SBLI Company Life Insurance Review

Written by Jeff Root

SBLI Life Insurance Recently became a mutual insurance company and they are currently providing affordable life insurance policies to smokers and non-smokers alike.

Otherwise referred to as the Savings Bank Mutual Life Insurance Company of Massachusetts this organization was founded in 1907. Seeing as they are a mutual company, they are owned by the policyholders rather than stockholders which means that their primary objective is to show allegiance to their clients not their investors.

This company is very popular for helping customers blend term life insurance with whole life insurance policies. There are plenty of cases where customers open term life insurance and added certain features to it to cover anything that the family might need or, they set up the renewable annual Term Policy and then convert it to a whole policy when necessary.

They have an A, excellent, rating from A.M. Best. They have an A+ rating from the BBB. Their financial history has remained level and strong since their inception.

Company Financial Rating
A.M. Best A
Moody’s N/A
Fitch N/A
S&P’s N/A

SBLI Special Cases

SBLI life insurance company reviewThis company is particularly great for clients who have high cholesterol or high blood pressure.

Those who might be otherwise overweight or who smoke can benefit from the more affordable coverage especially the annual renewable coverage.

This is not the best option for diabetics. There are many more affordable providers for diabetics.

However, again, those who smoke or who suffer from high cholesterol or blood pressure can still enjoy favorable premiums and risk classifications from SBLI.

SBLI Term Life Insurance Policies Review

Guaranteed Level Premium Term 

SBLI offers a level term life insurance policy. You can enjoy up to $500,000 of coverage and apply quickly and easily online. This product is an accelerated underwriting policy with competitive rates.

The application process requires nothing other than a telephone interview no matter what policy class you have. You can enjoy term length of 10 years, 15 years, 20 years, 25 years, or 30 years.

It is available in every state except New York and Montana. Anyone between the ages of 18 and 60 can apply. The face amounts are offered between $100,000 and $500,000.

SBLI SmartTerm 360 Review

Most people who purchased traditional term life insurance policies feel as though they have somehow wasted their money if they outlive the policy. They end up paying on average between 30% and 50% more than they need because the terms tend to be set for five or ten year increments.

As such, if you have 16 years left on your mortgage and you want to be sure to protect your family financially, you might end up having to choose a 20 year term life policy and therefore pay four years beyond what you truly need.  With this policy, you can protect your savings while still giving your family the protection they deserve.

Consider that if you wanted $1,500,000 in coverage and you selected a 30-year term policy, you would pay $109.75 per month. At the end of the term, you will have paid $39,510 in premiums.

With the SmartTerm 360 Term life policy, you actually get cheaper premiums for the same amount of coverage. It would cost you comparatively only $89.70 per month renewing each year.

If you renewed annually you would end up spending $24,386 over the course of 30 years saving yourself $15,124 total.

For the first 10 years of any Term Policy, you probably have 30 years that you want to set up for your mortgage, replacement income, child care, even education. But during the next 10 years, child care expenses are gone as your kids have grown up.

Education cost may have gone down. The amount of time you have left on your mortgage diminishes as well. By the end of 20 years, if not sooner you may not have much left on the mortgage, you may not need to provide any replacement income for your family, and there may be limited educational costs to cover. As a result of your needs change and on an annual basis you can choose to change your policy coverage as well.

SBLI Term Life Insurance Rates

SBLI coverage for a 50 year old applicant for $500,000 in coverage. The applicant is a non-smoker:

Term Length and Health Class Monthly Rate
10 year term preferred plus $49.33
15 year term preferred plus $67.33
20 year term preferred plus $99.51
No medical exam 20 year term $131.22
10 year term standard $163.98

SBLI Term Life Insurance Riders Review

There are three main riders you can get with any of the aforementioned term policies:

  • Each term policy has the conversion option where you can convert your policy to a permanent policy once you reach the end of the policy or turn 70. This is free.
  • Included in every Term Policy is the accelerated death benefit at no charge which means that if you are diagnosed with a terminal illness you receive a portion of your death benefit to help offset the medical costs.
  • If you have children, you can take advantage of the child term rider and add coverage for each of your children to your policy for a nominal fee. This is the only rider that requires a fee.

SBLI Whole Life Insurance Review

Their permanent plans consist of whole life insurance policies with many riders and benefits associated therein, including policies for spouses.

With whole life insurance policy, you get lifelong protection for your loved one and you get to build cash value at the same time. That cash value is something you can use while you are still alive. As the name suggests, this is guaranteed to stay in place for your whole life.

