Prosperity Life Insurance Company Review

About Prosperity Life Insurance

Prosperity Life Group is a relatively young national insurance carrier operating through member companies Shenandoah Life Insurance Company, SBLI USA Life Insurance Company, Inc. and S.USA Life Insurance Company, Inc. (headquartered in Virginia, New York, and Arizona, respectively).  New policies are issued by Prosperity’s member companies, rather than directly from Prosperity Life Group itself.

Prosperity’s insurance and investment products are available through a national network of banks, independent marketers, agents, and employers.  For consumers, Prosperity features a notably diverse variety of term coverage options, along with several permanent policies.

As Prosperity tries to cement its reputation among the top-tier of life insurance carriers, it has been earning a reputation for competitive rates designed to increase the group’s market share nationally.

Prosperity Life Insurance Financial Ratings

A.M. Best: A- (all 3 member companies score A- ratings from A.M. Best)
Fitch: NR
Moody’s: NR
S&P Global: NR
Comdex Ranking: NR

A.M. Best does not currently assign a rating to Prosperity Life Group, though its member companies all receive strong A- scores.

As of 2020, Prosperity Life has about 300,000 life insurance polices outstanding with a combined in-force value of more than $13 billion.

Prosperity’s combined assets total around $2.7 billion, and it earned about $16 million in net, after-tax revenue in 2019.

Overall, that makes Prosperity a good-sized, profitable company but smaller than many of the better-known players in the life insurance industry.

Products Offered by Prosperity Life Insurance:

• Term Life Insurance
• Final Expense Insurance
• Whole Life Insurance
• Single-Premium Universal Life Insurance
• Medicare Supplement Insurance
• Group Accident, Cancer, and Critical Illness Coverage

Life Insurance Policies Offered by Prosperity Life Insurance

Renewable and Convertible Term Insurance:

Renewable and Convertible Term life insurance is Prosperity’s premier term policy.

Coverage levels start at $100,000 and can go higher than $1 million.

Term life rates are fixed during a policy’s initial term period, which can be 10, 15, 20, or 30 years.

New applicants can be anywhere from 18 to 80 years old, though the 15, 20- and 30-year initial terms are only available through age 70, 65, and 50, respectively.

After the initial term, coverage is guaranteed renewable through age 98, with premiums increased annually at each renewal but subject to a maximum allowable premium stated in the policy.

Policyholders have the option of converting to whole life without further underwriting through age 75.

Simple Issue Term Life Insurance:

Prosperity’s simplified-issue no exam term life insurance is intended to provide quick access to coverage, with a streamlined application process.

New applicants must be between 18 and 60 years old and can apply for up to $350,000 in term coverage.   The policy has an initial level-premium period of ten years and can be renewed (with higher premiums) for five-year increments thereafter through age 85.

A conversion option allows policyholders to convert to whole life coverage until the insured reaches age 75.

Graded Death Benefit Term:

This no-exam, simplified-issue policy is best described as final-expense term insurance designed for new insureds who might not be eligible for most policies but who expect to outlive the policy’s three-year waiting period.

Coverage is available to new insureds from age 40 through 80 in amounts from $5,000 up to $30,000.

Policies are structured with a 20-year initial term period, during which premiums are level.  If non-accidental death occurs during year 1, the benefit is equal to all premiums paid, plus 15%.

In years 2 and 3, the benefit amount is 30% and 60% of face value (or 40% and 70% if the insured was 75-80 when the policy was issued).

Full coverage then remains effective through year 20, though benefit amounts decrease by 5% each year after the 20-year initial term until coverage lapses at age 100.

Income Continuation Term Life:

The defining feature of Prosperity’s Income Continuation policy is that, if triggered, death benefits are paid out to beneficiaries via regular monthly “income” payments.

The payment period can be 2, 3, or 5 years, or until the insured would have reached age 70.

An inflation-adjustment rider is available which, if purchased, increases the monthly income payments by 3% annually over the course of the benefit payment period.

New insureds up to age 55 can also purchase an Additional Lump Sum Benefit Rider that provides for a supplemental lump-sum death benefit of between $10,000 and $500,000.

The policy is open to new insureds from age 18 through 55, and coverage lapses when the insured reaches age 70.

All policies have an initial level-premium period of ten years and can be renewed in five-year increments through age 65, followed by annual renewals until the insured turns 70.  Simplified-issue and fully underwritten versions are available.

Whole Life Insurance:

Prosperity’s whole life offering is a fairly standard cash value whole life insurance policy, with fixed premiums, guaranteed-for-life coverage, and tax-deferred cash value accrual.  New insureds can be as young as 15 days and as old as 80 years, and coverage amounts start at $50,000.

Reduced paid-up, extended term, and cash-value surrender options are included as standard non-forfeiture options.

A simplified-issue version called SmartLife is available for new insureds through age 75 and provides coverage from $15,000 to $75,000, with the same riders and options available.

Final Expense Insurance (SBLI USA: Golden Promise; S.USA: New Vista):

Prosperity’s final expense burial insurance offering provides between $1,500 and $35,000 in whole life coverage to new insureds from ages 50 to 80.

The application process includes a health-history questionnaire but no medical exam.  Policies feature level premiums, cash-value accumulation, and guaranteed-for-life coverage.

Applicants can choose between a level-benefit plan with no waiting period, a graded plan with a two-year waiting period, and a modified plan.

The graded plan pays out 30% of face value if the insured dies in the first year after issuance or 70% in the second year.

The modified plan pays out 110% of the annual premium in year 1 or 231% in year 2.

With either graded or modified, the full death benefit pays out regardless of the waiting period if death occurs due to accident.

Legacy Solution (single-premium universal life):

Prosperity’s only universal life offering is a single-premium life insurance policy designed as an estate-planning tool for maximizing the financial legacy an insured leaves to the next generation.

The lump-sum premium can be anywhere from $15,000 to $250,000, and new insureds can be between ages 50 and 80.

The amount of coverage is based on the premium paid, along with the insured’s age, sex, and health status.

Policies grow at a guaranteed rate (currently 3.5%), and up to 10% of cash value can be withdrawn each year with no withdrawal fee.

Withdrawal fees start at 7% in years 1 through 3 and then taper off until ceasing in year 10.

Available Life Insurance Riders

Accidental Death:

If purchased, the rider provides a supplemental death benefit of up to 100% of the policy’s face value (or $250,000 for term policies) if the insured’s death results from an accident.  The supplemental coverage expires when the insured reaches age 75.

Terminal Illness:

Included standard in most policies, this rider allows acceleration of up to 50% of a policy’s death benefit if the insured is diagnosed with less than 12 months to live.

Waiver of Premium (Disability):

In the event the insured becomes totally disabled for at least 180 consecutive days before reaching age 60, premium obligations are waived during the period of disability.

Ten-Year Term Rider:

Available with whole life policies, the ten-year term rider provides ten years of supplemental term coverage to either the primary insured or an additional insured.  The supplemental coverage amount can be up to the face value of the policy or $100,000, whichever is higher.  And the rider can be renewed in five-year increments through age 75.