Haris Ashley
Brighthouse Financial offers a range of life insurance options, including whole life insurance. However, whole life insurance is only available as a conversion option for their term life policies. The company, which has been in business since 1863, provides insurance products nationwide and has over 2 million customers. In this article, we will explore the features of Brighthouse's whole life insurance offering and how it compares to other insurance providers in the market. We will also discuss the advantages and limitations of choosing Brighthouse for your insurance needs.
| Characteristics | Values |
|---|---|
| Whole Life Insurance Availability | Whole life insurance is available, but only as a conversion option for term life policies |
| Whole Life Insurance Policy Details | Brighthouse Conversion Whole Life |
| Whole Life Insurance Monthly Cost | Significantly more expensive premium than term life insurance |
What You'll Learn
Brighthouse Financial's Whole Life Insurance
Brighthouse Financials Whole Life Insurance
Brighthouse Financial offers a range of life insurance options, including whole life insurance. Whole life insurance is a type of permanent life insurance that provides coverage for the entire life of the policyholder, as long as premiums are paid. Here's what you need to know about Brighthouse Financial's whole life insurance:
Availability
Features
Whole life insurance from Brighthouse Financial offers lifelong coverage and accrues cash value over time. Policyholders can borrow against the policy, request a dividend payment, or allow the value to build up. The converted whole life plans come with guaranteed level premiums, a level death benefit, and cash value growth.
Purchasing Process
Brighthouse Financial's life insurance policies, including whole life insurance, can only be purchased through a financial professional licensed to sell these products. You cannot buy their policies directly online. The SimplySelect plan, for example, must be purchased through Policygenius. After purchasing a policy, you will need to register your account on the Brighthouse Financial website.
Customer Satisfaction and Ratings
Brighthouse Financial has received mixed reviews from customers. While it has been praised for its affordable rates, quick application process, and no-medical-exam options, it has also scored poorly in customer satisfaction surveys. In the 2023 J.D. Power Individual Life Insurance Study, Brighthouse Financial scored below the industry average. However, according to the National Association of Insurance Commissioners (NAIC), the company received fewer complaints than expected for a company of its size, indicating lower-than-average consumer complaints.
Other Offerings
In addition to life insurance, Brighthouse Financial offers a range of annuity products, including index-linked annuities, variable annuities, fixed-rate annuities, and more. The company also provides hybrid life insurance products that combine life insurance with long-term care coverage, such as the Brighthouse SmartCare policy.
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Brighthouse SmartCare
Brighthouse Financial offers a hybrid life insurance and long-term care product called Brighthouse SmartCare. This permanent life insurance policy is available to those aged 40 to 75 and combines indexed universal life insurance with long-term care (LTC) coverage. It offers a death benefit and coverage for LTC expenses through three rider options: indexed (benefit amount grows with market gains), fixed (benefits earn 5% annual compound growth), or level (benefits stay the same). SmartCare also includes an LTC Acceleration of Death Benefit rider and an Extension of Benefits rider.
SmartCare is a good option for those seeking a policy that offers both life insurance and coverage for long-term care. It is also one of the few life insurance policies that do not require a medical exam, making the application process faster and more convenient. Brighthouse's Simple Underwriting process can provide a decision about coverage within 24 hours.
In addition to the death benefit, SmartCare's long-term care riders can help cover expenses related to hospice care, home health care, nursing homes, adult day care, and assisted living. The LTC Acceleration of Death Benefit rider allows the insured to access a portion of their death benefit if they are certified as terminally ill, and the Extension of Benefits rider provides additional benefit payments for two or four years once the long-term care benefits have been exhausted.
Brighthouse Financial has strong financial strength, with an A (Excellent) rating from AM Best, indicating its ability to pay claims in the long term. The company also has a low volume of consumer complaints, with a rating of 0.30 from the National Association of Insurance Commissioners (NAIC) over a three-year period, which is lower than the expected number of complaints for a company of its size.
However, it is important to note that Brighthouse Financial has scored poorly in customer satisfaction surveys, such as the J.D. Power Individual Life Insurance Study, where it ranked last out of 21 major life insurance companies. The company also has limited policy options for life insurance and does not offer online quotes or purchases.
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Brighthouse SmartGuard Plus
Brighthouse Financial offers a range of life insurance products, including Brighthouse SmartGuard Plus, which is a registered index-linked universal life insurance policy. This product provides clients with guaranteed distribution payments that can supplement income in retirement and a guaranteed death benefit.
Features of Brighthouse SmartGuard Plus
- Guaranteed distribution payments: These are tax-advantaged payments that can last for life, providing certainty for retirement planning. After the policy has been in force for 10 years, the Guaranteed Distribution Rider (GDR) allows for distribution payments to be taken from the policy's cash value in the form of policy loans, which reduce the death benefit.
- Guaranteed death benefit: This provides financial security for the policyholder's family and is generally income tax-free.
