SBLI Life Insurance Company Review 2017

Home » Blog » Company Reviews » SBLI Life Insurance Company Review 2017
  • sbli life insurance company review

SBLI is also known as The Savings Bank Life insurance Company of Massachusetts. In this post, I will review SBLI life insurance products, riders, and underwriting niches. I will also compare SBLI rates with other insurance companies on the market today.

We proudly represent SBLI and over 50 other insurers. Let’s find out if the SBLI slogan “The no- nonsense life insurance company” is accurate.

SBLI History

SBLI was founded in 1907 by Louis Brandeis, a future Supreme Court justice. His goal was to give families an economical way to purchase life insurance from a trustworthy alternative called Savings Bank. Today, SBLI is one of the nation’s leading life insurance companies, and its mission remains the same: offer simple, dependable and cost-effective life insurance for whoever needs it. SBLI lives by this no-nonsense slogan because they believe that although life insurance is serious and one of the most important decisions you can ever make, it doesn’t have to be complicated. They strive to remove the jargon from the purchase process and as a result make the process of buying a policy very easy to understand.

SBLI Financial Ratings

  • A (Excellent) from A.M. Best
  • A- (Strong) from Standard & Poor’s
  • A+ from Better Business Bureau

Life Insurance Products Offered by SBLI

SBLI offers term and whole life insurance coverages. I will go ahead and look at the key features of each policy.

SBLI Term Life Products Review

Term life insurance is the simplest form of life insurance coverage. It is often the most cost-effective when compared with other types of policies. With term life, you purchase a “death benefit,” or face amount, and also a term or length of a contract. It can be 10-, 20-, or 30-years. If you die within that specific time frame, your beneficiaries will receive the face amount you purchase. If not, you may be able to convert the term after the contract has ended to a whole life policy, or you may decide that it’s no longer needed and drop it. Term life offers no cash or savings benefit, and you pay for “pure insurance” without all the bells and whistles.

SBLI Level Premium Term Highlights

  • Ages 18-69 years: $100,000 – $50,000,000 face amounts
  • Ages 70-74 years: $100,000 – $10,000,000 face amounts
  • Ages 18-60 years face amounts up to $500,000 are eligible for accelerated underwriting (no-paramed)
  • SBLI offers 10-, 15-, 20-, 25-, or 30-year term lengths
  • Premiums are guaranteed for term length (level premium)
  • Coverage up to age 85
  • Fully convertible policy prior to age 70, or the end of the term period
  • Accelerated death benefit rider at no additional cost
  • Available in all states except  NY and MT

Available Riders

  • Accelerated Death Benefit
  • Accidental Death Benefit
  • Children’s Level Term
  • Waiver of Premium

You can learn more about life insurance riders here.

SBLI Accelerated Underwriting (No-Paramed)

This is where SBLI stands out from the rest of the competition. There are a few companies who offer no-paramed life insurance policies, such as Sagicor, Assurity, and American National, to name a few. However, SBLI beats them at price and the no-paramed coverage is available to all risk classes and tables. In contrast, if you apply to buy a no-paramed policy from Sagicor and you are rated table 2, they will decline your application because you must fall between super preferred and standard ratings.

I personally call this the nontraditional underwriting process, or the new way of buying life insurance. It will include a call interview from an SBLI underwriter to the applicant to ask some health questions, prescriptions usage, and to confirm your identity.

The underwriter will complete the application electronically, and pull information from your motor vehicle record (MVR), the Medical Information Bureau (MIB), and prescription data.  There will be one of two outcomes:

  1. Instant approval.
  2. Additional requirements are needed, such as an attending physician statement (APS).  Then, a final conclusion is determined by the underwriter, which typically takes 2-3 weeks on average.

SBLI No-Paramed Highlights

  • Ages 18-60
  • Face amount: $100k-$500k
  • Term: 10-, 15-, 20-, 25-, and 30-year

SBLI Whole Life Insurance Review

As the name implies, the coverage will last for the rest of your life. In addition, a whole life policy builds cash value and dividends from which you can borrow in the future. Whole life costs significantly more than term insurance. SBLI whole life is a unique product because of its flexibility. The product offers six permanent, fixed premium products.

