At IBUSA, we no longer consider Voya Financial as one of the best life insurance companies in the U.S. This is because the company stopped offering individual coverage in December 2018. However, this doesn’t necessarily mean that they are a bad company; it simply means that they are no longer an option for purchasing an individual policy. If you want life insurance coverage through Voya Financial, you would need to purchase a group plan.
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About Voya Life Insurance
Voya Financial traces its roots back to the founding of Security Life of Denver Insurance Company in 1928. ING Group acquired the company in 1977 and rebranded it as ING U.S., Inc., also known as ING Life Insurance Company. The company adopted the new “Voya” branding in 2014.
Voya and the companies associated with the Voya brand market themselves as “America’s Retirement Company.” Retirement planning accounts for nearly two-thirds of Voya’s earnings, and the company’s group retirement plans are one of its most successful products. Voya currently administers more than 51,000 group retirement plans with over 5.7 million plan participants. Voya Financial Advisers, Inc. sells securities included in Voya’s group retirement plans.
Voya also offers group insurance plans as part of its suite of services for businesses and organizations. Its group insurance products are issued by Minnesota-chartered ReliaStar Life Insurance Company, which is a member of the Voya Financial family.
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 robust financial position. As of the fourth quarter of 2020, Voya reported having $1.8 billion in excess capital.
Voya Investment Management manages over $250 billion in assets, which are spread across various areas, including real estate, private equity, and fixed-income portfolios.
In total, Voya manages assets worth over $700 billion, serving more than 14 million clients.
Although life insurance represents a smaller portion of Voya’s business than most insurance carriers, ReliaStar’s “A” rating from A.M. Best is a solid score, placing it in the top quarter of U.S. life insurers.
Overall, Voya performs well in financial ratings, and is a reliable option for individuals seeking life insurance through their employer-sponsored group plans.
Voya Consumer Ratings:
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.
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.
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:
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.
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.