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New York Life Adds a Participating Individual Disability Policy

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What You Need to Know

  • Many New York Life customers qualify for a 5% premium discount.
  • The policy will pay benefits to disabled insureds up to age 67.
  • Medical professionals can treat their medical or dental specialty as their own occupation.

New York Life Insurance Company has introduced a participating individual disability insurance product.

The move means that agents and advisors can offer clients a chance to get paid for protecting themselves against the loss of the ability to earn a paycheck.

New York Life is a mutual insurer. A mutual insurer is owned by its policyholders. Instead of paying dividends to outside investors, mutual insurers pay dividends to the policyholders.

At some mutual life insurers, only certain types of life insurance policies pay dividends. New York Life pays dividends to longtime holders of a long-term care insurance policy it introduced in 2018, and it’s now built a dividend feature into the new MyIncome Protector disability insurance policy.

New York Life expects to pay dividends to holders of the new policy after the fifth policy year.

Details

The policy will pay benefits to disabled insureds up till age 67.

Traditionally, many purchasers of U.S. individual disability policies have been business owners, doctors and dentist.

The new policy includes two optional riders aimed at business owners.

One can pay a lump sum of cash, broken into part payments, to business owners who become totally disabled.

The other can cover the cost of business loan payments made while the business owner is disabled, and during the time period, or term, when the rider is in effect.

The policy also includes a feature aimed at medical professionals who want protection against the possible loss of their ability to handle their current specialty. Otherwise, a surgeon with “own occupation” coverage might be told, “Go become a psychiatrist!” after losing the ability to hold a scalpel.

The policy comes with a built-in “medical specialty own occupation” provision that lets a doctor or dentist who is in a recognized specialty have New York Life treat that specialty as the doctor or dentist’s “own occupation.”

New York Life also is trying to appeal to its current customers, by offering a 5% disability insurance premium discount to many current insurance and investment services customers.

The product is available in 42 states and the District of Columbia.

New York Life is offering the policy only through its own agents and advisors.

(Photo: Shutterstock)