Protective is our #1 recommended life insurance company on Rootfin. You cannot go wrong in working with Protective Life. They have very competitive rates for both term and universal life products, and they are a financially solid company that pays their claims quickly.
In this Protective Life Insurance Company review, we will cover the history, ratings, and product offerings of Protective.
- The History of Protective Life Insurance Company
- Protective Life Insurance Company Ratings and BBB Grade
- Protective Life Insurance Products Offered
- Compare Protective Life to Other Companies
There are many top life insurance companies out there and Protective tops our list. That said, it’s always best to compare multiple carriers before making a decision. We’ll help you compare Protective below.
The History of Protective Life Insurance Company
Founded over 110 years ago, Protective Life is headquartered in Birmingham, Alabama. After being in business for only 22 years, Protective had $65M of insurance in force. Only 25 years later, they had moved the needle past $1 billion.
In addition to sales of insurance and annuities, Protective was also growing by acquiring other insurers. For example, in 1997, the company bought West Coast Life, and in 2006, the company acquired Chase Insurance Group.
In 2015, Protective Life Corporation became a wholly-owned subsidiary of The Dai-ichi Life Insurance Company, Ltd. The company continues to grow and provide superior service to its policyholders.
Protective Life Insurance operates as a Parent Company
Protective Life Insurance Company is actually a parent company of several other companies.
- Protective Life and Annuity Insurance Company – This company offers life and annuity products to consumers in New York.
- West Coast Life Insurance Company – This company was acquired by Protective Life Insurance Company in 1996, and today, through Protective Life, it is a nationwide provider of life insurance and annuities.
- MONY Life Insurance Company – MONY Life Insurance Company, was acquired by Protective Life Insurance Company in 2013. It, too, is a nationwide provider of insurance products.
- Lyndon Insurance Group, Inc. and Affiliates – This company both produces and markets specialty insurance products, which include credit life and disability insurance, as well as vehicle and marine service contracts. These products are marketed via consumer finance companies, financial institutions, and auto dealers.
Protective also serves the community. The company works to sponsor other organizations and gives back through employee volunteerism. Through the Protective Life Foundation, the insurer supports a wide range of different initiatives and entities.
Protective Life Insurance Company Ratings and BBB Grade
Protective Life Insurance Company is considered to be a strong and stable insurer. The company has been known for more than 100 years for paying out its policyholder claims.
The ratings for Protective Life Insurance Company include:
- A.M. Best: “A+” (superior) rating
- Affordability Index: 9.9
- Ease of Applying: 9.6
- Customer Service: 9.7
- COMDEX Ranking: 87
A.M. Best is the industry benchmark for financial strength in the life insurance industry. The other three metrics are based on a number of factors including our industry knowledge of Protective compared with other companies. The COMDEX ranking is a composite score that considers A.M. Best and other top ratings agencies.
In addition to the company’s insurer ratings, Protective Life Insurance Company has been given a grade of A+ (on a grade scale of A+ to F) from the Better Business Bureau (BBB), although the insurer is not a BBB accredited company.
Protective Life Insurance Products Offered
Protective Life Insurance Company offers some different life insurance products to choose from.
The company’s policyholders can essentially “customize” their coverage to more closely fit their protection needs. They sell just about every kind of life insurance plan you can think of.
Anything from a standard term plan to a survivorship policy. Protective has several charts on its website which make it easy to compare these policies side-by-side.
Term Life Insurance Coverage
With a term life insurance policy, an individual can choose from numerous plans that range between 10 and 30 years. Generally, these policies have level premiums and coverage.
Term life policies offer death benefit protection, with no cash value build-up. Because of this, term coverage is more affordable than permanent life insurance. For the majority of applicants, the term plan is going to be the best choice. It’s straightforward coverage at a fraction of the cost.
You don’t get all the additional benefits and riders that you do with some other options, but if you want the most cost-effective, term is the best pick.
Universal Life Insurance Coverage
A universal life policy is a form of permanent life insurance protection. This type of policy offers a death benefit, as well as a cash value component.
Universal life is a very flexible type of protection because you can set the policy up for either more face value or more cash value. Also, the timing of the premium may also be altered, within certain limits.
The cash value inside of a universal life insurance policy is allowed to grow on a tax-deferred basis. This means that the growth in the account will not be taxed until the time it is withdrawn. This can allow the funds to grow and compound over time.
The cash that is in a universal life insurance policy can be either borrowed or withdrawn by the policyholder for any reason, such as for paying off debt, funding a loved one’s college education, or helping to supplement retirement income needs.
Protective Custom Choice UL Policy
With the Protective Custom Choice UL Universal Life insurance policy, plans can be purchased for as little as $7.32 per month. This depends on the insured’s age and health condition at the time of application, although there is an option to lock in this permanent life insurance coverage with a price adjustment, regardless of health condition.
Variable Universal Life Insurance Coverage
Variable universal life insurance is another style of a permanent life insurance policy. Here, you can also obtain a death benefit, as well as a cash value component.
The insured in a variable life insurance policy, however, can have the opportunity to grow their cash value through equities such as mutual funds. This can allow the cash component to grow a great deal. It can also, however, present a substantial amount of risk during a market downturn.
With that in mind, it is important to take stock of your risk tolerance before moving forward with a variable universal life insurance policy.
Survivor Universal Life Insurance Coverage
A survivor universal life insurance policy may be a good choice if a couple has estate planning needs such as helping heirs to pay estate taxes that are due. It may also be a good option for a business owner who wishes to provide a continuation strategy for the company.
These types of policies, often also referred to as a second-to-die life insurance policy, will cover two lives rather than one, and it will pay out the death benefit upon the passing of the second individual. These policies can provide a lower amount of premium than purchasing two separate policies.
Protective’s “Protect My Child” Plan
Protective Life Insurance Company also offers the “Protect My Child” life insurance option.
Although people do not want ever to think of losing a child, the reality is that unfortunate accidents and illnesses can and do occur. If so, the cost of final expenses can be devastating financially to a family during an already difficult time in life.
With Protective’s “Protect My Child” plan, a cash value life insurance policy can be purchased that provides coverage of between $10,000 and $100,000. Also, the policy offers a cash value component that builds funds on a tax-deferred basis.
Premium rates on the Protect My Child plan can start as low as $6.37 per month on a policy that the child can keep until he or she becomes an adult. There is also a single pay option available that allows you to make just one single premium payment and have the policy paid up.
Annuities from Protective Life
In addition to life insurance, Protective Life Insurance Company also offers other products, including annuities.
An annuity is a type of insurance product that is between the consumer and the insurance carrier. These financial vehicles can provide a guaranteed lifetime income to an individual, regardless of how long that individual lives. This can help to remove the worry of outliving savings, which has come to be one of the biggest concerns on the minds of retirees today, given our longer life expectancies.
- Fixed annuities offer a variety of different interest guarantee periods and payout options.
- Fixed indexed annuities have both potential for upside growth, as well as protection in market downturns.
- Variable annuities offer the potential for growth and guaranteed periods and payout options.
- Immediate annuities provide retirement income that can begin right away.
Compare Protective Life to Other Companies
While we do highly recommend Protective Life, it is always wise to compare other companies before purchasing a policy.
Review Protective Life Insurance Company alongside other carriers below. You can also fill out our quote tool to compare rates from Protective against all the top companies.
Here are a few other companies to consider.