Protective Life Insurance Company makes its aim clear in its name, a monicker the company has lived up to for more than one hundred years running.
When you purchase life insurance, it’s crucial to partner with a strong company you can count on to protect your family when it counts.
To decide whether or not Protective fits the bill, you also need to look at its products and financial performance.
In this review, we’ll outline Protective’s key features to help you decide if the company checks the boxes for your family’s life insurance needs.
Our Protective Life Insurance Company Review
Founded in 1907, Protective Life Insurance company’s long and stable history began in Alabama under the supervision of William Dorsey Jelks, the former governor of the state.
The company grew on its own until 1927, when it acquired another insurance company, Alabama National.
Protective would continue this pattern of growth until it expanded into all 50 states in the following few decades.
Protective went public in 1993 under new leadership, under the ticker PL on the NYSE.
More acquisitions occurred in 1997 and 2006, when both West Coast Life and Chase Insurance Group respectively came under the Protective Umbrella.
Over the last decade, Protective acquired MONY Life Insurance Company of America, United States Warranty Corporation, blocks of Genworth, Liberty Life Insurance Company of Boston, and the majority of Great-West Life and Annuity Insurance Company’s business.
Protective has acquired 57 companies, with the latest acquisition of Great-West being the largest in Protective’s history.
In 2017, Protective Life became a subsidiary of Dai-ichi Life Insurance Company, Ltd, an industry giant located in Japan, which will allow Protective to expand its services on a massive scale.
Through all of its successes, Protective has remained steadfast in its commitment to its core values of integrity, services, trust, and simplicity.
This heart for helping people is also evident in the Protective Life Foundation, the company’s attempt to make a difference in the communities it serves.
Protective and its employees donate to and volunteer with hundreds of nonprofits to improve people’s quality of life and solve issues facing our neighborhoods and the environment.
Financial Strength and Ratings
In addition to examining the company’s history, you also need to take a close look at its current financial performance and the outlook for the future.
One of the first places to turn in your assessment is to credit ratings, which gauge the company’s ability to meet financial commitments like paying out its life insurance policies.
Protective holds some of the most prestigious ratings, making it one of the best life insurance companies in the industry based on its financial strength and stability.
Not many of the hundreds of insurance carriers across the United States can claim this level of recognition.
The ratings are as follows:
- A.M. Best: A+
- Fitch: A+
- Moody’s: A1
- Standard & Poor’s: AA-
Cumulatively, this results in a Comdex score putting them well within the top 10 percent of all life insurance carriers by financial strength and security.
Protective’s own financial reports solidify their financial strength even more.
The company has 8.6 million policies in force, totaling $900 billion of life insurance.
They also have $90 billion in total assets.
Additionally, Protective touts an A+ rating from the Better Business Bureau, the organization’s highest recognition.
Based on all the factors above, Protective is a financially stable company you can depend on with the all-important purchase of life insurance.
Protective offers an impressive array of life insurance products to meet the unique needs of individuals, families, and businesses.
Their current product lineup includes:
Protective’s term life insurance products are some of the most competitively priced choices on the market today.
These policies offer a tax-free death benefit and level premiums guaranteed for the length of the term.
Protective offers term life insurance in increments ranging from 10 to 30 years.
Their term policies also come with a large maximum death benefit. You can opt for coverage between $100,000 and $50 million.
Additionally, these policies come with flexibility, allowing you to convert to a permanent policy later in life without a medical exam.
You can also select a terminal illness rider, which could allow you to access some of the death benefit if you have a qualifying illness.
If you’re looking for a more permanent solution, universal life insurance is your most affordable bet.
A universal policy from Protective can provide you with coverage that lasts a lifetime, the potential for tax-deferred cash value growth, access to funds, and the ability to alter your policy and premiums.
There are four sub-types of universal insurance available from Protective:
- Protective Custom Choice UL: Similar to term life insurance, you pick a period of time between 10-30 years during which your premiums and coverage are level. The difference is, while the death benefit decreases once your term is up, your coverage never ends. You can also convert this coverage later, regardless of your health.
- Variable Universal: The variable universal life product accommodates those who wish to grow cash value while protecting their family, with a portion of their premium being invested in the stock markets. There is additional risk involved in VUL policies, which is worth keeping in mind.
- Indexed Universal: For individuals who want the potential for growth with less risk, the IUL is a tailored indexed universal policy. You get long-lasting coverage, some guarantees on minimums, and the potential upside of growth utilizing some of the more common market indices, such as the S&P 500.
- Survivorship Universal: Last, Protective offers a survivorship life insurance option, which is a life insurance policy for not one, but two separate lives. The policy spreads the risk, resulting in lower premiums; this product is often used for estate taxes, charitable giving, or inheritance fees.
A whole life insurance policy grants you the most guarantees, with a fixed cash value accumulation rate, level premiums, and a guaranteed death benefit.
As long as you make your payments, the policy is guaranteed to stay in force.
In exchange for these guarantees, you can expect to pay significantly more for whole life coverage than you would for a comparable term or universal policy.
Whole life policies allow you to borrow against the cash value, but doing so can reduce the death benefit of the policy.
Protective also offers whole life insurance specifically designed for children between the ages of 0-17.
The Protect My Child® policy comes with no exam coverage ranging between $10,000 and $100,000. When the child reaches 18, the coverage amount is doubled at no extra cost to you.
The smartest way to shop for life insurance is to compare multiple options.
Protective is an excellent life insurance company, but there are plenty of other high-quality providers.
Depending on your circumstances and needs, one of the companies below could be a good fit, too:
- Haven Life: Haven Life more than makes up for what Protective lacks in a simplified term life policy you can apply for online, allowing you to skip the agent interaction and potentially avoid a medical exam.
- Northwestern Mutual: If you’re looking for an alternative to Protective’s whole life insurance, check out Northwestern Mutual, which offers advantageous riders, dividends, and policy conversion credits.
- Sagicor: While Protective lacks a variety of no exam options, Sagicor specializes in these simplified products, with quick coverage and stellar underwriting. Their universal policies are also top-notch.
Protective is one of the best life insurance companies you could choose.
Here are a few of the reasons why:
- Outstanding reputation: Protective has a phenomenal track record, exemplified by its stellar credit ratings across the board, acquisitions, and millions of happy customers.
- Product selection: Protective has a wide array of products designed to provide both temporary and long term life insurance solutions.
- Universal life: Protective has the best universal life insurance of any company, hands down. Their universal products are flexible and affordable.
- Customization: With a number of riders and the option to convert term and universal policies, Protective allows you to customize your insurance to fit your changing needs.
There isn’t much to complain about when it comes to Protective.
However, here are a couple of potential downsides, depending on your preferences:
- No exam options: Protective’s offering of no exam coverage is lacking. You’ll have to get a medical exam for most of the company’s life insurance policies.
- Application process: While the online application is user-friendly and easy to complete, it’s only step one. For most policies, you’ll have to apply online, follow up with a phone call, undergo a medical exam, and wait 3 to 6 weeks for your policy to be underwritten.
With its long and storied history in the life insurance industry and an affordable selection of products, Protective is one of the nation’s best life insurance providers.
Though Protective might not be as well-known as some of its competitors, it should be.
Protective has a strong partnership with independent agents offering its products, and a vast number of consumers who are willing to purchase them.
Whatever your situation is, one of Protective’s policies is bound to meet your needs.
Compare quotes from Protective and other leading providers to make sure you get the best rates possible.