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Savings Bank Life Insurance Company, more commonly known as SBLI, first opened its doors as a life insurance company in 1907. With this rich history, its customers have more confidence it will be around 100 years from now to pay claims, but is it true?
One thing that distinguishes it from competitors is SBLI offers no medical exam life insurance of $750,000 or less for people 60 or under. This allows the company to provide policies quickly. As a result, about half of the applicants get a decision about approval in under a week.
Another critical difference is SBLI is not publicly traded but owned by policyholders. Like a credit union rather than a bank, SBLI claims to keep rates lower and prioritize customer satisfaction. It promises a community mindset, which sounds great. But is it true in the daily practices and experiences of SBLI customers?
All this said SBLI's only product at this time is life insurance. In an ideal world, this could translate into specialized products designed to perform along with fast claims and excellent customer service. Our review will sort through the data to help readers get the facts.
Life Insurance Plans from SBLI
SBLI offers term, whole life, and final expense policies, and its term and whole life policies offer an optional accelerated underwriting process. This may help you get life insurance without long wait times or unnecessary delays. About half of the applicants have an answer within a week. Rather than doing a medical exam, you'll answer questions about your health history during a phone interview. This option is available to people aged 18-60, buying policies of $750,000 or less.
With that in mind, here's a breakdown of the different types of life insurance plans from SBLI.
Traditional Term Life Insurance from SBLI
SBLI's term life insurance policies allow you to get a set amount of life insurance for a period of 10,15, 20, 25, or 30 years. Term policies are available from $100,000 to $20 million. In addition, policyholders can apply to extend policies until age 85 or convert to permanent life policies. Quotes for SBLI term life insurance are available online.
SBLI's SmartTerm 360 Life Insurance
An attractive option, particularly for young people and parents with young children, is SBLI's SmartTerm 360 policy. With this policy, your coverage amount and premiums are highest during the first ten years. This is meant to provide coverage for childcare, 30 years of remaining mortgage payments, and other expenses young families have. After the initial decade, coverage amount and premiums drop yearly, assuming the day-to-day costs you need to cover also decrease with time. To get a quote for SmartTerm 360, you need to call 888-630-5000.
SBLI's One-Year Term Life Insurance
SBLI also offers a one-year, non-renewable term life insurance policy. This is a stop-gap when you need insurance quickly but aren't ready to buy a traditional term policy. The policy is available to people aged 18-90. Although policyholders can't extend the term, you can convert this policy into permanent life insurance. You have to call 888-630-5000 to apply for this policy, but the rates are available online.
SBLI's Whole Life Insurance Policy
SBLI offers a whole life insurance policy with coverage until you die. These policies can accrue cash value, and policyholders may also receive dividends (a portion of the company's profits) based on its performance. Policyholders may also enjoy early withdrawal options to take advantage of the dividends while still alive. Unfortunately, SBLI does not provide much information about its whole life policy online.
Instead, you'll have to call 888-630-5000 to learn about whole life insurance or get a quote. Phone agents can also estimate how much coverage you may qualify for and answer common questions. This policy is eligible for accelerated underwriting for qualifying buyers.
SBLI Final Expense Life Insurance
SBLI's final expense life insurance, known as Cherish Life, provides a small amount of coverage to take care of funeral expenses, final medical bills, and other end-of-life financial obligations. This policy is available to people 50-79 with coverage limits of $2,000-$35,000. It doesn't require a medical exam, and you can apply online for this policy to receive an instant decision.
These amounts are significant, even if they may seem minor. When policies pay out quickly, it could help families pay for the costs immediately after death. Funeral costs, legal fees, and other costs build up quickly, and families are prone to take out loans, often with high interest rates and other predatory features. When companies like SBLI make funds available quickly, it cuts these financial burdens off before the situation becomes overwhelming.
Additional Coverage Options from SBLI
In addition to the policies above, SBLI offers several insurance riders. These are optional additional protection you can add to your policy for a small cost. However, the benefit is arguably high if the riders are exercised. Here are the riders available from SBLI.
- Accelerated Death Benefit: It provides up to $250,000 before death if a doctor determines you have a terminal illness and under one year to live. The accelerated death benefit is available on all plans.
- Children's Level Term Rider: It provides coverage for eligible children between the ages of 15 days and 23 years. Covered children can convert it to permanent life insurance in adulthood. It is available on term and whole life policies.
- Accidental Death Benefit Rider: It provides an additional payout within 180 days if you die in an accident. Policyholders can add it to whole life or term policies.
- Waiver of Premiums: It allows you to skip paying premiums on whole life or term policies if you cannot work.
- Guaranteed Purchase Option Rider: It guarantees you'll be able to add more coverage to whole life policies at certain life events without answering health questions or going through another medical exam. So you may start with lower coverage. But as your family's financial needs change due to marriage, children, a new job, etc., you can update your benefit.
- Single-Pay Paid-Up Additions Rider: It lets you make a single additional cash deposit to a whole life policy when you initiate the policy. The extra deposit increases the death benefit and cash value.
- Guaranteed Level Term Rider: Your premium is guaranteed to stay the same over the life of your policy as long as the policy is in force.
- Child Level Term Life Insurance Rider: It lets people with a final benefit policy add children between the ages of 15 days and 23 years old. The child must be legally connected to the primary policyholder in a parent-child relationship. The idea is for children to convert to a whole life policy as adults.
- Value-Added Rider: it allows you to access additional services, like online tools and information to manage health and wellness.
How Much Does Life Insurance from SBLI Cost?
SBLI life insurance is more affordable than similar policies from other life insurance providers. The company claims it's beholden to policyholders, not stockholders since it's not publicly traded. Prices are just one representation of that independence.
