Disability Insurance Providers/Carriers - NY Life Compared to Premier Providers

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Topic Author
TX1305
Posts: 1
Joined: Mon Oct 11, 2021 7:11 am

Disability Insurance Providers/Carriers - NY Life Compared to Premier Providers

Post by TX1305 »

I'm in the process of obtaining disability insurance, and was hoping I could get some insights on NY Life as a Disability Insurance provider (particularly relative to the premier DI carriers). I've done a lot of research on DI, both on these forums and outside of it, so feel comfortable about knowing what the main policy features I need are. I'm also aware the main DI providers are Guardian, MassMutual, Ameritas, Ohio National, Principal and Standard and I have received quotes for those (Guardian was over $1K more than anyone else so not really considering them). However, NY Life is coming in about $1K a year cheaper than most of that group. All else equal I'd prefer one of the top tier DI carriers, but the $1K annual savings is enough to make me really consider NY Life. My agent is a NY Life agent, though comprehensively quotes other providers and doesn't push NY Life (for example, I have Life Insurance with a different carrier through him). However, still want to get some perspectives outside of him.

My question is does anyone know of any limitations I should be aware of with NY Life - both as a carrier in general, but also in regards to specific policy language or limitations they generally have with their disability policies (this is one of their "MyIncome Protector" policies). Particularly if anything that negatively separates them from the name brand carriers in the space. I'm absolutely comfortable paying more for the well known providers if their policies are actually stronger, but don't want to pay more just for "brand" if NY Life's policy is actually ok (though not a premier brand in the space)

NY Life annual premium is coming in around $4K a year, Ameritas at $4,700, Standard/MassMutual at $5k and Principal at $5,100.

At a high level, but are the policy features in most of my quotes if its helpful context.
-Guaranteed Renewable and Non-Cancellable
-5A/6A occupation class (white collar desk job and no high risks/pre-existing conditions)
-Coverage until 65
-180 day elimination period
-$20K monthly benefit (well paid M&A profession; not doctor or lawyer)
-True "Own Occupation"
-COLA adjustment (MassMutual/NY Life have 3% compounding increase; Ameritas has 3% non-compounding; Standard/Principal have CPI tied rate)
-Enhanced/extended partial disability rider
-Residual benefit (Standard pays 50% of benefit for first 12 months if 20% or more of income is lost while rest are at 6 months. All companies pay a partial benefit to age 65 after that initial period. MassMutual will start paying benefit if I lose more than 15% of income)
-No limitations on mental/nervous disorders (Standard/Principal offer benefits for unlimited amount of time, while all others pay up to 24 months; I have never had issues here or family history of it, so not sure how valuable this is. If I drop Standard to 24 months, it will shave about $500 off their premium).
-Dividends (MassMutual and NY Life qualify to potentially receive dividends after 5 years, which is just an offset to the annual cost of the policy)
-Ameritas appears (need to confirm with agent) to net out SS disability benefits, so I'm likely removing them just for that (otherwise I'm paying similar cost as others for basically a ~$17K monthly benefit)
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