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Lafayette Life Insurance Company Review

Fact Checked by Jason Herring & Barry Brooksby
Licensed Agents & Life Insurance Experts.
Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
lafayette whole life insurance

Perhaps not as well-known as some of the other top 10 dividend paying whole life insurance companies we have profiled, Lafayette Life is a great life insurance company that you should familiarize yourself with.

In the following Lafayette Life review we will focus on the company’s history, strong ratings, life insurance policies, and the unique features offered.

Review of Lafayette Life Insurance Company

When seeking out the best life insurance policies and companies it is important that you get familiar with the various companies available in order to find the right fit for you.

The team at Insurance and Estates has put together many life insurance reviews from the top participating whole life insurance companies to help our clients in their search for the company that best meets their needs, goals, and objectives.

About Lafayette Life

Lafayette Life Insurance Company is a member of Western and Southern Financial Group. Lafayette Life was founded in 1905 as a mutual insurance company.

Being a mutual insurance company means that Lafayette Life is owned by participating policyholders, who share in the ownership rights of the company, as well as take part in the company’s profits through dividends. In contrast, stock companies are owned by the shareholders and are operated in a way as to maximize shareholder value.

Lafayette Life is available in 48 states and the District of Colombia. It currently does not do business in New York or Alaska.

As of 2015, Lafayette Life had over $394 million of life insurance in force.

Lafayette Life Ratings

Lafayette Life Insurance Company enjoys high ratings from all the major ratings agencies.

As of May 2018:

  • A.M. Best rating A+, Superior (2nd Highest Rating)
  • S&P rating AA, Very Strong (3rd Highest Rating)
  • Fitch rating AA, Very Strong (3rd Highest Rating)
  • Comdex Ranking 97 out of 100

In addition, Lafayette Life has an A+ rating from the Better Business Bureau (BBB).

Lafayette Life’s Products and Services

Lafayette Life is focused on retirement services, annuities and life insurance.

Retirement Services

  • Defined Benefit Plans
  • 401k Profit Sharing Plans

Annuity Products

  • Deferred Annuities
  • Fixed Annuities
  • Immediate Annuities

Life Insurance

  • Term Life Insurance
  • Whole Life Insurance

Types of Life Insurance Policies Offered

Although Lafayette Life is known more for its stellar whole life insurance, the company offers both term life and whole life.

Each type of coverage serves a unique purpose. However, in the debate between term life insurance vs whole life, we believe one product outshines the other.

Benefits of Term Life Insurance

  • Lower Initial Cost
  • Income Protection
  • Mortgage Protection
  • Conversion Option

Benefits of Whole Life Insurance

Lafayette Life Insurance Policies [Plans and Features]

Lafayette Life offers two primary life insurance types: term and whole.

Lafayette Life Term Life Insurance

Lafayette Life offers convertible term life insurance which allows you to have a large guaranteed death benefit for a lower initial cost than whole life insurance. The policy is convertible which allows the owner to convert the policy to whole life prior to the end of the term.

Why consider convertible term life insurance?

Some of the primary reasons to consider convertible term life are the low initial costs and the ability to convert to permanent life insurance with no evidence of insurability required.

Lafayette Life Whole Life Insurance

Whole life is a type of permanent coverage that lasts your entire life and offers specific guarantees, including:

  • Guaranteed death benefit,
  • Guaranteed cash accumulation and
  • Guaranteed level premiums.

Lafayette Life offers six different whole life policies.

  • Heritage 15
  • Contender 15
  • Patriot 15
  • Sentinel 15
  • 10 Pay Whole Life
  • Liberty 15

10 Pay Whole Life: the advantage of a 10 pay limited pay whole life insurance policy is that you get permanent coverage after only 10 years of level premium payments. The policy can be designed to maximize high cash value growth. After 10 years of premium payments you have a solid lifetime insurance plan that provides much utility.

Whole Life Insurance Dividends

Additional cash value and death benefit growth is possible through the use of dividends paid on participating whole life policies. Dividends are not guaranteed. However, Lafayette Life has paid dividends to participating policyholders since the company’s inception back in 1905.

Life insurance dividends from a mutual company can be used to:

Additional Benefits of Whole Life Insurance

Tax free life insurance policy loans

Using your cash value as collateral, you can take out a life insurance loan to be used for whatever you need..

Lafayette Life practices non-direct recognition. When you take out a loan, Lafayette Life continues to credit interest and dividends to your total cash value, not the cash value minus your loan. This is a huge advantage for anyone who uses a policy loan and wants to maximize the potential arbitrage available to purchase other income producing assets.

Tax deferred cash value growth

The Internal Revenue Code has a special section for cash value life insurance tax benefits. Under IRC 7702 cash value life insurance grows tax deferred. By taking out policy loans, rather than outright withdrawing your cash value, you can avoid ever paying taxes on your cash value growth.

Tax free death benefit

The life insurance death benefit is paid income tax free to your beneficiary. The death benefit is taxed is if your estate exceeds the federal estate tax exemption limit or if your estate exceeds your state’s inheritance tax. Therefore, if your estate is large, proactive asset protection planning is necessary.

Lafayette Life Whole Life Insurance Riders

 Accelerated Death Benefit Plus Rider: can access a portion of the death benefit for a qualifying terminal illness, medical condition, or chronic illness.

Long Term Care Rider: the long term care rider provides a monthly benefit if the insured cannot perform two of six ADLs.

Paid Up Additions: allows you to purchase additional “paid-up” insurance.

Guaranteed Purchase Option: allows the purchase of additional life insurance without needing to prove insurability. This is a great rider to add to life insurance for children.

Term Insurance Rider: Provides additional death benefit protection at a fraction of the cost of whole life.

Lafayette Life Insurance Company Review Conclusion

Lafayette Life is a solid choice when considering whole life insurance from a mutual company that practices non direct recognition. Although the company has some great policies available, a prudent shopper still needs to consider comparable options available in the marketplace.

Interested to see how your Lafayette Life illustration stacks up to the competition? Give us a call today for a free life insurance consultation with an advanced markets professional.

4 comments… add one
  • James Pitts January 9, 2020, 12:42 pm

    To Company Historian: This is not your ordinary request for information. My Great Grandfather, John Willis Pitts, we believe was an Agent for Lafayette life Insurance Company, Circa 1905-20. I have a very old post card street scene with the company name on a banner. I also have a picture of a group of men sitting on a bench which I have no idea of the occasion but it may be a graduation from a class or a company photograph. I am willing to send these in digital format to you. I am looking for any information on John Willis Pitts. I know the following: His wife was Lilly Griffin Pitts, children; Milton Eugene, Clara May and George Willis . Any information would be greatly appreciated. Jim Pitts

    • Insurance&Estates January 13, 2020, 11:02 am

      Hello James, thank you for commenting. Unfortunately we have no access to those records. Best of luck in your search!


  • Terry W Noble March 21, 2020, 9:11 am

    I have several whole life insurance policies through LaFayette Life. I try to maximize the amount I am able to pay toward annual policy premiums but am able to pay about 1/2 of the amount. So I’ve been taking out policy loans to pay the other 1/2 of the maximum annual premiums. Is this a good strategy? If so, why?

    • Insurance&Estates March 24, 2020, 8:57 am

      Hello Terry, thanks for commenting. One of our IBC experts will reach out to you to discuss if they haven’t already. If you haven’t received an inquiry from either Jason or Barry, feel free to e-mail your scenario to barry@insuranceandestates.com.

      Best, I&E

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