As we know, life insurance could help our loved ones be taken care of. Today, we would like to present to you one of the best life insurance companies named, Protective life insurance. This insurance lets you choose between term life, whole life, and universal life insurance. However, there are many other interesting details you should know. Therefore, this in-depth review was made by Finxpd to help you learn more about Protective Life’s coverage.
List of Contents
Protective
Maximum issue age for 10-year term life: 80 (75 for tobacco users)
AM Best Financial Strength Rating: A+ (Superior)
Life insurance riders available: Children’s term life, Accidental death, Premium Waiver, Income provider option support
Accepts Credit Cards: Yes
Company’s Overview
Protective is another excellent option for the top-term life insurance company. This is because it offers the lowest contract prices among the other companies. Moreover, it is one of just a few that provide 40-year term life insurance. In addition, it also provides a variety of additional insurance types. Therefore, there is a high chance you will discover one that very suits your needs. Nevertheless, the company ranked quite not good in customer satisfaction. Additionally, it does not provide as many no-cost living benefit riders as other insurers.
Policies Available
Protective provides several plans and extra features, allowing you to design your coverage to your specific requirements. Importantly, you may get a price and apply for term life insurance online. However, for all other policy types, you must contact an agent. The majority of plans offer a free terminal illness accelerated benefit rider. If you have fewer than 6 months to live, the terminal illness rider permits you to increase up to 60 percent of the death benefit.
1. Term Life Insurance
Term life insurance provides death benefit protection for 1 to 40 years, or longer. In contrast, most permanent plans, it does not accumulate cash value. Moreover, it is the cheapest kind of life insurance coverage.
- Protective Classic Choice Term
The important thing you need to know about Protective is that its prices are often among the highest three on the market for comparable policy types. Nevertheless, coverage durations vary between 10 and 40 years. Importantly, you will have the opportunity to switch to permanent coverage without a medical checkup.
2. Whole Life Insurance
Whole life policies provide lifetime protection and accumulate financial value. As we know, the cash value is an important element of permanent life insurance since it minimizes the massively high cost of life insurance as you age. It may become a source of cash from which you can borrow over time. The cash value of whole-life policies rises at a fixed rate. Additionally, it is guaranteed as long as payments are made when they are due.
- Non-Participating Whole Life
Protective provides its whole life insurance to clients aged 0 to 90 with coverage amounts ranging from $1,000 to $5,000,000. Significantly, the coverage includes a terminal illness accelerated death benefit at no additional charge.
3. Universal Life Insurance
Universal life insurance is a perpetual policy that builds cash value. However, unlike whole life, premiums and death benefits may be adjusted.
- Custom Choice
Custom Choice is not intended to offer perpetual coverage. Furthermore, it is instead structured similarly to a term policy. During the second through 20 policy years, you have the opportunity to swap it for a permanent policy. Additionally, you will pay a reasonably cheap, flat premium for a duration of up to 30 years. Importantly, a medical exam is not required if you want to swap the insurance for permanent coverage. It is open to anyone who is between the ages of 18 and 75.
- Permanent Universal Life Insurance Products
Advantage Choice UL: This plan is designed to offer low-risk, low-cost, perpetual protection with a death benefit. If necessary, you may change your premium payment and access your cash worth. It is open to anyone between the ages of 18 and 85.
Lifetime Assurance UL: This product is also intended to give people between the ages of 18 and 85 long-term protection. Importantly, it may be less costly than Advantage Choice. However, it may provide fewer benefits and guarantees, depending on your requirements.
Survivor UL: This insurance provides perpetual death benefit protection for two members.
Executive UL: This insurance provides coverage for both employers and executives.
4. Variable Universal Life Insurance
Variable life insurance may provide permanent protection. Additionally, it allows you to invest the tax-deferred cash value of the insurance in the stock market. Moreover, the cash value may be used to pay premiums. However, if your assets lose value, your rates may increase.
5. Indexed Universal Life Insurance
If you are seeking permanent insurance with greater growth potential and less risk, this may be your best option. As with other universal life plans, indexed universal life insurance offers growth potential, premium flexibility, and cash value alternatives. However, an interest rate depending on the performance of a stock market index is applied to the cash value.
- Indexed Choice UL
With Protective’s Indexed Choice UL policy, the S&P 500 is utilized as the stock market index. You may also invest part of the cash value in a fixed account that generates a set rate of interest.
Available Riders
1. Guaranteed Insurability Rider
A guaranteed insurability rider is suitable for a teenage buyer of a permanent policy. This is because they intend to get married or have more children in the future.
- Protected Insurability Rider
This rider of Protective lets you obtain extra coverage at particular ages without a medical exam: 25, 28, 31, 34, 37, and 40. Nevertheless, you must be 37 or younger to acquire this rider. Moreover, it expires at age 40, which is the final choice date. It is exclusive to Protective’s Variable Universal Life insurance.
2. Children’s Term Rider
This rider is accessible on Indexed Universal Life, Variable Universal Life, Universal Life insurance policies, and term policies from Protective. This optional rider offers death benefit coverage for any children from 15 days to 18 years. Importantly, coverage continues until age 25 and may be changed to permanent coverage without requiring proof of insurability. Thus, it means your kid does not need to undergo a medical exam or apply for coverage. Finally, a children’s term rider is an effective alternative to acquiring a separate policy for children’s coverage.
3. Waiver of Premium
This optional rider will overcome premium payments in the event of disability. The waiver of the premium rider of Protective includes a 6 months elimination period. Hence, it means that you must be disabled for 6 months before you are entitled to have your premiums waived. The rider is offered to applicants up to age 55 and expires at age 65. Furthermore, it is included with Protective’s terms, Indexed Universal Life, Variable Universal Life, and Universal Life insurance policies.
