Protective Life Insurance Review: A Reliable Source Of Affordable Term Insurance
42% percent of US consumers don't have life insurance because they "don't like thinking about death.” But major life events can change some people's minds! According to Business Insider, getting married, having a baby, or losing a loved one can push people to get insured.
It makes sense – life insurance is a great way to protect the ones you hold near and dear, even long after you're gone. The question is, which life insurance companies can really give you that peace of mind?
The life insurance company Protective has been helping families "protect their financial futures" for over 100 years. And with a variety of life insurance products, affordable term life insurance rates, and a wide range of coverage options, Protective life insurance company definitely sounds like a promising option. But are they worth your money, or are there better options?
In this Protective life insurance review, we delve into the advantages and disadvantages of buying insurance from Protective life insurance.
5 Factors To Consider When Looking For An Insurance Company
Before we review Protective life insurance, let's take a look at the five key factors you should look for in a life insurance company.
Policy And Coverage
How varied are the life insurance policy options at the company? What kind of coverage can you get? And how many add-ons and riders (e.g. waiver of premium, accidental death & dismemberment, etc.) does the company offer? Do they have cash value policies, or do they only provide death benefits?
Different people have different life insurance needs, so it's always better to work with a company that offers a variety of options. You can pick and choose as you please, and perhaps even change your insurance policies down the line as your needs change.
Most life insurance companies are relatively easy to apply to. But when it comes to the underwriting process, some companies may take longer than others. Health questions and medical exams can delay the process, sometimes for up to six weeks.
Factors such as your age, health, and gender can affect your rates, so it's hard to give a definitive answer on what a reasonable price range is. Make sure to compare prices across different life insurance companies, and be wary of promos that sound too good to be true. More often than not, they are.
When calculating the cost of your insurance, you have to look beyond the premiums. Consider fees and charges as well, including surrender charges in case you decide to terminate your policy.
The best life insurance companies put their customers first. You can check out customer reviews on sites like TrustPilot and the Better Business Bureau (BBB) for a better understanding of how an insurance company handles things like claims, account discrepancies, and complaints.
The National Association of Insurance Commissioners' (NAIC) complaint index is another great tool. Essentially, it tells you how often a company receives complaints and how it compares to the national average.
In any life insurance review, financial strength is an essential consideration. This measures a company's ability to honor claims and respond to complaints. Third-party agencies like Moody's, A.M. Best, BBB, and Standard & Poor's all have their own ratings systems, so be sure to check those out.
Now that you know what to look out for, we can take a look at all the great (and not-so-great) things offered by Protective Life.
Protective Life Insurance Review
Protective was founded in Birmingham, Alabama in 1907 with a mission to "serve both the people and the communities in which we work". The company offers several different kinds of life insurance products, including term life insurance, variable universal life insurance, indexed universal life insurance, and whole life insurance.
Protective also sells fixed, indexed, immediate, and variable annuities, which policyholders can use to fund their retirement and long-term care. Currently, the Protective life insurance company has over 9.3 million active life policies and contracts.
Protective's biggest edge over their competition is their range of life insurance policies. Let's take a closer look at each one:
Classic Choice Term Life Insurance
When you sign up for Protective's term life insurance policy, you can choose anywhere from $100,000 to $50 million worth of coverage. The shortest term policy you can get is 10 years, while the longest is 40 years.
Policyholders can opt to add a terminal illness rider (also known as an accelerated death benefit rider) and a guaranteed insurability rider, which allows one to convert to a permanent policy without the need to undergo a medical exam.
Finally, rates stay level from the beginning of the term to the very last day. All in all, Protective's term life policy is as customizable as it can get without compromising on reliability.
Whole Life Insurance
Protective Life offers level rates, guaranteed death benefit coverage, and guaranteed cash value accumulation to all whole life insurance policyholders. Customers can expect a fixed interest rate and tax-deferred gains in their cash value account as well.
Unfortunately, there isn't a lot of specific information on Protective's whole life insurance policy, so we can’t review the policy in its entirety. For more information, you'll have to get in touch with a Protective Life Agent.
Custom Choice Universal Life Insurance
Universal life insurance is a more flexible version of whole life insurance. Usually, universal life insurance policies have adjustable premiums and death benefits. Protective Life offers three types of universal life policies – Custom Choice, variable, and indexed universal life.
