Protective Life Insurance Review | Complete Guide For 2020

Heidi Mertlich Heidi Mertlich Posted in Reviews
Last updated on March 20, 2020

Protective Life Insurance Company, a top-selling and competitively priced carrier, provides a variety of life insurance products that just might fit your needs.

Should you buy a Protective life insurance policy? It depends.

Before submitting an application, you will want to understand the details of their products.

Everything you need to know about Protective Life Insurance is found here – a company overview, the types of life insurance offered, and frequently asked questions.

Table Of Contents

  1. Company Overview
  2. Life Insurance
  3. Income Provider Option
  4. FAQs
  5. Next Steps

Protective Overview

Protective Life Insurance Company, a carrier with over 100 years of experience, began in 1907 in Birmingham, Alabama.

Two years later, in 1909, the first death claim was paid.

By the time Protective reached 50 years old, they had amassed almost $1 billion of in-force life insurance.

Today, Protective is gigantic with multiple acquisitions over the decades. They are a subsidiary of The Dai-ichi Life Insurance Company.

Key Features

  • Competitively priced life insurance
  • Good customer service
  • Superior financial rating (A.M. Best A+)

Protective Life Insurance

In total, Protective offers six different types of life insurance.

Life insurance from Protective can help provide financial security for your loved ones when they may need it most. – Protective

Each type of coverage offers unique features, so you’ll want to do some comparing and contrasting.

Protective

Quick Navigation Guide

  1. Term
  2. Universal
  3. Variable Universal
  4. Indexed Universal
  5. Survivor Universal

Important – product details and availability are subject to change.

Protective Term Life Insurance

Term coverage provides life insurance protection for a certain period of time – for instance, 20 years.

Term life insurance from Protective is highly affordable.

Classic Choice Term

Term life insurance with level premium payments for the initial term.

Essential facts

  • Term lengths of 10, 15, 20, 25, and 30 years
  • Issue ages of 18 – 75
  • Face amounts: $100,000 – $50,000,000
  • Renewable up to age 90 after initial term
  • Select Preferred, Preferred, Non-Tobacco, and Tobacco health classes

Conversion Options

You have the ability to convert your term policy into a number of permanent products during policy years 1 – 5.

  • Custom Choice Universal Life
  • Indexed Universal Life
  • Variable Universal Life
  • Non-participating Whole Life (conversion only)

After policy year 5, you may convert to the following:

  • Custom Choice Universal Life
  • Non-participating Whole Life (conversion only)

(For 10-year term: up to 8 years to convert, 15-year term: up to 13 years to convert, and 20, 25, and 30-year terms: up to 18 years to convert)

Riders and Benefits

Riders are contractual provisions that provide helpful options to a life insurance policy, in addition to the death benefit.

Protective offers the following riders and benefits:

  • Accidental Death Benefit – pays an additional death benefit if death occurs as a result of a qualifying accident
  • Children’s Term – provides life insurance protection to insured’s children, up to age 18
  • Terminal Illness Accelerated Death Benefit – option to accelerate up to 60% of the policy’s death benefit, up to $1 million, if death is expected within six months
  • Waiver of Premium – waives premium payments if you become disabled for at least a six month period

Is term life insurance right for me?

Term is a popular form of life insurance.

Why? Term life insurance is a form of cheap life insurance that provides protection during the years you need it most.

Further, you have the option to convert your term policy into a permanent product should your needs change down the road.

Consider a term policy under the following conditions:

  • Large face amount desired
  • Coverage needs are for a certain period of time
  • No interest in cash-value or policy loans

Protective Universal Life Insurance

Generally-speaking, universal life insurance is a permanent product that provides some flexibility.

Custom Choice UL

Protective’s Custom Choice Universal Life insurance provides coverage similar to term, but with some permanent life insurance protection options.

Essential Facts

  • Affordable premiums
  • Level premium payments for an extended period of time
    • 10, 15, 20, 25, or 30 years
  • Minimum face amount: $100,000
  • Issue ages: 18 – 75
  • The choice to lock-in permanent life insurance protection with a premium adjustment
  • Policy flexibility

Custom Choice UL allows you to select an initial level term, as you would with a term life insurance policy.

You have the ability to exchange your temporary coverage for permanent coverage without the need to demonstrate insurability. Policy exchange must be made during the first 20 years, up to age 70.

