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Liberty Mutual Life Insurance Review

Liberty Mutual life insurance review

Liberty Mutual offers life insurance. However, it is important to understand that Liberty Mutual is not one of the best life insurance companies, because the company does not actually underwrite individual life insurance. Instead, they send life insurance leads to another carrier, which we will go into below in our Liberty Mutual review.

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About Liberty Mutual Life Insurance

Based in Boston since its inception, Liberty Mutual Insurance Company is one of the best-known names in the insurance industry.  With a catchy jingle and occasionally humorous ad campaigns, Liberty Mutual has grown to 77th on the Fortune 100 list during its more than a century in existence.

Originally formed in Massachusetts to sell workers’ compensation insurance, Liberty Mutual has branched out and now sells a diverse panoply of insurance products.  Though the company focuses on home and auto policies, it also offers a full complement of business policies and numerous insurance products available for individual consumers—including pet insurance.

Life insurance was one of the later additions to Liberty’s Mutual line of business, with whole life, term, and annuities issued through Liberty Life Assurance of Boston.  However, in a blockbuster 2018 deal, Liberty Life Assurance was acquired by life insurance industry powerhouse Lincoln Financial.

What that means to consumers is that you can’t really get life insurance directly issued by Liberty Mutual.  On the company’s website, though, you’ll find descriptions of term and whole life insurance and even a tool for obtaining a free quote.  And, if you enter the requested information (e.g., height, weight, birthdate, gender, tobacco use, etc.), you can indeed receive a quote.

It’s just that the quote 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 (sometime 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 go ahead and 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 reports some fairly impressive numbers in its earnings report.  As of 2020, the company was comfortably within the Fortune 100, with over $130 billion in assets and over $40 billion in annual revenue.

Liberty Mutual claimed the 4th spot among U.S. insurers in property and casualty and 6th place in the world.  Operating in all 50 states and 29 countries worldwide, Liberty boasts of being the most diversified property and casualty carrier globally.

That makes Liberty Mutual a formidable company financially. But, remember, if you’re shopping for life insurance through Liberty Mutual, they’re going to send you to Protective Life.

As it turns out, though, Protective Life enjoys an even higher A.M. Best rating than Liberty Mutual (with an A+).  And, with an equally strong Comdex rating of 91, Protective Life is a safe bet in 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 sells a wide range of insurance products.  Individual consumers can purchase the standard home, renters’, and auto policies and can also get more specialized policies like identity theft coverage and pet insurance.

For businesses, Liberty offers more product lines than we can list here.  Some of the highlights include commercial auto, equipment coverage, liability, M&A coverage, workers comp, and surety bonds.

As for life insurance, as noted above, Liberty Mutual’s life insurance affiliate—Liberty Life Assurance of Boston—was acquired by Lincoln Financial in 2018.

So, although Liberty Mutual still markets life insurance on its site, any coverage purchased through that avenue 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 have 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.

And supplemental riders are 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.

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