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Initially founded in 1907, Protective Life has offered life insurance, asset protection, and retirement products. The time it has been in business speaks volumes. So it isn't surprising that the company also maintains an A+ rating with AM Best. In short, AM Best inspects companies' balance sheets, tax returns, and other financial markers. Companies with a score of A- or above will likely be around for the foreseeable future (to pay your life insurance claim when you pass or decide to take early withdrawals). Companies with B or below may need to make significant changes to stay in business.
Of course, financial ratings are only one measure of success. Customer satisfaction is also a significant factor when choosing the best life insurance company for your needs. Its score of 759 on the latest JD Power life insurance study shows high customer satisfaction overall. The JD Power score could encompass quoting, binding, claims, and other interactions between the company, its customers, and its beneficiaries.
Protective Life sells term life insurance coverage, whole life insurance, and universal life insurance. So it covers all the primary bases. But, if you've shopped for life insurance, you've seen a lot of subtypes, age restrictions, policy limits, and other essential variants. The three types listed above tell you if your death benefit is fixed and how long you must file a death benefits claim.
If you're considering Protective Life for your life insurance needs, read more about the company's policies, the types of insurance riders you can select, and how much you can expect to pay for a policy.
Life insurance plans from Protective Life
As mentioned above, Protective Life offers both term and permanent life insurance coverage. Shoppers can buy a policy that only lasts for a specific period (i.e., 20 years), and Protective Life has conversion options if you want a permanent policy later. Customers can also buy a permanent policy upfront. Whole life policies give the buyer a fixed death benefit that usually pays out after a predetermined waiting period (i.e., you make a certain number of payments). Universal life insurance policies have a cash value that continues to grow as long as you make payments. This growth option may appeal to healthy buyers who expect to live well beyond the traditional retirement age.
Protective Life makes it easy to get a quote for term life insurance online. However, whole and universal policies have to be quoted through an agent. The same may apply if you're looking to convert your term policy to a whole or universal one later. An important thing to note is you do not get credit when you convert your term policy. In short, premiums may go up, benefits will drop, and a waiting period may apply before you're eligible for a full death benefit. Applicants can also be denied as underwriting uses your health and other qualifications at the conversion time.
As you compare the benefits of life insurance policies, note that the main coverage options from Protective Life include the following:
Types of life insurance | Coverage Length | Builds cash value |
Term life insurance | 10 to 40 years | No |
Indexed universal life insurance | Lifetime | Yes |
Variable universal life insurance | Lifetime | Yes |
Protective Custom Choice UL | Lifetime | Yes |
Whole life insurance | Lifetime | Yes |
Here's an overview of each type of life insurance offered through Protective Life.
Term life insurance
Term life insurance companies provides coverage during a specific term, most often an adult's prime working years. Some companies offer policies for seniors and children as well. Once the policy expires, the insured loses their death benefit, and premiums are suspended. Some companies allow buyers to convert policies, but it is not guaranteed, and the value and payments can change significantly.
Protective Life offers term life insurance ranging from 10 to 40 years instead of the typical limit of 30 years. Coverage limits start at $100,000 and go up to $50 million for eligible applicants. Insured customers may also be able to convert policies to permanent life insurance policies with no medical exam if their needs change.
Whole life insurance
Whole life insurance companies offers permanent coverage and a set benefit provided you pay your premiums on time. Some policies have a waiting period before you're eligible for full use. However, if you pass on earlier, Protective Life will reimburse your beneficiaries for the premiums. In addition, some companies add a set amount of interest.
Protective Life notes this coverage can be considerably more expensive. However, it's important to note any term policy conversion may cost more. For example, if you buy a term policy when you're 20 and convert when you're 50, your premiums would be based on your application at age 50. If you purchase a whole policy at 20, you'll pay more each month than you would for a term policy, but your premiums can be fixed at a lower rate for the rest of your term. The benefits of having a life insurance policy for your entire life cannot be overstated.
Another vital thing to be aware of is early withdrawal options. Sometimes, life happens in unexpected ways. For example, if you're diagnosed with a terminal illness, your beneficiaries don't have to wait for your death to pay off old medical bills. Protective Life's whole policies allow buyers to withdraw money while alive to pay medical bills, housing costs, and more.
