Protective Life at a Glance: Rates, Products and Reviews

Annuities are a key factor in retirement planning, but finding the right annuity is crucial. Protective Life Insurance Company offers a generous selection of annuity products, ranging from fixed annuities to variable annuities. However, there is more to consider than just the type of annuity you purchase. With over 110 years of experience, Protective Life boasts a strong credit rating that proves financial stability and reliability.

If you are considering an investment in annuities, this is why Protective Life annuities may be worth your consideration.

Founded in 1907, Protective Life Insurance has been serving its customers for more than 110 years with its life insurance, asset protection and retirement products. It is based in Nashville, Tennessee, and serves all states with the exception of New York. Protective Life Insurance Company is a subsidiary of Protective Life Corporation, joining other family companies such as Protective Property & Casualty Insurance Company, MONY Life Insurance Company and West Coast Life Insurance.

Protective Life is not the biggest company but still performs well among other life insurance companies. According to the National Association of Insurance Commissioners (NAIC), Protective Life accounts for 0.27% of the market. This is based on a total of $6.7 billion in annual premiums.

Protective Life offers three fixed annuity products, three fixed index annuities, three variable annuities and one immediate annuity.

The Protective Income Creator fixed annuity offers guaranteed lifetime income with principal and income protection. It comes with a 7-year initial guarantee and features annual penalty-free withdrawals totaling 10% of the total contract value. The minimum initial purchase payment is $25,000 for those 50 to 80 years old, and the maximum annuitization age is 95. Additionally, there are waivers for nursing facility confinement, terminal illness and unemployment, offering extra financial flexibility and protection during difficult circumstances.

The Protective® Secure Saver fixed annuity guaranteed rates for five or seven years with 3% interest rate bands. A minimum initial purchase payment of $10,000 is required for those up to 85 years old for non-qualified contracts and ages 18 to 85 for qualified contracts. Like the Protective Income Creator annuity, it offers the nursing facility confinement and terminal illness condition waiver, as well as the unemployment waiver.

For those who want greater flexibility, there is the Protective Smart Saver NY fixed annuity. This is a limited flexible premium deferred fixed annuity with a four- to seven-year interest rate guarantee period. It is available to those up to 85 years old, with a required minimum initial purchase payment ranging from $25,000 to $1 million. There are also options for nursing facility confinement, terminal illness and unemployment waivers.

The Protective Asset Builder II fixed index annuity allows access to three indices for added growth. There is a choice of the S&P 500, J.P. Morgan Mojave Index and Citi Flexible Allocation 6 Excess Return Index with a return of purchase payment option. There is a minimum initial purchase payment of $10,000, but future deposits are permitted. This annuity is open to those up to 85 years old for non-qualified contracts and ages 18 to 85 for qualified contracts.

The Protective Guaranteed Income index annuity offers added flexibility with the option for both fixed and indexed allocation options. A Guaranteed Income Benefit is included, along with 10% penalty-free withdrawals. It is issued to those ages 50 to 79 with a $25,000 minimum initial purchase payment.

The Protective® Income Builder index annuity features low-risk asset growth with interest crediting strategies that include the S&P 500 Index and Citi Flexible Allocation 6 Excess Return Index, as well as a fixed interest option. There is also a guaranteed lifetime income benefit with a 10% roll-up. Available to those ages 50 to 85, a minimum initial purchase payment of $25,000 is required, with additional premiums allowed in the first contract year.

The Protective® Aspirations variable annuity is excellent when you want choices, giving you over 100 investment options for investments ranging from $5,000 to $1 million. With two optional lifetime income benefits, there are Quarterly or annual enhanced death benefits available. A 1% mortality and expense risk and administration charge is included. Those up to 85 years old are eligible, although there is a maximum age of 77 for the Maximum Anniversary or Quarterly Value Death Benefit.

The Protective® Variable Annuity Investors Series is better for smaller investments, allowing a $5,000 minimum initial purchase payment of $5,000. There are over 80 investment options with a 2% loyalty bonus, but it does carry a 1% mortality and expense risk and administration charge. Those up to 85 years old are eligible.

The Protective® Variable Annuity II B Series also has access to over 80 investment options, but it has a higher 1.30% mortality and expense risk and administration charge. An optional income benefit and death benefit option are also available. There is a minimum $5,000 initial purchase price, with additional investments requiring a $100 minimum before one’s 86th birthday. Those up to 85 years old are eligible.

Protective Life is an immediate annuity that offers a single annuity with flexible income options that include four payment cycles with the option for term or lifetime payments. This is valid for those up to 99 years old, although limitations are placed on those over 85. There is an initial purchase payment ranging from $50,000 to $1 million.

Protective Life enjoys excellent financial strength ratings from the leading credit agencies. AM Best, which assesses a company’s credit rating, awards Protective Life Insurance Company an A+ (Superior) rating. Protective Life is likely to pay its claims because it has the financial ability to do so.

Protective Life performs well in the market, earning an AA- rating from S&P Global. From Fitch Ratings, it receives an AA- for Long Term Insurer Financial Strength. With its founding in 1907, Protective Life shows that it can survive economic shifts and still cater to its policyholders.

The NAIC reports a below-average rating of 0.31 for its complaint index, which means it has very few customer complaints relative to its share of market premiums. The Better Business Bureau (BBB) delivers conflicting information. Although it is awarded an A- rating, it remains unaccredited. Furthermore, its reviews leave something to be desired, with a 1.09/5.00 rating based on 68 reviews.

Protective Life is also included in the J.D. Power 2023 U.S. Individual Life Insurance Study for life insurance; however, it receives a below-average score. It is not rated for annuities.

Protective Life offers a variety of annuity products designed to support long-term financial security and retirement income needs. While these annuities can provide valuable benefits, they also come with certain limitations. Here’s a closer look at the pros and cons to consider when evaluating a Protective Life annuity for your retirement strategy.

With its founding in 1907, Protective Life has been a long-time fixture on the annuities market. Today, it specializes in a host of annuity products, including variable annuities, fixed annuities, fixed index annuities and even immediate annuities. With strong credit and financial strength ratings, Protective Life is a financially stable company with very few complaints against it. It inspires extra confidence when exploring its many annuities.

Editor Norah Layne contributed to this article.