All the top life insurance companies make improvements to their services from time to time as the needs of their clients change. Not long ago, Protective Term Life Insurance made some alterations to their term life insurance plan for this very reason. Our Protective term life insurance review will help you make an informed decision before you buy.
Protective Life Insurance Company
Protective Life insurance provides shoppers with one of the least expensive life insurance options for healthy individuals between the ages of 30-60. For most shoppers, Protective Life will be an excellent choice if rock bottom price is at the top of the wish list.
Protective Term Life Insurance Review
Protective Life is one of the over 40 different insurance companies we represent, and with this article I’m here to give you the inside scoop on these changes, as well as how Protective Life stacks up to the competition.
Please note that you can compare insurance rates at any time using the quote tool on this page. But if you’re interested in learning more on Protective Term Insurance, keep on reading!
Protective Term Life Insurance
But before I go over this company’s policies, there are some things you should understand first. When it comes to purchasing term life insurance policies, you will typically need to select a term period of anywhere between 10 and 30 years (going in multiples of five).
Now, premiums usually remain level throughout this term, meaning the price of your life insurance policy will not go up until the term period expires. In most cases you can continue the policy at this point, but your premiums will now be based on your age when the policy expires. While continuing it benefits you by allowing you to keep your coverage in force, even if your health has deteriorated, it may not be the best choice financially if you are healthy. For that reason it is wise to get a new term period if you don’t want your rate to increase.
This is how things go with most term life insurance companies, but Protective Term Life Insurance offers better options.
See, with Protective Term insurance you don’t end up having to pay a lot more to stay insured after your term ends. Instead of your price increasing at the end of the initial term, your rate stays the same and the death benefit gets reduced.
In fact, the death benefit will continue to be reduced every year after the initial term ends until it gets down to $10,000. Only at this point does it stop going down, and it becomes possible for your premiums to go up. Keep in mind that initial terms are typically between 10 and 30 years.
Example of How it Works
To get a better picture of how this works, let’s look at a realistic example. Let’s say 35-year-old Jane purchases a 15-year term life policy with a death benefit of $500,000, and she pays a premium of $245 per year.
She’ll continue to pay $245 annually for the first 15 years, after which she will have to pay more if she wants to stay insured. But with Protective Life’s term insurance, Jane can continue to pay the same rate of $245 per year while the death benefit go down to $209,348.
Then at year 20 (when Jane is 55 years old) the premium will still be $245 while the death benefit has decreased $135,975. Then at year 30, when Jane is 65 years old, the premium is still the same while the death benefit has come down to $50,645. In year 40 (with Jane now 75) the premium is still $245 a year, but the death benefit has lowered to $21,336. In year 50, the death benefit will finally reach $10,000 and only then will the now 85-year-old Jane’s premium increase (to $341 a year).
Why Protective Term Life insurance?
Since the death benefit can decrease so much, you may be wondering just what the real benefits are of Protective Term Life insurance. The main benefit is that you can keep your coverage for the rest of your life without having to pay consistently increasing fees each year, keeping the rates affordable. By the time they do increase and the death benefit has hit $10,000, chances are you will be elderly without people who depend on your income for their survival (which is largely the point of having higher insurance death benefits when you’re younger).
How Does Protective Term Life Insurance Stack Up to the Competition?
Let’s use another realistic example to compare life insurance rates.
Let’s say Bob is a 45-year-old man who applies for a 20-year, $500,000 term life insurance policy. Here’s what some of the top insurance companies are likely going to offer him in terms of rates (organized from lowest to highest):
- SBLI: $52.64 per month
- Protective Life: $53.05 per month
- Banner Life: $54.25 per month
- ING: $55.13 per month
- Transamerica: $56 per month
- American General: $55.71 per month
- MetLife: $58.86 per month
- Prudential: $63.45 per month
As you can see, Protective Life Insurance offers some of the lowest term life insurance rates. It is also worth mentioning that Protective Life was given an A+ (superior) rating by A.M. Best and has been in business since 1907. It now has more than $427 billion in active life insurance policies!
Pros and Cons
Protective Life is on our list of one of the top ten best life insurance companies in the U.S.A.
If our feet were held to a fire and we had to point to one drawback it would be this: Protective Life Insurance Company is just one of dozens of companies available to you. What does that mean for you as a life insurance shopper? You need to be careful you don’t apply with a company that may not rate you best based on your age, health and lifestyle. For example, AIG may rate you better or worse compared to Progressive life insurance.
Use our quote tool on this page to compare rates, or feel free to call us at 888-411-1329 to get a customized quote and learn more about getting the right term life insurance coverage for you.
Protective Life Insurance Company Details
Name(s): Protective Life Insurance Company; Protective Life Corporation; Protective Life and Annuity Insurance Company; MONY Life Insurance Company
2801 U.S. 280
Birmingham, AL 35223
Phone: (205) 268-1000
Ratings: A.M. Best (A+), Comdex (92), Standard & Poor’s (AA-), Fitch (A+), Moody’s (A2)
Thank you for reading our post, Protective Term Life Insurance Review. To learn more about life insurance, make sure to visit our page Life Insurance 101 and find out all the shopping and insider tips to buying life insurance.