Universal life insurance
What is universal life insurance? It's a type of permanent life insurance with much more flexibility than whole life policies. Where whole life insurance has level premiums and a fixed death benefit, universal life insurance lets individuals tailor premium payments, cash value, and death benefits. In addition, unlike whole life insurance, universal life insurance keeps growing as long as you make monthly payments.
Universal life insurance from Protective Life also comes in a few different forms. For example, you can opt for indexed universal life insurance that invests in various stock market indices with the potential for downside protection. Conversely, variable universal life insurance also invests your underlying funds but in more investment options with a higher risk overall. Higher returns in a strong market attract younger buyers.
A Protective Custom Choice UL policy is a final option to consider. It offers low premiums and level payments for 10-30 years. Protective Life's website compares Custom Choice UL to its term policies, promoting conversion to a permanent policy later with affordable rates. For example, according to its internal figures, a 30-year-old male could purchase a Protective Custom Choice UL policy worth $100,000 with ten years of coverage for as little as $7.46 per month.
The conversion process separates Protective Life's term policies and the Custom Choice UL policy. If you convert (conversion approval is not guaranteed), your monthly premiums remain the same. However, the coverage decreases until it reaches $10,000. The premiums would then increase. A traditional term life insurance policy increases monthly premiums as soon as you convert your policy. Of note, if your policy lapses, renewing it would be underwritten as usual, and premiums would rise.
Additional coverage options from Protective Life
Protective Life offers the core policies shoppers expect. However, it also provides riders to tailor coverage to your needs. Insurance riders you may be able to add to a Protective Life policy include the following:
- Accelerated death benefit rider: This rider lets the policyholder use all or part of the death benefit while they're still alive if diagnosed with a terminal illness.
- Accidental death benefit rider: This rider ensures beneficiaries receive an increased death benefit if the insured dies in an approved accident. The accidental death benefit rider may be helpful for workers in industries with a higher rate of workplace accidents. A Protective Life agent can answer questions and discuss these options with buyers.
- Children's term rider: This rider lets the insured add term life insurance coverage for their dependents, including biological children, adopted children, and stepchildren. Coverage and monthly premiums expire when the child is 18. The child can then sign up for a separate life insurance policy.
- Disability income rider: The disability income rider gives the policyholder supplemental income if they become disabled and unable to work.
- Guaranteed insurability rider: This rider lets today's life insurance buyers purchase a guarantee that they can buy more life insurance later in life without having to endure a medical exam.
- Term insurance rider: The term insurance rider from Protective Life can be added to a whole life or universal life policy, providing a fixed increase in coverage for a specific term.
- Waiver of premium rider: The waiver of premium rider allows the policyholder to stop paying premiums on their life insurance policy without losing its benefits if they become disabled and unable to work.
How much does life insurance from Protective Life cost?
How much you'll pay in premiums for a policy from Protective Life depends on the type of coverage you're purchasing, your age, and your health. Also, remember permanent life insurance costs more in general, although it also builds cash value and offers a permanent guarantee of coverage.
We already mentioned how a 30-year-old male could purchase a Protective Custom Choice UL policy worth $100,000 with ten years of coverage for as little as $7.46 per month. However, we took the time to get some life insurance quotes for term coverage to give you a greater perspective of the starting cost for Protective Life policies.
First off, we got a quote for a 30-year, $500,000 term life insurance policy for a 43-year-old woman. The estimated monthly premiums start at $49.97 per month.
We also quoted a 30-year term life policy worth $100,000 for a 23-year-old man. Monthly premiums started at just $11.83 per month.
We ran quotes for individuals with average heights, weights, and excellent health profiles.
How do I file claims with Protective Life?
Protective Life makes it easy for its customers to file claims. Its site has a button that says "claims," which helps guide consumers through the process.
There are two ways to begin a life insurance claim with Protective Life:
- Call the company to file a claim at 1-800-424-1592
- Start a claim online
Beneficiaries should prepare ahead of time to file a claim with Protective Life. The company needs the deceased's name, policy number or Social Security number (SSN), date of birth, date and cause of death, and other personal information.
Beneficiaries must also produce a certified death certificate to file a life insurance claim. Protective Life promises to send out the benefit payment within a single business day as soon as it receives all the necessary documentation and the life insurance claim is approved.
