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Protective life Insurance Review
by Jim Tobin, CFP
ELife Insurance Help Desk Rating
If you are thinking about purchasing life insurance from Protective you have landed in a good place. This Protective life insurance review will address the company's history and financial ratings, product offerings, underwriting niches, pricing, and alternatives.
Fast facts About Protective Life Insurance
Founded in 1907, Protective is one of the top life insurance carriers in the country. An Alabama company, Protective has grown both organically and by acquisition. Some of the major acquisitions have been West Coast Life, Chase Insurance Services, & most recently MONY.
Protective Life Insurance Company Rating
A+ (Superior) from A.M. Best
AA- (Very Strong) from S&P
A+ (Very Strong) from Fitch
94 COMDEX score 92
The Protective motto of "do the right thing" seems to have paid off, Protective is rated A+ by A.M. Best the preeminent ratings provider in the life insurance space.Additionally, above we have provided the ratings of the other primary ratings agencies. You can learn more about financial ratings of life insurers here.
Protective Life Insurance Review of Products Offered
Protective life insurance offers two of the most unique options in the life insurance world. First, it's most popular policy is a term/ universal life hybrid that provides insurance for the term chosen (10,15,20,30 years) and at the expiration of the term allows you to keep the policy in-force at the current payment while lowering the benefit amount to accommodate the rising cost of your insurance.
The second unique, and pretty cool, feature that protective offers is a rider call Income Protection Option (IPO). This rider allows you to designate a schedule for the payment of benefits. This option protects your beneficiary from doing something rash and losing it all quickly, and save you money because Protective is investing the money it hasn't yet paid out. This option is a home run when dealing with younger beneficiaries.
Beyond the hybrid term policy, Protective offers traditional current assumption universal life policies that earn interest and cash value.
In addition to the more traditional UL, protective also offers two UL policy that involve the equities markets. The popular indexed UL, which is correlated to positive moves in the stock market , but is not a security instrument, and the Variable UL which can lose value and is tied directly to the stock market.
Protective also offers a survivorship policy of referred to as "second to die", and fixed and variable annuities.
Protective Life Insurance Review of Underwriting Niches
While protective is known to have a lenient build chart. it's biggest niches involve pricing: they are nearly always in the top 5 in rates and often number one or two.
The term hybrid and especially the IPO are big niches for Protective. The pricing of the IPO product makes it a "deal stealer" for Protective.
Protective Life Insurance Review of Pricing
Principal is super competitive in some cases and appears expensive in others. However, it is important to note that even in cases where they appear expensive they may be the best deal.
You may be asking: "How can the be?"
It all comes down to the underwriting class you are given. If Protective is the most expensive of the major carriers at standard rates but the more competitive carriers would grade you as table 2/B or 4/D, then the "more expensive" standard rate would be the best deal.
If you would like to see accurate rates based on underwriting class for Protective term life insurance, simply input your information into the quote tool and press "Display Quotes". Just bear in mind that, as I have discussed, the best rate is not always the best deal for your particular health situation.
Alternatives To Protective Life Insurance Company
In cases where Protective is not the most competitive rate (for example standard Plus candidates), there are over 50 carriers available at the Life Insurance Help Desk. Whether it's a condition that Protective chooses not to see more favorably than others or it's a no exam option you are looking for, the Life Insurance Help Desk will be happy to help you get the best deal possible.