If you’re in the market and are looking to buy life insurance through the Life Insurance Company of the Southwest….
STOP RIGHT NOW!
You absolutely need to read my review.
I can’t overstate how important it is for consumers to fully understand what they’re getting into before they sign on the dotted line.
I’m going to provide you with some intel on the good, the bad and the reasons why buyers need to beware.
In a nutshell, there’s lots you need to know before you jump in head first.
Quick Guide To Our LifeInsurance Company of the Southwest Review
- My Thoughts On The Life Insurance Company of the Southwest
- Products Offered
- Red Flags: Buyer Beware
- Is Underwriting a Big Deal?
The Life Insurance Company of The Southwest
Go to their site and the first thing you’ll discover is that you’re booted directly to National Life Group’s website.
National Life Group is a trade name for National Life Insurance Company, which is based in Montpelier Vermont.
It looks like National Life Group bought the Life Insurance Company of the Southwest in 1996.
Yep, you heard me right. You won’t actually purchase your life insurance from the Life Insurance Company of the Southwest.
The Life Insurance Company of the Southwest still operates as a separate entity but sells its products through National Life Insurance Company.
To make things a little more confusing, the Life Insurance Company of the Southwest has separate headquarters based in Addison Texas.
Confusing, yes – but uncommon, no!
This happens all the time in the life insurance sector. That’s why I ask people to do their homework. Things are often not as straightforward as they first seem.
My Thoughts About The Life Insurance Company of the SouthWest
Maybe you don’t really care whether the life insurance company of the Southwest is ACTUALLY selling you life insurance or not.
BUT I bet you do care whether they’re financially sound.
Interestingly the Life Insurance Company of the Southwest is treated as a distinct entity by the financial rating agencies.
I was able to find ratings for the Life Insurance Company of the Southwest from three of the top financial rating agencies, the results are as follows (click to reveal):
Not too shabby eh? Looks like your beneficiaries will be in safe hands.
A win for the Life Insurance Company of the Southwest!
Products Offered By the Life Insurance Company of the Southwest
A company’s selection of products is a VERY important detail. We all don’t have the same needs and different types of life insurance suit different circumstances.
This is the first RED FLAG I want to draw your attention to.
National Life Insurance Company offers little information about their offering.
Hmmm. As a consumer, information is so very important! Sadly you’re almost forced to speak to a salesperson to find the details of what it is they actually sell.
If you’re just shopping around – you won’t find much here.
To be fair, I was able to determine that the Life Insurance Company of the Southwest does have a decent selection of products.
The main issue I have is that you’re given virtually no information about the details of their products.
Here’s what the Life Insurance Company of the Southwest has to offer:
- Guaranteed Death Benefits
- Level Premiums
- Cash value with a potential return of dividends
- Flexible death benefits & Premiums
- Cash Value has a guaranteed Fixed minimum interest rate
- Flexible Death benefits & Premiums
- Cash value is subject to changes in the market indices such as the s&P 500
- Guaranteed Death Benefits
- Level Premiums
- Cash value with a potential return of dividends
- the most basic and common form of life insurance
So this is where I see some Serious Red flags!
The Life Insurance Company of the Southwest offers a term policy known as “1 Click Coverage”.
Here are the deets:
- Coverage Length or Terms: 10, 15, 20 and 30 year terms
- Face amounts of Coverage: $25,000 – $350,000
- Age Cutoff: 20 – 60 (10 and 15 year terms) 20 – 55 (20 and 30 year terms)
The underwriting classes include “Select” (Similar to Preferred Best/Preferred), “Standard Non-Tobacco, and “Select and Standard Tobacco”.
Policies are renewable to age 95 and are convertible to permanent policies.
Unfortunately the site doesn’t tell you if they convert the policy to whole life, universal life or a choice of either.
Term life insurance is my go to product, so this offering sends out some HUGE red flags.
3 Red Flags: Why Buyers Should Beware
By comparison to numerous other life insurers, the coverage maximum is woefully inadequate.
It’s likely that $350,000 will leave you UNDERINSURED. This figure would barely cover the mortgage which most Americans carry.
Not to mention the fact that it offers no wiggle room for income replacement, credit card debt and personal loans.
If you have children, it probably won’t cover the cost of a college education and final expenses either.
Seniors BEWARE. Many other life insurers allow much greater latitude when it comes to the cut-off ages to buy various term lengths.
For example, many companies will allow people age 65 and older to buy a 20 year term.
So, the cut-off age restrictions for older clients may preclude consumers from protecting themselves adequately.
So what’s so bad about that? Well if you’re not, chances are you can find a more lenient company.
The Life Insurance Company of the Southwest only offers two classifications for smokers and non-smokers: Select and Standard.
Hmm…if you have a medical condition, this company doesn’t seem like a good bet. This type of classification is known as non-rated classification.
So What is Non-Rated Classification Anyway?
Typical life insurance classification are as follows:
- Preferred Best (Select)
- Standard Plus
Additionally, “Table Ratings” are offered, which could include up to 12 additional underwriting classifications.
This is not what the Life Insurance Company of the Southwest offers. They provide non-rated classification which leaves many people with medical conditions out in the cold.
