Protective Life Insurance Review

Table of Contents

Best Life Insurance for Financial Options

Protective Life Insurance gives its customers a wide range of policy types and financial options, with death benefits starting at a minimum of $10,000 and reaching a maximum of $50 million. This makes Protective our pick for the best life insurance in terms of financial options. Its maximum $50 million death benefit is the second-highest available, and it offers a 40-year term life insurance policy, which is a rarity in the life insurance industry. Protective also offers no-medical-exam life insurance for up to $1 million worth of coverage, giving its customers the option to apply online without the hassle of going to the doctor.

With low rates, a robust online quoting system and the flexibility that lets seniors choose a plan that meets their needs, Protective is an excellent option for seniors looking for life insurance.

Pros and Cons of Protective Life Insurance

Pros:

Second-highest death benefit of $50 million
Online quote tool and insurance needs calculator
Accelerated death benefits available
Convertible term option

Cons:

No dividend earnings
Complex underwriting process
Accepts a limited range of ages
No accidental death or guaranteed insurability rider
Poor customer satisfaction scores

Overview of Protective’s Life Insurance

Protective is a wholly-owned subsidiary of Dai-ichi Life, a Japanese company. It offers five types of life insurance: term life, whole life, universal life, indexed universal life and variable universal life. As of 2021, the company had 12.4 million policies and contracts in place for a total of $991 billion in life insurance.

Company

Overall Score (1-5 Scale)

Senior Friendliness

Ratings and Reviews

Financial Options

Riders and Customizations

Online Services

Protective

3.0

1.4

6.7

How Much Does Protective’s Life Insurance Cost?

Protective’s life insurance’s monthly premiums depend on factors including age, overall health, pre-existing conditions and drug or tobacco usage. Applicants who engage in high-risk behaviors or have poor overall health can expect to pay more than applicants who are considered low-risk. In general, younger applicants get lower rates than older applicants, so seniors shopping for life insurance should keep that in mind.

The table below contains monthly sample rates for seniors. These rates assume the applicant is a nonsmoker in good health.

Age

Coverage Amount

Policy

Female

Male

$500,000

10-Year Term

$215.40

$341.76

$500,000

10-Year Term

$372.87

$596.26

$500,000

10-Year Term

$669.73

$1,157.25

$500,000

10-Year Term

$1,936.90

$2,760.01

Eligibility, Plan Details and Other Information

Types of Life Insurance Plans

Protective offers five types of life insurance:

Term life
Whole life
Universal life
Indexed universal life
Variable universal life

Protective’s term life policy is called Protective Classic Choice. It’s offered in term periods from 10 to 40 years with coverage levels between $100,000 and $50 million. The term limit can be converted to a permanent policy with no fee.

Protective’s whole life insurance policy provides lifetime coverage of up to $5 million. Cash value accumulation builds at a fixed interest rate, and cash value can be accessed via loan once it reaches a minimum policy value.

The remaining three policy types are universal life insurance. Coverage is available for up to $50 million. The Indexed Universal Life and Variable Universal Life policies offer lifetime coverage, while the Custom Choice UL policy provides coverage for 10 to 30 years. The Indexed Universal Life plan offers various interest credit options, and the Variable Universal Life plan offers investment options.

Eligibility

Protective’s term life policies are only available to individuals 75 years of age and younger. The age cutoff of their universal life policies is 85. A medical exam is required during the underwriting process and can result in denied applications.

Low-Priced Coverage

Protective says its rates typically rank in the top three lowest-priced life insurance policies. This makes Protective an especially appealing option for budget-conscious seniors who want an affordable life insurance policy. Very few life insurance companies offer term life policies longer than 30 years, but Protective provides coverage for up to 40 years. This is a cost-effective option for applicants who want long-term coverage but don’t want to pay the higher premiums of a whole-life policy.

Available Riders for Seniors

Many of Protective’s riders are only available for people under a certain age. For example, the accidental death benefit rider is only available up to age 60 and expires at age 65. However, Protective does offer two riders that may be of interest to seniors:

Terminal Illness Accelerated Death Benefit Endorsement: Policyholders who are diagnosed with a terminal illness and have a life expectancy of 6 months or less can access up to 60% of their death benefits early. This benefit comes at no extra cost on all Protective’s term and universal life policies.
Extend Care Rider: This allows policyholders to receive a monthly benefit or lump-sum payment if they’re diagnosed with a chronic illness that prevents them from performing at least two activities of daily living for 90 days. This rider could be helpful for seniors who want to plan for potential future long-term care costs.

Online Services

Protective offers an online quote tool and a life insurance needs calculator, along with mobile bill pay, a mobile app and an online portal. The online quote tool is free, and it’s a great way to get a quote without having to talk to an insurance broker or give out contact information. The insurance needs calculator can also help applicants estimate how much coverage they may need before proceeding with purchasing a policy.

Protective also allows applicants to apply for specific policies online. This can help accelerate the application process and get the applicant covered faster.

Who Should Consider Protective’s Life Insurance?

Seniors who want affordable no-frills coverage

Protective’s rates consistently rank as some of the lowest among all major life insurance companies, making It a great choice for seniors who want affordable coverage. While its policies lack some of the rider options of other insurers, Protective is the best of the bunch when it comes to simple, no-frills coverage at an economical price point.

Seniors who want to do most of the policy shopping process online

Protective makes it easy to get a quote and find an agent online, so much of the policy shopping and application process can be done without leaving the house. Seniors who want to do most of their life insurance tasks online will likely enjoy Protective’s robust digital offerings.

What Are People Saying About Protective’s Life Insurance?

Customers are generally happy with Protective’s easy-to-use quote tool, insurance needs calculator and other online tools. Protective’s cheap rates and wide range of financial options are also selling points, and it’s a popular choice for budget-minded customers. It’s also of note that Protective has a rating of A+ (superior) with A.M. Best and AA- with Standard & Poor’s, showing that the company is financially healthy and able to pay claims.

However, Protective scored below the industry average for customer satisfaction in J.D. Power’s U.S. Life Insurance Study. Protective ranked 17th out of 22 total companies. Customers report slow approvals and settlement processes, with some waiting up to 3 weeks for death benefits. Difficulties with billing, collections and terminating policies were also reported. Despite this, Protective scored below a 1.0 on the National Association of Insurance Commissioners complaint index, indicating that it received fewer customer complaints than expected.

Frequently Asked Questions

What is term life insurance?

Term life insurance is a type of life insurance that pays a guaranteed death benefit if the insured person dies during a specified term.