Many life insurance companies offer only one or two core products, targeting a specific group of applicants with a limited range of options.
Life Insurance Company of the Southwest is not one of those providers.
With a wide range of life insurance products designed to meet applicants’ unique needs, Life Insurance Company of the Southwest could have a policy for you.
Whether or not you should partner with the company, though, depends on several factors, like its history, financial standing, and the fine print on its multitude of policies.
Read on for an overview of the company’s best and worst features to decide if it’s the right provider for you.
Our Life Insurance Company of the Southwest Review
Life Insurance Company of the Southwest first opened its doors in 1955.
The company is part of the National Life Group— a large life insurance provider that started offering policies in 1848—over 170 years ago.
The companies now operate under the same banner and share a central website.
In 1996, National Life Group began purchasing parts of Life Insurance Company of the Southwest to expand its operations.
Three years later, in 1999, it acquired the entirety of the company.
National Life Group has made several similar acquisitions in a bid to grow, including the purchase of Sentinel Advisors in 1976.
The group of companies now offers insurance, annuities, and investments.
You can obtain their financial products in 49 states throughout the country — Life Insurance Company of the Southwest does not provide products in New York.
The company has offices in Vermont and Texas.
In addition to its financial products, National Life Group and its companies have a firm commitment to social responsibility and community involvement.
The company has a foundation that offers $2m to non-profits on an annual basis.
Awards and Accolades
While many smaller insurance firms don’t receive industry recognition, Life Insurance Company of the Southwest and National Life Group have both been on the receiving end of various awards.
Some of their most notable achievements from the past five years include:
- 2018 Ward’s Top 50: Ward’s Top 50 is a list of the top insurance providers in the country, and in 2018, the Life Insurance Company of the Southwest made the list. The selection process included an analysis of the provider’s viability and performance.
- The Association of Fundraising Professionals 2018: The organization recognized National Life Group and its companies for their outstanding efforts in providing money to non-profits throughout the country.
- America’s Magnificent Eight Special Companies: The CEO Forum named National Life Group to the list, due to the performance of the company’s chief executive and the company’s influential internal ‘culture’ and passion for providing robust services.
Financial Strength & Ratings
When you consider purchasing an insurance policy, it’s critical to assess its financial strength.
Life Insurance Company of the Southwest’s financial information is in conjunction with National Life Group.
In 2018, National Life Group experienced a four percent growth rate on its assets under management — the company currently has $31b in assets and $28b in liabilities.
In total, the company has $139b worth of life insurance in-force around the country.
Since 2012, National Life Group has seen an ‘in-force life insurance’ growth rate of over 100%.
We also took a look at the company’s reputation with the leading rating agencies around the world. Its current ratings are as follows:
These high ratings indicate reliable financial health.
The company has resolved several complaints on the BBB, many of which regard annuity products, not traditional life insurance policies.
Overall, Life Insurance Company of the Southwest and National Life Group have strong reputations with rating agencies and consumer watchdog groups.
One advantage of working with Life Insurance Company of the Southwest is that you have a wide range of policy options.
Many life insurance companies in the United States only offer whole and term insurance, making Life Insurance Company of the Southwest that much more appealing.
Below are the core life insurance products you can access at Life Insurance Company of the Southwest:
Certain medical conditions may impact the underwriting process at Life Insurance Company of the Southwest.
While Life Insurance Company of the Southwest no longer offers public information on their policy limits, in the past, the maximum insurance benefit has been $350,000.
Unfortunately, this means that the company isn’t an ideal partner if you need extensive coverage.
Without further ado, let’s take a look at the specific policies offered by the company.
If you’re looking for protection over a set period, a term policy is one of the most popular options.
You can choose a set amount of time or create a term that lasts until you reach a designated age.
Many policyholders use this form of insurance to protect mortgages and other significant assets.
Unlike whole insurance, the term insurance policies at Life Insurance Company of the Southwest do not offer premium payments that remain the same.
In most cases, your payments will increase towards the end of the term. It’s essential to plan for this increase in cost if you access a term policy.
Universal life insurance policies offer a bit more flexibility.
With this option, you can earn a minimum interest rate on your policy.
In some cases, this interest rate may increase. Life Insurance Company of the Southwest sets the interest rate you earn.
The universal policies at Life Insurance Company of the Southwest offer a flexible death benefit.
