When looking for the best life insurance companies in 2025, Protective Life consistently ranks among top contenders, particularly for term life insurance with highly competitive rates. As a subsidiary of Dai-ichi Life Holdings, Protective combines financial strength with product innovation and competitive pricing. This comprehensive review examines Protective’s diverse product lineup, financial stability, and special features to help you determine if they’re the right choice for your insurance and retirement planning needs.
Table of Contents
About Protective Life Insurance
Company Highlights
- Founded in 1907, headquartered in Birmingham, Alabama
- Subsidiary of Dai-ichi Life Holdings since 2015
- Products available in all 50 states
- Parent company of West Coast Life Insurance Company and Protective Life and Annuity Insurance Company
- One of the first companies to offer 35 and 40-year term life insurance
- Recently announced $9.7 billion reinsurance agreement with Resolution Life
Protective Life was founded in 1907 and has grown to become one of America’s leading insurance providers. The company’s headquarters are located in Birmingham, Alabama, with products available in all 50 states.
As part of the Protective Life Group, the company operates as a stock insurance company. Protective Life Group is also the parent company of West Coast Life Insurance Company and Protective Life and Annuity Insurance Company.
Since September 2020, Protective Life has distinguished itself by joining a select group of insurers offering extended term lengths of 35 and 40 years, positioning the company at the forefront of long-term protection options.
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Protective Life Ratings & Financial Strength
Protective Life Insurance Company is among the highest-rated life insurance companies in the industry, as evidenced by its strong financial ratings from leading agencies:
| Rating Agency | Current Rating | Rating Category | Outlook |
|---|---|---|---|
| A.M. Best | A+ | Superior | Stable |
| Fitch | A+ | Strong | Stable |
| Moody’s | A1 | Good | Stable |
| Standard & Poor’s | AA- | Very Strong | Stable |
| Comdex Ranking | 91 | Out of 100 | N/A |
| BBB | A+ | Highest Rating | N/A |
These impressive ratings reflect Protective’s strong financial position, solid risk management practices, and excellent claims-paying ability. With its Comdex Ranking of 91 (out of 100), Protective Life stands among the top tier of life insurance providers in terms of overall financial stability and reliability.
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Latest Developments
Recent Initiatives at Protective Life
Protective Life has implemented several strategic initiatives to enhance its market position, product offerings, and customer experience in 2025.
Digital Transformation
Protective has made significant strides in its digital capabilities:
- Protective Velocity: An expanded suite of digital tools for faster application processing and underwriting decisions.
- Ethos Partnership: A new collaboration enabling direct-to-consumer term life insurance through Ethos’ digital platform, streamlining the application process.
- Enhanced Online Services: Improved customer portals and account management tools for policy servicing and claims.
- Leadership Initiative: Appointment of a Chief Transformation and Strategy Officer to drive innovation and enhance customer value.
Strategic Reinsurance Agreement
In a significant financial move, Protective recently announced a $9.7 billion reinsurance agreement with Resolution Life. Key aspects include:
- Ceding $9.7 billion in reserves to Resolution Life to optimize capital position
- Protective will continue to administer all affected policies
- Strategic focus on core growth areas and new product development
- Enhanced financial flexibility for future initiatives
This agreement allows Protective to maintain its commitment to existing policyholders while strengthening its financial position for future growth and innovation.
Protective Insurance Products
Protective Life offers a comprehensive range of life insurance products designed to meet various protection needs and financial objectives:
Term Life Insurance
Key Features of Protective Term Life Insurance:
- Classic Choice Term: The industry leader in affordable term life protection with competitive rates
- Available Term Lengths: 10, 15, 20, 25, 30, 35, and 40-year terms (one of the few carriers offering terms up to 40 years)
- Coverage Amounts: From $100,000 up to $50 million
- Convertibility: Option to convert to permanent coverage without a new medical exam
- Included Benefits: Free terminal illness rider
- Optional Riders: Waiver of premium and accidental death benefit
- Competitive Pricing: Frequently ranks among the lowest-cost options, especially for monthly premiums
Protective Life is known in the industry as a price leader for term life policies, consistently ranking in the top 10% for its term life insurance rates across the board. Their Classic Choice Term offers standard level term coverage with the industry’s most extensive range of term lengths.
