Protective Life Insurance Review

So, how did Protective Life Insurance come about? Let me quickly share with you their story.

When Theodore Roosevelt was in his 7th year as the President of the United States, Governor William Dorsey Jelks started Protective Life Insurance Company (1907). In 1927, the company joined forces with Alabama National Insurance Company and its president, Samuel Clabaugh, presided as its CEO.

After 25 years in operation, the company had more than $65 million of insurance in force. As they celebrate their 50th anniversary, that figure ballooned to close to a billion dollars.

In the next couple of decades, Protective Life will make the following key acquisitions:

1983 – Acquired Protective Life and Annuity Insurance Company

1997 – Acquired West Coast Life

2006 – Acquired Chase Insurance Group

2013 – Acquired MONY Life Insurance Company

2016 – Acquired United States Warranty Corporation

2018 – Acquired Liberty Life Assurance Company of Boston (its individual life and annuity business)

In total, the company has made 56 acquisitions during its lifetime of operation.

It’s important to note that the company is now a wholly-owned subsidiary of Dai-ichi Life Insurance Company Ltd.. This was done via the merger of DL Investment (which was wholly owned by Dai-ichi) and Protective. They retained Protective as the surviving entity of this merger.

Today, Protective Life offers life insurance, annuities, stable value products, asset protection, and other related services and products.

Protective Life Insurance Financial Strength

A life insurance company’s ability to pay claims and operate at their highest ability (overall business strength, customer support, and tools, etc.,) is one of the biggest factors a customer considers when choosing an insurer.

In this regard, Protective Life is one of the best-rated life insurance companies currently based on overall financial strength and ratings made by third-party agencies.

A.M Best Rating: A+

Standard & Poor: AA-

Fitch: A+

Moody’s: A1

Protective Life Insurance Company Review

Let’s begin the review of Protective Life Insurance by taking a look at the products they currently offer.

Term Life Insurance

Provides the most affordable rates for the most protection. You can choose a term length of 10, 20, or 30 years. There’s also an option to convert it to permanent insurance later on (no medical exam required). Coverage begins at $100,000.

Key Features:

  • Term life insurance in 10, 20, 30-year policies
  • Policy amounts between $100,000 to $50 million
  • Guaranteed Level Premiums
  • Ability to convert into permanent life insurance without the need to take a medical exam
  • Death benefit is free from income tax
  • Terminal Illness Rider – Accelerated Death Benefits option

Here’s a sample quote from their website comparing their prices with State Farm and Prudential:

Protective Life Insurance Review

For a 30-year old male with a 10-year, $100,000 policy

Protective Life Insurance Review

50-year old male with excellent health, 20-year coverage (non-smoker)

Protective Life Insurance Review

50-year old male, non-smoker, in Good Health (minor health issues like high blood pressure or cholesterol. Parents or siblings may have had some history of medical conditions.)

Reasons to choose Protective Term Life Insurance

For most people, term life insurance is the way to go as it’s the most cost-effective solution. But what exactly can coverage from a term life policy get you? Here are the most common uses:

  • Income replacement – Having coverage gives you the peace of mind that your loved ones will have a source of funds in the event of your death.
  • Funding your child’s education – The benefits can serve as a safety net for ensuring funding for your kid’s education should something happen to the family’s primary income earner
  • Paying off your mortgage – The benefit you’ll get from the policy can cover the outstanding balance on your mortgage and other debt.
  • Funding divorce settlements – The benefit will allow you to satisfy divorce-related requirements and responsibilities, guaranteeing the ability to pay for child support or alimony.

Advantages of Term Life Insurance

  • The most cost-effective solution for getting sufficient life insurance coverage
  • Get only the desired length of coverage that you need
  • Straightforward and easy to understand
  • Fixed and level premium payments
Protective Life Insurance Review

Disadvantages of Term Life Insurance

  • Should you wish to renew your coverage once the policy expires, the new premium rates can be significantly more expensive
  • Both coverage duration and amount of death benefit are fixed
  • No cash value feature unlike in permanent life (no asset-building option and ability to borrow funds from your life insurance)

Protective Whole Life Insurance

Choose this if you need lifetime protection that also builds cash value. Benefits are guaranteed as long as you’re able to pay the premiums.

Key Features:

  • Level Premium Payments
  • Permanent protection with guaranteed death benefit coverage
  • Cash value accumulation with tax-deferred growth
  • Fixed interest rate

Protective Term Life vs. Whole Life Insurance

Protective Term Life Insurance Protective Whole Life Insurance
Is the more affordable option between the two More expensive than term life but features level premiums that are guaranteed not to increase
Freedom to choose between 10, 20, 30 years worth of life insurance coverage Policy coverage for your lifetime as long as your premiums are paid regularly and on time
Level death benefit and premium Cash value component
Option to renew your coverage into whole life once the policy expires Ability to borrow against your life insurance because of the cash value component.

Protective Child Life Insurance (Whole Life)

Protective’s “Protect My Child” policy is the one to get if you want to get permanent whole life insurance coverage for your child.

Key Features:

  • Life insurance coverage for children amounting from $10,000 to $100,000
  • Since it’s whole life, there is a cash value component
  • The benefit amount will double automatically when the child reaches 18 years old (no additional cost)
  • Lock-in rates that are guaranteed to remain level
Protective Life Insurance Review

Source: Protective

Protective Universal Life Insurance

The company currently offers 3 products under the Universal Life Insurance category.

Choose this if you need a more flexible premium payment option and more control over the allocation of your cash value.

Why choose Universal Life insurance?

