Protective Life Insurance Review

Our take on Protective

The Protective Life Insurance Company was created under the belief that a good product is the result of excellent materials plus quality customer service. Protective is one of the newest companies in the life insurance market and as such it has had to innovate.

It is one of the first companies to have created, in order to beat out the competition, unique products that can be described as hybrid insurances - a mix of the best characteristics of a term product and a universal policy. Certain policies give you the option to extend it past the original term.

Also, another great thing to factor in, is that Protective products are well-priced and are an excellent fit for individuals with certain medical issues.

History of Protective

Protective Life Insurance Company was founded in 1907. It was a small firm with holdings and offices in Alabama. In the beginning, Protective was one of the few life insurance operations available in the south. The company was tiny, by today’s standards, and grew on its word-of-mouth reputation. It paid, without even batting an eye, in one of the quickest turnarounds for that era, its first death claim in 1909.

By 1927, the company was rapidly growing. The firm managed to merge with its competitor, The Alabama National Insurance Company, and retain its name. The then-president of Alabama National, Samuel Clabaugh, was given the helm of the whole endeavor and it was his vision that ultimately catapulted Protective into the history books.

Protective Life Corporation continues to maintain its primary office in Birmingham, Alabama. Nonetheless, it has managed to establish multiple subsidiaries and, as of 2020, now markets its products and services in all 50 states. Thanks to a lifetime of great services, stellar reviews, and innovative solutions, the Protective corporation now boasts over 3,200 employees, annual revenues of $6.5 billion, and assets of $127 billion.

The company invests heavily in its ecosystem and has a huge philanthropic vein. Protective Life Foundation is one of the biggest supporters of education, health services, and guardianship of at-risk youth in the country. Also, the foundation regularly engages in charitable activities and civic initiatives.

What we like

In as few words as possible, Protective is easy to use, financially stable insurance company with highly competitive rates. It has one of the best face-value coverages in the market right now, a staggering: $50 million. It is a straight forward, no mince words, insurance company.

Affordable Rates

Protective has an incredibly affordable price point when compared to its peers. It is great for people in good shape and those with a healthy lifestyle. Also, Protective is one of the best companies, with the best affordable premiums out there for older customers.

Great customization

Protective is a really flexible firm with excellent products that allow for creative customization. You can really do a lot with its various riders and some of its online tools. Among the wild turns and things you can add to your life insurance are products like automobile and property insurance.

Online Application

Online applications are incredibly straightforward and available for Protective term life policies. You can get quotes without having to talk to an agent.

Great option for certain health groups

Insurance companies target different people and are strangely biased toward certain health groups. One company will frown on people who have insomnia, while another won’t even give that condition a second place. It’s incredibly important to know if the company you’re applying to is suitable for your unique conditions if you have any. Protective is the best term life insurance for the following groups: people with anxiety, depression, asthma, hepatitis, herpes, hyperthyroidism, hypothyroidism, kidney stones, narcolepsy, OCD, scoliosis. Also, individuals who use CBD and marijuana may also get great rates with Protective

What We Don’t Like

Permanent Policies are not available online

If you want a permanent policy, not a term policy, you’ll have to call and bargain with an agent. This is a big turn-off for most people nowadays. Permanent policies are the crux of the insurance industry and Protective isn’t the only firm that requires you to have some “face-to-face” time with one of their representatives for this option.

Slower than average application approval

For some policies, the approval period takes a bit longer than usual. It’s important to note this as some folks are in a hurry. There are other insurance companies out there that have almost instantaneous underwriting approval, sadly Protective is not one of them.

Beneficiaries cannot change a lump-sum payout to installments.

Some people are just bad with money, that’s just how life works. That’s why for some people it’s important to have another company take care or even invest their inheritance/benefits. Some insurance companies, once their policy-holder has died, allow the beneficiaries to get installments instead of lump-sum payouts. This is a great option because it stretches the whole sum over years and gives the beneficiaries financial security. Protective does not allow this. If the policy demands a lump-sum payout, beneficiaries can’t change it.

Protective Life Insurance Products

Protective has 10 to 40-year term life insurance policies. Each of them with coverage that can start at $100,000 and scale up to $50 million. These coverages also have the added benefit that they include a clause in which you can switch to a permanent policy without a medical exam. Online quotes are available for plans up to $10 million.

Protective also has whole life insurance policies. These have premium payment plans and great cash values that grow on a fixed interest rate. and a cash value that grows at a fixed interest rate.

