As a new entrant into the life insurance marketplace, Brighthouse Financial is making inroads into the industry through innovative products and services. In this Brighthouse Life Insurance Company review our focus will be on the company’s history, strong ratings, life insurance policies, and the unique features and benefits provided.
Review of Brighthouse Life Insurance Company
Anytime you are on a search for the best life insurance companies it is important to get to know the different carriers in the marketplace. There is no “best” company, rather, the ideal life insurance for you must be properly designed to meet your needs, goals, and objectives.
About Brighthouse Financial
MetLife has been around since 1863. It has grown substantially over the last 150+ years. When a company such as MetLife grows to the level it has, it is common for the company to look for ways to maximize further growth and reduce risk exposure where applicable.
In 2017, MetLife created Brighthouse Financial to be a separate entity. Headquartered in Charlotte, North Carolina, Brighthouse Financial now represents MetLife’s retail segment for life insurance and annuities.
Brighthouse Life is a stock life insurance company, which means the company has shareholders. Trading under symbol BHF, Brighthouse Financial is no spring chicken, as it already boasts $224 billion in total assets.
Brighthouse Financial’s life insurance and annuities are issued by Brighthouse Life Insurance Company Charlotte, NC (together with its subsidiaries and affiliates, “BLIC”), formerly MetLife Insurance Company USA, is domiciled in Delaware and licensed to write business in 49 states. Brighthouse Life Insurance Company of NY (“BHNY”), formerly First MetLife Investors Insurance Company, is domiciled in New York and licensed to write business in New York.
Somewhat of interest is that in July 2016, MetLife completed the sale of MetLife’s U.S. retail advisor force to MassMutual. As part of the deal, MetLife and MassMutual entered into a product development agreement under which Brighthouse exclusively develops certain annuity products that are issued by MassMutual.
Brighthouse Life Insurance Company Ratings
Brighthouse Financial and Brighthouse Life Insurance Company is a highly rated life insurance company as is evidenced by the following ratings:
Ratings as of May 1, 2018:
- A.M. Best rating: A
- S&P rating: A+
- Moody’s rating: A3
- Fitch rating: A
- Comdex Ranking: 77 out of 100
Brighthouse Financial’s Products and Services
Brighthouse financial offers the following products and services through its different affiliates, including Brighthouse Life Insurance Company and, in New York only, by Brighthouse Life Insurance Company of NY.
- Shield Annuities
- Variable Annuities with FlexChoice Access
- Guaranteed Income Builder
- Income Annuity
- Fixed Annuity
- Guaranteed Level Term
- Premier Accumulator Universal Life
Types of Life Insurance Policies Offered
Brighthouse Life offers two types of life insurance policies: permanent and term.
Benefits of Term Life Insurance
- Lower Initial Cost
- Income Protection
- Mortgage Protection
- Conversion Option
Benefits of Permanent Life Insurance
- Business Succession Planning
- Buy Sell Agreements
- Key Man Insurance
- Estate Planning
- Infinite Banking
- Executive Bonus Plans
- Deferred Compensation Plans
- Retirement Planning
- Wealth Building
Brighthouse Life Insurance Policies [Plans and Features]
Brighthouse offers two primary life insurance types: term life vs permanent life.
Term Life Insurance
Brighthouse Life Insurance Company offers term life insurance. The product name is Guaranteed Level Term.
Guaranteed Level Term
Guaranteed Level Term offers four level premium payment options ranging from 10, 15, 20 and 30 years. Once the term expires, the policy’s premium increases annually and is renewable to age 95.
The Guaranteed Level Term policy has a minimum face amount of $1,000,000. Issue ages range from 18-75, depending on term length and state the policy is issued in.
The policy is convertible term life insurance. You can convert all or a portion of the policy to permanent coverage by age 70 or 5 years after issue date, whichever is later.
Brighthouse Permanent Life Insurance
Brighthouse Life Insurance Company offers one primary permanent life policy. The name of the product is Premier Accumulator Universal Life.
Premier Accumulator Universal Life (PAUL)
Universal life insurance is similar to whole life in that it lasts your entire life if designed properly. However, there are subtle differences between whole life vs universal life that you need to be aware of.
With universal life you have the option to make more or less premium payments, as long as minimum requirements are met. Further, you can change your death benefit amount. Finally, you can also choose different death benefit options, including a fixed death benefit or increasing death benefit.
The one word that best describes PAUL is control, as the most unique feature of Premier Accumulator Universal Life is that it provides permanent coverage but has no surrender charges. You can access your life insurance cash value through life insurance loans, withdrawals and surrender.
The policy is available for ages 18 – 85, with face amounts from $50,000 to $5,000,000.
Two different death benefit options are available. Option A provides a level death benefit that stays the same. Option B is an increasing death benefit, that will grow your death benefit over time.
The guaranteed crediting rate is 2%. You can borrow against your cash value for 3% in the first 20 years. In year 21 and beyond, net loan costs of 0% are available.
Enhanced Rate Plus (ERP)
The ERP program is available for ages 20 – 60 and takes the place of traditional life insurance underwriting. And even though it allows you to bypass the paramedical exam, it is still fully underwritten and includes a background check, such as the Medical Information Bureau, Motor Vehicle Records, Prescription Database and a Public Records search.
The primary benefit of the ERP program is it can drastically reduce the amount of time it takes to get approved and have your policy placed in force. Typically, normal underwriting including an exam takes 3-4 weeks for approval. However, with accelerated underwriting programs such as Enhanced Rate Plus, approval times can be as quick as 48 hours.
Additional Benefits of Permanent Life Insurance
There are many additional advantages of life insurance, such as:
Tax free life insurance policy loans
Using your cash value as collateral, you can borrow against your cash value through a life insurance loan. The cash can be used for whatever you want, such as purchasing cash flow assets like real estate.
Tax deferred cash value growth
As per the Internal Revenue Code, cash value life insurance grows tax deferred. That means you are not taxed on the gains in your policy, allowing your cash value to increase year in and year out in true compound growth fashion.
Tax free death benefit
Life insurance is not taxed to your beneficiary as income. As a general rule, your life insurance death benefit passes to your life insurance beneficiary income tax free.
Brighthouse Life Insurance Riders
The following life insurance riders are not available on all policies or in all states.
Waiver of Specified Premium Rider: the waiver of premium rider credits a specified premium amount to the policy, helping you make premium payments if you suffer from a qualifying total disability.
Chronic and Terminal Care Rider: provides access to your death benefit if you are diagnosed with a qualifying chronic illness or terminal illness.
Acceleration of Death Benefit Rider: provides access to your death benefit if you are diagnosed with a qualifying terminal illness.
Brighthouse Life Insurance Conclusion
Brighthouse Life Insurance Company provides a fantastic universal life policy that offers flexibility and ultimate control. With no surrender charges, this is a fantastic option for anyone considering life insurance, who wants to make use of money earning next to nothing sitting in a bank.
Curious if Brighthouse Life Insurance Company is right for you? Please give us a call today for a free strategy session.