With Custom Choice, policyholders can choose how much coverage they need. You can pick an initial death benefit with level premiums, lasting between 10 and 30 years. Policyholders will also have the option to trade in their universal life policies for whole life insurance but can only do so under the following two conditions:
The policy is no older than 20 years.
The policy owner is under 70.
Variable Universal Life Insurance
This is essentially the same as the Custom Choice policy; however, policyholders get to choose investment options that allow for greater cash value growth (and higher risk). These variable sub-accounts are not unlike mutual fund investments.
This investment option aside, policyholders get much of the same features as they would from most universal life policies, including lifetime death benefit coverage.
Indexed Universal Life Insurance
An indexed universal life policy is a bit more complex than a traditional or a variable life policy. The main difference is the cash value, which is linked to market indices and subject to floors and caps. Essentially, when the market is in the red, your cash value suffers. But when the market is doing well, so will your investment.
Applying for Protective Life insurance is fairly easy and takes about 4-6 weeks.
First, you'll need to know your coverage needs. If you're not sure how much coverage you should get, the Protective Life website has a useful calculator. All you have to do is provide the following information:
Your date of birth
The total amount of your immediate and future funds (this includes your mortgage and debt balance)
Your current income, plus the years of income replacement needed and any additional funds your family may need
The number of children you have that will be going to college
Your existing savings and investments, as well as any existing life insurance that you own
Once you know how much insurance coverage you need, you can get an initial quote for term life insurance on Protective's website. Here's all the information you'll need to provide:
Your date of birth
Your desired life coverage amount (between $100,000 and $10 million only)
Your desired term length (between 10 and 40 years)
Your height and weight
Your current health condition and tobacco use
After you get a quote, you can then proceed to your application. You can apply through the website or call the company hotline. You'll have to provide some personal information such as your age, state, and gender. You'll also have to pick a beneficiary or the person who will receive the death benefit when you die.
Next, you'll be scheduled for a phone interview, where a Protective insurance agent will ask you about your medical history. Don't worry about preparing, as you'll be sent a list of the information needed in advance. The interview should only last about 20 to 30 minutes.
After the interview, you'll have to schedule a medical exam to help the insurance company get a better assessment of your health, and in turn, the kind of risk you pose to the company. You can expect a blood pressure check, height and weight assessment, and blood and urine analysis. The less healthy you are, the riskier it will be for the insurance provider to insure you – and the more expensive your insurance could be.
Finally, once you've submitted your medical exam results, just sit back and wait for your application to be processed.
Note: You can only get a quote for term life insurance policies. If you want to apply for whole or universal life, you'll have to call Protective directly and speak to a life agent.
Life insurance rates will depend on factors such as your age, gender, and overall health. As such, we cannot say if Protective's whole and universal life insurance options are affordable for you. Besides, the company doesn't provide online quotes for these two types of policies.
Protective Life does boast about its term life insurance rates, which are said to be up to 48% cheaper than the competition. According to their website, Protective claims that you can get as low as $7.30 per month for $100,000 worth of life insurance coverage.
You can get a Protective Life insurance policy directly from the source – just call the hotline or apply through the website. For questions, concerns, and assistance, you can reach a customer service representative via phone. Their hotline is open during business hours. You can also contact a virtual assistant online, 24/7.
In addition to round-the-clock customer service, policyholders can also manage their accounts online. You can make changes to your policy, make payments, add beneficiaries, and even request for claims all through your phone or laptop.
Finally, Protective Life holds an impressive NAIC complaint ratio of 0.37 (as of 2019). For reference, the US national median is 1.0, meaning that as far as complaints go, Protective Life is doing a good job at keeping issues at bay.
Financial Strength Ratings
A.M. Best rating: A+ (2nd highest of 15 ratings)
Better Business Bureau rating: A+ (Not BBB accredited)
Standard & Poor's rating: AA- (4th highest of 21 ratings)
Moody’s rating: A1 (5th highest of 21 ratings)
The Bottom Line
With a variety of options for policies, coverage, and even term limits, Protective Life is a solid choice for those looking for traditional whole, universal, or term insurance.
However, for people who have a family history of illness, a chronic condition, or a risky/unhealthy, Protective may not be the best option. They're innovative in the sense that policyholders can now access and change their policies online, but they're still traditional in the sense that they require medical exams for all applicants.
Don't think Protective Life is the best life insurance provider for you? At Wesley LLC, we strive to give people all the right tools and information to make the best financial decisions for their situation. Contact us to find out how we can help you!