Finally, Protective has an exclusive product called The Custom Choice policy. This policy is marketed as an alternative to term life insurance. Custom Choice is priced lower than other permanent plans. The contract places out as such, you pay a level - unchanging premium for a certain period. Once that period comes to an end, you still maintain your insurance, still pay the same premiums, but you begin to receive less coverage. This is a great option for people who think their life insurance needs will decrease as they get older or for people who simply want to maintain their term plan even after said term has ended.

Riders

• Accelerated death benefit rider - Protective includes this add-on or special endorsement - how the insurance business likes to call them - at no extra charge. This benefit kicks in if you have been diagnosed with a terminal disease and are expected to live only six months. You can use up to 60% of your policy’s death benefits or $1million for expenses… or simply to have one last grand hurray before the finish line. This rider is also called terminal illness benefit.
• Accidental death benefit rider - This endorsement grants a special coverage that pays an additional death benefit if you happen to perish in an accident. You can add up to $1,000 to $250,000 to your policy’s face value.
• Children’s term life rider - A bit ghoulish but most insurance providers have a rider that you can add for an extra fee, which covers your children in case they die. Instead of buying extra life insurance for them, you can add a rider to your policy. It covers natural, adopted, and stepchildren from the age of 15 days to 18 years old.
• Income provider option endorsement - This rider helps you administer how your death benefit is distributed. You can use it to install a payment plan or adopt a strategy for your beneficiaries’ financial future. You could, for example, bequeath a certain amount up front and then distribute the rets and a monthly ongoing income stream. This is a very useful rider if you think your beneficiaries will mismanage your estate/death benefits.
• Waiver of premium disability rider - If you happen to become fully disabled, you can pre-determine a certain fixed amount to go towards your premiums. The more you specify to cover your premium the more the rider costs. Applicants aged 18 to 55 are eligible.

Policy benefits

Riders

Fidelity’s riders allow you to customize your policy even further.

Common Fidelity Life riders:

• Accidental Death Benefit Rider - This rider pays out in the event that the policyholder dies within 90 days of a qualifying accident. Full benefits are reduced after age 70, and the rider expires at age 80. A Family Accidental Death Benefit rider is available to cover the policyholder’s spouse and children.
• Terminal Illness Rider - This rider pays a portion of your death benefit if you are diagnosed with a qualifying illness.
• Child Rider - This rider provides coverage for children between the ages of 15 days and 18 years, though the policy will terminate on the child’s 23rd birthday.
• Inflation Rider - With this rider, your death benefit increases by 25% after the first five years of your policy, ensuring that your death benefit maintains its purchasing power if inflation occurs.
• Return of Premium Insurance Rider - This rider is designed for those with a stand-alone accidental death benefit. With this rider, you have the option of surrendering your policy for a partial refund of all premiums paid.
• Free Cancellation Period - It’s not at all uncommon for insurance companies to offer a 10-day “free look” period, during which customers can surrender their policy for a full refund. Fidelity goes one step further, offering a 30-day money-back guarantee on all their products.

Benefits

Protective Life’s term insurance policy has tax-free death benefits and can also be converted to a permanent policy with no fee and no medical exam. That’s one of the biggest benefits it has. It also provides different interest-crediting options, as well investment options and estate tax protection.

One of the big selling points of Protective is that you can borrow from your policy a maximum of 95% depending on your needs and what you managed to bargain with your representative. Most life insurance policies allow policyholders to take out tax-deferred loans from the policy’s value and how much they have invested in it. You will have to pay back these loans/credits with added rates and interest but said rates will be less than the tax you would have to pay otherwise. The Federal government can’t tax you on loan, they can Tax you if you simply get the money upfront.

Conversions

Most insurance companies allow people to convert their policies from term to permanent within a certain set period. With Protective, you can do this switch during the first 8 years of a 10-year term; the first 13 years of a 15-year term; and the first 18 years of a 20, 25, 30, 35, or 40-year term.

Easy to Convert From Term To Permanent

You will have to call and see what products they have available at that moment in time, since services and policies constantly change. In most cases, it’s an easy procedure that doesn’t require medical exams.

Cost

One of the most affordable options

Protective Life’s term life insurance is one of the most affordable options for people in good health. It costs about 20% less than some of its peers. It’s important to note that most insurance companies offer different monthly premiums not only for different genders and age groups but also where said person lives. You won’t get the same quote if you live in Virginia as you would just over the border in Maryland of North Carolina. Nonetheless, Protective has the lowest rates in the market for term life policies.

Performance

Financial ratings

Protective enjoys an AA rating from S&P and an A+ from A.M. Best. These indicate that Protective is financially secure, and overall a reliable choice.

