SBLI Life Insurance Company Review

by Jeff Rose on April 16, 2012 · 0 comments

SBLI Life Insurance Company ReviewMany insurance companies offer the same policies for their clients, term, universal, variable universal, survivorship, and possibly even high risk life insurance policies.

Benefits and rates will vary from company to company, but in a market with what could almost be cut and paste services shared among competitors it’s nice to find that SBLI (Savings Bank Life Insurance Co.) has a different stance on policies and insurance than most.

With the majority of their business being term life insurance policies, and the rest coming from annuity investors, it’s safe to say that SBLI knows what they’re doing and does it well. You can obtain a quote from them on how much is life insurance for you and your specific needs and health at the time to see if it will be the best decision for you. As always, we recommend getting quotes from multiple companies such as Americo Life Insurance or Fidelity Life Insurance, before you make your final decision!

Is SBLI Still a Leader in the Insurance Space?

In 2010, minimal realized losses, an unrealized gain position, and IMR gains helped secure their position as one of the top providers for the Massachusetts and New Jersey. With strong capitalization backing up their conservative portfolio it’s no wonder how they became one of the best in the area they serve. Consistently adhering to moral underwriting practices makes SBLI a respected banking institution, and the overall mortality experience has been excellent.

Despite the positive outlook, the geographic location only allows SBLI to cater to the Massachusetts and New Jersey areas, and their modest earnings prevents any large scale expansion to bring their services to new areas and new customers. As stated before, the majority of their business comes mostly from term life insurance policies and annuities, a business practice that comes with modest earnings, yet not enough to allow for the company to expand. Expansion is needed by all beginning businesses, reaching out to new client’s and improving the company’s policies and procedures. Lack of growth is one of SBLI’s key weaknesses, though excellent service helps make up for it.

SBLI Insurance Company Pros and Cons

Savings Bank Life Insurance Co., like other companies, has its pros and cons. The only question that truly matters is what you need in an insurance policy, and if they can provide that service. For a term life policy SBLI is certainly an expert in term life plans, having brought peace of mind and security to thousands of clients.

One of the areas where I found them to be most competitive is with term life insurance rates on women. Where Banner Life is competitive on term life rates for men, SBLI will usually come in a bit cheaper.

When you need short-term policy, or a continuous series of term life plans, SBLI is certainly the company to go to. If you need more from a company than simple insurance plans then SBLI won’t be for you. Even with such a drastic difference in its strengths and weaknesses, Savings Bank Life Insurance has a specialized, term life policy available for anyone in need.

SBLI Life Insurance Company Financial Stability and History

SBLI Life Insurance Company has been in existence since back in 1907. For more than a century, this company has been providing its customers with the protection that they have come to rely on. This insurer traces its initial roots back to the time of one of the worst stock market crashes in United States history. During this time, the insurance industry had been exposed as being corrupt, as well as unnecessarily expensive.

At this time, the company’s founder – who was also a Supreme Court Justice and a Boston lawyer – Louis D. Brandeis, decided to become a strong advocate for trustworthy and affordable life insurance protection for those who were in the working class. Brandeis was an instrumental advocate for the passage of Chapter 561 of the Acts of 1907 – which allowed savings banks that were incorporated under Massachusetts law to establish departments to issue life insurance and annuities.

When this legislation had been passed, Brandeis then was able to convince the Whitman Savings Bank to establish the first SBLI department which, in turn, launched Savings Bank Life Insurance. In 1908, the very first policy was issued to a policyholder named Charles H. Jones. At that time, a new era of affordable life insurance was started.

Ever since that time, SBLI Life Insurance Company has continued to grow and thrive – and it has expanded its reach and product range, while at the same time remaining true to Brandeis’s original vision for the company of providing affordable life insurance protection to working families. In addition, the company also supports and serves many charitable organizations from coast to coast.

The firm has earned the trust of many customers, and it is backed by the ratings from several of the insurance company ratings agencies. SBLI has received an A+ (Superior) from A.M. Best Company. This means that A.M. Best qualifies SBLI Life Insurance Company as having superior financial strength, as well as the ability to meet its ongoing obligations to its policyholders.

SBLI has also received the rating of an A- from Standard & Poor’s, as well as a good financial strength rating from Weiss Ratings. Also, SBLI Life Insurance Company has also received numerous endorsements from organizations such as AAA of Southern New England, AAA of Merrimack Valley, and The Massachusetts Bankers Association.

Likewise, the company has also obtained a rating of A+ (on a scale of A+ to F) from the Better Business Bureau (BBB). SBLI is an accredited member of the Better Business Bureau, and the company has closed two complaints that were filed through the BBB.

SBLI has received numerous testimonials that describe the positive experiences that customers have received by the company – from customer service and support to being educated on how life insurance works for protection of those you love and want to protect. These testimonials can be found on the company’s website.

Insurance Products Offered By SBLI

There is a wide variety of insurance products that are offered by SBLI Life Insurance Company. These include both term and permanent life insurance, as well as annuity products that can help clients to obtain a guaranteed retirement income.

Term life insurance products offer life insurance protection for a set period, or “term.” Typically, these life insurance plans will offer coverage for up to 30 years, depending on how long the insured requires the coverage. During the time that the policy is in force, the policyholder will pay the premium, and if the insured should die, the stated amount of benefit will be paid out to the named beneficiary.