The major difference between the products is the number of years required to obtain guaranteed paid-up status. The payment schedules range from one year (Single Premium Whole Life) to the end of your life (“all policy years,” or Continuous Payment Whole Life).

SBLI whole life also has eight different riders which can be added to the policy for an extra cost. This gives the insured the flexibility to get the right policy for his/her personal situation.

Flex Continuous Payment Whole Life

This type of policy requires payment for all years until age 121, or until the insured dies. It is best for clients who can’t afford to pay the policy up front or a limited pay option. It gives you the lowest premium possible for a whole life policy with a guaranteed death benefit, cash value, and premiums.

Flex Limited Payment Whole Life

This policy comes in a few variations based on the length of time the insured is willing to pay for the policy. It’s geared toward those who can afford a higher premium in exchange for a paid policy. Shorter premium cycles result in a higher monthly premium, however, you get the peace of mind that the coverage is paid for faster, and if you need a loan in the future, you have the money ready. Also, faster paid-in-full policies will potentially accumulate more cash value through dividends and interest. Here are the policy options:

  • Limited Payment Whole Life Paid up at Age 65 – Premiums are payable until you reach 65 years old, after which the policy is paid and will expire at age 121.
  • Limited Payment Whole Life 20 – Premiums are payable for 20 years, after which the policy is paid and will expire at age 121.
  • Limited Payment Whole Life 15 – Premiums are payable for 15 years, after which the policy is paid and will expire at age 121.
  • Limited Payment Whole Life 10 – Premiums are payable for 10 years, after which the policy is paid and will expire at age 121.

Flex Single Payment Whole Life

This plan is for those who can afford to pay for a policy in a single payment. It’s best suited for clients who are looking primarily for the death benefit and wealth transfer because the death benefit is income tax-free. For instance, a 60-year-old female in good health could pay only $150,000 in one payment, and get approximately $300,000 of death benefit to her beneficiaries, which will be paid tax-free upon her death. Flex single payment offers no riders other than the accelerated death benefit, which is at no additional charge.

Available Riders

  • Accelerated Death Benefit (included with policy)
  • Children’s Level Term
  • Guaranteed Purchase Option
  • Single-Pay Paid Up Additions
  • Flex-Pay Paid Up Additions
  • Waiver of Premium
  • Accidental Death Benefit
  • Guaranteed Level Premium Term

Underwriting Strength

While the underwriting process may still be a mystery for most clients, what you need to understand the most is that all insurance carriers have different guidelines when it comes to underwriting. They have different height/weight charts, acceptable cholesterol levels, and family history they are willing to accept, postpone or decline. It’s their way to cope with the risk every insured imposes upon them so that they can still be in business for years to come and pay your claims.

SBLI is particularly strong when it comes to a few underwriting criteria:

  • Liberal, unisex build chart for height/weight
  • Accept scuba diving up to 75 feet
  • More favorable view of family history of cancer
  • Healthy credit program – you may be eligible for better table ratings if you meet certain criteria
  • Blood pressure 135/85 treated or untreated can qualify for preferred plus (best rate)
  • Cholesterol up to 300 treated or untreated can qualify for preferred plus (best rate)

SBLI vs Other Carriers Sample Rates

Male 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $12.69 $17.50 $41.78 $190.53
 Protective $13.22 $17.91 $41.96 $112.86
 AIG $13.54 $19.38 $42.73 $114.74
 Banner $13.78 $18.87 $42.66 $114.16
 Mutual of Omaha $14.18 $20.08 $46.55 $134.05
 North American $14.30 $20.02 $43.56 $115.06
 Principle $14.66 $19.25 $43.09 $111.56
 SBLI (No-Paramed) $14.79 $21.67 $51.68 $147.70
 Assurity $15.88 $28.93 $68.51 $176.61
 Prudential $20.93 $25.65 $48.15 $135

