LIFE INSURANCE COMPANY OF THE SOUTHWEST REVIEW 2021
By James Tobin, CFP®
Please note the Life Insurance Help Desk is not in any way affiliated with Life Insurance of the Sothwest. This article is our personal review of the term life insurance product offered through LSW as well as alternatives. If you are looking to contact life Insurance of the Southwest directly, call them at (800) 732-8939. If you are looking for a lost policy try the NAIC policy locator service.
Expert Review Of Life Insurance Company of The Sothwest
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
Life Insurance Company of the Southwest is part of the National Life Group enterprise and was founded back in 1955. It receives over $400M in premiums from its customers in the US, which is still below 1% of the American insurance market.
Also known as LSW, the company was purchased by NLG back in 1996. The NLG has an illustrious history, dating all the way back to 1848.
Although their primary focus is on selling whole life insurance policies, they also market term life insurance policies with convertible clauses. The company is aware that customers with term life policies can be eventually persuaded to convert to whole life policies and has, therefore, priced these policies competitively primarily for customer acquisition. It also offers many annuity products, which have been hailed for the wide number of benefits they offer.
Life Insurance of the Company of Southwest Ratings
This company has received encouraging ratings from numerous reliable rating agencies, acknowledging its financial stability, which indicates that it is extremely unlikely to default on its policies.
A.M. Best Company: NLG rating given by A.M. Best was an A (Superior).
Moody's Ratings: NLG rating given by Moody's was an A2 (Excellent).
S&P Ratings- NLG rating given by Moody's was an A+ (Strong).
Comdex Score- 81/100
The Life Insurance of the Southwest Term Insurance - LSW Term
You can purchase conventional term life insurance policies from the company, which have a term period of 10, 15, 20, and 30 years respectively with similar characteristics to the products from the best life insurance companies.
Their policies enjoy conversion privileges, which can be utilized by customers looking to purchase the company’s permanent insurance policies. However, it must be kept in mind that these privileges may vary, depending on the terms of the policy.
- Disability income
- Waiver of premium
- Living benefit
- Accidental death benefit
- Children's term
- Unemployment ride
Other Life Insurance Company of the Southwest Products
You can also purchase the company’s universal life and flagship whole life insurance policies, which offer terrific value for money.
The company is known to offer highly innovative permanent insurance products and has a reliable dividend history. The company’s whole life insurance products are arguably one of the best in the country and hold their own against policies issued by market leaders. You can also purchase annuity products from LSW.
Life Insurance Company of the Southwest Term Rates and Quotes
If you’d like to purchase insurance products from the Life Insurance Company of the Southwest, you can either approach independent insurance brokers or their registered agents.
Most independent agents are unlikely to be affiliated with LSW, leaving approaching the agent as the only viable choice for many. You can contact their agent for an insurance quote by using their official website and compare the generated quote with the quotes generated by our nifty quote tool on this website for other major carriers. This will help you determine which insurance carrier is offering you the best deal.
Are Life Insurance Company Of The Southwest Rates Competitive?
We can’t say for sure.
While that does sound like a cop-out, it’s the truth, LSW hasn’t released information on how it estimates premiums for its customers, which makes it difficult to compare their premium quotes with that of other policies.
But what we know from experience is that insurance companies that don’t provide transparent information regarding their pricing policies are usually never the market leaders when it comes to price.
That’s more concerning especially when you observe that LSW is known for pushing expensive permanent insurance products to its customers.
Our suggestion: Go with one of the big-league insurance carriers who will provide you with insurance quotes right away if you want the best deal.
Companies like Lincoln, Protective, and Banner Life are transparent about how they price their premiums and are often among the least expensive insurance companies. Prudential, which is an impaired risk carrier may charge slightly more though.
Cases where Life Insurance Company of the Southwest is not a great choice
People who have a pre-existing health condition should visit an independent insurance agent if they want to find the best possible insurance policies that offer great value for money.
As we’ve discussed in other articles, different insurance companies have different standards and policies for certain conditions, which affects their pricing.
If you’re over 55, require quick approval, and would prefer an online process, LSW may not be ideal for you.
However, if you’re already utilizing NLG/NSW for other important financial services, you may find it more beneficial to purchase your policies from the same company.
LSW Insurance Life Insurance Suicide Exclusions
All life insurance policies in the US have a suicide exclusion clause of 2 years. However, some states have reduced this to 1 year. Consult an insurance agent to know more.
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
The Life Insurance Of The Southwest Review Final Verdict
Is LSW right for you'Il 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.
Bonus: The most common mistakes people make buying life insurance and how to avoid them