This article will contain everything that you need to know from an Assurity life insurance review. We will discuss the Assurity Life insurance rating, their history, and how competitive Assurity’s rates are. There are hundreds of life insurance companies operating in the United States, and we review them all.
That being said, is Assurity Life Insurance Company the right company to protect your family? That depends on what you are looking for. If you are considering purchasing life insurance with Assurity Life Insurance Company, do not move forward without reading this review.
Shall we begin?
Assurity Life Insurance Company History
The Assurity Life Insurance Company was founded in 2007 as a result of a merger between three Lincoln, Nebraska insurance companies: Woodmen Accident and Life, Security Financial Life, and Lincoln Direct Life. All three of these companies can trace their heritage back to the1890 giving Assurity Life a 100+ year track record of serving its policyholders.
Assurity has long lived its mission of helping people through difficult times. The company is a leader in individual life insurance, disability insurance, and critical illness insurance as well as voluntary employee benefits through independent brokers across the United States.
Assurity has always been structured as a mutual insurance company. Assurity believes that being a mutual insurance company is crucial because it means that they are accountable to their policyholders, not shareholders. This allows Assurity the flexibility to focus on the long-term profitability of the insurance company instead of the short-term demands of the equity markets.
Assurity also places great importance on social responsibility to its employees, the community in which it serves, and the environment. In 2015, Assurity was certified a B Corporation by the nonprofit B Lab for meeting the rigorous standards of social and environmental service. Additionally, Assurity encourages their employees to devote time to company-sponsored volunteer activities such as blood drives, Habitat for Humanity, the Special Olympics, and many more great charitable organizations.
Assurity puts its money where its mouth is regarding their commitment to a sustainable environment. Assurity’s corporate headquarters is an award-winning LEED Gold certified building. It is on the bleeding-edge of environmental function and design located in Lincoln Nebraska.
Assurity Financial Strength Ratings
In the life insurance industry, brand recognition is critical. People need to feel confident that their life insurance company will pay when the time comes. Assurity has been in business since the 1890s and has an iron-clad financial strength. Assurity has been awarded some of the highest marks from the ratings agency A.M. Best.
|A.M Best||S & P||Moody's||Fitch|
Rating agencies provide their opinions on an insurer’s ability to meet its obligations to its policyholders. Assurity’s financial strength ratings are considered investment grade, which is an important consideration when choosing a life insurance company.
Assurity is also an A+ accredited business with the Better Business Bureau since 1992, which is the BBB’s highest rating. While no company can get it right 100% of the time, Assurity has demonstrated that negative customer experiences are the exception rather than the rule.
Assurity Life Insurance Options
Assurity offers various life insurance, disability insurance, accidental death insurance, annuities, and critical illness insurance options. For the scope of this review, we are going to solely focus on Assurity’s term life insurance and permanent life insurance options.
Term Life Insurance Coverage
Term life insurance is temporary. Term life insurance was created as a way to affordably secure high death benefit amounts for temporary needs, such as income replacement and mortgage protection.
Term life is the most straightforward type of life insurance you can buy. There is usually no cash surrender value. Simply put, you pay the premium, and if you pass away while the contract is active, the life insurance company pays the death benefit.
Assurity offers term life insurance as a solution for temporary life insurance needs. Assurity’s term can be purchased in 10-year, 15-year, 20-year, and 30-year guaranteed level-premium periods. After the stated term, your premiums will increase year-to-year as illustrated in the contract.
Assurity also is an industry leader in accelerated underwriting with up to 50% of their applicants being approved without the requirement of a medical exam. While Assurity has accelerated underwriting for qualified applicants, this is not true no-exam life insurance underwriting. If you do not qualify for acceleration, Assurity will request that you take a medical exam.
Assurity’s term policies are convertible to whole life or universal life policies available during the time of conversion. This is a valuable feature that offers excellent flexibility in the future. This guarantees that you will have a coverage option available if your health excludes you from life insurance coverage otherwise.
Assurity also includes the terminal illness rider at no additional premium within their policy. This rider allows the owner to accelerate a portion of the death benefits if they are terminally ill. While a nice feature to have, there are better living benefit options available which include critical and chronic illness with competitors. If you want to include more robust protections within your life insurance contract, check out our Ameritas Life Insurance and Living Benefits review.
