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Liberty Mutual Life Insurance Review

Liberty Mutual life insurance review

While Liberty Mutual offers life insurance, it’s important to note that the company doesn’t underwrite individual life insurance policies itself. Instead, they act as a referral service and send life insurance leads to another carrier, as we’ll explain further in our Liberty Mutual review. This means that Liberty Mutual may not be considered one of the top life insurance companies, as they don’t have direct control over the underwriting process.

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About Liberty Mutual Life Insurance

Liberty Mutual Insurance Company, based in Boston since its inception, is a well-known name in the insurance industry, ranking 77th on the Fortune 100 list. With its catchy jingle and occasionally humorous ad campaigns, the company has grown over its more than a century of existence.

Initially established in Massachusetts to offer workers’ compensation insurance, Liberty Mutual has since expanded to offer a diverse range of insurance products. While it primarily focuses on home and auto policies, it also provides a full complement of business policies and various insurance products for individual consumers, including pet insurance.

Although Liberty Mutual now offers life insurance, this was a later addition to its line of business. Whole life, term, and annuities are issued through Liberty Life Assurance of Boston. However, in 2018, Liberty Life Assurance was acquired by industry giant Lincoln Financial, which means that consumers cannot obtain life insurance directly from Liberty Mutual.

Nevertheless, the company’s website offers descriptions of its term and whole life insurance policies, and users can request a free quote by providing relevant information such as height, weight, birthdate, gender, and tobacco use. However, it’s essential to note that the quote received is not for a policy issued by Liberty Mutual.

Protective Life

Now, it’s not like Liberty Mutual is trying to pull a fast one or anything—they tell you right on the quote page, “the quote provided is for…a term life insurance policy issued by Protective Life Insurance Company.”

Without getting lost in the weeds, what’s going on is that, as part of the 2018 deal with Lincoln Financial, Liberty’s consumer lines—specifically individual life insurance and annuities—were reinsured to Protective.  Liberty Mutual now partners with Protective to refer potential customers their way.

Back in the old days, Liberty’s life insurance business was sometimes considered a weak link in the Liberty Mutual family, with a reputation (sometimes fair, sometimes not) for higher-than-average rates.  Protective Life, on the other hand, has a reputation for offering some of the best life insurance rates (again, fair or not).

So, if you’ve already started obtaining a quote from Liberty Mutual, it might be worth your time to check out an agency that offers more options and talk to one of the many independent agents who work with Protective Life, such as the team here at IBUSA.

At the risk of making the entire Liberty Mutual life insurance situation even more confusing, it’s worth pointing out that Liberty Mutual and Liberty Life Assurance should not be confused with two other liberated life insurance companies.

Texas-headquartered Liberty Bankers Life Insurance Company and Liberty National Life Insurance Company (a division of Globe Life) are not affiliated with Liberty Mutual or Liberty Life Assurance of Boston.

Liberty Mutual Financial Ratings

A.M. Best: A
S&P: A
Moody’s: A2
Fitch: NR
Comdex Ranking: N/A

Liberty Mutual’s earnings report reveals impressive figures. In 2020, the company’s assets exceeded $130 billion, and it generated over $40 billion in annual revenue, securing a spot comfortably within the Fortune 100.

Regarding property and casualty, Liberty Mutual ranked fourth among U.S. insurers and sixth globally. Operating in all 50 states and 29 countries, the company prides itself on being the most diversified carrier worldwide, making it financially formidable.

However, suppose you’re seeking life insurance through Liberty Mutual. In that case, the company will refer you to Protective Life. It’s worth noting that Protective Life has an even higher A.M. Best rating than Liberty Mutual, with an A+. Additionally, with a Comdex rating of 91, Protective Life is a safe choice for life insurance.

Liberty Mutual Consumer Ratings:

Liberty Mutual’s consumer ratings are mediocre—certainly nothing to write home about.  The Better Business Bureau gives Liberty an A+, but consumer reviews on the BBB site only average a little better than one star.

J.D. Power scores Liberty at 3.2 out of 5, and the National Association of Insurance Commissioners report more consumer complaints against Liberty than most insurers its size.

Protective does a lot better.  Though not BBB accredited, Protective also scores an A+, and the NAIC data says Protective receives fewer-than-average complaints.

What Does Liberty Mutual Sell?

Liberty Mutual offers a broad range of insurance products. Individual consumers can purchase a standard home, renters’, and auto policies and specialized policies like identity theft coverage and pet insurance.

Liberty Mutual offers a wide selection of product lines for businesses, including commercial auto, equipment coverage, liability, M&A coverage, workers’ comp, and surety bonds.

As previously mentioned, Liberty Mutual’s life insurance affiliate, Liberty Life Assurance of Boston, was acquired by Lincoln Financial in 2018. While Liberty Mutual still advertises life insurance on its website, any coverage purchased through that channel will be issued by Protective.

Life Insurance from Liberty Mutual:

If you take Liberty Mutual up on its referral to Protective, you’ll find a life insurer with a full suite of policies.  Protective offers level term life insurance coverage with initial terms of 10, 15, 20, or 30 years (or even 40 in some cases).

On Protective’s behalf, Liberty markets term coverage starting at $50,000 and going as high as $10 million.

Protective Life term policies marketed by Liberty are available in simplified-issue and fully underwritten versions.

The former allows for easier application, life insurance without a medical exam, and usually has slightly higher premiums and lower maximum coverage levels.  The latter usually require a medical exam and allow for lower premiums and higher coverage for young, healthy applicants.

The term policies also come with a built-in conversion option that lets you switch up to a permanent policy (like whole life or universal life) without having to go through the entire underwriting process again.

Supplemental riders are also offered for accidental death (increasing coverage if death results from a qualifying “accident”); terminal illness (allowing early access to death benefits if the insured is diagnosed with less than 12 months to live); disability (waiving premiums for qualifying disabilities); and children’s term (providing term coverage for the insured’s minor children).

As for whole life insurance, the policies marketed by Liberty Mutual come with whole life’s defining features—guaranteed-for-life coverage, fixed premiums, cash value that grows tax-deferred at guaranteed rates, and access to policy value through withdrawals and policy loans.

Life insurance policies are available with standard premiums payable throughout the insured’s life or a single lump-sum premium due at the time of issuance.

Liberty Mutual doesn’t market universal life insurance on its site, but if you’re shopping for Protective Life, variable UL and indexed UL options are offered.

Closing thoughts…

While Liberty Mutual may have connections with top life insurance carriers and be able to find you the best policy, it’s essential to keep in mind that each individual’s situation and needs differ. Therefore, shopping around and comparing policies from multiple carriers is crucial to determining the best fit for you. While Liberty Mutual may offer competitive rates and terms, only by exploring other options can you be sure you’re getting the best life insurance policy for your unique circumstances.

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