PRODUCT: NYL My Care

COMPANY: New York Life Insurance Company

BEST RATING: A++ (Superior)

AVAILABILITY: Coverage is available through New York Life-appointed agents who are qualified to sell long-term care insurance.

FOCUS: Traditionally, standalone long-term care insurance has targeted the affluent. But New York Life saw a need to provide this valuable coverage to middle-market consumers at a price point that suits more peoples’ budgets.

In response, the company recently launched NYL My Care—“a simple, affordable LTC planning solution which offers comprehensive coverage for the largely underserved middle market,” says Aaron Ball, vice president, New York Life Long-Term Care.

The first-of-its-kind LTCi product features design concepts similar to other types of insurance, including a deductible and coinsurance, and offers the benefit of a dividend at the end of the third policy year, which can help offset future premiums.

“The innovative design means more risk sharing between the customer and the company, which results in lower premiums than most traditional LTCi policies,” explains Ball, who notes the average monthly premium is in the $100-150 range but can get as low as $20.

NYL My Care also replaces the typical LTCi policy’s elimination periods with a one-time deductible.  Reimbursement of covered expenses begins once the deductible is satisfied; then, the deductible never needs to be met again.

“Transitioning from an elimination period to a one-time cash deductible provides greater transparency for the consumer, since the policyholder will know the amount of any out-of-pocket expense,” Ball points out.

New York Life has been in the LTCi industry for more than 30 years. NYL My Care adds to New York Life’s existing suite of LTC and chronic care planning solutions, which includes a linked-benefit life and LTC policy, a chronic care rider and NYL Secure Care, an additional standalone LTCi policy.

COVERAGE DETAILS: NYL My Care covers a wide range of long-term care needs, including home care, community-based care and facility care, and offers four pre-designed plan levels: bronze, silver, gold and platinum. Insureds can choose the level of coverage that’s right for their personal situation and risk tolerance, and can further personalize their plans through riders and customized options. They also have the option to increase their coverage in the future. 

Additional NYL My Care benefits include:

• Return of premium up to age 65: returns premiums the insured has paid (minus claims and dividend payments) to their beneficiary if the insured dies before age 65
• Waiver of premium: covers the insured’s premium payments after they’ve satisfied the deductible and start receiving certain benefits
• Care plan benefit: provides access to an experienced care planner to work with the insured and their family on developing a plan of care
• In-home support equipment: pays for the purchase or rental of devices that may enable the insured to remain at home for care

NYL My Care also includes an annual offer to increase based on the prior-year change in the Consumer Price Index-Urban rate. Several additional inflation protection options are available for an additional premium. Insureds may add coverage to the same policy up to age 70.

UNDERWRITING: Individuals who apply for LTCi will complete an application with an agent and have a follow-up telephone health screening. New York Life then orders medical records and requests prescription drug information.

“Depending on the applicant’s age or responses to health questions, they may also be required to participate in a cognitive screening and/or a mobility exercise,” Ball adds.

Additional requirements may also apply to those age 59-68 who have not seen a physician within the past two years.

MINIMUM PREMIUM: N/A.

TARGET: Middle-market consumers who are looking for a comprehensive LTC solution to enhance their financial plans but may not be able to comfortably afford other LTCi policies.

“We encourage people to plan for LTC when they are younger and healthier and more likely to be approved for coverage,” says Ball, who notes that the product is particularly attractive for planners who are seeking to lock in coverage while still paying mortgages, college tuition or other ongoing, pre-retirement expenses.

COVERAGE TERRITORY: All states except AZ, CA, DC, FL, IN, HI, MT, NJ and NY, most of which New York Life expects to roll out in 2019.

CONTACT: Kevin Maher, New York Life Insurance Company; 212-576-6955; newyorklife.com.

Jacquelyn Connelly is IA senior editor.