Voya Life Insurance Review – Critical Update

If you are checking out our Voya life insurance review, you may be surprised to know that Voya stopped selling life insurance. We write numerous life insurance company reviews, and while not common, occasionally life insurance companies exit the business.

Our Voya life insurance review will cover why we think Voya left the individual life insurance industry and what this means for you if you own a Voya life insurance policy. We’ll also touch on a few of Voya’s now-legacy life insurance products.

Shall we begin?

Voya Life Insurance Review

Voya Life Insurance Company History

The life insurance brand known as Voya was spun off in 2013, but Voya was at one point part of ING US, the American branch of the Dutch financial company the ING Group, that was operating in the United States since the 1970s.  The companies name inspired by the word voyage to invoke feelings of progress, momentum, and optimism.

Voya Financial is based in New York, New York. Voya’s branding kept ING’s signature orange and issued life insurance products through ReliaStar Life Insurance Company of New York and Security Life of Denver Insurance Company.

Voya in 2018 made the decision to focus more on retirement planning and investment management. Subsequently, Voya stopped selling life insurance on the individual market.  This was a surprise to some in the industry, but only confirmed Voya’s commitment to retirement and investment markets.

Today, Voya Financial is a Fortune 500 company with over 6,000 employees. Voya manages approximately $205 billion in assets under management and has been given multiple awards for its friendly work atmosphere as well as its corporate citizenship and philanthropic efforts.

Voya Ratings and Financial Strength

Voya has received positive ratings from the major life insurance rating companies. A.M. Best Company issued Voya an A (Excellent) rating, which indicates that Voya is financially sound and has a strong ability to pay their claims.

Voya’s third-party ratings from Moody’s, Fitch, and the Standard and Poor’s are all investment grade as well.  Not every life insurance company subscribes to all the rating agencies, but Voya does.

Voya ReliaStar Life Insurance Company ratings:

A.M. BestMoody'sStandard and Poor'sFitch
A
A2
A
A

Voya Life Insurance Solutions (Currently No Longer Offered)

As we stated earlier in our Voya life insurance review, Voya stopped selling life insurance on the individual market. We will go into detail about a few of their legacy life insurance products and what you should do if you own a Voya life insurance policy.

Voya’s underwriting was fair, but nothing outstanding. They did not offer many no-exam life insurance options at the time. Times have changed however with companies like Sagicor offering non-medical underwriting up to $500,000.

Also, living benefits for critical illness and chronic illness have become increasingly more common in the industry, especially on term life insurance. Companies like Phoenix Life are leading the way in no-exam term life insurance with living benefits.

Voya Term Life Insurance

Term life insurance is perfect for covering temporary needs.  Many clients of our buy term life insurance when they are younger and need high death benefit amounts temporarily. Most term life insurance contracts come in 10, 15, 20, and 30-year increments.  Voya also offered a 25-year term option as well, which is not as common.

Most term life insurance contracts are pure insurance with no cash value or savings component. However, one Voya term life insurance feature that stood out was the Voya ROP Endowment Term that was available in 20, 25, 30-year term periods.

Voya’s ROP returned all the premiums that you paid into the policy to you at the end of the term period if you outlived the term. This endowment feature was attractive to a lot of clients who were turned off by the “use it or lose it” proposition of life insurance.

Voya also built in a conversion option into their term policies that allowed you to exchange your term life insurance with a permanent life insurance policy without having to show that you are insurable.

Voya Universal Life Insurance

Voya was also a major player in universal life insurance but did not offer a whole life insurance option. Voya offered universal life insurance, indexed universal life insurance, and variable universal life insurance.

Voya’s indexed universal life insurance policy was a popular contract because it allowed people to accumulate cash savings that participate in market gains with a floor of 0 if the market crashed.

Unlike variable universal life, which directly invests your cash value in investment market sub-accounts, with indexed universal life your principal is never directly invested in the market.

Voya also offered a universal life contract was designed as a more affordable alternative permanent death benefit option relative to whole life, and Voya also created a survivorship universal life insurance for estate planning purposes.

If you are a Voya indexed universal life policyholder and are concerned that your policy may not perform well in the future since Voya got out of the individual life insurance market, you may be able to move your existing cash value into a new life insurance policy through a tax-free transfer known as a 1035 exchange.

1035 exchanges or any life insurance replacement should be carefully evaluated before moving forward. You want to be sure that you are putting yourself in a better position than where you were. However, as new life insurance products enter the market, sometimes a move may make sense.

What Do You Do If You Own a Voya Life Insurance Policy?

We have seen a recent trend in the life insurance industry where insurance companies have exited the life insurance business lately due to low profitability and shifted their focuses on more profitable financial services like investment management and retirement planning.

Many of these life insurance companies, but not all, that have decided to exit the life insurance business are publicly traded like Metlife or Voya. They have pressures to return profits to shareholders in the short term, which may have influenced their decision to exit the less profitable life insurance market. So Voya stopped selling life insurance. What happens next?

Usually, two things happen after life insurance company decides to get out of the business of life insurance. They either sell their book of business to another life insurance company as MetLife recently did to Mass Mutual, or they continue to manage their book internally.

Voya has currently decided to maintain its book of business and service it instead of selling the book to another insurance company.  This means that if you have any service questions, you should still be able to contact Voya directly either on the web or at the Voya phone number 1-877-886-5050.

If you own a Voya life insurance policy, should you be concerned now that Voya stopped selling life insurance? Even though Voya is no longer selling life insurance, that does not necessarily mean that they are unable to pay out the claims that they already promised. Voya should have plenty of cash reserves to pay your death claim when the time comes.

Where we could see a potential issue arise is in the service department. We would not expect their legacy life insurance block to be a high priority from a customer service standpoint. Competitive features like the cap on indexed universal life, interest rates or dividends on whole life policies could be negatively affected. Also, your term life insurance conversion options could be limited or may even eliminate.

We suggest reevaluating your life insurance needs every couple of years or if you have a life-changing event. It may make sense to replace your old Voya policy at some point if your health allows.

Final Thoughts: Is Voya Life Insurance a Bad Deal?

Thank you for reading our Voya life insurance review. The more things change, the more they stay the same. No life insurance company stays on top forever.  Underwriting tightens and loosen. Rates go up and down. However, establishing a relationship with a good insurance professional can help you withstand the sands of time.

Voya life insurance had certainly had pros and cons back in the day, but that time has passed. If you have a Voya policy, this may be a good time to reevaluate your life insurance needs.  There are options available today that may not have been available when you purchased your policy originally, like living benefits life insurance or no-exam term life insurance.

Our life insurance agency is independent of any one life insurance company. We work with life insurance companies, not for them. We compare the rates of over 25 top-rated life insurance companies and are on the cutting edge when it comes to life insurance news.

You can request a free no-obligation quote on our website or give one of our experienced agents a call. We will give you our honest opinion on your Voya life insurance Quote and could potentially save you money in the process.

FILED UNDER – LIFE INSURANCE COMPANY REVIEWS

Resources: Voya

Joseph Cirillo of Good Life Protection

Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs.  Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.