These FAQs are designed to give an overview of the Policy Owner Accommodations Program developed during this time of uncertainty due to the outbreak of the coronavirus (COVID-19). Visit www.newyorklife.com/newsroom/covid-19-faqs to get the latest updates.
Please note that the FAQs were updated on 10/25/2021.
On April 24th, 2020, New York Life announced additional policyowner protections: the 12-Month Repayment Program and the Financial Hardship Program. The programs work differently depending on when your policy should have lapsed, foreclosed, or entered the grace period.
Any policy that was issued and had the first premium paid prior to March 24th, 2020, and that would have lapsed, foreclosed or entered the grace period between March 24th, 2020 and June 23rd, 2020 was able to enroll in either the 12-Month Repayment Program or the Financial Hardship Program:
12-Month Repayment Program
This repayment plan gives you the ability to pay for any scheduled premiums on Whole Life and Term policies that were due but not paid during the Do Not Lapse Period to repaid over a 12-month period. Similarly, this program allows Universal Life and Variable Universal Life policies to pay Monthly Deduction Charges that were due but not paid during the Do Not Lapse period, plus an amount to keep coverage active for an additional two months to be repaid over a 12-month period. This balance is called the “Total Repayment Amount”. There is no proof of financial hardship required for this program. The easiest way to get more details about this program is to visit https://www.newyorklife.com/articles/repayment-programs-terms-and-conditions.
The full terms and conditions for how the program works can also be found here; however it is important to understand the following details:
Financial Hardship Program
You may qualify for additional assistance if you can demonstrate financial hardship due to COVID-19. You can elect to apply for an extended Do Not Lapse period for up to an additional 90 days. After that time, you will automatically be enrolled in a 12- or 24-month interest free repayment plan. The easiest way to get more details about this program is to visit https://www.newyorklife.com/articles/repayment-programs-terms-and-conditions.
The full terms and conditions for how the program works can also be found on here, however it is important for you to know the following:
Policies that are Paid to Date through June 23rd, 2020 (the end of the Do Not Lapse period) and either miss a premium payment (Whole Life and Term) or enter the grace period (Universal Life and Variable Universal Life) between June 24th, 2020 and December 31st, 2020 are only eligible for the Financial Hardship Program
In this situation, the Financial Hardship Program will differ from the description above as follows:
3VUL policies that fail monthly deduction processing due to unpaid loan interest will receive an additional 59 days beyond the contractual grace period.
In most cases, no.
For Whole Life/Term policies: Reducing the face amount of your policy may reduce the required future premium payments, but it will not reduce the Total Repayment Amount, which accounts for past due amounts.
For Universal Life/Variable Universal Life policies: In most instances, reducing the face amount of your policy may reduce the required future monthly deduction charges, but it will not reduce the Total Repayment Amount, which accounts for past due amounts. However, if the client reduced the face amount prior to the policy’s past due charges being put into the policy, it may result in them having a lower Total Repayment Amount due.
No, it is not. The Total Repayment Amount is calculated without the scheduled OPP premiums being included.
If loan interest due caused your policy to enter the grace period, then yes, the Total Repayment Amount will include that loan interest.
The Total Repayment Amount that is calculated for Universal Life policies with an NLG Rider will be the same as those policies without an NLG Rider. The Total Repayment Amount will be based on the contractual amount required to get the policy out of the Grace Period. The required NLG amount will not be factored into the calculation.
This means that the Total Repayment Amount calculated for Universal Life policies will be equal to any amounts that were due and not paid during the temporary pause plus an amount to keep coverage in force for an additional two months. In some instances, this amount will be greater than the required NLG amount and in other cases it will be lower than the required NLG amount.
Yes. You can make additional payments to reduce the amount you owe. This will not decrease the future monthly repayment amount but will shorten the number of payments you need to make.
No, this is an interest free repayment program, so a discount is not available..
Yes, you can make one-time EFT repayments for your WL, Term, and UL policies through MyNYL.com or by calling the Service Center.
Unfortunately, at this time, EFT repayments cannot be automated, and EFT repayments are not available for VUL policies. For VUL policies, the only method of payment is via check.
Yes, you can make a repayment by signing into your account on newyorlife.com and scheduling a one-time EFT payment for most products. If you own one of the following products, you will not be able to make the repayment via the New York Life website:
All bills will be sent on or around the 22nd of each month and due on the 15th of the following month. For example, our first Monthly Repayment bills will be sent out on or around August 22nd, 2020 and have a due date of September 15th,, 2020.
These bills will be separate from the regular premium billing notices you receive.
No, you will not be able to make a payment via the Voice Response system. However, you can talk to a Customer Service Professional to make a one-time payment.
Yes, you can replace your coverage during the repayment period. You can carry over your policy’s cash (surrender) value, but it will either be reduced by any remaining Total Repayment Amount or you will have to repay any remaining Total Repayment Amount.
If you replace a Term policy to another Term policy within New York Life, you will be required to pay any remaining Total Repayment Amount before the replacement will be processed.
If you opt into one of these programs, any Total Repayment Amount remaining will be deducted from your policy’s death benefit upon the death of the insured. Additionally, any repayment amounts due, but not paid will be excluded from the cash surrender value and the loan value.
For full details, please refer to the terms and conditions which can be found here. You can also contact your agent or call us.
No, you cannot convert your Term policy or Term rider – either a partial conversion or a full conversion – until the outstanding Total Repayment Amount is paid off.
No, you cannot increase the Face Amount of your policy until the outstanding Total Repayment Amount is paid off.
Yes. If your policy has available cash surrender value, you can take a loan or partial surrender while enrolled in these programs. Please note, that any repayment amounts due but not paid will be excluded from the cash surrender value and the loan value.
No, you will still be responsible for their Monthly Repayment Amount.
Yes, you can. Please note that you will still be obligated to meet the 90-day elimination period for CCR claims and may have your first month’s acceleration reduced by the amount of missed premiums or unpaid charges.
Yes, you can still partially POP your policy. You will be responsible for any additional premiums due as well as the monthly repayment amount due.
Click here to see full terms and conditions
1For Business Solutions products, Employee’s Whole Life policies are treated as Whole Life, and Employee’s Adjustable Life policies are treated as Universal Life. Additional information on worksite-sold products, including Group Employee Benefits is provided on the Business Solutions Covid-19 Resource page Agency Portal.
2Asset Flex/Preserver policies with loans will generally follow Universal Life/Variable Universal Life process, Asset Flex policies on a scheduled planned premium will generally follow the same process as Whole Life policies. For Standalone Long-Term Care insurance policies, please contact the Long-Term Care Call Center at 1-800-224-4582.