There has been a recent update to Protective Term Life Insurance and I wanted to provide the details on it. Protective life insurance recently made some changes to their term life insurance offering, which makes their term life policy better and different than what most other term life insurance companies offer. In this article I’ll cover the advantages of Protective term life insurance, compare their pricing to other term life companies with specific examples, and provide general information on Protective life insurance as a company. At ChooseTerm.com we represent over 30 companies, including Protective Life. You can compare term life insurance rates right below this paragraph and see how Protective term life insurance compares to other top life insurance companies, or you can keep reading for more information on Protective Term Life Insurance.
When you buy a term life policy it typically involves choosing a level-term period of 10 years, 15, 20, 25, or 30 years. Premiums typically stay level throughout the term, which means the price of your life insurance policy does not increase during the term period. When the term period expires you can usually continue the policy, however your premiums will increase and are based on your age at the time the policy expires. This is a benefit that allows you to keep your life insurance in force, even if you are no longer healthy. However if you are still relatively healthy at the expiration of your term policy it is usually wise to lock in a new term period if you want to continue having insurance where the price doesn’t increase. This is the typical scenario with most term life insurance companies – however with Protective Term Life Insurance you have better options.
With Protective Term insurance your premiums stay the same even after your initial 10,15,20, 25, or 30 year term (depending on what you chose) ends. Instead of your premiums increasing at the end of the term, your premiums stay the same while the death benefit decreases. This is a great option that allows you to keep your term policy at the same affordable rate you’ve been paying up until expiration of the initial term period. Each year after the term expires, your premiums stay the same, while your death benefit decreases. The death benefit will continue to decrease each year until it gets to $10,000 at which point it no longer decreases. Only at the point it reaches $10,000 does it become possible for your premiums to increase.
Let me provide an example of how this works:
A 35 Year Old Female buys a $500,000 15 year term life policy at a premium of $245 per year. From years 1-15 the premium remains the same at $245 each year with a death benefit of $500,000. With Protective Life’s term insurance at year 16 the premium will remain the same at $245 per year, while the death benefit decreases to $209,348. The premiums do not increase like other term life insurance companies. At year 20 (when this person is 55 years old) the Premium would still be $245, and the death benefit would be $135,975. 10 years later, at year 30 of the policy (now the person is 65 years old) the premium would still be $245, while the death benefit would be $50,645. In the 40th year of the policy (now at age 75) the premium is still $245 annually, with a death benefit of $21,336. At age 85, or the 50th year of the policy, the death benefit would reach $10,000 and only then would the premium increase, and at age 85 the premium would be $341 annually.
The benefit of Protective Term Life insurance is that you can keep your policy forever, and the rates remain affordable as they don’t increase right after the initial term period expires.
Protective Term Life Insurance Rates – How do they stack up to the competition?
Is Protective Life competitive in terms of life insurance rates? Let’s take a look at an example.
We’ll use a 40 Year Old Male applying for $500,000 20 year term life insurance. Here are the best rates by some of the best life insurance companies:
SBLI $30.45 per month
Protective Life $30.64 per month
Banner Life $31.06 per month
ING $36.31 per month
Transamerica $36.31 per month
American General $36.36 per month
MetLife $37.26 per month
Mutual of Omaha $46.50
As you can see from the example above Protective Life Insurance has very good term life insurance rates.
Protective Life is also an A+ rated life insurance company that has been in business since 1907 and has more than $427 Billion of life insurance policies in force!