Table of Contents
About National Life Group
Company Highlights
- Founded in 1848 (over 175 years in business, celebrating milestone anniversary in 2023)
- One of America’s leading mutual insurance companies
- Set to pay out $25 million in dividends to eligible policyholders in 2025
- Approximately $47 billion in assets under management
- Named to Forbes America’s Best Insurance Companies list for 2024 and 2025
- A+ (Superior) rating from A.M. Best, reaffirmed in 2023
National Life Group has been around for over 175 years, celebrating this significant milestone in 2023. National Life Group is the trade name representing a group of affiliated companies, which include National Life Insurance Company, Life Insurance Company of the Southwest, and Equity Services, Inc.
National Life Insurance Company is headquartered in Vermont and was founded in 1848. Life Insurance Company of the Southwest is headquartered in Texas. Equity Services, Inc., is a Broker/Dealer and Registered Investment Advisor of National Life Insurance Company.
The ultimate controlling entity of all the companies in the National Life Group family is the National Life Holding Company, which includes NLV Financial Corporation, National Life Group Charitable Foundation, Sentinel Asset Management, Inc., National Retirement Plan Advisors, Inc., National Life Distribution, LLC, Catamount Reinsurance Company and Longhorn Reinsurance Company.
What is a mutual insurance company?
Mutual insurance companies are not owned by shareholders but rather by the participating policyholders, who share in the ownership rights of the company, as well as take part in the company’s profits through dividends.* Mutual companies are privately held and operate for the sole benefit of policyholders, rather than for the benefit of stockholders.
National Life Group has maintained a strong dividend history, paying dividends to participating policyholders continuously since 1855 – an unbroken record of more than 165 years.
*Dividends are paid to participating policy owners.
Ready to compare National Life Group with other top insurers?
Get personalized whole life insurance quotes from multiple A-rated companies.
National Life Group Ratings & Financial Strength
National Life Group is one of the most financially stable insurance companies in the industry, as reflected in its strong ratings from independent rating agencies. The company receives these high marks due to its commitment to limiting risk, its competitive advantage in the marketplace, and its substantial capital reserves.
National Life Group’s current ratings:
- A.M. Best rating: A+ (Superior), reaffirmed in June 2023
- Fitch rating: A+ (Strong)
- Moody’s Investor Service rating: A2 (Good)
- Standard and Poor’s rating: A+ (Strong)
- Comdex Ranking: 80
These strong ratings reflect National Life Group’s very strong balance sheet, robust operating performance, and effective risk management practices. Additionally, National Life Group has demonstrated resilience and growth despite economic volatility, with impressive sales records including $530 million in new life insurance sales and $2.7 billion in single premium deferred annuities in 2023.
The company also scored well in customer satisfaction metrics, being named to Forbes America’s Best Insurance Companies list for both 2024 and 2025, based on high marks for customer service, advice, digital services, and claims experience.
THE ULTIMATE FREE DOWNLOAD
The Estate Planners Tactical Guide
Essential Legal Protection for Achievers
2025 Product Updates
Latest Developments at National Life Group
National Life Group continues to enhance its product offerings with significant updates to both life insurance and annuity products in 2025. These updates focus on improved flexibility, enhanced living benefits, streamlined underwriting, and innovative digital solutions that benefit policyholders.
Enhanced Living Benefits Riders
In 2023-2024, National Life Group expanded its suite of living benefits with the introduction of two innovative, first-of-their-kind riders:
- Alzheimer’s Disease Rider: Provides an advance payment of the death benefit upon diagnosis of Alzheimer’s disease, helping families cope with the financial burden of care.
- Fertility Journey Rider: An industry-first benefit that provides financial support for those undergoing fertility treatments, addressing a growing need among many families.
These new riders complement National Life Group’s already comprehensive living benefits package, which includes terminal illness, chronic illness, and critical illness riders on all permanent policies. These living benefits allow policyholders to access their death benefit while still living if they meet certain qualifying conditions.
Record Dividends for 2025
As a mutual company, National Life Group is set to pay out approximately $25 million in dividends to eligible policyholders in 2025, continuing its unbroken dividend payment record since 1855. This demonstrates the company’s financial strength and commitment to sharing profits with policyholders, even in challenging economic conditions.
The consistent dividend history is particularly valuable for whole life policyholders, who can use dividends to purchase paid-up additions, reduce premium payments, accumulate at interest, or take as cash.
