Liberty Mutual could be a decent choice for shoppers in need of final expense policies. But due to higher-than-average monthly premiums and a lack of options, we recommend shopping around before you decide on your life insurance.
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No-medical exam options are available
High financial and third-party ratings
Guaranteed convertible policy
Very high premiums
Overall lack of product options
Minimal information available on website
No way to apply online
THE BOTTOM LINE
Liberty Mutual, the third-largest property and casualty insurer in the United States, offers a few life insurance products. Its Passport Term life option requires a medical exam, but there are some no-med options in the form of final expense term and whole life policies. Some basic riders provide some customizability. Consider Liberty Mutual if you need quick-fix life insurance and ready to pay higher-than-average premiums.
For our reviews, we rate carriers based on the premier term life product. For Liberty Mutual, that’s the Passport Term term life policy.
Ease of Application
LIBERTY MUTUAL COMPANY SPOTLIGHT
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No-medical exam options are available. Liberty Mutual’s Simplified Issue Passport Term and Simplified Issue Whole Life policies do not require medical exams. You’ll only have to answer a few medical-related questions.
High financial and third-party ratings. Financial rating organizations and third-party customer sentiment sites find Liberty Mutual to be pretty favorable. A.M. Best rates the company an A, while Better Business Bureau gives the Boston-based insurer an A+.
Guaranteed convertible policy. Both regular and simplified issue term life products from Liberty Mutual contain guaranteed built-in convertible policies, which means you can switch to a permanent plan without losing coverage. You won’t need to go through further underwriting, either.
Very high premiums. Liberty Mutual’s Passport Term term life insurance is very expensive, with higher-than-industry-average monthly rates for people in “very good” health. Since most people shopping for life insurance are likely not in very good or “excellent” health, there’s a good possibility you’ll be paying more for insurance.
Overall lack of product options. Compared to other large insurers, Liberty Mutual has only a couple of options available each for term life and whole life insurance. Basically, you’re limited to standard term or whole life, or simplified issue policies.
Minimal information available on the website. Life insurance is not Liberty Mutual’s main product. That fact is reflected in its website, which contains little detail about its term and whole life products. This can make shopping and comparing products more difficult than it needs to be.
No way to apply online. If you want to apply for a policy with Liberty Mutual you’ll have to contact an independent agent. However, Liberty Mutual does offer a phone line and a website for locating agents.
Monthly rates for life insurance depend on different determining details, such as age, gender, health, and location. How long your policy lasts and how much coverage it’s for, will also decide your premiums.
That said, most people will likely pay above the national average for life insurance with Liberty Mutual. Across all age groups — except the 60s range, which isn’t available for quoting — prices are higher than most other competitors.
We based our sample quote on a non-smoking male from California in “Very Good” health applying for a $500,000, 20-year term policy:
LIBERTY MUTUAL AVERAGE
Applicants in excellent health will pay closer to the average.
You’ll notice there’s no sample quote for people over 60. Those in their 60s and above will have to call Liberty Mutual for a quote.
To see if the over century-old Liberty Mutual will last long enough to meet the financial obligations of policyholders, we turn to the expertise of credit and financial ratings companies. All three organizations give Liberty Mutual top ratings, so there’s no need to worry when it’s time to file a benefits claim.
Here’s what the financial guys have to say:
A.M. Best: A
Standard & Poor’s: A
A.M. Best, a credit rating company that focuses on the insurance market, gives Liberty Mutual an A rating. That means the company’s outlook is stable.
Bond credit rating agency Moody’s rates Liberty Mutual at A2, which describes the company as financially secure and a worthwhile investment according to Moody’s rating scale.
Finally, financial analysis firm Standard & Poor’s rates the insurer with an A, meaning Liberty Mutual has strong financial stability.
Liberty Mutual policyholders seem mostly satisfied with their chosen insurer. Any complaints found in third-party review sites and customer sentiment portals are centered around the company’s auto, home, and renters insurance, not so much life insurance.
Here’s the breakdown from top customer ratings agencies:
Better Business Bureau : A+
Consumers Advocate : N/A
Consumer Affairs : 4.1 / 5
NAIC complaint index : 0
The Better Business Bureau bases its grades on the truth of a company’s advertising, clarity of billing, and the number of customer complaints. Liberty Mutual gets an A+ rating. There is a sizable amount of customer complaints, and a 1-star rating based on customer reviews. Keep in mind, however, Liberty Mutual sells other insurance products such as auto and home, and many of the ratings and reviews refer to those services.
Consumers Advocate focuses on the policy offerings, reputation, and stability of insurance companies. They have positive reviews for Liberty Mutual’s home and auto insurance products, but not for life insurance.
Consumer Affairs lets verified users directly rate and write reviews about companies. Based on those reviews, Liberty Mutual scores 4.1 out of 5. Commenters again complain about Liberty Mutual’s auto and home products.
The National Association of Insurance Commissioners (NAIC) counts complaints submitted to state insurance departments. They give Liberty Mutual a zero on their complaint index. A score of 1 represents the baseline average, while a zero means there weren’t enough customer complaints to count. According to the NAIC, Liberty Mutual’s life insurance products have barely received any complaints.
Compare other top-rated companies
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Liberty Mutual offers simple term life and whole life insurance packages that can be modified with a decent list of riders. All scores in this review reflect the Passport Term policy.
