How is National Life Group rated when it comes to protecting your family? Our National Life Group Review will cover everything you need to know about the National Life Group in order to make that decision.
Our National Life Group review will discuss the company’s long history, the National Life Group credit rating, and their various types of life insurance policies. If you are considering National Life Group insurance, you want to read this review before moving forward.
Shall we begin?
The National Life Group History
The National Life was founded on November 13, 1848, when they were chartered by the Vermont Legislature. National Life began soliciting life insurance in 1850 and faced its first claim within a matter of months!
Rowland Allen of Ferrisburgh, VT headed westward to find gold in the California gold rush and purchased two $500 life insurance policies. Unfortunately, Rowland died of dysentery during the long sea voyage to California.
The company, in its infancy, did not have the cash available to pay Allen’s widow the $1,000 she was owed. National Life’s directors and officers used their personal credit to work with a local bank to pay the claims. National Life has persevered through the Spanish influenza epidemic of 1918-1919, two world wars, the Great Depression, and the Great Recession making good on its promises for over 165 years!
Over the years, the National Life Group has evolved offering a wide range of financial services through acquisitions. In 1968, the company created an affiliate broker-dealer called Equity Services. Eight years later, National Life acquired Sentinel Advisors. In 1996 National Life began the acquisition of the Life Insurance company of the Southwest (LSW).
Today, the National Life Group sells life insurance, annuities, and investments in most states across the country (LSW is not licensed in NY as of the writing of this review). National Life is structured as a mutual company, which means that the company is owned by the policyholders not shareholders like a publicly traded company.
National Life has been paying dividends to its policyholders since 1855, after its first 5 years of operation. In 2017, National Life approved an estimated $67 million in dividends to eligible participating policies.
National Life Group Credit Ratings and Financials
Is National Life Group Legit? The National Life Group total assets under management are approximately $30.2 billion and the National Life Group paid a whopping $2.1 billion in benefits paid to policy owners in 2017!
The National Life Group Moody’s rating, S&P Rating, and A.M. Best rating are all investment grade:
|A.M. Best||Moody's||Standard & Poor's|
National Life Group has a strong balance sheet and stable outlook. You can be confident that National Life Group has the financial stability to pay its claims when the time comes.
National Life Group is also accredited by the Better Business Bureau (BBB). The BBB has given the National Life Group a grade of A+, which is the highest mark a company can receive. While no company is perfect, poor customer service is likely few and far between.
National Life Group Life Insurance Options
National Life Group offers term life, universal life, and whole life insurance. They also offer other financial services products, such as annuities, mutual funds, IRAs, and retirement plans. However, for the purposes of this review, we will focus strictly on their life insurance products.
National Life Group Term Life Insurance
Term life insurance is a cost-effective way of achieving higher death benefits temporarily. Term insurance is a great solution for replacing your income, covering your mortgage, or providing funds for higher education upon your passing.
National Life Group offers term life insurance in 10-year, 15-year, 20-year, and 30-year term options. Your monthly premium will remain fixed for whichever term period you select. There is no cash value associated with term insurance as well.
National Life Group may include accelerated benefit riders at no additional cost, depending on what state you live in. You can add on optional riders to the policy for an extra premium, such as accidental death coverage, disability waiver of premium, or a children’s term rider as well.
National Life Group Whole Life Insurance
Whole life insurance is a form of permanent life insurance. 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 policy may also receive non-guaranteed dividend payments that can be reinvested within the policy to purchase additional death benefit. The cash value can also be accessed through tax-advantaged loans in a pinch.
Whole life insurance is designed for permanent life insurance needs like final expenses and burial costs or estate planning. National Life Group whole life policies may include living benefits for chronic, critical, and terminal illness depending on which state you live in.
National Life Group Universal Life
National Life Group also offers universal life policies, which is another type of permanent life insurance policy. Universal life insurance was designed to offer permanent death benefit with flexibility. For example, you can select the monthly premium that you wish to pay with universal life insurance.
However, these types of policies usually come with fewer guarantees than whole life insurance. The owner of the policy assumes the investment risk of the cash value. If the policy was not funded adequately, then the coverage could lapse.
National Life Group offers the following types of universal life insurance:
Universal Life Insurance
National Life offers a traditional universal life insurance policy. These types of policies have decreased in popularity in recent years due to low interest rates. Universal life insurance has a fixed minimum interest rate that can potentially be credited with additional interest credits.
National Life Group’s universal life insurance policy offers great flexibility. It has a flexible death benefit, flexible premiums, and policy cash values. However, death benefit increases may be subject to additional underwriting approval.
Indexed Universal Life Insurance
Indexed universal life insurance is another type of universal life insurance. National Group Life’s indexed universal life insurance policy is more focused on cash value accumulation for lifetime needs such as supplementing retirement income.
The cash value increases based on changes in a market index such as the S&P 500. Since your cash value is not directly invested in the stock market itself, your investment principal is protected from investment loss due to the decreases in the index. However, you often have to sacrifice some upside investment return as a result.
National Life Group’s indexed universal life insurance also has flexible death benefits and flexible premiums. However, increasing the death benefit may be subject to additional underwriting.
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.
Variable Universal Life Insurance
Variable universal life insurance is designed for people who need lifetime life insurance protection and want to choose how their cash value is invested. Your cash value grows based on the performance of the underlying stock, bond, or money market investment strategies in sub-accounts that you choose.
However, your cash value is directly invested within whichever sub-account that you select. So if you invest in a stock sub-account and the stock market declines, your cash value would decline with it. However, if the stock market goes up, your cash value will increase with it.
Due to the investment risk, these types of policies should be carefully considered and monitored frequently. If the investment strategy underperforms, the policy could potentially lapse due to lack of sufficient funding.
Like their other universal life insurance policies, National Group Life’s variable life insurance offers flexible premiums and flexible death benefits. However, increasing the death benefit may require additional underwriting.
National Life Group Rates
National Life Group does not publicly display their rates on their website. As a result, you would need to reach out to a National Life Group agent in order to get a quote specific to you and your unique situation.
Life insurance is something you need to qualify for based on your health, lifestyle, and age. By consulting with an agent, it ensures you receive an accurate quote as opposed to an unrealistic price that you may not even qualify for.
The Final Word
Overall, National Life Group’s life insurance is a solid option but there may be better options out there. The National Life Group Insurance Company phone number is 1-(800)-732-8939 or you can visit them on the web at nationallife.com if you want to learn more about how they do business.
If you have a pre-existing medical condition or feel more comfortable with a household name there may be a better option out there for you. Give one of our veteran agents a call or request a free no-obligation quote today. A simple phone call could potentially save you thousands of dollars on your life insurance.
Josh Martin is the founder of Good Life Protection. He began his career as a captive Agent working for New York Life Insurance Company. After continued education and designations, Josh founded Good Life Protection to provide consumers with more options and insurance that truly fits into your budget and health classification.