Digital Underwriting Innovations
National Life Group has significantly enhanced its underwriting processes with digital innovations that streamline the application and approval process:
- Expanded Non-Medical Underwriting: Coverage of up to $2 million without medical exams for applicants under 50, and streamlined processes for older ages.
- Virtual Sales and Underwriting Platform: Fully digital onboarding and remote policy issuance capabilities.
- Accelerated Approval Process: 18-25% of cases receive instantaneous approval through the digital platform, significantly reducing wait times for coverage.
These digital advancements reflect National Life Group’s commitment to leveraging technology to make life insurance more accessible and convenient for customers while maintaining strong underwriting standards.
National Life Group Products
National Life Group, through its various affiliates, offers a comprehensive line of financial products designed to meet diverse needs and goals. Their product portfolio includes:
- Life Insurance (Term, Whole Life, Universal Life, and Indexed Universal Life)
- Annuities (Fixed, Indexed, and Income)
- Retirement Planning Solutions
- Business Insurance Products
- Investment Services
For this review, we’ll focus primarily on their life insurance and annuity offerings, which have seen significant enhancements in recent years.
Whole Life Insurance
National Life Group’s whole life insurance products provide permanent coverage with guaranteed features and the potential for dividend growth. Key offerings include:
LifeBuilder Whole Life Insurance
This flagship whole life product offers flexible payment options, including:
- 10-Pay (premiums paid for just 10 years)
- 15-Pay
- 20-Pay
- Paid-up at 65
- Lifetime coverage
All National Life Group whole life policies come with three key guarantees:
- Guaranteed death benefit
- Guaranteed cash value accumulation
- Guaranteed level premiums
Additionally, National Life Group offers the LSW ProtectorLife Whole Life Insurance and ValuGuard Survivorship Whole Life for specialized needs such as estate planning and business succession.
Dividends Can Be Used To:
- Purchase paid-up additions – increasing both cash value and death benefit
- Pay premiums – reducing out-of-pocket costs
- Earn interest with the company – accumulating additional value
- Take as cash – providing supplemental income
Cash Value Features & Growth
The cash value component is one of the most attractive features of National Life Group’s permanent life insurance policies. Key aspects include:
- Guaranteed cash value growth based on a predetermined schedule
- Tax-deferred accumulation
- Access to funds via policy loans or withdrawals
- Additional growth potential through dividends (for participating policies)
In 2025, National Life Group’s dividend interest rate remains competitive within the industry, allowing for enhanced growth potential beyond the guaranteed minimums. While dividends are not guaranteed, the company’s 165+ year history of continuous dividend payments provides confidence to policyholders.
Indexed Universal Life Insurance
National Life Group offers several innovative Indexed Universal Life (IUL) products designed for various financial goals:
FlexLife IUL
This flexible IUL product offers both death benefit protection and cash value accumulation potential linked to market index performance. Features include:
- Multiple index options for cash value growth
- Downside protection with 0% floor
- Flexible premium payment schedule
- Living benefits included at no additional cost
SecurePlus Provider IUL
Issued by Life Insurance Company of the Southwest, this product is designed to be overfunded, focusing on cash value growth for later life income. Key features include:
- Fixed account option with a 2% minimum interest rate
- 100% participation rate on S&P 500 index strategy
- No routine medical exams required for face amounts up to $250,000 (for applicants 65 and under)
- Minimum face amount of $25,000
- Both GPT and CVAT test options available for optimizing cash value growth vs. death benefit
National Life Group’s IUL products stand out for their combination of growth potential, downside protection, and included living benefits riders at no additional cost.
Term Life Insurance
National Life Group offers convertible term life insurance with various term length options. This provides a large guaranteed death benefit for a lower initial cost than permanent insurance.
Term Life Options:
- Annual Renewable Term (ART): Renews yearly with increasing premiums, ideal for short-term needs or business loan collateral.
- Guaranteed Level Term Series: Available in 10, 15, and 20-year term lengths with fixed premiums for the initial term duration.
A key advantage of National Life Group’s term policies is the conversion option, which allows policyholders to convert to permanent coverage by age 70 or the end of the policy term (whichever comes first) without additional evidence of insurability.
National Life allows policyholders to convert at issue age for the first five years of the term policy, otherwise the policy converts at attained age. For attained age conversions, policyholders may be eligible for up to a 12% term conversion credit.