Custom Choice UL
Protective Life offers a unique term life product called Custom Choice UL. This innovative product is actually a universal life policy that functions as convertible term insurance.
What makes Custom Choice UL special is what happens after your initial term period expires:
- Unlike typical term policies that end or become prohibitively expensive to renew, Custom Choice UL continues with the same premium
- After the level term period, the death benefit gradually decreases while your premium remains unchanged
- You can choose to convert to a permanent universal life policy before the term expires
- Available in term lengths from 10 to 30 years
Income Provider Option Endorsement
One valuable rider available with Custom Choice UL is the Income Provider Option. This feature allows you, as the policy owner, to specify how you want your life insurance beneficiary to receive the death benefit:
- Choose the amount and frequency of payments to beneficiaries
- Helps preserve death benefit funds for long-term needs
- Prevents beneficiaries from receiving a potentially overwhelming lump sum
- May reduce your premium costs compared to a standard lump-sum policy
Whole Life Insurance
Key Features of Protective Whole Life Insurance:
- Guaranteed lifetime protection
- Level premiums that never increase
- Cash value that grows at a guaranteed rate
- Potential dividend eligibility (though not guaranteed)
- Designed for those seeking long-term security and stable premiums
Protective’s whole life insurance provides lifelong coverage with the stability of fixed premiums, guaranteed death benefits, and predictable cash value growth. These policies are ideal for individuals seeking permanent protection with guaranteed values and simplicity.
Universal Life Insurance
Key Features of Protective Universal Life Insurance:
- Flexible premium payments and adjustable death benefits
- Cash value growth based on current interest rates
- Ability to increase or decrease coverage as needs change
- Option to access cash value through loans and withdrawals
- Extended no-lapse guarantee options
Similar to whole life, universal life offers lifetime coverage. The key difference in whole life vs universal life is the flexibility inherent in universal life insurance. With most universal life policies, premium payments can be increased or decreased, and the death benefit can be adjusted to suit changing needs.
Indexed Universal Life Insurance
Key Features of Protective Indexed Choice UL:
- Cash value growth linked to market index performance (primarily S&P 500)
- Downside protection with minimum interest guarantees
- Participation rate determines how much your policy benefits from index gains
- Cap rate limits maximum returns (typically 9-14%)
- Floor rate (typically 0%) protects against market downturns
- Choice between fixed account and indexed account options
- Two death benefit options: level (Option A) or increasing (Option B)
Protective’s Indexed Choice UL provides lifetime coverage with the potential for higher cash value growth than ordinary universal life. Indexed Universal Life is not a direct investment in the market but rather a way to earn higher crediting based on the performance of a specific index like the S&P 500.
The benefits of an IUL include:
- Participation Rate: Determines how much your policy participates in index returns
- Cap Rate: Maximum return credited to your policy (typically 9-14%)
- Floor Rate: Minimum interest credited (typically 0%), protecting against market losses
ExtendCare Rider
The ExtendCare rider is an optional accelerated death benefit that functions similarly to a chronic illness rider. Key features include:
- Allows access to death benefit if diagnosed with a qualifying chronic illness
- Qualifying condition: inability to perform 2 of 6 Activities of Daily Living or severe cognitive impairment
- Customizable elimination periods (90 to 365 days)
- Monthly income benefit for 12 months (requires annual recertification)
- Maximum lifetime benefit of 100% of the death benefit
- Not long-term care insurance but provides similar benefits
Variable Universal Life Insurance
Key Features of Protective Investors Choice VUL:
- Direct investment options through sub-accounts (similar to mutual funds)
- Highest growth potential among life insurance options
- Corresponding higher risk due to market exposure
- Flexible premiums and adjustable death benefits
- Tax-advantaged investment growth potential
- No downside protection against market losses
Protective offers Protective Investors Choice VUL, which allows direct investment of cash value through sub-accounts similar to mutual funds. The main pros and cons of variable universal life center on the risk-reward balance: while VUL offers potentially unlimited gains, it also comes with the risk of losses if markets perform poorly.