• S&P Rating: AA
• A.M. Best Rating: A+

Frequently Asked Questions

Is Protective Life a good life insurance company?

Yes. Protective Life Insurance Company is rated A+ (Superior) by A.M. Best with over 115 years of operating history (founded 1907). Since 2015, Protective has been a wholly-owned subsidiary of Dai-ichi Life Holdings, one of Japan's largest insurance companies and the eighth-largest in the world by premium. Protective has over $130 billion in assets under management and is one of the largest U.S. life insurance companies by sales volume.

Who owns Protective Life?

Protective Life is wholly owned by Dai-ichi Life Holdings, a publicly-traded Japanese insurance holding company. Dai-ichi acquired Protective in 2015 for $5.7 billion in an all-cash transaction. Protective continues to operate as an independent subsidiary under the Protective Life brand in the U.S., with its own management team and headquarters in Birmingham, Alabama. The acquisition provided Dai-ichi with U.S. market access and Protective with capital to expand product offerings.

What life insurance products does Protective Life offer?

Protective offers five main product types: (1) Classic Choice Term - level term life in 10/15/20/25/30/35/40-year durations, one of the most competitive term products in the U.S., (2) Custom Choice UL - guaranteed universal life with strong no-lapse guarantee to age 90, 95, 100, or 121, (3) Indexed Choice UL - indexed universal life for cash-value accumulation, (4) Survivor UL - second-to-die universal life for estate planning, (5) Variable Universal Life - investment-linked permanent insurance.

Is Protective Life Classic Choice Term competitive?

Yes - Protective Classic Choice Term is one of the most competitively-priced fully-underwritten term life products in the U.S. market, especially for healthy applicants ages 25-55 seeking 25-40 year terms. Sample comparison: a healthy 35-year-old male non-smoker buying $500K of 30-year term might pay $32-40/month with Protective Classic Choice Term, vs. $35-44/month at competitive peer carriers. The 40-year term option (rare in the U.S. market) is a particular Protective strength.

Does Protective Life require a medical exam?

Most fully-underwritten Classic Choice Term applications include a paramedical exam (blood draw, urine sample, vitals) for face amounts above $500,000. Protective also operates an accelerated underwriting program that offers up to $1,000,000 of coverage with no exam for healthy applicants ages 18-55 who pass underwriting via prescription history, MIB records, motor vehicle records, and LexisNexis risk scoring.

How much does Protective Life insurance cost?

Sample monthly rates for a healthy non-smoking 35-year-old female: $500K Classic Choice 20-year term, around $19-24/month. $1M Classic Choice 30-year term, around $48-58/month. $500K Custom Choice UL to age 100, around $240-310/month. Tobacco users pay 80-150 percent more. Protective is most competitive for healthy applicants ages 25-55 seeking 25+ year terms; for shorter terms or older issue ages, other carriers may be lower.

How long does Protective Life take to approve an application?

Accelerated underwriting (no exam) typically returns a decision within 24-72 hours for healthy applicants. Fully-underwritten Classic Choice Term with paramedical exam takes 2-6 weeks depending on exam scheduling and lab work. Custom Choice UL and other permanent products take 4-8 weeks because the underwriting is more comprehensive. Protective's underwriting timelines are generally consistent with peer A+ carriers.

Who should buy life insurance from Protective Life?

Protective is best for: (1) Healthy applicants ages 25-55 seeking 25-, 30-, 35-, or 40-year level term life at the lowest possible price, (2) Buyers seeking competitive guaranteed universal life via Custom Choice UL, (3) Applicants who want a strong conversion option from term to permanent without re-underwriting, (4) Healthy applicants seeking $1M+ face amounts with accelerated underwriting. NOT the best fit for older applicants (65+), final expense, or simplified-issue products - those are better served by Mutual of Omaha or Foresters.

Can I convert Protective term to permanent insurance?

Yes. Most Protective Classic Choice Term policies include a conversion privilege allowing conversion to a permanent policy (Custom Choice UL or Indexed Choice UL) without a new medical exam. The conversion deadline is typically the policy anniversary nearest the insured's 70th birthday OR the end of the level-term period, whichever comes first. This is a particularly valuable feature for buyers who may want lifelong coverage later regardless of future health.

How do I file a claim with Protective Life?

Beneficiaries can file a claim by calling Protective at 1-800-866-9933 or by visiting Protective.com/contact/claims. Required documentation includes the certified death certificate, the policy number, and the beneficiary's ID. Most claims are paid within 14 to 30 days of receiving complete documentation. Protective Life processes over 50,000 claims per year and maintains a dedicated claims service center.