LIFE INSURANCE COMPANY OF THE SOUTHWEST Review 2020
by Jim Tobin, CFP
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
- 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
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.
- 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?
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.
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
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.
The time to get covered is now!