Protective Life Insurance Review

Published: November 15th, 2017 | Last updated: March 8th, 2018

Protective Life is one of the best life insurance companies we work with here at, and it definitely ranks among the top, thanks to competitive rates and all of the advantages they now offer.

So, as far as term life insurance goes, Protective Life is a good choice.

Stable Premiums

Most companies that provide term life insurance offer their customers premiums that stay the same during the initial chosen term period (typically between 10 and 30 years). After that, the premium rates will increase if you want to continue having insurance coverage. With Protective Life, however, your premium rates actually stay the same and do not increase after your initial term period ends.

Instead of raising the premium, Protective Life will instead decrease the death benefit payout every year after your initial term has expired. This way you still get coverage, but you won’t have to pay more for it. Besides, most people will have less and less of a need for a large death benefit as they get into their later years, so this setup makes a lot of sense.

This is one of the most interesting benefits that Protective Life offers. Instead of paying drastically more for life insurance coverage later in our life, you’ll pay the same amount for a policy. Once you start getting older, you don’t have as much debt and there aren’t as many people that rely on your income, which means you have less insurance need. Why should you pay a fortune for a new insurance plan?

For example, lets say Jane is a 35-year-old woman with a 15-year policy worth $500,000 in coverage. Her premium rate with Protective Life is $20.42 a month. This rate stays the same as Jane ages, right up until the end of her initial term at age 50. By that point she has decided that she would like to continue her insurance, so the death benefit begins to decrease gradually starting at that age (the end of her 15-year term). When Jane is 55 (year 20 of the policy), the value of her death benefit will be $135,975, but she would still be paying only $20.42 a month. She will continue to pay the same rate as the policy amount decreases, until it reaches $10,000 when she is 85 years old. Only at that point would Jane’s premium rate be eligible for an increase.

This is an excellent benefit, because most people as they age start paying much more for their insurance policy once they have to reapply, even though they need much less payout. The only problem is if you want to continue to have the full payout amount. If you reach the age of 70, but still want your $400,000 you’ll have to purchase a plan from a different company.

Competitive Rates

Let’s be honest— for most people, choosing an insurance company often comes down to which provider can offer them the cheapest rates. The good news is that Protective Life often ranks among the top (meaning, the cheapest) when it comes to term prices.

Let’s take a look at an example, shall we?

Let’s say George is a 50-year-old man applying for $250,000 in life insurance coverage. He is interested in a term of 20 years. George is likely to be offered the following rates from several of the nation’s top term life insurance providers:

So, by looking at this it is obvious that Protective Life has the customer in mind when they designed their insurance rates. They offer among the lowest rates, and this is fairly consistent across men and women and people of different ages and health classes.

Because these are just generic rates, yours could look very different, either high or lower, but Protective tends to be some of the most affordable coverage on the market.

Protective Life also holds an A+ rating with A.M. Best and currently has over $427 billion in active life insurance policies. In other words, Protective Life is a great choice for many people.  Finding a company that is financially stable is much more important than most applicants think. You don’t want to have to worry about the company going bankrupt.

What Does Protective’s New Indexed Universal Life Cover?

As with most other types of life insurance, this new indexed universal life insurance product provides death benefit coverage that can help an insured’s loved ones to replace income, pay off a mortgage, reduce estate taxes, or fund future education costs.

With these policies, coverage can be guaranteed to remain in force throughout the policy holder’s entire lifetime – provided the payments are paid on-time and there are no unpaid policy loans or withdrawals.

In addition to just providing a death benefit, however, this indexed universal life insurance policy will also credit interest to a cash value component of the policy that is based on the performance of an underlying index such as the S&P 500.

This can provide an opportunity to build up a substantial amount of cash over time that can be used for any number of purposes that the policyholder sees fit.

Because the indexed account is not an actual security or direct investment in the stock market, however, it is able to offer the policyholder the upside potential of the underlying equity market – yet without the downside market risk.

This means that the policy holder’s account is allowed to grow, but at the same time is protected from the negative volatility of the market. Therefore, the account will never lose value due to negative performance during a given year.

Additional Policy Options

Because the indexed universal life insurance policy allows for maximum flexibility, these plans typically provide additional options that can be added to one’s policy.

In doing so, these plans can be even more custom fit to cover the specific needs of the policyholder and their loved ones.

Some of these riders may include:

  • Income Provider Option – This option allows the policy owner to pay out the death benefit in income installments rather than as one lump sum. This can help loved ones with replacing income on a long-term ongoing basis.
  • Accidental Death Benefit Rider – For those who are under age 45, accidents – or unintentional injury deaths – are the number one cause of death in America. This is especially the case for those who work in potentially hazardous occupations. By adding the accidental death benefit rider to an index universal life insurance policy, additional coverage may be added if the insured’s death is the result of an accident.
  • Disability Benefit Rider – Although life insurance is typically designed to protect loved ones after the insured’s death, there are ways that a policy can be used to protect the policy holder during life. One way is to add the disability benefit rider. This rider ensures that a certain amount will still be paid towards the policy premium if the insured becomes disabled and is unable to pay the premium for a certain period of time.
  • ExtendCare Rider – In the case that the insured is diagnosed with the inability to perform two of six basic activities of daily living, this rider allows the insured to access the policy’s death benefits on a monthly basis in order to help pay for their care. This can help to keep savings and other assets intact, and could be an alternative to long term care insurance.
  • Terminal Illness Accelerated Death Benefit Option – Should the insured be diagnosed with a terminal illness, this rider will also allow him or her to access a portion of the death benefit in order to help pay for medical or other expenses.
  • Children’s Term Life Insurance Rider – This rider will provide life insurance coverage to the children of the insured so that if the unthinkable should happen, costly final expenses can be paid.

Advantages of Owning Protective’s Indexed Universal Life Insurance

While owning life insurance can provide loved ones with income and asset protection in case of the unexpected, there are ways to structure policies so that an insured can also obtain additional financial benefits during life. Given this, the more flexible features and cash value accumulation options on this indexed universal life insurance plan can help policy owners in meeting various financial needs both now and in the future.


Interested in Protective Life, or just learning about your life insurance options in general? Feel free to contact us at 1-888-552-6159 to get a customized quote today.

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Doug Mitchell

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