Finding the best life insurance company can be tough. Especially when you are looking for a company that provides some extra incentives and perks such as living benefits. Not all life insurance companies are created equally, and most life insurance companies have their positives and negatives.
That’s our job to filter out the results for you. However, on the topic of living benefits, we do want to take the time to review one of the best in the industry.
Phoenix Life Insurance (Nassau Re) is one of the top no-medical-exam life insurance companies, and they also double down and remain one of the top providers for individuals seeking life insurance with living benefits. If you are unsure what this means, don’t worry, we will cover all of that for you in this article.
For now, let’s start diving into what set’s Phoenix Life Insurance apart from the crowd and give you the full breakdown of the perks that are optional when purchasing life insurance.
A Look at Phoenix Life Insurance Company (Nassau Re)
We felt that maybe you needed a brief background on Phoenix Life before diving into all the added benefits that they can provide. Phoenix Life Insurance has been around and protecting families for over 165 years. The company began way back in 1851.
Phoenix Life prides themselves on customer service and customer satisfaction. Currently, Phoenix is based out of Hartford Connecticut and has a total of roughly 600 employees.
Financial Strength Ratings for Phoenix Life Insurance Company
Phoenix Life is a little lower on the financial strength scale then we would like to see, but to date, this has never posed an issue for Phoenix Life maintaining and fulfilling its promises to its loyal policyholders.
Currently, Phoenix Life is boasting a B rating from A.M. Best and a BB rating from Standard & Poor’s.
While this isn’t as high as some of the A+ rated companies, they certainly still make a splash in the life insurance industry and are known for excellent service, quick processing times and holding true to their promises.
Products Offered by Phoenix Life
Currently, Phoenix Life offers 4 main types of life insurance coverage. It’s all the same options you will typically see with any life insurance company. Here’s a look at your options.
• Term Life Insurance
• Universal Life Insurance
• Whole Life Insurance
• Indexed Universal Life Insurance
The term life insurance option with Phoenix Life is by far the most popular. It requires no medical exam and even has a specific express-issue option if you’re willing to pay a few extra dollars per month.
Also, the life insurance options with Phoenix Life are going to boast the additional perks known as living benefits which is what we are most interested in covering here today.
An Easy Application Process with Phoenix Life
Before diving into the living benefits, we wanted to flaunt another huge positive about Phoenix Life that we love. The application process. We don’t know of a more simple, fast and convenient approach that you can take when applying for life insurance compared to Phoenix Life.
The process itself is a simple electronic application that will be completed between you and your life insurance agent. The life insurance application will cover everything needed from A-Z including the following information.
• Coverage Desired
• Basic Demographic Information
• Medical History Including Medications, Medical Conditions, and Prior Hospital Stays
• Financial Background Including Bankruptcies
• High-Risk Hazardous Jobs or Activities Questionnaire
• Physician Information Including Name and Contact Info
• Beneficiaries Information (Who Gets Your Money When You Pass)
This process may take a combined total of 20-30 minutes with your agent over the phone. Once it’s complete, you don’t have to worry about any annoying medical exam or a nurse coming to your home to poke and prod you requesting blood or urine samples.
After the application is complete Phoenix Life will do its due diligence by double checking information using electronic databases such as a motor vehicle report, prescription report and a MIB report.
If all of this is good to go, you’re done. Sometimes coverage can even be approved the same day if the application is detailed and all necessary information has been submitted and provided to Phoenix Life.
Now it’s time to dive into where Phoenix Life really earns their keep within the industry.
Living Benefits with Phoenix Life Insurance Company
Phoenix Life Insurance offers some of the best living benefits in the industry. Especially considering you can easily add them to your policy during a no-exam process. Talk about quick and easy with all the additional perks.
With Phoenix Life, the living benefits are referred to as Accelerate Benefit Riders (ABR’s) which is very common among companies who offer these additional benefits.
With Phoenix Life, nothing is much different than any other company offering living benefits. You will be able to draw cash from your policy while living/alive for the following three categories or “triggers.”
• Chronic Illness
• Critical Illness
• Terminal Illness
Qualifications for Living Benefits to Activate with Phoenix Life
Here is a quick breakdown of how you may qualify for your living benefits with Phoenix Life. All companies are a bit different with these respected “triggers” or criteria that need to be met to draw cash on the policy, so it’s important to understand it fully.
One could qualify to activate living benefits with Phoenix Life under Critical Illness by having one of the following medical issues take place.
• Heart Attack
• Kidney Failure
• Major Organ Transplant
These are common triggers for critical illness to kick in with many companies that offer living benefits. Ideally, we wouldn’t mind seeing the list be a bit longer and more options to be available in case sudden health issues did strike, but this is surely nothing to be upset over.
For a chronic illness claim to kick into action with Phoenix Life, you would need to lose the ability to perform 2 of the 6 daily living activities which can include the following.
• Continence (Or a Severe Cognitive Impairment)
This is common across the board with companies offering Chronic illness benefits. It always comes down to losing the ability to perform 2 of those 6 daily living activities discussed previously.
With Phoenix Life, terminal illness is classified as being diagnosed terminally ill with an expected life expectancy at or under 12 months. This also needs to be certified in writing by a licensed physician for the benefits to kick in.
A Huge Positive with Phoenix Life Living Benefits
One of the biggest positives that Phoenix Life offers is the ability to accelerate up to 95% of the death benefit while living if any of the three options above are met or do happen to you.
Other companies often have different stipulations or strict percentages, but currently, Phoenix Life allows you to access almost the entire face value of the life insurance policy in a time of enormous need.
