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Our take on National Life Group
The National Life Insurance Company can trace its roots back to 1848. The company would later play a role in claims resulting from the sinking of the Titanic, the Spanish flu pandemic, and the casualties of World War II. In 2006, the company formed the National Life Group Foundation, which contributes to projects across the United States. In 1999, National Life purchased completed the acquisition of Life Insurance Company of the Southwest (LSW).
Today, the company provides a variety of financial services, including life insurance and annuities. With a full range of products and services, National Life offers some very attractive offers.
Their full line of permanent and whole life insurance products provides excellent, flexible investment strategies, as well as options for a continual stream of retirement income. We also like their ProtectorLife policy, which allows you to purchase a term life insurance product and strategically convert it to a permanent policy over a 10 or 20-year interval.
While they don’t offer guaranteed-issue life insurance policy options, their diverse selection of products is sure to provide an insurance or investment solution for those who are looking for long-term planning solutions.
|A.M. Best Rating||A|
|Customer Service Phone||800-732-8939|
|Address||National Life Group, Vermont Campus|
1 National Life Drive
Montpelier, VT 05604
What We Like
Full Range of Policy Options
Life insurance customers can find every policy type under the umbrella of National Life Group.
Term-Permanent Hybrid Options
National provides a policy that strategically converts a term life policy into a permanent policy over a 10 or 20-year period.
Excellent Options for Permanent Policies
National Life’s permanent policies can provide excellent investment strategies and include such benefits as guaranteed income and living benefits.
What We Don’t Like
No Online Quotes
National Life Group’s website does not offer online quotes and they provide little detail about their policies.
Rates Not Competitive for Term Products
If you’re only seeking term products, you can find more affordable options from another provider.
Class Action Lawsuit
Since 2019, National Life Group has been the target of a class-action lawsuit.
National Life Group Insurance Products
Term life insurance
|Length of Coverage||10, 15, or 20 years|
|Minimum Coverage||Not Specified|
|Estimated Time to Approval||Immediate|
Applicants under the age of 70 are eligible for policies in 10, 15, and 20 year increments. Policy values go up to $1 million.
The level term life insurance policy ensures that your monthly premiums stay locked in for the duration of the policy, regardless of age.
National Group allows policyholders to convert their term policy to a permanent policy by age 70 or by the end of the policy term, whichever comes first.
Annual Renewable Term
National Group offers an annual renewable term policy (ART). These policies tend to be used as collateral so you can use life insurance to secure a small business loan. The cost of these policies increases with age and health conditions.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that lasts for the policyholder’s lifetime. The advantage of these permanent policies is their cash value accumulation, which can be borrowed against at a predetermined interest rate.
National Group offers two distinct whole life insurance plans:
This policy allows you to adjust your monthly premiums and your death benefit as your circumstances and needs evolve over time, a feature that is usually only offered with a universal life insurance policy.
Policyholders can pay a level premium over their lifetime, or they can elect to have a payment plan that pays the entirety of their policy over a 5, 10, 15, or 20-year period.
This innovative product uses an automatic conversion rider to convert a term policy into a whole life policy. In other words, if you purchase a term life policy, you can use this rider to slowly convert your policy into a whole life policy over a 10 or 20-year period.
Over time, your term life premium decreases, and your whole life premium increases. This gives younger adults the affordability of term insurance when they’re young, but gives them increased security over time.
Universal Life Insurance
Universal life insurance is a specialized form of permanent life insurance that provides greater flexibility, along with various investment options.
National Group offers four different options for basic universal life insurance.
This basic policy is aimed at those who are seeking to protect specific people and assets, including their family, business, and personal property.
Horizon Universal Life Insurance
This plan comes with living benefits, providing a portion of the death benefit if the policyholder is diagnosed with a terminal, chronic, or critical illness.
IncomeBuilder Universal Life Insurance
This policy brings the option of growing higher cash values when compared to other universal plans. It has a guaranteed growth of 3% per year. It also includes the accelerated death benefit at no additional cost.
Foundation Universal Life
The Foundation plan provides additional options for cash value accumulation and boasts a minimum interest rate of 4% per year. The policy also comes with the option to purchase an annual term life policy for a spouse.
Indexed Universal Life
Indexed universal life insurance is a variation of other universal life insurance. The distinction lies in the ability to invest the cash value in indexed markets such as the S&P 500 or Nasdaq.
National Group offers three indexed policies:
Policyholders can choose the cash value accumulation amount based on market performance. The policy also comes with two riders at no additional cost:
- The Lifetime Income Benefit Rider (LIBR) provides guaranteed, lifelong income
- Living benefits cover the costs of a chronic or terminal disease
This plan provides stability for the future and can be used to supplement retirement savings.
This policy is actually a form of survivorship insurance, which basically acts as a two-for-one deal for couples. One policy covers both individuals, and the benefits are paid to the last surviving party.
This option comes with six crediting options. The downside protection protects you in the event that the market performs poorly.
Like the SecurePlus plan, this policy includes the living benefit and the Lifetime Income Benefit Rider (LIBR).
National’s variable universal life insurance plans offer the same benefits as their universal policies, though they include sub-accounts that increase with the performance of particular stocks and bonds.
National Life Group also offers riders that can be purchased to further customize their life insurance products. The following is a sampling of their most popular products:
Common National Life Group riders:
- Lifetime Income Benefit Rider – This rider provides a guaranteed income stream for the lifetime of the policyholder. It is included at no cost in the SecurePlus and FlexLife II universal plans.
- Living Benefit Rider – If you are diagnosed with a chronic, terminal, or critical illness, you are entitled to an advance on your death benefit to cover medical and related expenses. This rider is also included at no cost in the SecurePlus and FlexLife II universal plans, as well as the Horizon and IncomeBuilder plans.
- Waiver of Premium – This rider ensures that your policy will not be canceled by waiving premiums if you are disabled by a qualifying accident.
- Accidental Death Benefit – If you are killed in an accident, this rider will pay your beneficiary an additional benefit.
- Children’s Rider – Policyholders can add dependents of qualifying ages to their policy, with small death benefit amounts.
No online quotes are available for any of National’s policies, and their website only offers sparse details on their policy options.
Term Products Not Competitive
When it comes to affordable life insurance, National’s term policies are not the most competitive. The following are some baseline estimates for the monthly premiums of a 40-year-old man:
- 20-year, $250,000 policy: $25/month
- 20-year $500,000 policy: $35/month
- 20-year $1 million policy: $150/month
Other providers can provide better rates for similar products.
Great Value for Permanent Policies
Permanent policies are always more expensive than term life policies, but they offer features and value that some may find attractive. In the case of National’s policies, some may appreciate the advanced investment features offered by their universal policies.
National Life Group has been positively rated by multiple consumer watch groups:
- A.M. Best: A (Excellent)
- S&P: A+ (Strong)
- BBB: A+
These ratings indicate a strong reputation for reliability and financial excellence.
Class Action Lawsuit
Unfortunately, National Life Group has been involved in a class-action lawsuit since 2019. According to the lawsuit, National Life is accused of operating a pyramid scheme that has specifically targeted Asian Americans. This lawsuit has yet to be resolved.
Below, you’ll find reviews from National Life Group’s current and former customers.
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