Life insurance is a vital element of most all financial plans. One of the biggest reasons for this is because the proceeds that are received by life insurance policy beneficiaries can be used for any number of financial needs, such as the payoff of debt (including a home mortgage), as well as the payment of everyday living expenses. This could be especially beneficial if the insured were a family's primary breadwinner.
Before you purchase a life insurance policy, it is essential to ensure that you will be getting the proper type of coverage, as well as the right amount of protection for your specific needs. Knowing that the underlying insurance company is reliable and stable financially is another important piece of the puzzle, as you will want to know that the insurer can pay out it's allotted claim if or when the time should come. One company that has an excellent reputation for its financial stability, as well as its timely payment of policy holder claims is Liberty Mutual.
The History of Liberty Mutual Insurance Company
Liberty Mutual has been in the business of helping consumers and businesses protect what is important to them for more than 100 years. The company was initially founded in the year 1911 when the Massachusetts Legislature passed a law that required employers to protect their employees with workers' compensation insurance.
The company was originally known as the Massachusetts Employees' Insurance Association or MEIA, and it officially began its operations on July 1, 1912. The company began as a mutual insurer, which means it was owned by its policy holders, as versus having to answer to a group of stock holders. The company is still a mutual insurer today.
Throughout the years, the company has grown and expanded – and today it is a top U.S. insurer. Liberty International has grown from a collection of smaller local businesses into a multi-billion, multi-national entity that has operations in Europe, Latin America, and Asia Pacific, in addition to the United States.
Other components of this entity include:
- Liberty International Underwriters
- Liberty Specialty Markets
- Liberty Mutual Surety
In addition to offering products and services that can assist clients with growing and protecting their wealth, Liberty Mutual is also a large sponsor of sporting events, as well as charitable organizations. The company's primary headquarters is in Boston, Massachusetts.
Liberty Mutual Life Insurance Review
Today, Liberty Mutual is ranked as number 75 on the Fortune 500 list of largest U.S. corporations (based on the company's 2016 revenue figures). As of year-end 2016, Liberty Mutual Insurance brought in roughly $38.3 billion in revenues for the year.
The company has invested its assets conservatively, to be ready to make timely payments of its policy holders' claims. More than 87% of Liberty Mutual's cash and invested assets are placed in Bonds, while another 4.1 percent is invested in cash and other short-term cash equivalents.
The life insurance and annuities that are provided by Liberty Mutual are issued by Liberty Life Assurance Company of Boston, with the company's headquarters located in Boston, MA, and the service center based in Dover, New Hampshire.
Insurer Ratings and Better Business Bureau (BBB) Grade
Liberty Mutual Insurance is very stable financially – and because of that, it has received high ratings from the insurer rating agencies. These include an A (Excellent) from A.M. Best Company, an A2 (Good) from Moody's Investor Services, and an A (Strong) from Standard & Poor's.
Also, Liberty Mutual has been a qualified company of the Better Business Bureau (BBB) since April 26, 1931. The company has been given a grade of A+ by the BBB, which is on a general grade scale of A+ to F.
In the previous three years, Liberty Mutual has completed a total of 1,236 custom complaints, of which 242 of these complaints were closed out within the past 12 months. Of the total 1,236 complaints, 872 regarded problems with the company's products and services. Another 276 were regarding billing and/or collection issues, 46 had to do with advertising and/or sales problems, and 22 were related to delivery issues. The remaining 20 were about guarantee/warranty issues.
Life Insurance Plan Options Offered By Liberty Mutual Insurance Company
Liberty Mutual insurance has a long list of life insurance policy options from which to choose. These include both term and permanent life insurance coverage. Term life insurance policies provide a death benefit, with no cash value build up. Because of this, a term life insurance policy can be quite affordable – especially if the insured is in good health at the time of the application for coverage.
Term life insurance policies are purchased for a set number of years, such as ten, fifteen, twenty, or even thirty. Typically, these policies will offer guaranteed coverage during the level term period, as well as a level amount of premium that cannot be increased.
With Liberty Mutual, coverage options for term life insurance policies include 10, 15, 20, or 30 years. These plans also have a variety of different optional riders that are available and can be added to help with further “customizing” the coverage.
The term life insurance policies offered through Liberty Mutual include the following:
- Liberty Series Passport 10
- Liberty Series Passport 15
- Liberty Series Passport 20
- Liberty Series Passport 30
Liberty Mutual also offers permanent life insurance product options. With a permanent life insurance policy, there is both death benefit protection, as well as cash value. The cash that is in the liquid section of the policy can grow on a tax deferred basis, meaning no taxes are due on the gain unless or until the money is withdrawn.