This is perhaps one of the biggest reasons I suggest Phoenix Life to my clients, and it’s a highly under-rated perk to include with your life insurance policy.
Renal Failure Under Critical Illness- A Massive Advantage
In the United States alone, diabetes is one of the most common medical conditions that one may fall victim too throughout their lives. With diabetes, comes the chance of renal failure or potential future issues with your kidneys.
Phoenix Life offering renal failure as a “trigger” under the critical illness category is a significant hidden benefit that more diabetic individuals should strongly consider when purchasing life insurance. The cost for this care alone if tragedy does strike could be too much to handle financially.
Having the ability to accelerate 95% of the death benefit or face value of the policy, could be your saving grace if this ever did happen to you.
Now let’s cover some of the frequently asked questions about Phoenix Life Insurance product options and availability to help give you a clear picture.
What’s the Minimum Coverage to Be Afforded Living Benefits with Phoenix Life?
With Phoenix Life term life insurance, you always have two options. One is known as express issue, and the other is a non-express issue. Both policies require no medical exam, but express issue typically has much faster processing times and no “APS” or “Attending Physicians Statement” will be necessary.
With express issue, your premiums per month will be costlier due to the added benefits and faster processing times.
The non-express issue with Phoenix Life has a minimum face amount of 25,000 in coverage. The Express issue has a minimum face amount of 50,000.00 to proceed to with your purchase and add living benefits to the policy.
What About Maximums with Phoenix Life Insurance for Coverage?
Phoenix Life does also place maximums on coverage, and these are lower than some of the competition out there. This isn’t necessarily due to the living benefits, but this is typical to see low maximum coverage amounts when no-exam is required for the coverage.
The maximum coverage amounts can be broken by age and look like this.
Express Issue Coverage
Issue Ages- 18-50- 400K Maximum
Issues Ages- 51-60- 300K Maximum
Issues Ages- 61-70- 200K Maximum
Issues Ages- 71-80- 100K Maximum
Non- Express Issue Coverage
Issue Ages- 18-50- 500K Maximum
Issue Ages- 51-60- 400K Maximum
Issue Ages- 61-70- 300K Maximum
Issues Ages 71-80- 150K Maximum
Can I Choose Not to Use Living Benefits When the Time Comes?
Absolutely. The choice is yours. Phoenix Life does not force your hand or make you accelerate your death benefits while living. If you need the death benefit money kept intact for your beneficiaries, it’s 100% okay to opt not to use your benefits.
The option is merely available because, in most circumstances, it can provide a substantial financial relief for you and your family.
Are Any Fees Associated with Claiming My Living Benefits?
Yes, Phoenix Life makes it clear that when you do exercise your option to claim your living benefits with a qualifying medical condition that an administrative fee will be assessed to the total amount paid to you in the amount of 200.00.
This is a onetime free and can be adjusted straight from the cash payout of your life insurance policy at the time of use.
What Happens to My Death Benefit When I Use Living Benefits?
When you do exercise your living benefits within policy with Phoenix Life or any life insurance company, you will be subtracting the total amount of cash proceeds accelerated from your original death benefit.
Let’s assume your policy was for 500,000.00 originally, and you opt to accelerate 80% of the death benefit with your ABR’s, your outcome would like this.
• $500,000.00 (Initial Face Value of Term Life Insurance Policy)
• -$400,000.00 (Living Benefits and Accelerated Benefits Used for Qualifying Illness)
• -$200.00 (Administrative Fee)
• = $99,800.00 (Remaining Death Benefit to Be Paid to Your Beneficiaries Upon Death)
What If I Get Healthier and Then Fall Ill Again?
With Phoenix Life, you have the option to make multiple elections or claims for the use of your living benefits.
If your initial claim under the critical care category, and then down the road you fall terminally ill, you are still allowed to make a new claim up to the 95% maximum of the face value of the life insurance policy. Many options are possible under these benefits and provision with Phoenix Life.
How Long Do I Have to Wait After I Submit A Claim?
With Phoenix Life Insurance Company, you will have no waiting period to worry about unless you are making your claim under the chronic illness rider. If this is the case, you will have a 90-day waiting period before funds can be released to you.
This is extremely common for benefits such as this to be stamped with a 3-month waiting or elimination period.
What Can I Use My Living Benefits For?
Anything you choose. No restrictions will apply. If you want to pay medical cost down or even to pay off a mortgage, the option is yours. Once the benefits are released to you, you have no obligation to submit evidence to Phoenix Life for where the said benefits were used.
How Would I Get Started with Phoenix Life?
If you are excited about the options and possibilities with Phoenix Life Insurance, we recommend you fill out our instant quote form today or give us a call. We are an independent life insurance agency specializing in living benefits and can walk you through the process quickly and professionally.
Starting with the instant quote form will allow you to compare rates with many of the top life insurance providers offered in your state. This will give you a sneak peek at prices and what options you may or may not have.
Don’t Ignore Living Benefits and Don’t Ignore Phoenix Life Insurance Company
We have already disclosed that Phoenix Life may only be boasting a B rating in the financial strength category but let us re-emphasize one main point. They have been around for over 160 years and never proven to be a non-trustworthy company to work with.
Additionally, no-exam options joining forces with living benefits is a combination with purchasing life insurance that you don’t typically see with other major companies.
For the ease of applying, affordable rates and benefits afforded to you, you would be crazy to ignore Phoenix Life Insurance Company as a viable option for coverage.
We believe Phoenix Life Insurance is one of the best possible contenders that you should consider doing business with when attempting to protect what matters most in life.
Ultimately, the choice is yours? Who are you going to choose? When Will You Get Started?