Today, we review the Columbus Life Insurance Company. Buying life insurance may be one of the most critical decisions you can make. However, choosing the right life insurance company for your circumstances feels like being in a never-ending labyrinth.
Do you have questions such as, “Which company should I go with? What rates can I get? Will they accept me based on my health history?”
This is why we, at Effortless Insurance, love writing reviews about insurance companies. It gives the client an opportunity to gain a basic knowledge of the products and services insurers offer, so they can ask the right questions before applying for coverage. We aren’t appointed to sell Columbus life insurance products, but we have access to their life insurance materials and hope you will find this review useful.
Columbus Life Insurance History
Columbus Mutual was founded in 1906, more than 100 years ago, and since then, has been consistently growing. Today, they have more than 3,000 financial consultants who sell and market their products and services. Columbus Life is licensed in all states except New York.
They are also a member of Western & Southern Financial Group, an industry leader in the financial and life insurance and annuities arena. They have a strong commitment to their clients and field representatives by implementing the golden rule: treating them as they would want to be treated.
Columbus Life Insurance Financial Ratings
- A.M Best: A+ (Superior)
- Standard & Poor’s: AA (Very strong)
- Fitch: AA (Very strong)
- Moody’s: Aa3 (Excellent)
- Comdex: 96
Products Offered by Columbus Life Insurance
Columbus Life offers life insurance and annuities products. This review will only discuss its life insurance product offerings, which are temporary and permanent life insurance.
There are times in life in which you only need temporary protection instead of a permanent one. Term life insurance from Columbus Life can help by providing maximum coverage at minimal cost when compared to a whole life policy. Nautical Term offers 10-, 15-, 20-, or 30-year term choices. The premium and the death benefit remain fixed for the initial term option.
At the end of the term period, you can renew it annually until the age of 95, or convert into a permanent life insurance plan before the age of 70, without going through an exam or proving insurability. It also comes with an accelerated death benefit rider at no additional cost, which allows the policy owner to withdraw a portion of the death benefit while still alive if diagnosed with a terminal or chronic illness.
- Ages 18–75 can buy a 10-year term
- Ages 18–70 can buy a 15-year term
- Ages 18–65 can buy a 20-year term
- Ages 18–50 can buy a 30-year term
Universal Life Insurance
Universal life insurance (UL) is a permanent type of coverage that provides guaranteed death benefit and cash value accumulation. Unlike whole life, UL offers a wide range of flexibility, from adjusting the face value amount as life’s events unfold to adjusting the premium amount to meet your current financial circumstances or skip it (provided there is enough cash value in the account).
Columbus Life offers five types of universal life coverage. Let’s take a look at each one.
Explorer Plus offers a lifetime of coverage with a built-in no-lapse guarantee option from which you can choose. This means, as long as the minimum payment is paid, the policy will stay in force even if the cash value in the account is insufficient. You have two options: The policy will continue until the attained age of 75 or for 30 policy years. This policy gives lifetime coverage with the flexibility to build a legacy.
Indexed Explorer Plus
This is another permanent-type policy with the option to earn even more in your cash value account, by having your investment account mimic the movement of a chosen index. There are three global index accounts from which to choose with a guaranteed minimum of 2% annual credited interest rate in the fixed account option.
Additionally, it provides a 10-year no-lapse guaranteed benefit which means that, as long as the minimum premium is paid, the policy will stay active for the first ten years.
Voyager Universal Life
This policy is geared to the ones who are seeking guaranteed death benefit with affordable premiums. Voyager accomplishes this by offering lifetime no-lapse guaranteed benefit. In other words, this is a guaranteed universal life insurance policy, where the insured is required to pay the minimum payment to keep the policy active without the cash value accumulation option. Simply put, it’s like a term policy without an expiration date or cash accumulation.
Legacy G (Guaranteed Survivorship Universal Life)
This is a survivorship life insurance policy on two individuals that pays the death benefit on the death of the second one. It’s for those who are seeking lifetime protection in situations such as estate planning or business partnership. Legacy G is a guaranteed universal life policy with a lifetime no-lapse guarantee benefit.
Legacy Plus (Survivorship Universal Life)
This is another survivorship policy with a higher option for cash value accumulation with a built-in 10-year no-lapse guarantee option. Just like Legacy G, it pays a tax-free death benefit upon the death of the second insured.
As with most life insurance policies, riders are optional provisions or add-ons that you can add, at an additional cost, to enhance your benefits based on personal preferences and needs. Here are the riders Columbus Life offers:
- Accidental death benefit: Pays an additional amount on top of the base amount if the death is accident-related.
- Accidental death and specific loss: Pays an additional amount if the death is an accident related or the insured lose an essential body part.
- Children’s term: Offers term life insurance for children ages 15 days to 18 years, until age 23.
- Other insured term: Provides term insurance to age 95 for the insured’s significant other.
- Return of premium: The insurer returns all paid premiums at the end of the 20- or 30-year term.
- Waiver of premium: The insurer waives all premium and keeps the policy in force if you become disabled.
- Disability credit: Provides the insured monthly premium credit after six months of disability.
- Insured insurability: Allows the insured to apply for a higher death benefit amount without proving insurability.
- Supplemental coverage: Lets the insured choose to add permanent coverage in addition to the base coverage.
- Enhanced cash value: Reduces surrender charges if you decide to cancel the coverage in the first five years.
- Estate protection: Provides protection from estate taxes if both of the insureds die in the first three years after purchasing the coverage.
This Columbus Life Insurance review misses their rates as I wasn’t able to find them online. However, they have outstanding financial ratings and essential life insurance products and many riders with which you can personalize your coverage. They don’t have a traditional whole life coverage which may be an issue for those who are searching for it.
As mentioned before, we are currently not appointed to sell Columbus Life Insurance Company (although we may if they can fit our client’s goals and rates), so if you choose to run the rates on this page, you will see other companies, such as AIG, Prudential, and Banner to name a few.
As a consumer, it’s your responsibility to compare all possible rates so that you can acquire the best one.