Protective Life Insurance Review: Low, Low Rates and a Wide Range of Options

This life insurer is a good fit for: Individuals seeking extremely competitive rates on a term life policy.

• Average annual costs ($500,000, 30-year policy): 35-year-old non-smoking male: $411.72. 35-year-old non-smoking female: $345.60
• Riders/Add-ons: Children's Term, Accidental Death, ExtendCare, Income Provider Option, Overloan Protection, Protected Insurability, Return of Premium, Accelerated Death Benefit, Waiver of Premium
• Simplified policy availability: Yes, limited
• Discounts available: Costco members save an average of 15%
• Insurances offered: Term, Whole Life, and Universal Life

Top perks

Low rates

Protective routinely beats the competition when it comes to term life rates. For example, a healthy 35-year-old man who doesn't smoke can land a 30-year, $500,000 policy through Protective Life for $412 per year. The same policy through State Farm would cost around $595 per year.

Wide range of policies

It's not uncommon for an insurer to offer just one or two different types of policies. Through Protective, consumers can choose between five different policy types.

Costco members eligible for policy discount

Customers who also happen to be Costco members score, on average, 15% off the price of their policies.

40-year policies available

It is unusual for a life insurance company to offer policies with terms lasting more than 30 years. Protective offers 40-year policies, however.

No-exam policies up to $1 million

Applicants may be able to avoid a medical exam for policies up to $1 million.

What could be improved

Unimpressive customer satisfaction rating

Protective Life did not perform particularly well on the J.D. Power 2022 Individual Life Insurance Study. Of the 22 insurers examined, Protective landed in 15th place with a rating of 759 out of 1,000. Given that that industry average is 774, the company appears to need improvement in this area.

Slow cash accumulation on permanent life policies

One way insurance companies sell permanent life policies is to emphasize the way such policies can build cash. Potential customers are told that the funds will be available to them to borrow when needed. The truth of the matter is, the cash accumulates quite slowly and the cost to borrow against a policy can be prohibitive.

One thing that sets Protective Life apart from its competitors is low premiums on term life insurance. To get an idea of yearly premiums, we looked at the following scenarios:

If you're looking for term life insurance from a company with a higher rate of customer satisfaction: State Farm shines where Protective Life does not. However, Protective Life offers lower rates.

If you want to "test-drive" a policy for 30 days, Ethos Life Insurance may be a better choice. However, Protective Life offers more policy options than Ethos.

Term life

When you buy a term life policy, you buy it knowing that there is an expiration date. For example, if you purchase a 20-year policy, it will naturally expire at the end of the 20th year. However, if you die within that 20-year period, your designated beneficiaries would receive the death benefit on the policy. If you live beyond that time, you'll need to purchase another policy or decide if you have enough money put away to continue without life insurance coverage. Term life is the most affordable way to purchase life insurance, and just a fraction of the price you'll pay for permanent life coverage.

Whole life

Whole life insurance sticks with you for your entire life, as long as you continue to make the payments. The premium never changes and whole life promises to grow in cash value. That said, it is far more expensive than term life and policy terms may not be easy to understand.

Universal life

Universal life also provides you with insurance coverage throughout your entire life. The big difference is that universal life policies have flexible premiums. As long as you pay the minimum amount, you can change how much you pay each year. Earnings on universal life policies vary, based on the interest rate.

Variable life

With a variable life policy, you can invest a portion of your premium into a separate, professionally managed account. The upside is that you may earn a higher cash value. The downside is that your policy may lapse if your chosen investment options underperform.

Short-term life

Short-term policies are available to those who only need coverage for a year or less. The need for short-term coverage may be due to a job change or travel plans.

Accidental death

As the name suggests, an accidental death benefit pays out an additional death benefit if the policyholder dies as a result of an accident.

Accelerated death

An accelerated death rider allows the policyholder to use all or a portion of their policy's death benefit on various expenses if they are diagnosed with a chronic, critical, or terminal illness.

Waiver of premium

If a policyholder becomes totally disabled and can't work or pay their insurance premiums, this rider allows them to stop making payments until they're able to return to work. During this time, their policy remains in force.

Disability income

This rider provides supplementary income if the policyholder becomes totally disabled. Typically, the amount paid monthly is a percentage of the face amount of the policy.

Children's term

A children's term rider allows the policyholder to add term life insurance coverage on all their children, whether natural, adopted, or stepchildren.

Guaranteed insurability

Guaranteed insurability is available to those who are unable to afford the amount of life insurance they need today. It allows them to purchase additional life insurance at a later date without having to prove insurability.

Term insurance rider

A term rider can be added to a whole life or universal life policy for a specified period of time. It's designed for those who have a temporary need for additional life insurance above the face value of their existing policy.

Applying for a Protective Life Insurance policy can be completed in four easy steps. A potential policyholder begins by either filling out a quick online application or calling Protective Life. The applicant will need to provide basic information like age, sex, and state of residence. They'll also be asked to pick a beneficiary.

Once the application has been submitted, there will be a phone interview to discuss medical history. The call typically takes about 25 minutes.

If the policy in question requires a medical exam, the next step is to select a time and place for the examination to take place. Exams involve checking blood pressure, recording height and weight, and drawing samples of blood and urine.

Finally, the application and exam results will move to underwriting for review. At that time, Protective Life will provide a premium quote. From start to finish, the entire process takes four to six weeks.

Age eligibility for Protective Life Insurance depends upon the type of policy you're interested in buying. For example:

• Term life: 18 to 60, with coverage ending at 65
• Whole life: Birth through age 90
• Universal life: 18 through 85
• Children's life: 15 days through 18 years

According to the 2022 J.D. Power Individual Life Insurance Study, Protective Life rates below the industry average for customer service. Reviews posted to the Better Business Bureau (BBB) give the insurer an overall rating of 1.03 stars out of a possible 5. The insurer clearly has work to do in the customer service department.

Protective Life Insurance is best suited for:

• Term life customers looking for the biggest bang for their premium buck.
• Consumers seeking a wide range of policy options.
• Those with the patience to deal with less-than-ideal customer service.

But you may want to consider State Farm if you're looking for a company with greater consumer satisfaction or Ethos Life if you want to try a policy risk-free for 30 days.