Policy holders can either borrow or withdraw cash from the cash value for any need they see fit, such as the payoff of debts, the supplementing of retirement income, or even to take a nice, long awaited vacation.
Liberty Mutual has both whole life and universal life insurance plans. While life offers level premiums, strong guarantees, and valuable protection that will last for the remainder of the insured's lifetime. Whole life insurance will also steadily build cash value over time.
Many whole life insurance plans are offered through Liberty Mutual. These include the:
- Liberty Series Whole Life – This plan provides level premium payments for the entire life of the insured – up to the policy anniversary that follows the insured's 100th birthday.
- Liberty Series Life (paid up at age 65) – This plan provides the ability to make level premium payments until the policy anniversary that follows the insured's 65th birthday.
- Liberty Series 20-Year Payment Life – With this plan, the policy holder will make level premium payments for 20 years. After that, the policy will be paid up.
- Liberty Series Extra Value Life – The Liberty Series Extra Value Life plan is a “hybrid” policy that combines both permanent and temporary life insurance coverage. This allows for a premium that is usually lower than that of a whole life insurance policy.
- Liberty Series Estate Maximizer Next Generation – With this plan, the insured is covered by a whole life insurance policy that is paid for via just one, single lump sum premium payment. This policy provides permanent life insurance protection and a death benefit that is larger than the original premium payment. The payment with this policy will increase in value over time by a factor that is based on the insured's gender and age. The immediate increase in death benefit makes this life insurance a good match for those who wish to transfer assets in a tax advantaged manner.
There are also several options for universal life insurance that can be purchased through Liberty Mutual. Universal life insurance provides death benefit protection and cash value; however, it is more flexible than whole life. This is because the premium due date can be altered (within certain guidelines). The policy holder may also be able to decide how much of his or her premium goes towards the policy's cash value component, and how much goes towards the death benefit.
Universal life insurance plans that are offered by Liberty Mutual include the following:
- Spirit Series Performance Universal Life – This plan provides permanent life insurance protection that builds cash value. Policy holders have the flexibility to adjust their level of coverage, as well as their premium payments, to meet their needs.
- Spirit Series Universal Life – The Spirit Series Universal Life insurance policy provides an affordable form of permanent life insurance that is not necessarily designed for building long-term cash value. This plan does offer unique lapse protection features, as well as continuous life insurance protection through any circumstance if the insured meets certain requirements.
Other Products and Services Available
In addition to life insurance, Liberty Mutual also offers a broad range of other goods and services. These include the following:
- Critical Illness insurance
- Identity Theft insurance
- Pet insurance
- Tuition insurance
- Small Business insurance
- Home owner’s insurance
- Apartment insurance
- Condo insurance
- Landlord insurance
- Mobile Home insurance
- Flood insurance
- Umbrella insurance
- Car insurance
- Motorcycle insurance
- Boat insurance
- Watercraft insurance
- Antique and Classic Car insurance
- ATV and Off-Road Vehicle insurance
- RV (Recreational Vehicle) insurance
- Vehicle Insurance Plans
- Rental insurance
- Key Employee Insurance
The company also has a selection of retirement annuities. Because people are living longer today, one of the biggest concerns that retirees have is running out of money during retirement. An annuity can help to alleviate this issue, when the lifetime income option is chosen.
Through Liberty Mutual, there are single premium deferred annuities (SPDAs), and flexible payment deferred annuities (FPDAs). With a single premium deferred annuity, just one single lump sum payment is needed to attain a guaranteed stream of income in retirement. With a flexible payment deferred annuity, deposits may be made over time, prior to converting the annuity over into an income stream. The growth on the money that is inside of the account will grow tax deferred.
How to Get the Best Premium Quotes on Life Insurance Coverage from Liberty Mutual
If you are shopping around for the best premium rates on life insurance coverage from Liberty Mutual – or from any life insurance company – then it is recommended that you partner with an independent insurance agent. In doing so, you will be able to compare policies and premiums in an unbiased manner – and from there, you can determine which option will be best fit for you.
When you are ready to proceed, we can help. We are an independent insurance brokerage and we work with many of the top life insurance carriers in the industry today. We can assist you with getting all the key details that you need for making a well-informed buying decision. To get started, all you need to do is just simply fill out our quote form.
Still have questions or concerns about life insurance coverage? Please feel free to reach out to us directly and talk with one of our experts. We can be reached via phone, toll-free, by dialing 888-836-7071.
We understand that the acquisition of a life insurance plan can be somewhat overwhelming. There are many different parameters to think about, and you want to be sure that you are moving in the right direction. But this process can be made so much easier when you are working with an ally on your side who can walk you through it from start to finish. So, contact us today – we're here to help.