Still, if you want to increase your death benefit, you may need additional approval from the underwriting team.
An indexed universal policy provides a combination of cash value accumulation and death benefit access.
This is another policy that offers a flexible death benefit feature, along with flexible premiums.
The unique component of an indexed universal policy is the way it calculates its interest.
Your interest payments are directly linked to the performance of a market index.
The policy also protects you against market losses, which makes it safer than investing directly in an index fund.
If you’re looking for more control over your policy, the variable universal option at Life Insurance Company of the Southwest might be the right choice.
It offers death benefit flexibility and a flexible premium.
The cash value in your policy is linked to different market accounts you personally select.
This feature allows you to determine what type of investment strategy you’re comfortable with.
However, this is a riskier option, and you may lose money if the investments do not perform as expected.
Whole life insurance provides you with lifetime coverage.
If you want to guarantee a death benefit for your family or funeral expenses, a whole life insurance policy is typically the best option.
In most cases, you’ll also be able to access the cash value of your policy if you need emergency money.
The amount you pay in premiums will remain the same throughout the life of the plan.
To access the death benefit on this policy, you need to keep up your payments.
Each year, you may receive a dividend, but this will be at the discretion of Life Insurance Company of the Southwest.
Life Insurance Company of the Southwest and National Life Group offer several benefits to their policyholders.
Let’s take a closer look at the key advantages associated with their policies and services:
- Strong Financial Profile: Life Insurance Company of the Southwest is in a stable economic position. And National Life Group has some of the best ratings from the world’s most respected rating agencies.
- Flexible Policy Options: Life Insurance Company of the Southwest has one of the most extensive offerings in the industry. You have no shortage of options at this provider.
- Long History of Success: While Life Insurance Company of the Southwest was founded in 1955, its parent company National Life Group started offering policies over 170 years ago.
- Available in 49 of 50 States: Life Insurance Company of the Southwest offers life insurance nearly everywhere, barring policies in New York because of licensing restrictions.
- No Medical Exam Options – While there are medical requirements for policies at Life Insurance Company of the Southwest, it appears there are certain instances where you can avoid the need for a medical exam.
- Other Policies – Life Insurance Company of the Southwest and National Life Group focus primarily on life insurance policies, but they also offer a range of other financial products. like mutual funds, living benefits, annuities, retirement plans, IRAs, and more.
- Customer Portal and Mobile App – If you want to view your Life Insurance Company of the Southwest policy, you can head to the National Life Group website and access a policyholder portal. In 2018, the company also rolled out a mobile app.
Life Insurance Company of the Southwest also has several downsides.
- Current Legal Action: In February of 2019, a class-action lawsuit was filed against the company claiming they were complicit in forming a Ponzi scheme using clients from Asia. While the case is still pending, large class-action lawsuits can have a significant impact on the financial viability of a company.
- No Direct Online Application: If you’re hoping to find this convenient feature at Life Insurance Company of the Southwest, you’re out of luck. The company makes you contact their team to discuss policies and begin the application process.
- Long Decision Windows: National Life Group states on its website that it can take weeks to provide you with a policy decision. This is not the right company if you need insurance quickly.
- No Transparency on Policy Conditions: Life Insurance Company of the Southwest offers a wide range of policies, but they don’t provide a great deal of information about restrictions or other components that may impact your approval chances.
- Small Policy Amounts: With a maximum policy amount of $350,000, you may not be able to protect your mortgage or other vital assets when using these policies.
- Strict Age Limits – Life Insurance Company of the Southwest is slightly evasive about their age limits. It appears you must be under 55 to access 20 and 30-year terms.
If you’re looking for a financially stable provider with versatile policy options, Life Insurance Company of the Southwest fits the bill.
They have a tried and true history of success in the industry, and their ratings and slew of recent accolades suggest future success.
While all of the above is true, Life Insurance Company of the Southwest isn’t always the best bet for the average applicant.
Many of the company’s competitors are more straightforward about their pricing and policy terms and offer online applications, quicker acceptance, and larger policies.
Regardless of what type of policy you’re looking for, be sure to familiarize yourself with all of your options so you can secure the right protection for you and your family.
Life Insurance Company of the Southwest Review
- (800) 732-8939
- 1 National Life Drive
Montpelier, VT 05604
Company Name (and subsidiaries)
- National Life Group
- National Life Insurance Company