Further, your coverage amount is adjustable. If you choose to increase coverage, additional underwriting may be required.

Finally, after the initial benefit period ends, you may continue to pay the same premium payments as your death benefit decreases, allowing you to continue some coverage, and build cash value.

Income Provider Option

Protective Custom Choice UL offers income protection via the no-cost Income Provider Option.

How it works – select a guaranteed monthly or annual income stream for up to 30 years for the death benefit payment. Further, an initial lump-sum payment is available to cover immediate costs.

Note – the Income Provider Option (IPO) is also available under Protective’s variable life insurance policy and indexed life insurance policy.

Lapse Protection

Protective includes a built-in policy lapse protection endorsement. The insured’s death benefit coverage is guaranteed, based on the premiums paid and the formulas used.

Riders and Benefits

Protective’s Custom Choice UL offers the following riders and benefits:

  • Accidental Death Benefit – pays an additional death benefit if death occurs as a result of a qualifying accident
  • Children’s Term – provides life insurance protection to insured’s children, up to age 18
  • Disability Benefit – a monthly benefit paid if insured faces total disability
  • Income Provider Option – optional endorsement allowing death benefit to be paid in monthly or yearly installments
  • Terminal Illness Accelerated Death Benefit – option to accelerate up to 60% of the policy’s death benefit, up to $1 million, if death is expected within six months

Is universal life insurance right for me?

Universal life insurance offers flexible premiums and typically lifelong protection.

Consider Custom Choice UL through Protective if you would prefer the policy is built on a framework similar to term. 

Protective Variable Universal Life Insurance

Variable universal life insurance offers permanent life insurance protection, policy flexibility, and a cash-value component that is subject to market performance.

Protective offers variable universal life insurance to applicants who are comfortable with market risk and want permanent death benefit coverage, and tax-deferred cash-value growth.

Essential Facts

  • Flexible premiums
  • Minimum face amount: $100,000
  • Issue ages: 0 – 80
  • Flexible death benefit options
  • Cash-value component, subject to variable and fixed accounts
  • Policy loans available

Protective variable life insurance offers two types of cash-value accounts:

  1. Fixed – a specified fixed interest rate that’s typically modest, but not less than 1%.
  2. Variable – interest rate fluctuates based on the performance of the investments. You may select a portfolio based on your risk tolerance:
    • Conservative Growth
    • Moderate Growth
    • Growth and Income
    • Aggressive Growth
    • Customized portfolio

Keep in mind, a key feature of variable life insurance is that your cash-value that is placed in a variable account is subject to market performance.

Riders and Endorsements

Protective’s variable universal life insurance offers the following riders and endorsements:

  • Accidental Death Benefit – pays an additional death benefit if death occurs as a result of a qualifying accident
  • Children’s Term – provides life insurance protection to insured’s children, up to age 18
  • Extended Care – provided one or more accelerated death benefit payments during a 12-month period with a qualifying chronic illness
  • Income Provider Option – optional endorsement allowing death benefit to be paid in monthly or yearly installments
  • Overloan Protection Endorsement – following supplemental retirement income disbursement (LIRP strategy), safeguards policy from lapsing and maintains minimum death benefit
  • Protected Insurability Benefit – the opportunity to increase face amount at specified future dates without the need to demonstrate insurability
  • Terminal Illness Accelerated Death Benefit – option to accelerate up to 60% of the policy’s death benefit, up to $1 million, if death is expected within six months
  • Waiver of Specified Premium – a monthly premium amount can be credited to the policy if the insured faces total disability for six months or more

Is variable universal life insurance right for me?

Individuals who purchase variable universal life insurance want permanent death benefit protection, policy loan and cash-value features, and are comfortable with market fluctuations.

Further, they are interested in policy flexibility, such as increasing or decreasing the policy’s death benefit.

Protective Indexed Universal Life Insurance

Indexed universal life insurance features the option of permanent death benefit coverage, cash-value accumulation based on the performance of fixed and indexed accounts, and policy flexibility.

Protective offers indexed universal life insurance to applicants interested in many of the features of variable life insurance, but with safety features in place for the cash-value accounts.