It’s fairly clear that they prefer to offer life insurance to healthy individuals.
Classifications such as Select and Standard leave people with medical conditions in limbo.
If you’re an applicant with a pre-existing health condition such as Diabetes, Crohn’s or a variety of the other health ailments that affect Americans, you run the risk of being declined altogether.
The kicker is you won’t know that answer until you apply.
I have seen so many clients who were turned down by one company only to waste a bunch of time assuming that they’re uninsurable – which was simply NOT true.
Is Underwriting Really A Big Deal?
Yes! And let me show you why in terms of money!
When you buy a life insurance policy, you do so knowing you will be paying into it for 10 – 30 years…
….and if you opt for a whole life policy you may be paying into it ’til you die!
So let’s say I can save you $10.00 per month on your premiums. Seems like a pittance right?
NOT SO FAST! Here are the savings over the life of the policy:
- 10 Years: $1,200.00 in Savings
- 20 Years: $2,400.00 in Savings
- 30 Years: $3,600.00 in Savings
- 50 Years: $6,000.00 in Savings
You see how fast the numbers stack up!? And this is just with a small savings. We’ve been known to get premiums down by as much as 70%!
Wow! Can you imagine what those figures look like over 30 years?
If you think I’m just parroting some kind of sales pitch, then you have to read this article”25 Best Ways to Save 50% (Or More) On Life Insurance.”Click Here
The bottom line is if you’re thinking about buying a policy with Life Insurance Company of the Southwest, make sure you shop quotes with more than just Southwest.
Life Insurance Is a Necessity If You Have Dependents
You should go out and get life insurance when you have people who are dependent on you. A few life events to consider are getting married, getting pregnant (including your significant other getting pregnant for men), and buying a house.
Questions You Should Always Ask
- Does the Life Insurance Company of the Southwest have the type of life insurance I need?
- Do they have the amount of coverage I require for my family?
- How restrictive are their underwriting guidelines?
- What are the chances I’ll get approved?
- How do their rates compare with other life insurers?
- Can I find a better life insurer than the Life Insurance Company of the Southwest?
Shopping for life insurance seems deceivingly simple. You just logon to a site, get a quote, speak to an agent who submits your medical results to the underwriter and voila!
There’s some fundamental information that you should know BEFORE you apply for that policy.
You may be asking yourself “Why is this so important, I just need basic coverage!” Well I’m gonna tell ya now:
One Size Doesn’t Fit All
For the past 10 years I’ve been in the business of educating people about life insurance and one of the most common misconceptions is that way too many people think all insurers are equal.
These companies differ WILDLY in terms of prices, types of life insurance and underwriting – nothing is universal.
The relationship you have with them depends on your personal circumstances.
If you believe that you don’t need to know the ins and outs of the companies you’re considering this is a HUGE mistake.
Friends, there are over 800 life insurance companies in the U.S. and they ALL have different approaches.
You Need Someone Knowledgeable In Your Corner
With so many companies vying for your business, the competition is fierce. Many insurers take a very conservative approach in regard to how they underwrite people.
Other companies are much more lenient.
The important thing for you to note is that your personal circumstances play a pivotal role in the final result.
If you’re young and healthy and apply to a company that rewards your youth – CONGRATS!
BUT…Get a Quote! in 2 Minutes and find out if we can beat The Life Insurance Company of the Southwest’s Rate!
Not Everyone Is Healthy! So What if You’re Not?
Let’s face it, MANY of us have medical issues.
….and life insurance companies are in the business of assessing risk. You don’t think they want to pay out tons of claims do you?
They check out your medical history to weigh the odds of you passing away during your insured term.
That being said, some take more chances than others. The conclusion? Your pick of life insurance company is a VERY personal thing.
….If you have a medical condition and apply to that same company that LOVES healthy applicants, you may end up spending thousands more over the life of your policy.
You could even be declined if it’s a poor match.
The key is to find the right insurer for your unique situation.
Chances you’re not a life insurance expert and these ever-changing guidelines are not in your wheelhouse.
We keep abreast of these ever-changing guidelines and are sure to find the best deal for you.
You also need to be aware of the selection of products provided. Some companies offer a full line of life insurance products, while others may only sell term insurance or simply focus on no-medical exam policies or other specific lines.
I can’t stress enough the importance of shopping for coverage! Please don’t ever buy a policy just because you’ve seen their ads on TV or your computer!
Worse yet, there are way too many consumers who base their choice on the experience of someone else!
Remember they aren’t you! Maybe your friend is a 30 something marathoner and you’re a 40 something couch potato with asthma!?
A decision such as this will cost you a pretty penny!
Shop Life Insurance Quotes
The Life Insurance Company of the Southwest is just one single company in a sea of options.
Go fishing and you are bound to catch something more impressive!
Folks, the truth is there’s usually an affordable life insurance solution for just about every American out there!
When it comes to effectively purchasing the right policy for your family at the most affordable rate, you should ALWAYS USE AN INDEPENDENT LIFE INSURANCE AGENT.
Captive agents only represent ONE single company.
You’re stuck choosing from the limited range of policies they offer, the rating classification they assign – and more importantly, you have to pay the premium they are able to access.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.