Survivorship Life Insurance
Protective Life also offers survivorship life insurance, which covers two insureds and pays out upon the death of the second insured. This type of policy is particularly valuable for:
- Estate planning strategies
- Business succession planning
- Creating a legacy for heirs
- Potentially lower premiums than two separate policies
This product is excellent if you’re looking to use second-to-die life insurance for estate planning.
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Annuity Products
Protective Life offers a full range of annuities designed for retirement planning and guaranteed income:
Fixed Annuities
Protective Fixed Annuity Options:
- Protective Income Creator: Guaranteed lifetime income, 7-year guarantee, 10% penalty-free withdrawals, and waivers for nursing facility, terminal illness, and unemployment
- Protective Secure Saver: 5- or 7-year guaranteed rates (up to 5.85%), 3% interest rate bands, and similar waivers for qualifying events
- Protective Smart Saver NY: Flexible premium deferred annuity with 4–7 year interest rate guarantees (New York only)
Fixed annuities provide guaranteed interest rates for specified periods, principal protection, predictable growth, and various income options. These products are ideal for conservative investors seeking stability and guaranteed future income.
Fixed Index Annuities
Protective Fixed Index Annuity Options:
- Protective Asset Builder II: Multiple index options (S&P 500, J.P. Morgan Mojave, Citi Flexible Allocation 6), low-risk growth, flexible terms
- Protective Guaranteed Income: Lifetime income benefits, 10% roll-up, and flexible allocation options
- Protective Income Builder: Enhanced lifetime income features with market-linked growth potential
Fixed index annuities offer a middle ground between the guaranteed returns of fixed annuities and the growth potential of variable annuities. They provide interest crediting linked to market index performance while protecting your principal from market downturns.
Variable Annuities
Protective Variable Annuity Options:
- Protective Aspirations: Over 80 investment options, optional lifetime income and enhanced death benefits
- Variable Annuity Investors Series: 100+ investment options, customizable features, and various rider options
Variable annuities offer the highest growth potential among annuity products, with investment options in various market subaccounts. These products are suitable for those comfortable with market risk who seek maximum growth potential for retirement funds.
Immediate Annuities
Protective’s immediate annuities provide:
- Single premium payment structure
- Immediate income starting within one year of purchase
- Flexible payout options (life, period certain, joint and survivor)
- Available for applicants up to age 99
- Guaranteed income streams for retirement
Policy Riders & Options
Protective offers various riders and policy options to enhance coverage and customize policies to individual needs:
| Rider/Option | Description | Available On |
|---|---|---|
| Accelerated Death Benefit | Provides early access to death benefit for terminal illness | Most policies |
| ExtendCare Rider | Accelerated death benefit for chronic illness | Select permanent policies |
| Income Provider Option | Allows customization of death benefit payout schedule | Custom Choice UL |
| Accidental Death Benefit | Additional payout for death resulting from an accident | Most policies |
| Children’s Term Rider | Coverage for children of the insured | Most policies |
| Disability Benefit Rider | Provides income if insured becomes disabled | Select policies |
| Waiver of Premium | Waives premium payments if insured becomes disabled | Most policies |
| Additional Purchase Option | Allows purchase of additional coverage at specified times without evidence of insurability | Select permanent policies |
| Term Insurance Rider | Adds temporary term coverage to a permanent policy | Permanent policies |
These riders and options allow for significant customization of Protective policies to address specific concerns and objectives, transforming standard policies into comprehensive financial solutions tailored to individual needs.
