LIFE INSURANCE COMPANY OF THE SOUTHWEST Review 2020

by Jim Tobin, CFP

Company Highlights

  • A.M. Best Rating :  A+
  • Term and Whole Life Offered
  • Innovative Permanent Products  
  • Term Pricing Inconvenient to Compare
life insurance company of the southwest review

Life Insurance Help Desk Rating

Life Insurance Company of the Southwest is a member of the National Life Group (NLG) financial services family.

This review will address company history, financial ratings, and the positives and negatives of Life Insurance Company of the Southwest.

Additionally it will address some specific  situations where it may make more sense to go outside the National Life Group family of products. 

The goal is to make sure that you get the policy that provides you the most value.

Life Insurance Company of the Southwest History

Founded in 1955  Life Insurance Company of the Southwest  has grown to be part of the multi- Billion dollar National Life Group enterprise. Life Insurance Company of the Southwest itself, accounts for approximately $400,000,000 a year in US premiums or well less than 1 % of the overall market.  

The Life Insurance Company of the Southwest or LSW as it's known in life insurance circles, was purchase in 1996 by NLG. National Life Group's history go's back to 1848.

While the carrier offers term life insurance (the focus of this site), Life Insurance Company of the Southwest primary focus in the life insurance market has been whole life insurance. 

With success in the cash value life insurance world, it's presence in the annuity market is a natural fit.

Life Insurance of the Company of Southwest Ratings

The Life Insurance Company of the Southwest parent NLG received strong ratings for financial stability. This indicates that the company is in strong position to meet it's obligations going forward.  


  1. A.M. Best Company:  NLG  rating given by A.M. Best was an A (Superior).
  2. Moody's Ratings: NLG  rating given by Moody's was an A2 (Excellent). 
  3. S&P Ratings- NLG rating given by Moody's was an A+ (Strong).
  4. Comdex Score- 81/100

The Life Insurance of the Southwest  Term Insurance - LSW Term

The Life Insurance Company of the Southwest  offers traditional term life insurance. The policies offered are 10,15,20, and 30 year terms like many of the best life insurance companies.   

The Life Insurance Company of the Southwest term policies have conversion privileges to The Life Insurance Company of the Southwest  permanent products. Note that conversion privileges are policy specific.

Optional Riders

  • Disability income
  • Waiver of premium
  • Living benefit
  • Accidental death benefit
  • Children’s term
  • Unemployment ride

Other Life Insurance Company of the Southwest Products

In addition to it's term life insurance product, Life Insurance  of the Southwest also offers  several Universal life insurance options  and it's flagship whole life insurance

Life Insurance Company of the Southwest is known for innovative permanent products  and strong dividend history. LSW's  whole life product is often compared favorably to the best know whole life carriers in the marketplace.  

Additionally, LSW is a participant in the annuity marketplace.

Life Insurance Company of the Southwest Term Rates and Quotes

Life Insurance Company of the Southwest  markets it's products directly though LSW agents and through some Independent brokers.  

Because LSW is not carried by most independents at this time , you will need to go to the the NLG web site and contact an agent to get a quote.

You may need to set up an appointment through a representative as there is no obvious online quote path.

Once you obtain a quote ,you can  compare with the major carriers quotes that are available by using the convenient quote tool on this site.   

Are Life Insurance Company of the Southwest rates competitive?

Not usually. 

Probably not the answer you were looking for, I know. It is however, the truth. 

Because LSW does not make it easy for the public to access rate information, it is difficult to make apples to apples comparisons.  

However, it has been our experience that companies (even good ones like), that are not conveniently transparent with pricing, are seldom the price leaders. 

This is additionally concerning when the carrier in question is known for selling more expensive permanent products. If you are interested in term insurance , you are best to stick with major carriers who make obtaining quote information painless. 

Price busters, like Banner Life, Protective and Lincoln are consistently  less expensive. Whereas, impaired risk carriers like Prudential may be  slightly more.

Cases where Life Insurance Company of the Southwest is not a great choice

If you have a specific condition, you are best off speaking with an independent agent to find out which carrier will give you the best chance to get approved at a great rate.  

After all, different carriers have differing risk appetites for YOUR condition.

Additionally, if you need a fast decision, an online application or are above the age of 55 LSW is probably not the carrier for you.

That being said, if you are using LSW/NLG for other financial services, like annuities, and you don't fit into the criteria mentioned above, it may make sense to keep everything in house.   

LSW Insurance Life Insurance Suicide Exclusions

The 2 year suicide clause that is part of all life insurance policies in the United States, is the same. (Note that some states use a 1 year exclusion)  

Life Insurance Company of the Southwest Customer Service

The National Association of Insurance Commissioners reports a complaint index of .44 for NLG. This is well below the national average of 1 percent

Additionally, while life of southwest Insurance is not rated by JD Power & Assoc., it's parent National Life Group has a BBB rating of A+.

National Life Group Contact Info:

Address:1 National Life Drive
Montpelier, VT 05604

Phone:(800) 732-8939

Web:https://www.nationallife.com

The Life Insurance  of the Southwest review final Verdict

Is LSW right for you?It really all depends on your situation.

If you have notable health impairment(s), you will likely be better suited by shopping around on the open market where it is convenient to make apples to apple comparisons. 

Moreover, having the use of an independent expert who can send your application to a carrier that is likely to view you in the best possible light has value that LSW  can't offer.

However, if you happy with other services being being provided by LSW  and in good health, it may be convenient to keep things "in house".  

Thank you for choosing the Life Insurance Help Desk to shop for life insurance.

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James Tobin, CFP
 

Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on LinkedIn and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..