Protective, which has been around since 1907 and offers policies in all 50 states from three convenient locations. The company’s locations are: Birmingham, Alabama (where its headquarters are located), Greater Cincinnati, Ohio, and St. Louis, Missouri. One of Protective Life Corporation’s five divisions, it allows customers to buy insurance in a number of different ways, including through Costco and independent brokers.
Among the businesses we looked at, Protective and Banner both offered the cheapest term life insurance coverage. We surveyed 32 different life insurance providers and compared their prices for $250,000, 30-year term plans for six different people. Protective offered the lowest prices across the board, regardless of age group.
Provides coverage for a period of 40 years If you want coverage for more than 30 years but don’t require permanent insurance or don’t want to pay the extra cost for a permanent policy, Protective is an excellent option because only two of the 91 firms we looked at offer term plans that can last this long.
Variety of coverage options: There are several different sorts of insurance policies that may be purchased from Protective. Only two of the 91 companies we looked at provided a more extensive selection of insurance plans.
Life insurance with no medical exam $1,000,000 or less Protective offers no-medical-exam life insurance policies with coverage limits of up to $1 million. Since Protective allows you to apply online for some plans, those interested in no-medical-exam life insurance don’t have to worry about scheduling an exam when they apply, and they can get coverage more quickly than those interested in exam-required policies.
Lack of coverage for funeral costs: This coverage, which is also known as funeral or burial insurance, is meant to pay out a modest sum upon the policyholder’s passing, allowing for the payment of final expenses. Due to the absence of a precondition, such coverage is ideal for those who would otherwise be ineligible for other options. The premiums are expensive relative to the death benefit since the coverage amounts are low.
Customer satisfaction ratings: A J.D. Power 2022 poll found that Protective ranked poorly compared to market leaders. Out of the top 21 life insurance providers, it was ranked 15th.
The NAIC compiles an index evaluating insurers’ relative levels of customer dissatisfaction based on their reported complaint volume to the organization.
The NAIC Complaint Index provides a means by which businesses of varying sizes can be compared in terms of the frequency and severity of consumer complaints. You can gauge consumer happiness (or discontent) with the business in this way.
The average number of complaints received by a corporation is taken as 1. A score higher than 1.0 indicates that the number of complaints against that company is higher than average. A score below 1.0 indicates that the company received fewer complaints than typical.
The three-year complaint index for Protective was 0.79, indicating that the company saw fewer complaints than normal.
Third Party Ratings
Since a life insurance policy is a long-term financial contract, it’s important to find a provider you can trust to be around and able to pay your beneficiaries when they need it and in the manner promised. The AM of a life insurance firm The highest possible score reflects this quality.
The financial stability of life insurance providers is evaluated by AM Best, a credit rating firm. There is a continuous scale from the top grade, A++, down to the bottom grade, D. AM Best has given Protective an A+ for its financial strength, signifying that it has a “superior” ability to meet its current and future financial commitments.
Protective, on the other hand, falls short when it comes to supporting its clientele. In the 2021 J.D. Power Individual Life Insurance Study, it had a score that was significantly lower than normal. It received 752 out of a possible 1,000 points, placing it 16th among 21 carriers. The average score across all carriers was 776.
|Types of Coverage
|Term, whole, universal, indexed universal, and variable universal
|Term, universal, indexed universal, and variable universal
|Whole, universal, term
|AM Best Rating
|Price for Term Policies
|Worse than average
|NAIC Complaint Index (averaged over 3 years)
|J.D. Power Ranking
Options for Coverage
Depending on your specific requirements, you may choose from a number of different plans and add-ons provided by Protective. Term life insurance quotes and applications can be completed entirely online, but for other forms of coverage, you’ll need to speak with an agent. The terminal illness expedited benefit rider is standard on most insurance and costs nothing more. If you have less than six months to live, the terminal illness rider will allow you to receive 60% of your death benefit (or $1 million, whichever is less).
Term Life Insurance
Term life insurance provides a death benefit for a specified period of time, typically between one and forty years. It is the least expensive form of life insurance since, unlike permanent policies, it does not accumulate cash value.
Protective Classic Choice Term
Our data supports Protective’s claim that its rates for term policies are consistently among the top three in the market for similar policy types, across all issue ages and face amounts. Protective and Banner were tied for the cheapest term life insurance quotes we received.
The duration of coverage can be extended from 10 to 40 years, and there is no medical underwriting required for the permanent policy conversion. We found that just three businesses, including Protective, provide term life insurance for 40 years.
Whole Life Insurance
The cash value in a whole life insurance policy grows over the insured person’s lifetime. Because of the rising cost of life insurance in old age, the cash value component of permanent life insurance is crucial. With time, it grows into a pool of money from which you can take a loan. If you make your premium payments on time, the cash value of your whole life insurance policy will rise at a set rate and be guaranteed by the insurance company.
Non-Participating Whole Life
Protective’s whole life policy is available to everyone between the ages of zero and ninety, with coverage options starting at one thousand dollars and going as high as five million. A terminal illness accelerated death benefit is included in the base insurance price.
Universal Life Insurance
Unlike whole life insurance, which cannot be changed, universal life (UL) insurance premiums and death benefits can be modified at any time during the policy’s duration.
Custom Choice, in contrast to other universal life policies, is structured more like a term insurance and is not meant to provide lifelong protection. Pay a modest, fixed premium for a duration of up to 30 years with the opportunity to convert to a permanent policy any time between the second and twentieth policy years. You can upgrade to permanent coverage without undergoing a medical check, but the premium will be greater. Eligible participants must be between the ages of 18 and 75.
