Savings Bank Life Insurance Company
A.M. Best: A
S&P Global: A-
SBLI, Savings Bank 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.
Table of Contents:
- Pros & Cons
- SBLI Overview
- Special Cases
- Term Life Insurance Options
- Term Life Insurance Riders
- Whole Life Insurance Options
- Is SBLI for You?
Pros and Cons of SBLI
- electronic application
- competitive underwriting
- slow application approval
- policy delivery by mail
SBLI Life Insurance Overview
This life insurance 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.
SBLI Special Cases
This 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.
Term Life Insurance Policy Options
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, childcare, even education. But during the next 10 years, childcare 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.
Term Life Insurance Rider Options
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.
Accelerated Death Benefit Rider
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.
Child Term Rider
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.
Whole Life Insurance Options
Their permanent plans consist of whole life insurance policies with many riders and benefits associated therein, including policies for spouses.
With a 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 it 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.
FAQs for SBLI Life Insurance
Is SBLI insurance reputable?
- SBLI has received an A rating from AM Best and an A- rating from S&P Global and on top of that, is a BBB accredited business.
What does SBLI stand for?
- SBLI stands for, Savings Bank Life Insurance.
Who owns SBLI?
- SBLI is a mutual company, meaning that 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.
Is SBLI For You?
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.
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