If you were to pass away unexpectedly, you don’t want to leave your family with financial hardship.
From burial expenses to loss of income, your spouse, children and other loved ones might be faced with mounting bills they’re unable to pay. A life insurance policy not only provides financial assistance to your family but also provides you with peace of mind.
Not all life insurance carriers are the same. The financial health and stability of the organization is perhaps the most important factor to consider. But customer service and flexible policies must be considered, too.
Is Protective Life Insurance Company the right combination of service, price and policies? We took an in-depth look at the entire company from top to bottom. Our complete, honest Protective Life Insurance review starts right here:
A Protective Life Insurance Company History
There are basically two types of life insurance providers in the United States. There are companies which have been around since the turn of the century, and companies which have sprung up in the past decade or two. Protective Life Insurance is definitely one of the former.
In 1907, Protective Life was founded by William Dorsey Jelks, the former governor of Alabama. A proud Alabama company, Protective grew within the region at a quick pace. In 1927, they were big enough to acquire Alabama National, another local insurance company.
By 1993, Protective Life had policyholders in all 50 states. The company went public on the New York Stock Exchange. Additional companies were acquired on a regular basis after that.
In 1997, Protective acquired West Coast Life. In 2006, they acquired Protective Umbrella. Finally, they acquired the MONY Life Insurance Company of America in 2013.
In 2015, the Protective Life Corporation itself was acquired by the Japanese corporation Dai-Ichi Life. The Protective Life Corporation includes subsidiaries Protective Life and Protective Life and Annuity Insurance Company.
Although the entire corporation is owned by Dai-Ichi Life, Protective Life remains basically the same company they always were. Their main office is still located in Birmingham, Alabama, with additional offices throughout the U.S.
Protective Life doesn’t sell their products through agents. Instead, they sell directly to the customer through application by either phone or online.
Over one hundred years after first opening their doors, Protective Life remains an industry leader. While their primary focus is life insurance, they also offer retirement planning and a few other related services.
They have high ratings across all major insurance financial rating agencies. We see nothing serious for potential customers to be worried about. Here’s a breakdown:
Detailed financial information can be found on their website. They excel here, offering much more comprehensive information than many of their competitors. They regularly post regular press and also offer free webcasts dedicated to company financial matters.
Last year they had over $144 million in sales. Fixed annuities totaled $566 million. Variable annuities totaled over a billion. Total annuities were $1.6 billion.
Protective Life Insurance offers a unique type of policy, some which require no medical for life insurance. Not quite a traditional term life policy and not quite a traditional whole life policy, their policy options combine a bit of both. Here’s a look at their product line:
Their standard universal life insurance policy has the following features:
- Flexible premium payment options
- Lifetime coverage
- Guaranteed death benefit
With a universal life policy, cash payout depends on the premiums. The more you pay in premiums, the greater your potential payout. The death benefit is available for loans and cash surrenders, although that has the potential to affect the ultimate payout.
Custom Choice Universal
While Protective Life doesn’t offer a true term life policy, their Custom Choice Universal does have many term-like features.
The Custom Choice Universal plan can be purchased for terms between 10 and 30 years. At the end of the term, the policy automatically turns into a universal life policy. While other companies often offer the option to convert a term policy, Protective Life builds conversion directly in.
The main advantage here is customers can convert without facing an unwanted premium increase. Additionally, there is some potential to build cash value with this policy, but there are better options elsewhere if building cash is your main priority.
Variable Universal Life
If you’re really focused on using your policy to build cash, this one is worth consideration. This is a life insurance policy with flexible premiums and lifetime coverage. A policy like this isn’t for everybody. While there’s a potential for growth, there’s also a higher risk. You might make a fair amount of money, but you might not. Variable Universal policies usually aren’t the safest investment strategy.
Survivor Universal Life
The Survivor Universal Life policy covers two people, paying out after the death of the second. Other than this unique structure, the policy is similar to a standard life policy with various premium levels. You can also earn cash.
This policy isn’t one you’ll find at every company, although it makes a lot of sense in many situations. If you and your spouse have children, this can help protect them in the event both of you pass away.
Protective Life Insurance is committed to financial security both before and after death. They have a wide range of annuity options. Immediate and deferred income options can help provide for financial security in retirement.
Protective places a lot of emphasis on philanthropy. Their employees donate time while the company itself donates money to all sorts of community, cultural and charitable organizations.
Aside from direct donations, they also take a more proactive role through their Protective Life Foundation. They identify and then partner with community-based organizations. Their Protective Life Foundation doesn’t just offer funds. They also work with the organizations directly to identify problems and provide solutions.
The claims section of their site is a combination of both sensitivity and efficiency. You can file a life insurance claims online or by phone.
Protective Life understands that nobody files a life insurance claim in a good state of mind. So their site also offers information on what to expect when filing a claim, as well as videos about coping with loss.
Of course, filing a claim today is a much different process than filing one in 1907. We were interested in how smoothly the claim process is for customers now. Fortunately, recent data looks very favorable.
For 2015, they paid out $1.9 billion for 20, 377 life insurance claims. Average claim processing time was six business days.
The Final Verdict on Protective Life Insurance Company
Protective Life Insurance is one of the oldest insurance carriers in the United States, yet they’ve managed to stay relevant for modern times.
Shopping, purchasing and filing a claim can easily be done online or by phone. Their customer service is friendly and helpful. Claims are paid in a consistently timely manner.
While their insurance products are structured a bit differently than most traditional term and universal life policies, the average consumer will likely find a policy which meets their needs regardless of age or budget.
There’s no particular reason to worry about the company’s financials, either. They have solid financial footing. Plus, their recent acquisition by Dai-Ichi Life is overwhelmingly more positive than negative. In addition to providing even more financial security, Protective Life also now has access to a worldwide network of financial connections.
The Protective Life Insurance Company is overall an excellent choice for many individuals seeking life insurance. They’re financially sound, with high customer focus and a long-standing reputation for quality.