Accelerated Underwriting
Protective Life Underwriting Solution (PLUS):
- Accelerated underwriting process for qualifying applicants
- No medical exam, blood draw, or fluids required for those who qualify
- Available for face amounts from $100,000 to $1,000,000 for ages 18-45
- Available for face amounts from $100,000 to $500,000 for ages 46-60
- Digital application with automated decision process
- Significantly faster approval times for eligible applicants
Protective’s accelerated underwriting program, PLUS, offers life insurance without an exam for qualified applicants. This streamlined process can significantly reduce the time from application to approval, providing a more convenient experience for those seeking coverage.
While not everyone will qualify for PLUS, those who do can enjoy a faster, less intrusive application process without compromising on coverage amounts or quality.
Customer Experience
| Contact Method | Details | Availability |
|---|---|---|
| General Customer Service | 1-800-866-9933 | ladphs@protective.com | Business hours (M-F) |
| Variable Life Insurance | 1-800-265-1545 | vulservice@protective.com | Business hours (M-F) |
| Annuities | 1-800-456-6330 | annuityservice@protective.com | Business hours (M-F) |
| Mailing Address | P.O. Box 12687, Birmingham, AL 35202-6687 | N/A |
| Website | protective.com | 24/7 access |
Protective Life provides multiple service channels and has made significant investments in improving the customer experience. The company draws fewer complaints than expected for its size, ranking 9th out of 21 in J.D. Power’s 2024 customer satisfaction study.
Key strengths of Protective’s customer experience include highly competitive pricing, broad product selection, and strong financial ratings. Areas for potential improvement include the requirement for medical exams on most policies and occasional delays in claims processing reported by some customers.
Term vs. Permanent Insurance: Making the Right Choice
Term life insurance from Protective offers affordable, temporary protection ideal for specific time-bound needs like mortgage protection or family income replacement during your working years. With term lengths of up to 40 years, Protective provides some of the longest-term protection options in the industry.
Permanent insurance (whole, universal, indexed universal, variable universal) provides lifelong coverage with the additional benefit of cash value accumulation, making it suitable for legacy planning, estate planning, business continuation, and as a financial asset that can be accessed during your lifetime through loans or withdrawals.
The right choice depends on your specific financial goals, budget, timeframe for coverage needs, and whether cash value accumulation is important to your overall financial strategy. Many clients benefit from a strategic combination of both coverage types.
Additional Benefits of Permanent Life Insurance
Permanent life insurance from Protective offers several advantages beyond the death benefit:
Tax-free policy loans
You can borrow against your life insurance, using your cash value as collateral. Options include borrowing directly from the insurance company or potentially finding better terms from a local bank, increasing your potential for positive arbitrage.
Tax-deferred cash value growth
Cash value accumulation grows tax-deferred under IRC 7702. With proper policy management, you may never need to pay taxes on the cash value growth.
Tax-free death benefit
The life insurance death benefit is not taxable in most situations. One exception exists if your estate exceeds the federal estate tax exemption limit.
Protective Life Insurance Review Conclusion
Protective Life stands as a financially strong, customer-focused insurer offering a diverse portfolio of competitively priced life insurance and annuity products. With exceptional financial strength ratings, a commitment to innovation, and standout products like Custom Choice UL and extended term options, Protective continues to be an industry leader.
The company’s term life insurance is particularly noteworthy, with Protective consistently ranking among the most affordable providers and offering some of the longest available term lengths (up to 40 years) in the market. Their universal life options provide flexibility and customization, while their accelerated underwriting program offers a streamlined application experience for qualifying applicants.
Recent strategic initiatives, including digital transformation efforts and the reinsurance agreement with Resolution Life, position Protective to enhance its market competitiveness while maintaining its commitment to existing policyholders.
Is Protective Life the best company for meeting your specific insurance and retirement planning needs?
The answer depends on your individual financial situation, goals, and preferences. Protective offers competitive products across multiple categories, with particular strengths in term life insurance and universal life policies with living benefits. Their focus on both protection and accumulation products makes them suitable for comprehensive financial planning.
Protective Life is a fantastic company, particularly when it comes to the Custom UL product offering. But there is no perfect life insurance company, and it pays to shop around for the best carrier and policy for you. At the end of the day, your best policy will depend on many factors, including your specific needs, goals, and objectives.
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