice guarantees that you can attain with the New York Life Guaranteed Future Income ll Deferred Income Annuity, this product could quite actually fall a bit short – and there may very well be a better alternative out there for you.
Really, the only way to get a better idea of how this annuity may perform, based upon your particular situation and needs, is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results. In order to receive this information, just simply contact us via our secure online contact form here.
Do You Have Any Additional Questions about the Guaranteed Future Income ll DIA? Did You Notice Any Mistakes in this Review?
We understand that this annuity review has run a bit on the lengthy side. Yet, we feel that it is always much better to provide a bit “too much” information that not to provide you with enough.
With that in mind, if you found this review to be beneficial, please feel free to forward it on and share it with anybody whom you think might also benefit from it. Likewise, if this annuity review has led you to have even more questions about the Guaranteed Future Income ll DIA (or any annuity), then please also let us know that.
Are there any other annuities that you would like to have us review?
No problem! There are lots of annuities available on the market today (with more coming out all the time). So, if there are any other annuities that are not currently in our Annuity Gator Review Database that you would like to know more about, then please just let us know and our team of annuity “geeks” will get right on it!
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