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How to Apply for a New York Life Annuity Loan

Step 1 – Decide how much you would like to borrow from your New York Life annuity.
Step 2 – Fill out and submit a “Policy Loan Request.”
Step 3 – If your application is approved, a check will be mailed to you.

General info about New York Life

Founded in 1845, New York Life is the third largest life insurance company in the U.S. and has approximately $550 billion in assets under management. The company also offers other products such as securities and services, mutual funds and, of course, annuities.

General info on New York Life Annuities

New York Life offers a wide variety of annuities to fit each customer’s circumstances. The most common types they offer are 1) fixed deferred annuities, and 2) guaranteed income annuities.

A fixed deferred annuity allows the funds to grow for retirement at a guaranteed, fixed rate of interest for a selected period of time, which usually ranges from three to seven years. Taxes are not paid on the earnings until they are withdrawn. Also, it is possible for the money in a fixed annuity to be converted to a guaranteed stream of income for life.

A guaranteed income annuity can be purchased before or after retirement. Money is invested in one lump sum or over a series of payments and produces a stream of income that is paid out for life. There are various factors that affect the amount of income produced, such as age, gender, premium amount, interest rates, and payout method. Also, these types of annuities can begin paying out income immediately or up to 40 years in the future. When these payouts begin, they will continue for life.

Annuity Application

Policy Loan Application Form

The Policy Loan Request is a relatively short and straightforward form that the borrower must complete and submit to the company in order to apply for an annuity loan. When borrowing against an annuity, it’s important to be aware of the possible tax requirements and implications.

Important things to know:

Income Tax Withholding Election

The loan application requires the borrower to indicate whether he/she would like the company withhold federal and state income taxes from the taxable portion of the loan. There are special issues the borrower should be aware of when making this choice.

Federal Income Tax Withholding

Under certain circumstances, the loan may be considered a taxable gain that is reported to the IRS on Form 1099. As such, federal income tax may be withheld by the company at a rate of 10% from the taxable part of the loan, unless the borrower chooses to not have any withholding apply (which can be indicated in the application). However, in any case, the borrower is still responsible for paying applicable taxes even if he/she chooses to not have federal income tax withheld.

State Income Tax Withholding

Some states require the company to withhold gains on policies when federal income tax is also withheld. Starting in 2012, these states require state income tax to be withheld if federal income tax is also withheld: District of Columbia, Iowa, Kansas, Maryland, Massachusetts, Nebraska, Oklahoma, and Virginia. Similarly, these states must withhold state income tax if federal income tax is also withheld, unless the borrower chooses not to have state income tax withheld: Arkansas, California, Delaware, Georgia, Maine, North Carolina, Oregon, and Vermont.

Signature and Other Requirements

When it comes to signing the application, there are special rules that apply depending on the circumstances:

Corporation – the application must be signed by two officers of the corporation and one of them must be either the treasurer or secretary.

Partnership – the application must be signed by two partners, other than the Insured. With respect to a limited partnership, only the general partner is required to sign.

Assigned Policy – the assignee must sign along with the policyowner. In the event the assignee is a bank or corporation, then two officers are required to sign.

Guardianship/Conservatorship – in these cases, evidence of appointment must be submitted along with the form.

Large Loans – with respect to loans larger than $50,000, the form must be submitted with a notarized confirmation of the owner(s) signature or a medallion signature guarantee. If the borrower’s address or bank information has been on file with the company for less than 30 days, then additional verifications are required.