Who are the ideal customers for Protective Life?
Because Protective Life offers so many types of life insurance, this company appeals to a diverse range of customers. In addition, it provides term and permanent life insurance policies with competitive pricing.
However, inexperienced buyers or those looking for more guidance may steer away from Protective Life. Its site tends to lead customers towards term policies and a universal policy more similar to term policies than the permanent options some customers might expect. The site's vague descriptions may mislead customers and life insurance agents selling policies. Its limits are also lower than some competitors. Customers looking for serious retirement planning options may find more competitive options elsewhere.
Compare Protective Life vs. Colonial Penn
Colonial Penn offers a range of permanent life insurance plans with no medical exam required for qualifying buyers. Guaranteed acceptance life insurance rates start at just $9.95 per month. It also offers permanent life insurance that builds cash value after the first year.
Protective Life puts a lot of focus on term policies with lower premiums for the same coverage, with the caveat that the policy will expire if you don't or can't convert it to a permanent alternative. Colonial Penn focuses on no medical exam and guaranteed coverage options with low premiums and death benefits. Neither company offers specially trained life insurance agents prepared to help you with life insurance related to financial planning. At this time, Protective Life has significantly higher customer satisfaction than Colonial Penn.
Compare Protective Life vs. Prudential
Prudential is another trusted life insurance company offering permanent and term life coverage. It provides death benefits covering funeral costs, debts, and other death-related expenses. However, it also has more extensive policies to fund a comfortable retirement. Many policies also include accelerated death benefit options to protect yourself in the event of a terminal illness. Prudential has strong online resources, but customers should contact a Prudential agent to get a reliable quote and discuss coverage options.
Prudential life insurance agents are among the most knowledgeable in the business, comparable to companies like MassMutual and New York Life. However, as you might expect, rates may be higher than with Protective Life. This tradeoff between pricing and coverage may make Prudential more intimidating and less accessible to lower-income buyers. Customers who don't receive adequate advice from Prudential agents may be underinsured. Protective Life's options are more limited and straightforward.
Compare Protective Life vs. New York Life
Finally, New York Life is worth considering if you're looking for a life insurance company with staying power. This company was founded in 1845 and has consistently paid out dividends on eligible policies every year since 1854. While New York Life offers a range of other financial products, its life insurance offerings include term life insurance, whole life, variable universal life insurance, and universal life insurance. New York Life also has an A++ rating for its financial strength from AM Best.
New York Life agents can discuss when it's okay to draw cash early from a life insurance policy in the form of early withdrawals or life insurance loans with information about penalties and more. The company also sells more comprehensive policies for financial planning and retirement, with highly trained life insurance agents supporting buyers. Buyers should specifically ask about penalties and costs when buying with New York Life to ensure they have the whole picture. As with Prudential, monthly premiums may be higher than Protective Life policies. But the death benefit and accelerated death benefit options can also be more generous.
Methodology
As we gathered the information for this review, we compared Protective Life insurance policies with similar policies from a wide range of insurers. We analyzed individual policies based on the known benefits and drawbacks, only ranking companies based on the facts we gathered.
We look at factors ranging from customer satisfaction ratings to policy types offered and average premiums. All these factors are combined to give each company an objective rating. We understand the experiences with any product will vary. As such, we look at overall trends as opposed to individual reviews.
FAQs
Protective Life acquired Liberty Mutual Insurance Group in 2018. The US subsidiary of Dai-ichi Life Holdings, Inc. currently owns both companies.
Protective Life offers both term life insurance and permanent coverage. This means you can use it to secure term life insurance, whole life insurance, and universal life insurance. When choosing a policy, we recommend working with an insurance professional to ensure you know what you're buying.
Protective Life currently boasts an A+ rating from AM Best for its financial strength and an AA- rating from S&P Global. This means the company is financially stable and will likely be around to pay out claims reliably.
Protective Life differs from the average life insurance company in that it offers a universal policy that behaves like a term life insurance policy. This product type can be confusing for consumers. But regardless, the rules remain the same. Term policies expire if not converted, and conversion is not guaranteed, nor are the premiums when you convert. The universal term policy delays the jump in premiums, but benefits do drop. We recommend working with insurance professionals to ensure you get the right plan for your needs.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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