Term life insurance
Liberty Mutual’s term life insurance product, Passport Term, is a straightforward term life product. It’s fully underwritten, so potential applicants will have to schedule and undergo a medical exam. This policy comes in 10-, 15-, 20-, or 30-year periods. Payments are guaranteed to remain level — that is, they won’t change — for that length of time.
There's a built-in option to convert to a permanent plan before the end of the term period. However, you’ll have to deal with increasing premiums at the end of your term if you want to choose to continue your coverage.
Eligible ages: 18 to 70
Term lengths: 10-, 15-, 20-, or 30-year terms
Minimum benefit: $15,000
Maximum benefit: Variable
Coverage continues until 90 years of age or death.
Simplified Issue Passport Term
Liberty Mutual also offers simplified issue term coverage, which takes about 10 minutes for approval, requires no medical exam, and includes the option to convert to a permanent policy up to five years before the term’s end. This is a type of final expense product, meaning it’s mainly used for funeral expenses and paying off any lingering debts.
Since there’s no medical exam requirement, applicants just need to answer questions about their health over the phone. You get almost immediate coverage, but will likely pay a higher premium for a lower coverage amount.
Anyone from age 18 to 65 can apply, but this simplified issue policy maxes out at $250,000, which is considerably less coverage than you’d usually get with other policies.
Term life policies with Liberty Mutual are convertible to a permanent plan up to the last five years of the policy term. Customers will not have to go through underwriting again.
Liberty Mutual offers a handful of riders that policyholders can use to customize their coverage, including:
Accelerated death benefit rider . Included at no extra charge, this lets policyholders diagnosed with a terminal illness receive a portion of the death benefit.
Accidental death and dismemberment rider . This pays an additional death benefit on top of the base policy’s payout if the insured dies from a qualifying accident. There’s also added coverage in case of a serious injury. The issue ages are 18 to 55.
Child protection rider . This rider provides life insurance coverage for all eligible children, with a minimum of $10,000 and maximum of $25,000.
Disability waiver of premium rider. If you become totally disabled you will not have to pay premiums for a fixed period of time. This benefit is payable if the insured is unable to work for two years following disability.
All riders are subject to Liberty Mutual’s varying terms and conditions, and their availability may vary state to state.
Permanent life insurance
Liberty Mutual offers a few long-term insurance products, including simplified whole life, single-premium whole life, and universal life insurance.
Unless you have specific needs, we recommend most shoppers choose a term life policy over a permanent plan. Term life is easier to understand and often much more affordable in most cases.
Whole Life Insurance Details
Simplified Issue Whole Life Insurance Details
This policy does not require a lengthy application or a medical exam. Anyone from 15 days of age to 65 years old can be insured, but the maximum benefit is only $250,000. There’s a cash value component that you can borrow against in the form of loans.
These policies are typically for covering funeral expenses, medical costs, and other kinds of debt.
Single-Payment Whole Life Insurance Details
Another policy with a quick approval that doesn’t require a medical exam. It offers a guaranteed death benefit larger than the single payment, meaning there are no monthly or annual premiums. Rather, you pay everything up front and receive a guaranteed death benefit. This type of policy is also known as prepaid life insurance.
Unless you’re planning on transferring large amounts of wealth, we don’t recommend this type of policy for most people. They’re typically very expensive, especially for older, less healthy individuals. They don’t work well as investment options either since they’re more complicated and yield lower return rates than a regular IRA or 401(k) account.
Universal Life Insurance Details
Liberty Mutual’s universal life policy has a cash value component and offers lifetime coverage. Both the premiums and death benefit are flexible depending on the customer’s financial situation.
Life insurance isn’t the main focus for Liberty Mutual. That becomes obvious when you visit their website, where you’ll find few details about their product offerings. This can make the shopping experience more tedious than it needs to be. There is no way to apply online and no online chat help, either.
Prospective customers must contact an agent to apply. Liberty Mutual has a phone line and website where you can find local agents. Most applicants will have to undergo a medical exam and answer health-related questions before approval.
Unless you’re applying for the simplified issue policies, most people will have to schedule, undergo, and then await the results of a medical exam. Liberty Mutual applicants will likely wait longer than average.
The final policy is delivered electronically.
Liberty Mutual is available in 50 states. Some policies, riders, and other options will vary state to state.
Liberty Mutual has a customer portal where you can change beneficiaries, update addresses, and obtain forms.
Liberty Mutual customers can pay by credit card, mail-in check, phone, or automatic bank draft. Deductions from your paycheck are also possible.
There’s an online quote tool and a coverage calculator that asks for income and basic personal info before suggesting an amount based on your responses.
There’s also an app where you can manage claims and view ID cards, but it’s more auto- and home-focused.
To file a benefits claim, the beneficiary must fill out a form and fax, mail, or email the following information to Liberty Mutual:
Name, phone, address
Certified death certificate
Coroner’s and police report (if applicable)
Court order (if beneficiary is an estate or minor)
Trust document (if beneficiary is a trust)
Frequently Asked Questions
Does Protective offer online quotes?
Yes, but just for Passport Term. All you have to do is enter basic information like your birthdate, height, weight, and desired coverage amount and term limit.
Do I need to take a medical exam?
Most likely, yes. Passport Term is a fully underwritten term life policy, so you will need to schedule and undergo a medical exam with a physician. Liberty Mutual also offers guaranteed issue, no-med term life and whole life policies.
Can I apply for Liberty Mutual’s life insurance products online?
Unfortunately, no. Since life insurance isn’t Liberty Mutual’s main focus, anyone curious about applying with them will need to contact a local agent.