Female 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $11.16 $14.87 $31.72 $160.13
 Protective $11.95 $15.44 $31.67 $78.54
 AIG $12.02 $18.51 $35.59 $89.66
 Banner $12.03 $15.75 $32.21 $81.16
 Mutual of Omaha $12.64 $17.46 $36.05 $94.02
 North American $12.76 $16.94 $34.10 $81.84
 Principle $13.30 $17.06 $32.90 $77.92
 SBLI (No-Paramed) $13.31 $18.99 $36.46 $90.37
 Assurity $13.05 $23.71 $53.51 $137.68
 Prudential $17.77 $23.18 $42.30 $94.73

Male 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $20.13 $28.87 $77.83 $214.33
 Protective $20.38 $28.92 $76.86 $207.96
 AIG $21.11 $31.05 $78.20 $213.57
 Banner $20.96 $32.37 $78.18 $213.27
 SBLI (No-Paramed) $21.32 $36.92 $96.06 $286.85
 North American $22.44 $33.44 $79.20 $218.68
 Principle $22.75 $31.94 $79.63 $216.56
 Transamerica $22.36 $38.27 $92.45 $212.42
 Assurity $25.67 $51.76 $130.94 $347.13
 Prudential $34.20 $43.65 $88.65 $262.35

Female 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Lincoln $17.06 $24.94 $56.39 $148.05
 Protective $17.93 $25.26 $55.78 $140.83
 AIG $18.08 $29.32 $63.06 $163.40
 Banner $17.94 $26.25 $56.87 $153.12
 SBLI (No-Paramed) $19.14 $29.67 $65.87 $173.03
 North American $19.36 $28.16 $61.60 $154.88
 Principle $20.04 $27.56 $59.24 $149.27
 Transamerica $19.78 $30.96 $62.78 $170.71
 Assurity $20.01 $41.33 $100.92 $269.27
 Prudential $27.90 $38.70 $76.95 $181.80

Male 20-year Term $1,0000,000

CompanyAge 30Age 40Age 50Age 60
 SBLI $35.24 $56.03 $147.73 $457.62
 Protective $34.99 $51.99 $143.84 $400.83
 AIG $36.68 $54.84 $146.53 $418.14
 Banner $36.67 $59.50 $146.30 $418.13
 Mutual of Omaha $37.80 $59.68 $163.80 $481.42
 North American $39.16 $60.28 $150.92 $427.24
 Principle $38.94 $56.00 $149.63 $422.63
 Transamerica $39.56 $69.66 $147.92 $415.38
 Assurity $45.24 $97.44 $255.78 $688.17
 Prudential $52.65 $77.85 $166.05 $485.55

Female 20-year Term $1,000,000

CompanyAge 30Age 40Age 50Age 60
 SBLI $29.67 $44.28 $104.57 $272.92
 Protective $29.43 $43.94 $103.55 $269.92
 AIG $30.62 $52.25 $117.12 $309.15
 Banner $29.75 $47.25 $108.50 $286.12
 Mutual of Omaha $31.67 $51.80 $119.18 $324.80
 North American $32.12 $48.84 $113.08 $283.80
 Principle $32.16 $47.25 $108.94 $286.13
 Transamerica $30.96 $55.90 $116.10 $323.36
 Assurity $33.93 $76.56 $195.75 $532.44
 Prudential $38.25 $64.12 $139.05 $349.65

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of July 2017 and are subject to underwriting approval.*

Last Word

You really can’t go wrong with SBLI. If you buy a no-paramed policy at the time of the article, this is the lowest priced policy you will find (as long as you are healthy). The only mistake you can make as a consumer is to not compare your options. The good news is that using a broker costs you nothing, and in fact may save you money and time (they will choose the right company first, for your specific health risk).

You can go ahead and run quotes from the top 50 carries on this page, or give us a call at 866-326-3053 so you can get a personalized quote.

Ready To Save 62% On Term Life?

Don’t get trapped dealing with just one company, compare ALL insurers in under 30 sec.

Instant Quotes!
2017-08-16T18:39:52+00:00 July 30th, 2017|Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has 2 amazing rescue pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.

Leave A Comment