- Growth opportunities: By tracking the performance of market indices, Brighthouse SmartGuard Plus offers the potential for distribution payments and policy cash values to grow until distribution payments begin.
- Protection during market downturns: The policy offers buffer options that provide a level of protection for the policy's cash value during market downturns.
- Lifetime Lapse Prevention Benefit: This feature guarantees that the policy will not lapse while the GDR is in force, as long as scheduled required premiums are paid from the policy start date.
How to Buy Brighthouse SmartGuard Plus
It is important to note that Brighthouse Financial's life insurance and annuity products, including Brighthouse SmartGuard Plus, can only be purchased through a licensed or registered financial professional. This means that interested individuals need to connect with a financial advisor or insurance agent to obtain this product.
Customer Satisfaction and Company Financial Strength
While Brighthouse Financial has excellent financial strength, with an A (Excellent) rating from AM Best, it scores poorly when it comes to customer satisfaction. In a J.D. Power customer satisfaction study, Brighthouse ranked last out of 21 major life insurance companies.
Whole Life Insurance Offering
Regarding whole life insurance, Brighthouse offers policies for existing policyholders to accommodate term conversions. This means that to obtain a whole life insurance policy from Brighthouse, one must already hold a term life insurance policy with the company.
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Brighthouse's Hybrid Life Insurance
Brighthouse Hybrid Life Insurance
Brighthouse Financial offers a hybrid life insurance product called Brighthouse SmartCare, which combines permanent life insurance with long-term care coverage. This product is designed to provide financial protection for your family, both in the event of your death and if you require long-term care during your lifetime.
Features of Brighthouse SmartCare
Brighthouse SmartCare is a type of permanent life insurance known as indexed universal life insurance. This means it has a cash value component that grows over time. Each month, premium payments above the cost of insurance are credited to the policy's cash value, while fees and charges are deducted.
The long-term care coverage offered by Brighthouse SmartCare can grow based on the performance of a stock market index, such as the S&P 500, or an annual percentage rate. Alternatively, you can choose a level coverage amount that remains the same.
Riders
Brighthouse SmartCare includes the following riders, which provide additional coverage and benefits:
- Long-term care acceleration of death benefit rider: Allows you to use your death benefit to help pay for long-term care expenses.
- Extension of benefits rider: Provides benefit payments for an additional two or four years once your long-term care benefits have been exhausted.
Purchasing Brighthouse SmartCare
Brighthouse Financial's life insurance products, including Brighthouse SmartCare, can only be purchased through a licensed financial professional. The company does not offer online quotes or direct purchases.
Customer Satisfaction and Financial Strength
While Brighthouse Financial has received excellent financial strength ratings, including an A (Excellent) rating from AM Best, its customer satisfaction ratings are less impressive. In a J.D. Power study, the company ranked last out of 21 major life insurance companies. However, it is worth noting that the company has a low volume of consumer complaints relative to its size.
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Brighthouse's Long-Term Care Coverage
Brighthouse Long-Term Care Coverage
Brighthouse Financial offers a range of life insurance options, including a hybrid long-term care product. This product, called Brighthouse SmartCare, is a permanent life insurance policy that combines indexed universal life insurance with long-term care (LTC) coverage. It is available to individuals aged 40 to 75 and offers a death benefit along with coverage for LTC expenses.
The LTC coverage provided by Brighthouse SmartCare can grow based on the performance of a stock market index, such as the S&P 500, or at an annual percentage rate. Policyholders can also choose to have a level LTC coverage amount that stays the same. In addition, SmartCare includes an LTC Acceleration of Death Benefit rider, which allows the insured to use their death benefit to help pay for long-term care, and an Extension of Benefits rider, which provides additional benefit payments for two or four years once the initial LTC benefits have been exhausted.
Brighthouse SmartCare is a good option for those seeking a policy that offers both life insurance and coverage for long-term care. The company's Simple Underwriting process can also provide a coverage decision within 24 hours for eligible applicants.
However, it is important to note that Brighthouse Financial has received mixed reviews, with poor rankings in customer satisfaction surveys. The company's life insurance options are also limited, and policies must be purchased through a financial professional rather than online.
Overall, while Brighthouse Financial's long-term care coverage through Brighthouse SmartCare can be a valuable option for those concerned about long-term care expenses, it is important to carefully consider the company's limitations and reviews before purchasing a policy.
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Frequently asked questions
Yes, Brighthouse offers whole life insurance. However, it is only available to existing policyholders as a conversion option for their term life policies.
To convert your term life insurance policy to whole life insurance with Brighthouse, you will need to meet certain conditions. For the SimplySelect plan, you can add the Convertible and Renewable Options rider to extend your coverage to five years and then convert it to whole life. For the One-Year Term policy, you must add the same rider to extend your coverage to five years before converting it to whole life.
Whole life insurance with Brighthouse offers lifelong coverage as long as premiums are paid and accrues cash value over time. The insured can borrow against the policy, request a dividend payment, or simply allow its value to build.