Permanent UL Products
- Advantage Choice UL: Advantage Choice UL is designed to offer long-term, low-cost protection with a permanent death benefit at an affordable premium. If necessary, you can make changes to your premium payment and withdraw cash value. Anyone between the ages of 18 and 85 can apply.
Lifetime Assurance UL: Long-term coverage for people aged 18 to 85 is the goal of the Lifetime Assurance UL product. It could cost less than Advantage Choice, but the benefits and guarantees it provides could be lower as well.
Survivor UL: This policy provides permanent death benefit protection for two people, hence the name “survivor UL.”
Executive UL: Employers and executive personnel alike can get coverage through an executive UL policy.
Variable Universal Life Insurance
Permanent protection is an option with variable life insurance. The cash value of the policy can be invested tax-deferred in the market. Subaccounts allow you to invest in specific types of investments based on your risk appetite and long-term objectives. If the cash value investments decline in value, your premium may increase.
Strategic Objectives II VUL
Protective provides a single VUL policy with a variety of features and investment choices for prospective customers of any age up to and including 80.
Indexed Universal Life Insurance
It may be the best option for you if you want a permanent policy that can grow over time more than whole life but has lower risk and return than a variable UL policy. Like other types of UL policies, indexed universal life (IUL) insurance provides policyholders with the opportunity for premium and cash value growth. A stock market index is used to determine the interest rate attributed to the cash value.
Indexed Choice UL
The Standard & Poor’s 500 is the stock market index utilized by Protective’s IUL insurance. The cash value can be invested in a variety of ways, including a fixed account that earns a certain rate of interest.
Guaranteed Insurability Rider (GI): If a young person buying a permanent insurance anticipates needing extra coverage in the future (maybe because of marriage or additional children), they can rest easy with a guaranteed insurability rider.
- Protected Insurability Rider: With Protective’s GI rider, you can buy extra coverage at the ages of 25, 28, 31, 34, 37, and 40 without undergoing a medical check. This rider is unavailable to anyone above the age of 40 and may only be purchased by those who are 37 or younger. This feature is exclusive to Protective’s VUL policy.
Children’s Term Rider: Optional death benefit coverage for children aged 15 days to 18 years is provided by the Children’s Term Rider, which can be added to any of Protective’s IUL, VUL, UL, or term policies. If the parent’s policy is still in effect, the child’s coverage will continue until they turn 25 and can be converted to permanent coverage without the need for a medical exam or proof of insurability. In order to provide insurance for their children, parents might save money by adding a “child term rider” to their existing policy.
Waiver of Premium: Premium Waiver is an add-on that allows you to stop paying your insurance premiums if you become disabled. The elimination term for Protective’s waiver of premium rider is six months, during which time policyholders must continue to meet the definition of “disabled” in order to have their premiums paid. The rider is available on Protective’s term, UL, IUL, and VUL policies and can be purchased by those between the ages of 18 and 55.
Accidental Death Benefit: If you pass away as the result of an accident, your beneficiaries may be eligible for a larger death benefit thanks to an accidental death benefit rider. You can get the Protective version on any of their term, UL, IUL, or VUL policy types. It’s valid until you turn 60 and then it lapses at 65.
Accelerated Death Benefit: Living benefits and accelerated benefit riders on life insurance policies allow policyholders to access a portion of their death benefit early in the case of a covered catastrophic health event. Both a chronic sickness plan and a terminal disease plan are available from Protective. Its rider for terminal sickness is the only one offered at no added cost.
- Terminal Illness Accelerated Death Benefit Endorsement: With Protective’s terminal illness rider, you can get up to 60% of your death benefit accelerated (or accessed early) if you’ve been given a prognosis of six months or fewer to live. This feature is standard on all Protective insurance (term, UL, IUL, and VUL) and costs nothing more.
- Extend Care Rider: For an additional premium, this can be added to any of Protective’s UL, IUL, or VUL policy options. If the insured is diagnosed by a doctor as having a chronic illness, the policyholder can collect a lump amount or a monthly benefit for as long as the insured is still alive if they are unable to do two ADLs without assistance for at least 90 days. Self-nourishment and personal hygiene are two examples of ADLs.
You can reach the firm at 800-866-9933 from Monday through Thursday, 7 a.m. to 6 p.m. Central Time (CT), and Friday, 7 a.m. to 5 p.m. CT. Policyholders can manage their accounts, make payments, and file claims all online.
Protective offers the best value for money. Not according to our research on the costs of $250,000 in term life insurance for people aged 25, 40, and 55 in good health over a 30-year period. Protective was either the cheapest provider of term life insurance across the board or ranked in the top two in each age bracket. The company claims that its premiums are consistently in the top three of its sector for products of all issue ages and face values.
Consider Protective first if you’re looking to save money.
For Whom Is Protective Life Insurance Ideal?
Protective is a good option if you’re looking for low-cost, no-frills long-term insurance. It’s the best in the business when it comes to low premiums for a certain time, and it’s also one of the few that will cover you for 40 years. A variety of universal life policies are also offered by the company, and a term-like UL insurance may work for you if you’re interested in the flexibility of a cash value component or the possibility of building one.
You may want to go elsewhere for life insurance if you’re hoping for extras like no-cost accelerated death benefit riders for chronic, critical, and terminal illnesses. You should also go elsewhere if you need a last expense policy or dividends on your policy, or if you have health problems and are shopping for a coverage.
How We Do It: Reviewing Companies That Provide Life Insurance
We ranked over 90 insurers across five broad categories including financial soundness, customer happiness, product and feature variety, the overall buying experience, and cost, using a methodology we developed based on consumer objectives and life insurance firm fundamentals.
We used 55 different indicators and collected over 5,000 data points to accomplish this. We examined insurers’ results across a variety of measures by classifying them into categories and scoring them accordingly.