Benefits of Term Life Insurance:
- Lower Initial Cost
- Income Protection
- Mortgage Protection
- Conversion Option
Annuity Products
National Life Group has expanded its annuity lineup with several innovative products designed for income, growth, and retirement security:
Recent Annuity Innovations:
- FIT Secure Growth & FIT Select Income: Flexible premium indexed annuities with low minimums ($100/month or $5,000 lump sum), multiple interest-crediting options, and no-cost riders for nursing care, terminal illness, and emergency access.
- RetireMax Secure 5: Single premium deferred annuity with versatile payout options and penalty-free withdrawals up to 10% after the first year.
- Dollar Cost Averaging Feature: An industry-first feature introduced in 2023 that spreads index crediting over 12 months, reducing market timing risk.
- Growth Driver 10, Income Driver, Zenith Growth/Income: Single premium deferred annuities with premium bonuses and guaranteed lifetime income options.
These annuity products complement National Life Group’s life insurance offerings, providing comprehensive solutions for both protection and retirement income needs.
Ready to compare National Life Group with other top insurers?
Get personalized whole life insurance quotes from multiple A-rated companies.
Benefits of National Life Group Permanent Insurance
Although not exhaustive, below are some areas where National Life Group’s permanent life insurance can be extremely beneficial when combined with a diversified asset portfolio:
- Business Succession Planning
- Buy Sell Agreements
- Key Man Insurance
- Estate Planning
- Executive Bonus Plans
- Deferred Compensation Plans
- Retirement Planning
- Wealth Building
- Infinite Banking Concept
Why Consider Whole Life Over Term
In our opinion, cash value life insurance is the way to go. National Life Group’s whole life and IUL products are excellent options to consider.
However, if you are considering term life insurance, then pick a term policy that can be converted into a top-of-the-line permanent life insurance policy.
Alternatively, you can always get a smaller permanent policy and add a term rider to maximize your death benefit, but also begin growing your cash value.
Tax Free Life Insurance Policy Loans
You can take out tax-free life insurance loans by using your cash value as collateral. National Life Group’s current loan interest rate is approximately 5%.
National Life Group practices direct recognition. When you take out a loan, National Life adjusts your policy dividends, which may result in a lower dividend on the cash value that currently has a loan against it. This is an important consideration when comparing companies for direct recognition vs. non-direct recognition policies.
Tax Deferred Cash Value Growth
Under IRC 7702, cash value life insurance grows tax-deferred. And if you utilize the policy correctly, you will never need to pay taxes on the cash value growth.
Additional tax-deferred cash value accumulation can be acquired through the use of paid-up additions. Paid-up additions allow you to contribute more premium into the policy, up to, but not exceeding the modified endowment contract limit.
Tax Free Death Benefit
Your beneficiary receives the death benefit income tax-free. The only way a death benefit is taxed is if your estate exceeds the federal estate tax exemption limit. If you have a large estate, careful asset protection planning is necessary.
Policy Riders & Options
Accelerated Benefits Riders
National Life Group has significantly enhanced its living benefits package with unique riders that are included on all permanent policies. These riders allow access to the death benefit while still living under qualifying conditions:
- Chronic Illness Rider: Provides access to your policy’s death benefit if you are diagnosed with a qualifying chronic illness (unable to perform 2 of 6 activities of daily living for 90+ consecutive days or severe cognitive impairment).
- Terminal Illness Rider: Access up to $1,500,000 of your death benefit if diagnosed with a terminal illness with 24 months or less to live.
- Critical Illness Rider: Receive a lump sum payment from your death benefit if diagnosed with a specific critical illness (ALS, cancer, stroke, heart attack, blindness, etc.).
- Critical Injury Rider: Receive a lump sum payment from your death benefit if diagnosed with a specific critical injury (coma, severe brain injury, severe burns, paralysis).
- NEW: Alzheimer’s Disease Rider: Provides advance payment of the death benefit upon diagnosis of Alzheimer’s disease.
- NEW: Fertility Journey Rider: Provides financial support for those undergoing fertility treatments.
Additional Policy Riders
The following riders may be available as add-ons to your life insurance policy from National Life Group (availability varies by product):
- Children’s Term Rider: Term rider providing up to $25,000 of life insurance for your kids up to age 23, with one fee regardless of how many children you have.
- Waiver of Premium: Premium is waived if you become disabled after a 6-month waiting period. Most waiver of premium riders expire at age 65 if no disability has occurred.