As long as you pay your premiums and never expires. And your premiums are guaranteed never to increase for the rest of your life, unlike some term policies which might go up based on your advanced years.

The cash value is a portion of your life insurance policy which is taken out of your premiums and invested. This grows at varying rates of return. You can borrow from the cash value for many different reasons.

You might want to borrow the cash value on a regular basis because you have maxed out your tax advantage retirement savings. Or you simply want to supplement your income. You can take the cash value out of your policy and pay for unexpected medical costs or educational costs. You can also use the cash value to pay your premiums on a regular basis.

Whole life insurance has many more appealing benefits than term life insurance but with that, there are larger premiums. Not every family can afford a whole life insurance policy when they are younger because of other financial obligations.

For that reason, with this company or any other you have the option of converting or term policies at a later date when you might be in a more solid Financial place with fewer debts to pay. Whole life insurance is guaranteed to never expire, your premiums never increase, your cash value grows with time.

Moreover, your death benefit is tax-free, you can borrow against the cash value while you are still alive, and you have a great deal more flexibility with your premium payments.

There are some options you can include with your whole life insurance policy. The continuous payment whole life option gives you coverage until you turn 121 so long as you pay the six premiums up to date.

The limited payment whole life policy lets you pay for a specific amount of time, usually 10 years, 15 years, or 20 years, or until you turn 65. The shorter the amount of time you have coverage, the higher your premium will be but the shorter the amount of time you have to pay premiums long-term.

The single premium payment whole life policy lets you make a single payment for your premium in return for a policy. If you have a lump sum of money you can put down, this is going to be the best option financially speaking because it’s the cheapest way for you to purchase whole life insurance. You quite literally pay a single lump sum at the beginning of your policy and then you do not have to pay ever again.

SBLI Whole Life Insurance Rates

Here are some whole life insurance rates from SBLI:

Age Face Amount Male Rate Female Rate
25 $100,000 $72/mo. $64/mo.
$250,000 $96/mo. $88/mo.
$500,000 $152/mo. $128/mo.
$1,000,000 $264/mo. $213/mo.
35 $100,000 $72/mo. $64/mo.
$250,000 $104/mo. $96/mo.
$500,000 $168/mo. $144/mo.
$1,000,000 $280/mo. $240/mo.
45 $100,000 $128/mo. $104/mo.
$250,000 $216/mo. $176/mo.
$500,000 $392/mo. $304/mo.
$1,000,000 $728/mo. $560/mo.
55 $100,000 $275/mo. $220/mo.
$250,000 $528/mo. $363/mo.
$500,000 $979/mo. $660/mo.
$1,000,000 $1,848/mo. $1,243/mo.

Tips for Getting the Best Life Insurance Rates

Finding the right policy begins with evaluating a handful of life insurance companies at the same time. You want to purchase life insurance before it becomes a serious need. If you purchase before you truly need a policy, chances are you will be in better physical condition which means you will be offered lower premiums.

Buying at a younger age will regularly lower your premiums especially if you choose a level policy where your premium amount never changes. Many policies have the option to review your coverage after the term expires if you picked a term policy, without having to take another medical exam.

That said, you will benefit once again from getting your policy when you are younger and healthier without having to evaluate things later even if those conditions have changed.

You might have been very healthy when you took out your policy but then later you were diagnosed with a serious heart condition or high cholesterol. But it won’t matter because your policies will remain the same and your premiums will not change.

For that reason, you want to make sure you are in peak physical condition. If you can, take a few months to make sure that you improve your health before you take your exam and get your policy. You want the value of your plan to be higher without your premiums being higher.

Life insurance companies are businesses and they need to make sure that they mitigate any risk to your long-term survival and their ability to receive payments on time. As such chronic health conditions will increase your risk of passing away and therefore decrease the chances that they will get those payments.

SBLI Life Insurance Company Review – Takeaways

SBLI is a great life insurance option for term and whole life insurance policies. They have very affordable rates for smokers and diabetic, or otherwise, have high-risk health classifications.

However, they are but one in a sea of life insurance providers on the market. In order to be sure that you are getting the best life insurance rates and coverage for you and your family’s needs, you should compare rates from multiple companies.

The best way to do this is to speak with an independent life insurance agent. Our agents work with dozens of the best life insurance companies on the market.  They can help you understand the differences in policy types and which coverage is best for you.

Or, get started using our online quoting engine to get quick and easy life insurance quotes instantly!

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