NEW YORK--(BUSINESS WIRE)--New York Life today announced the launch of an enhanced Asset Preserver1, a life insurance product that provides a way to help cover the costs of long-term care, provide liquidity, and leave a legacy for heirs. This product is designed to help individuals guard against today’s surging costs of long-term care, including nursing home care, assisted living and extended at-home care, while enjoying the traditional benefits of permanent life insurance.
Unlike a traditional long-term care insurance product funded by premiums on a monthly or annual basis, Asset Preserver is a single premium universal life insurance policy that accelerates the death benefit, income tax free, to help pay for long-term care expenses if the need arises. Any remaining death benefit passes to beneficiaries and is usually income tax-free. Also included in the product is a money back guarantee feature which allows the policyholder to maintain liquidity.
The new product offers an optional Extension of Benefits Rider2, which is a valuable added protection that increases the pool of long-term care dollars and provides coverage for 24 additional months, which can result in up to 70 percent more long-term care coverage if needed.
“We are committed to helping consumers protect themselves and their assets. For those pre-retirees or retirees with money that is currently earmarked for bequests to family members or is otherwise idle, Asset Preserver is a way to reposition those assets to immediately leverage the money in the form of a death benefit and a pool of long-term care assets. Whether it is used to cover long-term care costs or provided to beneficiaries as a death benefit, the money is going to stay with their family,” said Craig DeSanto, senior vice president, New York Life. “With Americans living longer and the cost of long-term care increasing, we have seen a trend among consumers to take advantage of hybrid products that provide the ability to do more with their dollars. In fact, from approximately $500 million in 2006 to nearly $2.5 billion in 2012, hybrid products have seen a 400 percent increase in sales.3 We expect sales of these products to grow substantially in years to come.”
Clients can use Asset Preserver in a variety of ways. The policy offers a wealth of benefits, including:
- Immediate increase in funds available to help pay for long-term care expenses through tax-free acceleration of the death benefit, if needed;
- Flexible coverage for qualified long-term care expenses since individuals can select income tax-free monthly benefit option packages to suit their needs;
- Long-term care expenses have been expanded to include: durable medical equipment, and long-term care services outside the United States, in addition to home health care, family care, adult day care, assisted living facilities, hospice care and nursing homes;
- Lifetime money back guarantee.4 Policyholders are guaranteed to never get back less than the premium paid upon full surrender;
- Minimum death benefit guarantee; and
- New Extension of Benefits Rider, which is an option at purchase that provides a richer long-term care benefit.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States5 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).6 Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments7 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information.
1 NYLIAC Asset Preserver® is issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company.
2 Available at issue ages 30-74 only for an additional cost.
3 LIMRA. Life/Combo report annually, January from 2007 through 2012.
4 Guarantee is available as long as no policy loans or partial cash surrenders have been made, and no long-term care benefits have been paid.
5 Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 20, 2013. See http://money.cnn.com/magazines/fortune/fortune500/2013/faq/?iid=F500_sp_method%20 for methodology.
6 Individual independent rating agency commentary as of 2/3/14.
7 New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.