- Unemployment Rider: Following involuntary unemployment from your full-time job, premiums will be waived for 3 months.
- Guaranteed Insurability Rider: Guarantees you can add more coverage at certain ages and life events regardless of your insurability.
- Other Insured Rider: Renewable term rider that covers your spouse, child, or business partner.
- Enhanced Death Benefit Rider: Pays a higher death benefit if death occurs within a targeted age range.
- Estate Preservation Rider: Provides additional protection for estate planning needs, particularly during the three-year look-back period for irrevocable life insurance trusts (ILITs).
- Overloan Protection Rider: No-cost optional rider that protects the policy from lapsing when a policy loan exceeds the accumulated value (policy must be in force for 15 years and insured must be at least 75 years old).
- Lifetime Income Benefit Rider: Provides a guaranteed stream of income for life once specific requirements are met, such as the policy being in force for 15 years and the insured’s age being between 60-85.
National Life Group Review Conclusion
National Life Group stands as a strong contender in the life insurance industry, with its mutual structure, long-standing dividend history, and innovative product offerings. The company’s commitment to enhancing living benefits with unique riders like the Alzheimer’s Disease and Fertility Journey riders demonstrates their focus on addressing evolving customer needs.
The company’s financial strength, evidenced by its A+ rating from A.M. Best and recognition on Forbes America’s Best Insurance Companies list, provides confidence to policyholders. Additionally, their digital innovations in underwriting and policy issuance reflect their dedication to modernizing the insurance experience while maintaining strong financial fundamentals.
National Life Group’s diverse product portfolio, from whole life and indexed universal life to innovative annuities with industry-first features, offers solutions for a wide range of financial goals and needs. Their consistent dividend payments for over 165 years exemplify their stability and commitment to policyholder value.
However, the direct recognition loan policy may be a consideration for those planning to utilize policy loans extensively as part of strategies like infinite banking, as this may impact dividend earnings on loaned amounts compared to non-direct recognition companies.
But at the end of the day, finding the right company for you requires an intimate knowledge of the different companies and policies available.
Is National Life Group the best company for meeting your specific needs, goals, and objectives?
Maybe, maybe not. The best approach is to compare National Life Group’s offerings with other top-rated insurance companies to determine which provides the optimal solution for your unique circumstances.
Ready to See if National Life Group Insurance is Right for You?
Let us help you determine if National Life Group or another top cash value life insurance company better fits your specific financial goals.
Get a personalized illustration and see how permanent life insurance can build wealth while providing protection.
REQUEST YOUR FREE CONSULTATION
No obligation • Customized to your needs • Compare multiple top companies
THE ULTIMATE FREE DOWNLOAD
The Estate Planners Tactical Guide
Essential Legal Protection for Achievers
7 comments
Robin Johnson
With National Life Group, does My beneficiary keep both the cash Value and death benefit ?
Insurance&Estates
Hi Robin,
With National Life Group (and most properly structured high cash value whole life insurance policies), your beneficiary typically receives an amount greater than just the face value of the policy.
This is because in properly structured high cash value policies, both the cash value AND the death benefit grow over time. The insurance company doesn’t “keep” your cash value – instead, the death benefit increases as your cash value grows.
This is different from traditional old-style whole life policies where the cash value is used to pay the stated death benefit, not added to it.
Kurt Lytle
Two key features that differentiate National Life Group’s IULs from other company offerings are the Balance Sheet Benefit Rider which waive the surrender charge and let you use the policy to be your own banker. The other is that the standard surrender charge period is 10 years vs. 15 years for most other companies. This again allows you to use your cash value if you need it. There are a lot of good products but not a lot of experienced agents when it comes to properly structuring a max-funded IUL.
PATRICIA THOMAS
dose national life group have a valid email address. have been searching for almost an hour. OR,
does Life Insurance Company of the Southwest have an email? Glad to be separating from you both.
Insurance&Estates
Hello Patricia, sometimes folks get confused and think that we are the life insurance company because we write articles and offer insight about various companies. I suggest you double check and make sure you’re contacting the company directly for the information you need, as it sounds like a mix up in this case.
Best,
Steve Gibbs for I&E
Kevin M
Interested in quotes on Whole Life Insurance with chronic illness rider
Michael Townsend
Hi Kevin,
Did you ever get this taken care of? Stumbled upon this and am licensed with National Life group.
Thanks,
Mike Townsend