Essential Facts

  • Flexible premiums
  • Minimum face amount: $100,000
  • Issue ages: 0 – 75
  • Level death benefit
  • Cash-value component, subject to fixed and indexed accounts
  • Policy loans available

Protective indexed life insurance offers two types of cash-value accounts:

  1. Fixed – a specified fixed interest rate that is typically modest, but not less than 1%
  2. Indexed – interest rate based on the performance of accounts invested in the S&P 500. The rate is influenced by:
    • Indexed segments – created on the 15th of each month
    • Indexed crediting strategy – annual point-to-point
    • Credited interest rate calculation
    • Participation rate – 100%
    • Cap rate – 3%
    • Floor rate – 0%
    • Total indexed value

Indexed universal life insurance provides cash-value accumulation that is connected to, but not directly invested in, stock market performance.

The cap and floor rates of the indexed accounts provide safety measures for the policy owner and the carrier.

Riders and Endorsements

Protective’s indexed universal life insurance policy offers the following riders and endorsements:

  • Accidental Death Benefit – pays an additional death benefit if death occurs as a result of a qualifying accident
  • Benefit Guard Endorsement – the policy will not lapse and the death benefit will be at least $10,000 under specific conditions
  • Children’s Term – provides life insurance protection to insured’s children, up to age 18
  • Disability Benefit – monthly benefit to be credited to the policy if insured experiences total disability
  • Income Provider Option – optional endorsement allowing death benefit to be paid in monthly or yearly installments
  • Terminal Illness Accelerated Death Benefit – option to accelerate up to 60% of the policy’s death benefit, up to $1 million, if death is expected within six months

Is indexed universal life right for me?

Consider purchasing indexed universal life insurance if you are interested in permanent death benefit protection, policy flexibility, and the ability to accumulate cash-value via fixed and indexed accounts.

Protective Survivor Life Insurance

Survivor universal life insurance offers flexible premiums and death benefit protection for two insureds, payable upon the death of the second insured. The policy typically costs less than purchasing two separate policies.

Survivorship coverage is designed for estate planning purposes and can help individuals secure coverage if they are unable to demonstrate insurability on their own.

Essential Facts

  • Referred to as second-to-die insurance
  • Covers two people, usually spouses, under one policy
  • Flexible policy premiums and death benefit
  • Death benefit is paid upon the death of the last surviving insured

Estate planning is not just for the wealthy. If someone depends on you financially, and you cannot secure coverage on your own, consider a survivorship policy with your spouse or partner.

Policy riders and endorsements are the same as Protective’s Custom Choice UL.

Frequently Asked Questions

Questions often asked about Protective and their answers.

Is Protective life insurance good?

Yes.

Protective has affordable rates and positive customer reviews and strong financial ratings (A.M. Best gives them an A+).

They offer a variety of life insurance products, including term, whole, and varying types of universal.

Further, Protective’s turnaround time – referred to as underwriting – for policy issuance tends to be faster than other carriers.

Should I buy a Protective life insurance policy?

You should purchase a policy from the carrier that best fits your needs.

It could be Protective, but it’s always in your best interest to compare and contrast policy features and rates of a number of companies.

In order to determine the best life insurance company to apply with, you will want to determine:

  • Your income
  • Any debts you carry
  • Purpose of the policy
  • Long-term financial needs of beneficiaries
  • Charitable giving

What type of policy should I buy?

First, determine the purpose of the policy in order to decide the type of policy you should purchase.

For example, are you looking for a policy for you or for someone else, like your parents?

Determine if the coverage needs are temporary or indefinite, and calculate an appropriate face amount based on the financial picture.

Further, analyze if your age or health will be a factor in qualifying for coverage.

For example, if you are a senior, your policy options may look different. Or, serious health concerns, like type 2 diabetes, can affect the type of coverage you are able to purchase.

Next Steps

There are two important things you need to do before applying with Protective, or any carrier for that matter.

1. Analyze your needs

Determine how much coverage you need and for how long.

Ask yourself:

  1. Who is the life insurance for?
  2. How much coverage do the beneficiaries need?
  3. Is the need for coverage temporary or permanent?
  4. Will financial needs change over time?

2. Collaborate with an independent agent

Importantly, you will want to partner up with an agent that is working on your behalf.

What does that mean? An independent agent accesses multiple quotes from the top-rated carriers in order to find the best policy to fit your needs, regardless of the company.

Independent agents are not captive and have your best interest at heart.

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