SBLI customers can get some term and final expense quotes online. However, you'll have to call to get more information about the price of whole life policies. Phone agents are also available for questions about any SBLI policy.
Here are a few examples of how much term and final expense life insurance with SBLI costs, according to online quotes:
- A 34-year-old male smoker can get a $500,000 term policy for 30 years for $139 a month.
- A 50-year-old female nonsmoker with a family history of severe health conditions can get a $500,000 term policy for 25 years for $89 a month.
- A 70-year-old female nonsmoker can get a 10-year, $250,000 term policy for $147 a month.
- A 50-year-old female nonsmoker can get a $30,000 final expenses policy starting at $96 a month.
- A 72-year-old male nonsmoker can get a $10,000 final expenses policy starting at $115 a month.
As you can see, prices are generally low. But smokers are harshly penalized, which is not uncommon in life insurance. We recommend quitting smoking if you're interested in buying life insurance.
How Do I File A Claim with SBLI?
You can report a death and begin filing a claim with SBLI online. You can also call the company at 1-800-694-7254.
Who Are The Ideal Customers for SBLI?
SBLI is a good option for anyone looking for cheap life insurance. If you're uncomfortable with a medical exam, you'll appreciate SBLI's no medical exam life insurance policies. However, you'll still need to answer questions about your health history. Because the exams are waived for many people, SBLI allows you to get life insurance quickly.
SBLI is also a good option for people looking for greater flexibility. The one-year term policy is a rare option and can allow you to have coverage while you figure out a more permanent life insurance solution. In addition, the final expense policies, which don't require an exam, can give seniors who worry about leaving loved ones with a financial burden when they die peace of mind.
SBLI has a rating of A (Excellent) from AM Best, which rates insurers based on financial stability. In addition, the company received fewer complaints than many competitors, suggesting customers are satisfied with life insurance from SBLI. So regardless of your reasons, SBLI is likely to be around to pay your claims.
However, SBLI only offers more conservative life insurance policy limits. Policies primarily focus on death benefits and caring for loved ones after you're gone. So taking out loans to cover your down payment on a house or retirement planning would not make sense with SBLI life insurance plans.
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Compare SBLI vs. John Hancock
SBLI and John Hancock have long track records and good reputations. Unlike SBLI, which only sells life insurance, John Hancock offers various financial services and products. Many of John Hancock's life insurance policies are whole life policies allowing people to increase the value of their policy, save for retirement, and take advantage of key tax benefits. However, neither company offers the most aggressive investment life insurance policies.
While modest, its policies are also more equipped for early withdrawals and long-term financial planning. John Hancock also rewards customers who track health and wellness as part of what the company calls "interactive life insurance."
SBLI has more options for short-term and final expense coverage than John Hancock. It also offers a decreasing term policy in SmartTerm 360. So for customers who are more price sensitive or those looking for a deal, SBLI has a greater appeal.
Compare SBLI vs. USAA
SBLI and USAA offer life insurance products appealing to young people, including short-term policies. For example, USAA provides an essential term policy offering young people $100,000 in coverage until they reach the age of 39. The essential term policy is comparable to SBLI's one-year term policy, although that lasts for a shorter time.
USAA has some of the most competitive pricing but only offers moderate value policies. You won't find aggressive life insurance loans or other early withdrawal and financial planning options.
SBLI and USAA also both considered affordable options for life insurance. Since USAA works closely with the military, its policies provide coverage for active-duty military members who might not have other options. However, anyone can purchase life insurance through USAA. Both companies emphasize loyalty to policyholders rather than stakeholders.
Due to its otherwise exclusionary policies, USAA is not rated with standard systems like JD Power. In short, other USAA products are only available to military members and their families. However, customer service metrics indicate satisfaction is high with USAA.
Compare SBLI vs. Colonial Penn
Like SBLI, Colonial Penn has many policies without medical exams. A significant difference is Colonial Penn does not offer term insurance policies. Instead, the company provides Guaranteed Coverage Whole Life and Permanent Whole Life policies with a maximum payout of $50,000.
The Guaranteed Coverage Whole Life policy doesn't require a medical exam or questions. Coverage limits can vary, but these policies are approved as long as you're within certain age limits. Plans like Colonial Penn's guaranteed options are generally aimed at seniors who missed the opportunity to get more coverage at a younger age.
Overall, SBLI offers more comprehensive policies than Colonial Penn. As a result, SBLI is a better option for young people and those looking for more thorough coverage and term options. Colonial Penn, on the other hand, is a good option for affordable guaranteed life insurance. It reaches customers who might be ineligible for more traditional life insurance policies.
Methodology
For this review, we consulted third-party organizations, including AM Best and JD Power. In addition, we considered SBLI's track record, financial stability, and customer service reputation. This allows us to rank SBLI and other life insurance companies with objective ratings.
Considering the big picture, we compare SBLI against top life insurance competitors. We want to see which companies perform in several areas. However, we also factor in the varying needs of different buyers. For example, buyers who love SBLI might not find what they need with investment giants. You can read more about your insurance rating methodology to learn more.
On the other hand, young buyers looking for solid financial planning options may not find the right plan with SBLI. Our reviews factor this in to match consumers with life insurance plans that make sense.
FAQs
SBLI stands for Savings Bank Life Insurance Company.
Yes, SBLI pays dividends in some cases. Rather than being publicly traded and accountable to shareholders, SBLI is a mutual company owned by policyholders. A whole life policy may generate dividends. However, buyers looking to use life insurance for retirement and other aggressive financial planning may find SBLI's returns lacking.
SBLI has a good reputation for providing affordable life insurance options. With a long history and solid financial footing, it's a good choice for term, whole life and final expense coverage. However, policy sizes are limited. So it may not work for every buyer.
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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