SBLI Life Insurance Company offers three different options for term life insurance coverage. These include the following:

Guaranteed Level Premium Term Life Insurance

With the company’s Guaranteed Level Premium Term Life Insurance option, the premium amount that is charged will remain the same throughout the entire period that the policy is in force. The amount of the premium will be based upon the age and the health condition of the insured individual at the time he or she applies for coverage. This plan will remain in force until the insured reaches the age of 85.

With this particular plan, coverage options that can be chosen include ten years, 15 years, 20 years, 25 years, or 30 years. The face amount of the coverage can range between a minimum of $100,000 up to $30 million – depending on the age of the insured at the time of application. (If the applicant is between the age of 70 and 74, the maximum amount of coverage that can be applied for is $10 million).

When the insured is age 70 – or at the end of the guaranteed period of level-premium – whichever occurs first, the insured is allowed to convert the level term life insurance policy over into a whole life insurance or a universal life insurance plan. He or she may do so without the need to provide any evidence of insurability.

Yearly Renewable Term Life Insurance

With yearly renewable term life insurance, each year the premium amount will be re-calculated based on the insured’s current age. This type of life insurance can start out very inexpensive. However, over time, it can become quite costly.

This plan is allowed to be automatically renewed each year until the insured reaches age 90, without the need to have a paramedical examination or to provide any evidence of insurability to renew. However, between the ages of 75 and 90, the amount of fixed term life insurance may decrease each year.

At any time until the insured reaches age 70, he or she may be able to convert their term insurance policy over into either a whole life or a universal life insurance policy without having to take a paramedical exam.

One Year Non-Renewable Term Life Insurance

With one-year non-renewable term life insurance, the policy is guaranteed for only one year. This product offers a very affordable single premium. In most instances, the death benefit will be free from federal income taxes. This policy will typically allow the insured to convert the policy over to a permanent life insurance plan.

Often, these policies are used when life insurance is needed, but funds are limited. They may also be used by those who would like to purchase a permanent life insurance policy, but are not able to do so immediately for various reasons.

This policy can be purchased by those who are between the ages of 18 and 90. There are no additional riders that are available to be added to this particular life insurance policy. In most cases, the free look provision for this product is only ten days instead of 30.

Permanent Life Insurance Coverage Offered by SBLI

Whole life insurance is a type of permanent coverage. This type of life insurance offers a death benefit, along with a cash value component. The cash value is allowed to grow on a tax-deferred basis, meaning that no tax is due on the growth of the cash until the time of withdrawal. This can allow the cash to grow on an exponential basis over time.

The cash in the cash-value component of the policy can be either borrowed or withdrawn by the policyholder for any reason. It is important to note that any unpaid cash balance at the time of the insured’s death will be deducted from the amount of the death benefit that is paid out to the named beneficiary.

SBLI provides several different whole life insurance options. These include the following:

Continuous Payment Whole Life

With the Continuous Payment Whole Life option, the insured will be covered for his or her entire lifetime. The policyholder will pay a set premium amount for the remainder of their life. This particular policy has a maturity age of 121 years.

Limited Pay Whole Life

The Limited Pay Whole Life option also covers the insured for his or her entire lifetime. However, rather than having premiums that are paid for the rest of the policy holder’s life, the policyholder instead chooses to pay for only a set period of time such as for 10 years, 15 years, or until he or she reaches age 65. At that time, the policy will be considered paid up. Here, too, the policy has a maturity age of 121.

Single Premium Payment Whole Life

The Single Premium Payment Whole Life insurance option provides the policyholder with the ability to pay just one single premium for their insurance coverage. Then, the policy is considered to be paid up, and no more premiums will be due.

There are many riders that may be available on the whole life insurance policy options offered by SBLI Life Insurance Company. These include the:

  • Accelerated Death Benefit Rider
  • Children’s Level Term Rider
  • Guaranteed Purchase Option Rider
  • Single Premium Paid-Up Additions Rider
  • Flexible Premium Paid-Up Additions Rider
  • Waiver of Premium Rider
  • Accidental Death Benefit Rider
  • Guaranteed Level Premium Term Rider

Certain conditions and/or limitations may apply.

Whole Life for Children

SBLI also offers a whole life insurance option for children. While nobody wants to ever think about it, the unexpected can, and sometimes does, occur. Having life insurance on a child can help to avoid the financial hardship that can often come along with this occurrence.

The SBLI whole life insurance for children is a low cost life insurance policy that offers a child their own coverage, as well as benefits such as cash value, build up that could provide them with additional tax-advantaged savings options for the future.

How to Obtain the Very Best Coverage

When seeking life insurance premiums, it is often best to work with an agency or a company that has access to all the top life insurance companies. This way, you will be able to obtain an unbiased view of benefits, policies, and premium quotes, and to determine then which will work the best for you and your specific needs and budget.

If you are ready to begin the life insurance policy comparison process, we can help. We work with many of the top life insurance carriers in the industry today, and we can assist you in obtaining all of the important information that you need for making an informed purchase decision. When you’re ready to move forward, all you need to do is fill in the form on this page to get your first set of quotes.

Should you have any additional questions along the way, our experts are available to help. We can be reached directly via phone, toll-free, by calling 888-836-7071. We want to ensure that you make the best decisions for your coverage needs. So, contact us today – we’re here to help.

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