New York Life Final Expense Insurance Review

Fill out the Customized Quote if you want life insurance that won’t end for as long as you live-Not all New York Life Final Expense plans will last as long as you do!

If you are age 45 or older, you probably have received mail about the  New York Life Final Expense Insurance.  You can’t miss the bold red lettering at the top left corner of the first page. For what ever reason, they always ask you to apply by a certain date which really has no meaning.  The coverage will be offered anytime until you are age 74 or 80, depending on which plan they are marketing to you.

They have three types life insurance policies typically offered by direct mail.  You can never talk to the same person twice and you would never have a personal independent agent to get an objective opinion from.    Understand that the association is NOT the life insurance company.  New York Life is the life insurance company who is “endorsed” or “sponsored” by an association as their plan and their only company they recommend.

Unfortunately many people don’t realize the difference, or really understand what they are purchasing.  Most people take this coverage because it is Guarantee Issue or sometimes called Guaranteed Acceptance life insurance.  This means there are no health questions to answer.  The coverage that you choose is guaranteed.  There are several companies that offer Guaranteed Acceptance policies and many times they offer better benefits and/or lower premiums.

New York Life Final Expense Insurance may not the be your best deal!

Guaranteed Acceptance Life – Rates are NOT Guaranteed for the life of the policy! That’s what the paper application says directly under the table of rates per age. But when we checked out the website, it states that “Guaranteed rates will never increase”….who really knows the truth.  We also noticed that the the paper copy of the solicitation never says that it is whole life insurance.  It looks like whole life, but unlike any other company it does not specifically say “Whole Life” anywhere on the application or the solicitation.

The website says it’s “Guaranteed Rates Will Never Increase” but that’s really not true if it can go up as long as everyone else in that class is given the increase. If you want to know if it really can go up, all you need to do is call 1-800-865-7927. just ask them if the rates have ever gone up and for which policy the rate increase was for; Guaranteed Acceptance Life, Permanent Life or Level Benefit Term Life.

Nothing is that easy without a price to pay.  There is a reason that you don’t have to answer any questions for the Guaranteed Acceptance plan…  The benefits are limited during the first two years to a return of premiums paid plus 25% interest.  Let’s look at a few examples. Be advised that some states have a different death benefit for this plan.

Take for example a female, age 55 who purchased a Guaranteed Acceptance $10,000 at age 54.  If she died from natural causes in the 6th month of the policy, her beneficiary would only get about $303.68.  If she died in the 23rd month, it would only pay out $1,164.09.   If she qualified to purchase the same amount of coverage using and independent agent and they were able to get her an immediate, level death benefit, her beneficiary would have received $10,000.

Sometimes guaranteed acceptance life policies the applicants only way they can get covered, but they will never know if they just sign up for a policy through the mail or call directly in to get this policy.

These policies are not Guaranteed Issue plans and you must pass a limited number of questions.  Those questions are as follows:

1.  In the past  2 years, have you had treatment for or been diagnosed by a doctor as having heart trouble, stroke, cancer, lung disease or disorder, diabetes, live or kidney disease, AIDS, AIDS Related Complex, or immune system disorder?
2. In the past 2 years, for any condition, have you been admitted to or confined in a hospital, sanitarium, nursing home, extended care or special treatment facility?
3. In the past 3 months, have you consulted a doctor or had treatment or diagnosis or any type? (Note: You are not required to report negative AIDS or HIV tests.)

First of all, how many people do you know that have had absolutely no treatment of any type in the last three months.  Most everyone takes some type of medication for some reason.  Well, that’s treatment! So they likely would not be accepted right off the bat, and would probably only qualify for the Guaranteed Acceptance plan.  It’s almost like a bait and switch.  Who in there right mind would take such an inferior product if they could get a policy without a 2 year limited benefit period, or a policy with rates than can be beat over and over by other companies?

It’s all about convenience and ease.  Well if you use our independent agents, not only will it be easy and convenient, you’ll end up with a larger death benefit and a lower premium.  Don’t just go for the policy that is sent to you in the mail and it’s convenient.  If your going to do it, do it right and get the best final expense insurance your money can buy.

If a person does pass the health questions, and they take the “Level Benefit Term policy”, they better understand that the rates will increase every five year age band.  If you are 45 today, and think this will pay your funeral expenses when you die at age 85, think again!  The policy ends at age 80.  But not to worry……it’s not that likely that you would be able to pay the premiums once you reach those older age bands.

Just imagine a 45 year old paying 26.25 per month for $30,000 of term insurance who has to cough up 125.95 a month by the time they’re age 72, when statistically they need the coverage even more, and then at age 75 they have cancer or just had a heart attack and their left with nothing.  If that same person had to turn around and now buy guaranteed issue whole life insurance, they’ll likely pay $151.00 a month for only $15,000 of permanent life insurance.