Generally, individual and group life insurance policies, health insurance policies, annuities, and funding agreements issued by life and health insurance companies licensed to do business in New York State are covered by the New York Guaranty Corporation. For more information about coverage or if you have a lost or old policy, call us at 21 or email us at contracts are covered? Limits on benefits and coverage are established by state law. The New York Guaranty Corporation covers individual policyholders or annuity holders and their beneficiaries, persons holding certificates of insurance issued under group insurance policies or group annuities, payees under structured settlement annuities, and employers or others who own group annuity contracts or funding agreements. All 50 states, the District of Columbia, and Puerto Rico have life insurance guaranty associations or corporations. If a member company becomes impaired or insolvent, money to continue coverage and pay claims is obtained through assessments of the guaranty corporation's other member insurance companies. All life and health insurance companies licensed in New York to write life and health insurance are required, as a condition of doing business in the state, to be members of the guaranty corporation. The Life and Health Insurance Company Guaranty Corporation of New York (the New York Guaranty Corporation) was created by the New York Legislature in 1985 to protect New York state residents who are policyholders and beneficiaries of policies issued by an impaired or insolvent life and health insurance company, up to specified limits. “I found riders that were more expensive from lesser-rated but strong companies, and riders that were more generous at a similar price, but none of which had the same rating as New York Life,” he said.What is the Life Insurance Company Guaranty Corporation of New York? Alexander found the Clear Income rider to be on par with what’s available in the indexed annuity market, but he added that advisers need to consider rider fees and insurer ratings when comparing products. Whether a client will end up with better results in a fixed annuity with a living benefit and roll-ups or in an indexed strategy with a cap and similar living benefit features is less clear, however, he said. “This would be for someone who is conservative, closer to retirement and looking for a guaranteed floor of income at retirement,” Mr. Both products are aimed at similar consumers. Given the novelty of the New York Life product, Jeremy Alexander, president of Beacon Research, noted that it would be logical to compare it to what’s available in the indexed annuity market. Moderate allocation and conservative allocation were in first and second place, respectively, for where variable annuity net assets were invested.Ĭlear Income came out in October, but has not been announced. show that during the third quarter of 2014, fixed accounts ranked third in terms of market share of total net VA assets, accounting for 9.34% of assets. Goldstein noted that while variable annuities offer upside opportunity, since clients can invest in the equity markets, investors tend to put a large portion of their VA assets in fixed accounts, which credit a fixed rate of interest. Given the combination of Clear Income’s rates and roll-up, “our guaranteed product compares favorably to the variable annuity,” Mr. “We think about the variable annuity market, which is still $80 billion a year in sales,” said Ross Goldstein, managing director at New York Life’s retail annuities marketing division. The life insurer has its eyes on the market for variable annuities with living benefits. The withdrawal rate is tiered and sits at 5.25% for clients aged 65 to 69. That additional feature costs 75 basis points. What’s different is that the insurer is offering a guaranteed lifetime withdrawal benefit, a feature that grows clients’ income benefit base - the notional number used to calculate withdrawal benefit payments - for up to 10 years at 5%. The surrender schedule for the product spans seven years. New York Life Insurance Co.’s Clear Income acts like a traditional fixed-rate annuity: It grants a guaranteed initial interest rate for a seven-year period, after which clients are up for an interest rate that renews every year. And it might be a good competitor against a number of existing variable and indexed annuities. Here’s something you don’t see every day: a fixed deferred annuity with a guaranteed lifetime withdrawal benefit.
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