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.
Protective Term Life Insurance – Custom Choice Term Life
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.
A Brief Protective Life History
Protective Life Insurance was founded in 1907. By the company’s 50th anniversary in 1957, the company already had $50 Billion in Life Insurance in force policies. In 2007 Protective celebrated its 100th anniversary with $252 Billion in life insurance in force policies. As of 2010 Protective life has had over $427 billion of Life Insurance policies in force.
Protective Life Insurance Ratings:
A.M Best gives Protective Life an A+ rating, which is considered Superior. It is the 2nd highest rating out of a total of 15 ratings.
S&P rates Protective Life at AA- which is considered Very Good. It is the 4th highest from a possible 21 ratings.
Better Business Bureau
According to the BBB, Protective Life has a A+ rating. It seems like they make a good attempt to solve any customer issues that are brought to them by the Better Business Bureau.
Should I Apply with Protective?
Whether or not you should apply with Protective Life Insurance really depends. At ChooseTerm.com we represent Protective Life, as well as 30 other carriers. When we help you find a policy we find out what type of insurance you are looking for, as well as your current health situation and based on that we shop over 30 companies for the best price, and for the best match based on your situation.
We would absolutely consider Protective Life because they are a high quality insurance company, however they may or may not be the best fit for you.
Call us to get a life insurance quote, or fill out the form below and we will call you with a customized quote.
Protective is just one of over 30 companies that we represent at ChooseTerm.com. Depending on your age, coverage amount, and health situation they may or may not be the best fit for you specifically.
Hello. This is Liran Hirschkorn, from ChooseTerm.com. Today, I want to talk
to you about Protective Life Insurance. Oftentimes, I get calls from people
asking me about Protective. They may have seen their website online and
gotten a quote, and they want to know if this is a good insurance company
to work with.
First, let me tell you a little bit about Protective. They were started in
1907, so they have been around more than 100 years, and they are a highly-
rated company. What does that mean? There are independent companies out
there that look at the financial strength of insurance carriers, of
insurance companies. For example, AM Best is an independent company that
reviews the financial strength of insurance companies, and they give
Protective Life an A+ rating, which is considered superior. That is the
second highest rating; A++ is the highest. A+ is the second highest, and
then it goes down from there to A, A-, and below.
Any company that has better than A-, we consider a very high-quality
company and we feel very comfortable with them. Standard and Poor’s also
rates the financial strength of Protective, and they give them an AA-,
which is considered very good. Again, that is the fourth-highest out of
about 21 ratings that S&P has. Again, we feel very comfortable with that.
Protective Life has over $400 billion of life insurance policies in force.
They are traded on the New York Stock Exchange and they are a very good
Whether or not you should apply with Protective is a different question.
Protective certainly has very competitive rates, in term of term insurance
and their permanent insurance price. The question really is; how is their
quote for you, specifically? At Choose Term we work with over 30 companies,
30 insurance carriers. Protective is one of them and we do recommend them
very often when they have the best price and they are the best fit for our
customers. It really depends on your specific situation to know if
Protective is the best company for you. For example, do you have any health
conditions? What is your age? How much you are looking to apply for? Based
on that information, we can work with you and we can look at 30 different
companies, and if Protective has the best price, then we would certainly
recommend them. If they do not have the best price, then we work with other
companies that might be better for you. Certainly, if you have been quoted
Protective and they are the best rate for you, then I would say go ahead
and apply with them. If you are looking at only Protective, or only a
couple of companies, that is a different situation. I would want to compare
more companies for you to see if you can save money and get a better rate.
At ChooseTerm.com., we can do that for you. You can also visit our website, ChooseTerm.com.
You can fill out a quote request form there and we will call you and give
you a quote. You can also visit our carrier’s page and look at some of the
other companies that we work with to see the type of companies that we
might recommend. Again, we work with over 30 different companies and we can
help you find the best rate. We look forward to speaking with you. Thank
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