4. Accidental Death Benefit
An accidental death benefit rider provides an extra death benefit in the event of accidental death. The version of Protective is accessible on its term, Indexed Universal Life, Variable Universal Life, and Universal Life insurance policies. Importantly, this offer is valid until age 60 and expires at age 65.
5. Accelerated Death Benefit
This rider on a life insurance policy enables you to collect a part of the death benefit early if you encounter certain health-related occurrences. Protective provides two options. The first one is for a terminal disease, and the other for chronic illness. However, only the terminal illness rider is offered with no additional cost.
- Terminal Illness Accelerated Death Benefit Endorsement
With Protective’s terminal illness rider, you may accelerate up to 60% of the death benefit if you have a life expectancy of 6 months or fewer. Moreover, this benefit is included at no additional cost with Protective’s term, Indexed Universal Life, Variable Universal Life, and Universal Life insurance policies.
- Extend Care Rider
This rider may be offered for an additional fee to Protective’s term, Indexed Universal Life, Variable Universal Life, and Universal Life insurance policies. In addition, it permits the policyholder to get either a large amount or a monthly payment while the insured is still alive. However, a doctor should certify them as chronically sick. Moreover, they should be unable to conduct at least 2 activities of daily living without help for at least 90 days. Examples include self-feeding and self-bathing.
Pros& Cons
Pros
✔ Life insurance with no medical exam up to $1 million
✔ Variety of insurance types offered
✔ 40 years term life insurance provided
✔ Very affordable term life insurance
Cons
✘ No coverage for fatal disease
✘ Not good customer satisfaction
Pros Clarified
Life insurance with no medical exam up to $1 million
Protective offers up to $1 million in life insurance coverage without a medical exam. With no medical-exam life insurance, applicants may avoid the stress of completing an exam. Thus, it also means coverage can be granted more rapidly compared to plans that need an exam. Particularly, Protective can allow you to apply for certain policies online.
A variety of insurance types offered
Protective provides a variety of policy types, including term, Universal Life, Variable Universal Life, Indexed Universal Life, and Whole Life insurance.
40 years term life insurance provided
Protective is an excellent alternative if you want coverage that lasts longer than 30 years, but does not require permanent coverage. Moreover, if you do not want to pay the additional premium for a permanent policy, Protective is a good choice.
Very affordable term life insurance
Protective offered the lowest term insurance coverage among the businesses we evaluated. Additionally, Protective had the cheapest quotations for all age groups or was tied for the cheapest rates for the period.
Cons Clarified
No coverage for a fatal disease
This policy is designed to pay a very modest sum to cover the last expenditures after death. As it does not need a medical exam, it is ideal for persons with health conditions that may exclude them from other forms of coverage. Furthermore, low coverage levels are accompanied by high premiums per dollar of the death benefit.
Not good customer satisfaction
In a J.D. Power 2021 poll, Protective ranked well behind market rivals. It placed 16 among the 21 examined large life insurance firms.
Complaint Index
The National Association of Insurance Commissioners (NAIC) monitors the number of customer complaints received by individual insurers. They utilize this figure to develop an index of consumer complaints. Significantly, the NAIC complaint index enables comparisons of consumer complaints across a variety of organizations, regardless of size. Thus, you can determine the level of consumer satisfaction or dissatisfaction with the organization.
The benchmark is 1.0, which indicates the estimated amount of complaints a business would get. A number greater than one implies that the firm got more complaints than anticipated. In contrast, a score below 1.0 indicates that the firm received fewer complaints than anticipated.
Nevertheless, the average three-year complaint index for Protective was 0.79, indicating that the firm got fewer complaints than anticipated.
Customer Service
You could contact Protective on Monday through Thursday, between the hours of 7 a.m. and 6 p.m. Central Time (CT). On Friday, you must contact them between 7 a.m. and 5 p.m. CT. Moreover, protective representatives may be reached by phone at 800-866-9933. However, policyholders have access to account management capabilities, including making payments and reporting claims, via the use of an online platform.
Is Protective Life Insurance A Worth Insurance to Get?
Protective is a good option if you are looking for long-term coverage that is simple, straightforward, and reasonably priced. It is rated number one for affordable term coverage. Moreover, it provides coverage for 40 years, which is unusual in this sector of the market. Additionally, a broad variety of universal life insurance plans are also made available by the company. These policies include a term-like universal life policy, which may be appropriate for you if you desire the flexibility of a cash value component.
On the other hand, if you place a high priority on having access to a full suite of living benefits such as no-cost accelerated death benefit riders for chronic, you may want to investigate the options provided by other providers. Additionally, if you are searching for coverage that pays dividends, and insurance that covers last expenses, you should seek elsewhere.
Conclusion
In short, Protective is another good life insurance. It provides its customers with access to a comprehensive selection of insurance plans. However, customer satisfaction scores that are below average can be considered a potential negative. Therefore, before you decide to apply for this insurance, you should deeply explore its information.
FAQs
Protective life insurance is a type of insurance that provides financial protection to your loved ones in the event of your unexpected death. It covers the insured person’s beneficiaries by paying out a lump sum of money upon their passing.
Protective Life Insurance works by the insured person paying a premium to the insurance company. In the event of the insured person’s death, the insurance company pays out a lump sum to the beneficiaries named by the insured person.
The amount of Protective Life Insurance coverage that you need depends on your individual circumstances, such as your income, debt, and number of dependents. It’s recommended to have coverage that’s equal to 10-12 times your annual income.
You can apply for Protective Life Insurance by contacting an insurance agent or the insurance company directly. The application process typically involves filling out a form, undergoing a medical exam, and providing information about your lifestyle and finances.
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Source: Investopedia