One exciting term life insurance option that Assurity offers is their return-of-premium rider that provides a percentage refund of premiums paid at policy termination. This is a great solution for people who are forced to purchase life insurance for divorce decrees or small business loans since it allows you to recuperate a portion of your premiums at the end of your term when the coverage is no longer need.
Highlights of Assurity Term Life:
Assurity Universal Life
Assurity offers a flexible alternative to whole life called universal life that provides lifetime protection and cash value accumulation potential. With a universal life insurance policy, you can customize the timing and amount of your premium payments, unlike whole life insurance that has set mandatory premiums.
These types of policies have decreased in popularity in recent years due to a low-interest-rate environment. Universal life insurance usually has a fixed minimum interest rate, but the credited rate, which is not guaranteed, can fluctuate higher.
These types of policies should be monitored on a regular basis to ensure that they are being funded adequately. If the indexed investment strategy doesn’t perform as expected, the policy could potentially lapse.
Key benefits of universal life insurance
AssurityLife Whole Life Insurance
AssurityLife is known for its participating whole life insurance, which pays dividends to policyholders. Whole life insurance is a form of permanent life insurance. Whole life insurance is designed for permanent life insurance needs like final expenses and burial costs or estate planning. Whole life insurance provides lifelong death benefit protection with the most guarantees of any life insurance policy.
Whole life has guaranteed cash accumulation, guaranteed level premiums, and guaranteed death benefits. The cash value can also be accessed through tax-advantaged loans in a pinch.
The policy may also receive non-guaranteed dividend payments.
Policy dividends can be used in the following ways:
Also, AssurityLife offers a survivorship whole life insurance policy. Survivorship policies are also known as second-to-die life insurance or joint whole life insurance. Their purpose is to provide cash liquidity upon the death of the second insured and are usually used in estate planning.
Assurity is one of the few life insurance companies that offer a single premium whole life insurance policy. Single premium whole life is mostly used as a leveraging tactic to optimize legacy and inheritance. Single premium whole life has declined in popularity due to changes to the tax laws in the 1980s, but are making a resurgence lately.
Single premium whole life insurance is a modified endowment contract (MECs) and looses much of the tax benefits of life insurance as a result. MECs resemble the tax treatment of non-qualified deferred annuities with one key difference being the death benefit is still income tax-free.
Other Types of Insurance Offered by Assurity
Assurity also offers great disability, critical illness, and accidental death coverage. We have listed some of the selling points of each policy below:
Disability insurance is designed to supplement your monthly income if you become sick or injured and are unable to work. Assurity offers a number of disability products such as traditional disability insurance, simplified issue disability insurance, and business overhead and expense insurance. These types of policies are a great middle-to-upper market solution for business owners who wish to protect their income from more than just death.
Critical illness insurance is designed to provide you a lump-sum cash benefit if you contract a hard-hitting covered illness or covered chronic condition; for example, invasive life-threatening cancer. Assurity offers both a full-underwritten critical illness plan and a simplified issue critical illness plan with no medical exam.
Accidental Death Insurance is designed to provide you a death benefit for accidental deaths resulting from bodily injury. It is similar to life insurance, but it does not cover death due to illness. Therefore, there is no medical underwriting required for accidental death protection. One interesting feature about Assurity’s accidental death insurance is the optional disability rider that provides income protection for total disability due to an accident.
Sample Assurity Life Insurance Quote
We have included some sample Assurity term life insurance quotes. Please note that you need to qualify for these rates based on your health, lifestyle, and other factors.
Sample Assurity Life Insurance Quote: Term (Age 30)
|DEATH BENEFIT||MALE 10-YEAR||MALE 20-YEAR||FEMALE 10-YEAR||FEMALE 20-YEAR|
Please note that these Assurity Life Insurance quotes are for the preferred best non-tobacco health class.
The Final Word
Thank you for reading our Assurity life insurance review. We hoped our Assurity life insurance review helped you decide what the best life insurance company is to protect your loved ones with.
Assurity offers some unique life insurance options through independent life insurance brokers. You can learn more about Assurity’s product and services at the Assurity’s phone number 1-(800) 869-0355 or the Assurity website.
Each life insurance company has different opinions on rates and underwriting. A knowledgeable independent life insurance agent will know what companies will offer you the best value to protect your family.
If you are looking for life insurance, don’t hesitate. Request a free no-obligation quote, or call on of our veteran life insurance agents for a consultation today.
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.