Before choosing a life insurance policy, it helps to compare rates and plan details from as many companies as possible. This way, you can be sure that you’re getting the right coverage for you and your loved ones.
Sagicor is an insurance agency founded in 1840, which operates in 45 states and the District of Columbia. With such a long track record, it stands to reason that the company knows a thing or two about life insurance. Here is what you should know.
Sagicor Company History and Ratings
Interestingly enough, life insurance is one of those industries with a long and stable history. Most of the top companies have been around for at least 100 years, which illustrates the universal value of these kinds of policies.
Sagicor is based in Barbados, where it was called the Barbados Mutual Life Insurance Company for 150 years. Then, in 2002, the business was rebranded as Sagicor, which is a portmanteau of the words “sage” (wise) and “cor” (heart).
Sagicor extends throughout the Caribbean, including Trinidad and Tobago, Antigua, Grenada, Jamaica and others. It operates in 21 countries worldwide and has a combined asset count of over $5 Billion.
One of the best ways to determine an insurance company’s financial stability is to check its credit rating. Sagicor currently holds an A- rank with A.M. Best, which is one of the highest ratings a company can have. It is also well regarded with the Better Business Bureau (BBB) with no serious complaints or outstanding charges.
What Kind of Life Insurance Does Sagicor Offer?
Technically, there are only two types of insurance available – permanent and term life insurance. However, Sagicor has multiple options within each branch. Here is a breakdown of each one of Sagicor’s policies, starting with term insurance.
Sage Term Life Insurance
Age Range: 18 to 65
Policy Amounts: $50,000 to $1 Million
Term Options: 10, 15, and 20 Years
On the surface, Sagicor’s term insurance policy is relatively standard compared to others in the industry. However, there are several crucial points where it differs from plans you can find elsewhere, including:
- Age Limit – Usually, term plans are available to individuals up to 70 or 80 years old. While Sagicor does offer some limited coverage for those over 65, that age is technically the cut-off point.
- Coverage Period – With other companies, you can sometimes get a term policy for up to 30 years. By comparison, Sagicor’s plans don’t go beyond 20. If you want more extended coverage, you can convert your policy to permanent insurance.
- Medical Exam – Sagicor does offer a proprietary “Acceler Writing” system. This program is designed to expedite the approval process. We’ll discuss this feature later on, but it is only available to those who would be in the “preferred” or “preferred plus” categories. If you have pre-existing medical conditions, you will likely have to take an exam to get approved.
Other than these components, Sagicor’s term life insurance is relatively standard. As with other insurance companies, Sagicor uses tables to determine your rates, and they will vary based on your age, health, gender, and smoking status. Certain medical conditions like sleep apnea and diabetes may disqualify you from getting approved, so you will have to look elsewhere for plans.
Sagicor Life Insurance Riders
If you’re unfamiliar with riders, they are additional coverage options that can be attached to your policy. Sagicor offers an Accelerated Benefit Rider on all plans, which can come in handy if you are ever hospitalized or confined to a retirement home.
This rider is free, and it allows you to claim up to $300,000 of your death benefit to cover related medical expenses. If you have a terminal condition, you will receive a lump sum upfront. For long-term confinement, the benefits are paid monthly.
Sagicor also offers these optional riders if you want additional coverage for your policy:
- Accidental Death and Dismemberment (AD&D) – If you are killed in an accident (as listed), your beneficiaries will receive a bonus amount.
- Children’s Term Insurance – You can take out an additional policy on your children (ages 15 to 19) as a rider. Once your child turns 19, the policy can convert to an individual permanent insurance plan for up to five times the amount you choose. The best part of this rider is that the new plan takes effect regardless of your kid’s health status.
- Waiver of Premium – If you become disabled, Sagicor will suspend your premium payments, either indefinitely or until you recover. In that case, you will resume your premiums, but you won’t owe anything for the time missed.
This option is available for all of Sagicor’s life insurance policies. Rather than dealing with a lengthy application and approval process, the company allows those in excellent health to expedite their coverage options. If you qualify, you can receive a life insurance policy recommendation in minutes, not days or weeks.
The best part of this program is that you don’t need to take a medical exam or submit an attending physician’s statement (APS). However, it can be tough to qualify, so you will likely need to go the traditional route instead.
Sage Whole Life Insurance
Age Range: 85 years or younger (including children)
Policy Amount: Up to $250,000
Unlike term coverage, whole life insurance will stay in effect forever. There are multiple advantages to these kinds of plans, including:
- Cash Value Accumulation – As you pay into the policy, a portion of your monthly premium will go into a separate account. You can use this money however you like, whether for retirement, personal loans, or premium payments.
- Tax-Deferred Growth – Your cash value fund will earn dividends, which go back into the account. You don’t have to pay taxes on loans in many circumstances. If you opt for retirement annuities, you will have to pay the IRS at that point.
Sagicor offers relatively standard whole life insurance, but there are some unique benefits, such as:
- Level Premiums – With other plans, your rates will go up as you age. Sagicor doesn’t increase your monthly payments, meaning that it’s easier to budget for life insurance later in life.
- Single-Premium Options – These plans are considered annuities by Sagicor, but they could also be thought of as paid-up additions. Rather than buying a long-term policy, you pay a single premium (at least $5,000) and let it accumulate interest. These options are designed to help with retirement income.
- Accelerated Death Benefit – As with Sagicor’s term insurance policies, you can claim a portion of the death benefit if you are terminally ill or confined to a retirement home.
Sage Universal Life Insurance
Age Range: 85 years or less
Policy Amount: $50,000 to $10 Million
Although universal life insurance is a form of permanent life insurance, it helps you invest for the future. While a typical cash value fund will grow slowly, universal life insurance gives you much more flexibility with how much you can put away each month. Also, with an indexed policy, you can earn more by investing your CV into stock like funds.
Sagicor offers two types of universal life insurance – Indexed and No Lapse. Here is a breakdown of each one.
Indexed Universal Life Insurance
There are three ways to make extra money with this policy. The first option is to use a guaranteed interest rate, set by Sagicor. Because this is a fixed rate, you don’t have to worry about market fluctuations. Even if the market dips, you will still receive your money.
The second method is to tie your money to the S&P 500. What is nice about this policy is that you can’t lose anything. Even if the market dips significantly, your cash value fund has protection.
Finally, you can opt for a global index, which pulls from the S&P 500, EURO STOXX, and Hang Sang. The combined weight of all three indices will influence how much you can earn with your policy.
Part of what makes this plan ideal for investing is choosing how to invest your funds by mixing and matching each credit option. You can utilize all three or just pick one. The policy resets after one year so that you can adjust your investments accordingly.
No Lapse Universal Life Insurance
If you’re not interested in managing your investments, this option utilizes Sagicor’s guaranteed interest rate plan. While you don’t get to determine how your money grows, the trade-off is that you receive built-in lapse protection. So, if you ever miss a premium payment, you don’t have to worry about losing all of your benefits.
Bottom Line: Is Sagicor Worth It?
Overall, Sagicor centers around wealth management and retirement through life insurance products. While the term and standard whole life policies are decent, they are not as competitively priced as other companies. If you like the idea of investing a portion of your premiums to accumulate wealth, you could look into one of the universal life insurance plans.
Contact NextGen Life Insurance Today
Comparing rates and policy options between different life insurance companies can be exhausting if you try to do it yourself. Instead, let us do the hard work for you so that you can focus on what matters most. Contact us today to find out more.