  • Flexible death benefits and premiums
  • Tax-deferred growth on the money you have in your cash value
  • Cash value allows you to borrow against your insurance
  • Lifetime coverage as long as you’re paying for premiums

Protective Custom Choice UL

Protective Custom Choice UL can be thought of like a combination of term and universal life insurance. It offers the flexibility of universal insurance with the affordability of term.

What makes it appealing is the option to “upgrade” to permanent life insurance within the first 20 years up to age 70, without the need to take a medical exam. At the end of the policy, the premium payments stay the same as your policy coverage adjusts (gets lower), which gives you coverage for a certain amount of time while you decide how to proceed.

Key Features:

  • Coverage for 10, 20, or 30 years
  • Inexpensive and flexible (level payments)
  • Coverage remains in place even after the initial benefit period as long as the policy remains in force
  • Non-taxable death benefit

Protective provides a sample quote on their website showing a 30-year old male (non-smoker) can pay as low as $7.46 per month for $100,000 worth of coverage (10 years) for Custom Choice UL.

Advantages of Traditional Universal Life Insurance (Custom Choice UL)

  • Death benefit coverage that lasts a lifetime
  • Flexibility in paying your premiums
  • Ability to access your cash value for loans and withdrawals
  • Wide range of investment options for your cash value

Disadvantages of Traditional Universal Life Insurance (Custom Choice UL)

  • Typically more expensive than term insurance
  • Some options can appear confusing to policyholders, not as direct and easy-to-understand as term
  • Interest rates might appear lower than the cash value on other types of whole or permanent life insurance

Protective Variable UL

Choose this if you’re looking for financial benefit for your beneficiaries while having more options to grow your money via tax-deferred growth on your cash value.

Key Features:

  • Minimum guaranteed death benefit (will remain level as long as required payments are made)
  • You have the option to use your cash value to pay for premiums
  • Offers a wider range of investment options based on the policyholder’s risk appetite

Advantages of Variable Life Insurance

  • Death benefit coverage that lasts a lifetime
  • Flexibility in paying your premiums
  • Ability to access your cash value for loans and withdrawals
  • Wide range of investment options for your cash value

Disadvantages of Variable Life Insurance

  • More expensive which typically comes from the management fees and costs for handling your cash value investments
  • In the event that your cash value amount takes a dive (negative returns), you might be required to increase your premium payments to keep the policy active

Protective Survivorship UL

Also known as second-to-die insurance, this type of policy appeals best to married couples and/or other partnerships between two people who have insurable interest in each other. The main advantage is it’s more affordable than purchasing two separate policies.

Key Features:

  • Lifetime Lapse Protection – Guarantees you won’t void your policy as long as you’re making the necessary payments (on time).
  • Split Option Endorsement – The ability to split the policy into two individual policies in the event of divorce.
  • Estate Protection Endorsement – Gives the option of an increased death benefit to your beneficiaries so they’ll have an easier time paying estate taxes.
  • Death Benefit Coverage Flexibility – Ability to lessen the amount of your coverage without having to purchase a new policy to replace your existing one.

Reasons to get Survivorship UL (Second-to-die insurance)

If you are married or have insurable interests with another person, getting second-to-die insurance gives you the following:

  • If your beneficiaries will be left to manage the family business, the funding can help them continue it without experiencing financial hardship
  • Gives you the peace of mind that your beneficiaries won’t have to use up their inheritance to pay large estate taxes
  • If you have a special needs child or similar case for a loved one, this will provide them with some funds to support them
  • If you want to support a charity or institution (leave a legacy)

Protective Indexed UL

For policyholders who want to have the cash value of their insurance linked into index-based markets, this is the one to get. Since it’s universal life insurance, you will also enjoy the same flexibility in premium payments and lifetime protection.

You have two options for its interest account:

  • Fixed Account – All premiums paid into the cash value is guaranteed to earn interest at a fixed rate.
  • Indexed Account – The growth of the assets in your cash value is dependent on the performance of the funds in the index market you’re invested in.

Key Features:

  • Flexible premiums and death benefit
  • The cash value will grow or lessen based on the performance of the market index
  • Lifetime death benefit

How to apply for Protective Life Insurance

1. Request for a quote via the Protective Life Insurance website. You can utilize their free online tools if you want to get an idea on the type and amount of coverage that you want. Their Policy Finder is helpful in helping potential customers who have little knowledge of life insurance get started. For those who want to have an estimate, Protective’s Life Insurance Calculator is helpful and easy to use.

2. Fill out their online application form.

3. Phone call with a Protective agent. An interviewer will set up a call with you (based on your preferred time) and will ask you some questions about your health and lifestyle.

4. Take the free medical exam. It only takes half an hour. Medical examiners will conduct the exam at your own convenience.

5. Wait for your application to be approved

Protective will conduct the necessary underwriting and will contact you to confirm the approval of your application.

Protective Life Insurance: Is it for you?

With a strong line of life insurance products, they are a good choice. They are also financially sound and their policies are backed by more than one hundred years of experience in the life insurance industry. They have an excellent track record in paying out death benefits to beneficiaries.

Overall, they have pretty competitive rates that can go toe-to-toe with what other popular life insurance companies offer. Plus, they don’t close their doors to policyholders who have pre-existing conditions like heart issues or diabetes.

All that being said, they can still improve the speed of their underwriting process especially now that competitors like Ladder and Haven Life are pushing the envelope forward in life insurance underwriting via technology and big data.

I hope you find this review of Protective Life insurance useful. If you want to know more about how to get the best life insurance, you can speak with one of our agents or request for a free life insurance online quote.