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Voya Life Insurance Review

Voya Life Insurance Company

Voya Financial is not among the best life insurance companies in the U.S. any longer because the company ceased offering individual coverage in December 2018. Nowadays, if you want life insurance coverage through Voya Financial, you would need to purchase a group plan.

About Voya Life Insurance

Voya Financial traces its roots back to the 1928 founding of Security Life of Denver Insurance Company, which was purchased in 1977 by ING Group.  The company was then known as ING U.S., Inc., AKA ING Life Insurance Company, until 2014, when it unveiled the new “Voya” branding.

America’s Retirement Company

Voya Financial, and the family of companies behind the Voya brand, market themselves as “America’s Retirement Company.”

Retirement planning accounts for almost two-thirds of Voya’s earnings, and group retirement plans offered through employers are one of Voya’s most successful products.

The company currently administers more than 51,000 group retirement plans with over 5.7 million plan participants.  Securities included within Voya’s group retirement plans are sold by Voya Financial Advisers, Inc+.

Voya markets group insurance plans as part of the suite of services offered to businesses and other organizations.

ReliaStar

Voya’s group insurance products are issued by Minnesota-chartered ReliaStar Life Insurance Company, a member of the Voya Financial family.

Along with group life, Voya’s Employee Benefits division administers group disability insurance, supplemental health policies, HSA and flexible spending accounts, and stop-loss policies for plan sponsors.

Discontinued Individual Life Coverage

Voya discontinued marketing individual life insurance policies in 2018 after selling off its division that specialized in life insurance for consumers.  Voya’s existing individual life policies were assigned to Resolution Life Group Holdings, and new life insurance policies from Voya can currently only be purchased through group plans.  Source.

Individual consumers can still open up IRAs and Roth IRAs through Voya or consult with one of the company’s professional financial advisers.

Voya Financial Ratings

  • A.M. Best: A
  • S&P: A+
  • Moody’s: A2
  • Fitch: A
  • Comdex Ranking: 80

Voya is a Fortune 500 company with a strong financial position.  As of 2020’s Fourth Quarter, Voya reported $1.8 billion in excess capital.

Voya Investment Management reports over $250 billion in assets under management in areas including real estate, private equity, and fixed-income portfolios.

For the Voya Group as a whole, assets under management total over $700 billion, spread across more than 14 million clients.

Though life insurance accounts for a smaller part of Voya’s business than most carriers, ReliaStar’s “A” from A.M. Best is a solid score, placing it in the top quarter of U.S. life insurers.

As a whole, Voya generally performs well in financial ratings and is a safe bet for life insurance purchasers whose employers sponsor group plans.

Voya Consumer Ratings:

BBB rating

Voya Financial is not accredited by the Better Business Bureau and currently holds a somewhat concerning “B“ rating from BBB.  The relatively low rating (compared to most other insurers) indicates that Voya’s track record for responding to and resolving complaints submitted by consumers to BBB not all that great.

Voya customers have posted only 9 reviews of the company on BBB’s site, but Voya’s one-star average is also not promising.  On another consumer site with a larger sample size, Voya comes in at a little over 3 stars (out of 5)—somewhat better but not spectacular.

NAIC

In Voya’s favor, the NAIC reports that state insurance commissioners receive fewer consumer complaints against ReliaStar than comparably situated insurers.

And Voya has been recognized as a good place to work by several organizations and generally does well in ratings submitted by its employees.

Voya has also received awards for its diversity efforts and was named one of the “World’s Most Ethical Companies” by the Ethisphere Institute. Source.

What Products Does Voya Offer?

Voya focuses on financial planning generally and retirement planning specifically.   Voya offers individual investment accounts and IRAs, college savings plans, and group retirement and employee-benefits plans for businesses.

Voya’s group retirement plans (including 401(k), 403(b), and 457 plans) offer a wide variety of investment options for participants, including target date, target risk, and equity and real estate-focused mutual funds.

Voya also offers financial counseling services for plan participants, such as a program designed to assist employees in managing and paying down student loans while still preparing for retirement.

Group Plans

New life insurance coverage from Voya Financial is currently only available through participation in group plans.  For plan participants, Voya issues group term life and whole life.

Additionally, Voya provides group accident, critical illness, short and long-term disability, and hospital indemnity coverage through employer-sponsored plans.

Life Insurance from Voya:

Term Life

Voya’s group term plans provide standard term coverage for plan participants.  Eligible employees can enroll in the group term life plan without the medical exam or detailed health screening required for many individual term policies.

Plans are available adding supplemental life or AD&D coverage and extending term coverage to employee spouses and children.

Whole Life

Also offered as part of employer-sponsored plans, Voya’s whole life insurance coverage provides life insurance guaranteed to remain in place for an enrolled employee’s entire life.  Whole life policies accrue cash value that builds over time and earns interest.  Policyholders can borrow from a policy’s cash value once sufficient value has accrued.

Premiums are substantially higher for whole life than term, but premium payment amounts are fixed and will not increase in the future.

If an employee covered by a Voya whole life policy leaves the organization, he or she can retain the whole life coverage and pay premiums directly to Voya.

With its group whole life plans, Voya offers several optional riders that provide additional policy benefits if selected.

An accelerated benefit rider allows the policyholder to access a policy’s death benefit if diagnosed with a terminal illness.

A premium-waiver rider waives the policyholder’s obligation to pay premiums if the insured becomes totally disabled.

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