Protective Life Insurance: Is It Worth The Hype?

Protective Life Insurance Company is a legitimate company that has been providing insurance services since 1907. The company offers a range of insurance policies, including term, whole, and universal life insurance, with high coverage limits and longer-than-average term lengths. Protective also provides retirement products in the form of annuities. The company has received high financial strength ratings, indicating its ability to meet future claims. However, customer reviews are mixed, with some praising the company for affordable rates and strong customer service, while others complain about unresponsive representatives and outdated technology.

Protective Life Insurance offers term, whole and universal life insurance options

Protective Life Insurance offers a range of term, whole, and universal life insurance options. The company has a solid financial strength rating, indicating its ability to pay future claims. However, it has received below-average customer satisfaction ratings.

Term Life Insurance

Protective offers term life insurance policies with coverage ranging from $100,000 to $50 million and terms of 10 to 40 years. Policyholders may have the option to convert their term life insurance policy to a permanent policy without a medical exam. Depending on the state, the policy could include a terminal illness rider, allowing early death benefits if the insured becomes terminally ill.

Whole Life Insurance

Whole life insurance from Protective provides permanent protection and builds cash value at a set, fixed rate. Whole life insurance policies offer level premium payments, guaranteed death benefit coverage, guaranteed cash value accumulation, and tax-deferred cash value growth. While whole life insurance may be more expensive than term life, it offers the benefit of permanent protection and the potential for cash value accumulation.

Universal Life Insurance

Protective offers seven universal life insurance policies, including variable universal and indexed universal options. Universal life insurance provides flexible premiums, allowing adjustments based on the policy's cash value. It also offers the potential for cash value accumulation, which can be borrowed against.

It has a below-average customer satisfaction score

Protective Life Insurance has received a below-average customer satisfaction score in J.D. Power's 2023 study. The company scored 768 out of 1,000, compared to the industry average of 790. This indicates that customers may be underwhelmed with Protective Life's service.

However, it's worth noting that Protective Life has received fewer-than-average customer complaints over the past three years, suggesting that customers are generally satisfied with their experience overall. The National Association of Insurance Commissioners (NAIC) produces an annual complaint index report, and Protective Life's score indicates that it has received fewer complaints than expected for a company of its size.

While Protective Life's customer satisfaction rating in the J.D. Power study is lower than average, it's important to consider other factors when evaluating the company's service. The amount of customer complaints can also be a good indicator of the quality of service, and Protective Life's low complaint rate suggests that customers are mostly satisfied.

In addition, Protective Life has a strong financial stability rating. AM Best, a credit rating agency, gave Protective Life an "A" (Excellent) rating, indicating that the company is financially sound and should be able to meet claims obligations. This rating reflects Protective Life's ability to fulfil its financial commitments and provide stable insurance services to its customers.

Overall, while Protective Life's customer satisfaction score is below average, the company's low complaint rate and strong financial stability may contribute to a positive customer experience. It's important to consider multiple factors when evaluating the quality of a company's service, as customer satisfaction can be influenced by various aspects of the customer journey.

It has high coverage limits

Protective Life Insurance offers high coverage limits, with term life insurance coverage of up to $50 million. This is significantly higher than many other providers and is a standout feature of Protective Life.

The company offers term life, whole life, and universal life insurance options, with seven universal life policies to choose from. Protective's universal life insurance policies are notable for their competitive internal policy costs, which allow more of the premium to go towards cash value.

Protective's term life insurance rates are also competitive, with the average cost of a 20-year, $500,000 policy for a healthy 30-year-old female being $187 per year. This is in line with other top companies' rates.

In addition to high coverage limits, Protective Life Insurance provides several other benefits. The company has a strong financial strength rating of A (Excellent) from AM Best, indicating its ability to meet claims obligations. Protective also offers helpful online resources, such as coverage calculators and informational articles.

However, it is worth noting that Protective Life Insurance has received below-average customer satisfaction ratings in J.D. Power's studies. Additionally, online quotes are only available for term life insurance, and medical exams are required for most policies.

It has a good financial strength rating

Protective Life Insurance Company has strong financial strength ratings from several independent rating organisations, which is an opinion of the company's financial capacity to meet the obligations of its insurance policies.

As of February 16, 2024, Protective Life Insurance Company has the following insurer financial strength ratings:

• A+ (Superior, 2nd highest of 15 ratings) from A.M. Best
• AA- (Very Strong, 4th highest of 21 ratings) from S&P Global Ratings
• AA- (Very High Quality, 4th highest of 22 ratings) from Fitch
• A1 (5th highest of 21 ratings) from Moody's Investor Services

These ratings indicate that Protective Life Insurance has a strong financial capacity and is likely to be able to meet its insurance obligations. A.M. Best's rating of A+ is particularly notable, as it indicates superior financial strength.

In addition to these strong financial strength ratings, Protective Life Insurance also has a good rating from NerdWallet, which takes into account consumer experience, complaint data, and financial strength ratings. Protective Life earned 4 out of 5 stars for overall performance, indicating that it is a good choice for those seeking life insurance with strong financial backing.

The company's financial strength is further demonstrated by its acquisition of ShelterPoint Group, Inc. in 2024, which aimed to enhance Protective's portfolio and customer base. As of the end of 2023, Protective Life also controlled over $118.4 billion in total assets, highlighting its financial stability and capacity to meet policyholder obligations.

It has a range of riders available

Protective Life Insurance offers a range of riders that vary per life insurance product and may have age limits. These riders allow you to customise your policy and provide additional protections. Here is a detailed overview of the riders available:

• Accidental Death Benefit Rider: This rider provides an extra benefit to your beneficiary if you die as a result of an accident, offering additional coverage on top of your base policy limit. This can be particularly useful for individuals working in dangerous jobs, as it provides affordable extra coverage.
• Children's Term Rider: This rider allows you to add term life coverage to your policy for your children, including natural, adopted, or stepchildren.
• Terminal Illness Rider: With this rider, you can access all or a portion of your death benefit to cover expenses if you are diagnosed with a chronic, critical, or terminal illness.
• Waiver of Premium Rider: If you become disabled and unable to work, this rider enables you to stop paying premiums while still keeping your policy in place. It ensures that you can retain your life insurance coverage until you can return to full-time employment.
• Additional Purchase Option Rider: This rider is useful if you plan to get married or have children in the future. It allows you to buy more insurance later without undergoing an additional medical examination, making it convenient to increase your coverage as your life circumstances change.
• Disability Income Rider: If you sustain a total disability, this rider provides you with a monthly payment, typically based on a percentage of your policy's face value.
• Term Insurance Rider: Universal and whole life policyholders who require temporary additional coverage can benefit from this rider. It provides the extra protection of a term life policy, giving you flexibility during specific periods when you need higher coverage.

Frequently asked questions