Brighthouse Life Insurance: Is It Worth The Cost?

Brighthouse Financial is one of the largest life insurance companies in the United States, offering term life insurance, permanent life insurance, and a hybrid policy called SmartCare. While the company has been praised for its affordable rates, quick application process, and no-medical-exam options, it has also received criticism for its poor customer service and limited policy options. In this article, we will explore the pros and cons of Brighthouse Financial's life insurance offerings and provide an overview of customer reviews and ratings to help you decide if their policies are a good fit for your needs.

Brighthouse Financial's customer service

The company's customer service has received mixed reviews. While some customers praise Brighthouse Financial for its low rates, others have criticised its customer support. Some reviews describe the customer support team as incompetent, poorly trained, and difficult to reach. There are also complaints about the company's website, which is described as "consumer unfriendly".

In terms of customer satisfaction, Brighthouse Financial scored below the industry average of 790 with a score of 739 in J.D. Power's 2023 Individual Life Insurance Study, ranking last for overall customer satisfaction. Similarly, the company received a score of 714 in J.D. Power's 2021 Individual Life Insurance Study, placing last among the 21 companies surveyed.

However, Brighthouse Financial has received fewer complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC). Over three years, the company has drawn close to the expected number of complaints, with an index rating of 0.30 averaged over three years between 2019 and 2021, and 0.34 in the latest data from NAIC.

Brighthouse Financial's financial strength

Brighthouse Financial has excellent financial strength, with an A (Excellent) rating from AM Best, indicating that it has the financial strength and ability to meet its insurance obligations. This is the third-highest out of 16 ratings. Fitch gives Brighthouse an A (Strong) rating, the sixth-highest of 19 ratings. Moody's gives the company an A3 (upper medium) rating, the seventh-highest of 21 ratings. Standard & Poor's gives Brighthouse an A+ (Strong) rating, the fifth-highest of 22 ratings.

The company has over $230 billion in assets and more than two million customers. It is one of the largest annuity and life insurance providers in the U.S. and is licensed to operate in all 50 states. Brighthouse Financial's total liabilities were $233 billion as of March 31, 2023.

The company's financial strength is further demonstrated by its ability to maintain capital well beyond regulatory requirements, ensuring it can honour its commitments even in volatile markets. Brighthouse Financial's solid financial foundation has earned the trust of many customers who rely on the company for their future financial security.

Brighthouse Financial's life insurance policies

Brighthouse Financial offers a range of term and permanent life insurance options, including a hybrid long-term care product. The company was established in 2017 as a spin-off from MetLife and is now one of the largest life insurance companies in the United States.

Term Life Insurance

The SimplySelect policy can be purchased in 10-, 20- or 30-year terms, with the annual price and coverage amount remaining level throughout the length of the policy. The company also offers a one-year term life insurance policy for short-term coverage needs, such as bridging a gap between jobs. This policy can be extended for five years or converted to a whole life insurance product after the first year, through the Convertible and Renewable Options rider.

Life Insurance and Long-Term Care

Brighthouse offers an indexed universal life policy called SmartCare, which allows the policyholder to use part of the death benefit to pay for long-term care. This product provides a death benefit for a loved one, as well as long-term care coverage for the policyholder. The long-term care coverage can be chosen to increase based on the performance of a stock market index or a fixed amount.

Whole Life Insurance

Brighthouse Financial offers whole life insurance, but only as a conversion option for those who already have a term life insurance policy with the company. These policies have level premiums for the policyholder's lifetime, guaranteed coverage as long as the premium is paid, and guaranteed cash value growth.

Indexed Universal Life Insurance

Brighthouse Financial offers an indexed universal life insurance policy called SmartGuard Plus, which can be supplemented with a guaranteed distribution rider to ensure that future distribution payments remain above a certain threshold.

Brighthouse Financial's pros and cons

Brighthouse Financial Pros

• Brighthouse Financial is one of the largest life insurance companies in the United States.
• The company has excellent financial strength ratings and is considered financially stable.
• Brighthouse Financial offers a unique hybrid policy that combines life insurance and long-term care insurance.
• The company offers quick-turnaround applications and same-day coverage.
• Brighthouse Financial has a low volume of consumer complaints.
• The company has competitive rates for term life insurance.
• Brighthouse Financial has a large library of online resources for learning about purchasing the right amount of life insurance coverage, planning for retirement, and estate planning.

Brighthouse Financial Cons

• Brighthouse Financial has limited policy options for life insurance.
• You can't purchase a policy online and must instead go through a financial professional.
• The company has below-average customer satisfaction scores.
• Brighthouse Financial's customer service has been described as "downright awful".

Brighthouse Financial's customer complaints

Brighthouse Financial has received a high volume of customer complaints, with 181 total complaints filed in the last 3 years, 72 of which were closed in the last 12 months. Many customers have complained about the company's poor customer service, with some reporting difficulties in getting Brighthouse to distribute funds from annuities, others reporting issues with changing their banking information, and some even reporting that the company has been "cheating a 100-year-old woman out of $11,000".

In addition to these complaints, Brighthouse Financial has also received poor ratings for customer satisfaction from J.D. Power, ranking below the industry average of 790 with a score of 739 in the 2023 Individual Life Insurance Study. This indicates that the company has room for improvement in terms of customer service and satisfaction.

Reddit and Trustpilot reviews also reflect dissatisfaction with Brighthouse Financial's customer service, with one Reddit user advising, "I would recommend switching if you are worried about customer service... Brighthouse is downright awful." Trustpilot reviews include comments such as "horrible", further emphasising the company's need to address customer service issues.

While Brighthouse Financial offers competitive rates and a unique hybrid policy that combines life insurance with long-term care insurance, the high volume of customer complaints and poor satisfaction ratings may be a cause for concern for prospective customers. The company's limited selection of life insurance products and lack of online quoting tools may also be seen as drawbacks for some.

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