Compare Banner Life Insurance vs. Pacific Life Insurance

Banner Life and Pacific Life are two of the most long-standing and reputable life insurance companies in America. Pacific Life has been around since 1868 — Banner since 1949 — and both are rated A+ (Superior) by A.M. Best. Hundreds of thousands of people have life insurance policies from each of these companies, so no matter which one you choose, you can know that you're dealing with an upstanding company that has the financial stability to pay its claims.

Key differences exist between the two companies in the types of products they offer, the clients they cater to and the amount they charge for premiums. This guide lets you compare Banner Life insurance vs. Pacific Life insurance side by side and find the best policy to meet your family's needs.

Compare Banner Life Insurance vs. Pacific Life Insurance: Key Differences

Banner Life and Pacific Life offer term and permanent insurance to protect your family's finances in the event of a worst-case scenario. For a typical healthy nonsmoker between 25 and 65 years old, the difference in average premium costs between the two companies is negligible — often less than a dollar per month. Both companies offer an assortment of riders and add-ons to provide additional protection in certain situations.

But there are a few differences in the two companies you should be aware of as you begin your search for the perfect life insurance policy. First, if you smoke or have a history of cancer, you might find more favorable underwriting terms at Banner Life. However, you won't be eligible for temporary insurance — a short-term policy that protects you while your life insurance application is under review. Pacific Life allows you to get temporary insurance even with a history of smoking or cancer, but it tends to charge higher premiums — a process known in the industry as "rating up" — to smokers and policyholders with preexisting health conditions.

The other major difference between the two companies involves term lengths and coverage amounts. Banner Life is more flexible with term lengths, offering seven different term options, with the longest being 40 years. Pacific Life only offers five options and goes up to 30 years. However, Pacific Life offers a wider range of coverage amounts, starting at $50,000 and going all the way to $1 million.

Which Company Offers Lower Premiums?

Banner Life and Pacific Life charge almost identical premiums to healthy nonsmokers. That said, you should always take the time to get quotes from all companies you're considering in case something unique in your applicant profile causes a disparity in rates.

The table below shows the average premium costs for a 20-year term life policy from Banner Life and Pacific Life at 25, 35, 45, 55 and 65 years old. As you can see, rates are almost identical between the two companies.

Source: Policygenius

What Products Does Each Company Offer?

Banner Life and Pacific Life both offer term life insurance as their bread and butter. When it comes to permanent life insurance, Pacific Life has a more diverse suite of products to choose from.

The following list describes the life insurance products on offer at each company.

Life Insurance Products Offered by Both Companies

• Term life insurance: Term life is the most cost-effective form of life insurance. It provides coverage for a specific length of time only. Many people with young families buy 10- or 20-year term policies to protect their minor children in the event something happens to them. When the term ends, the kids are usually grown, so they no longer need as much coverage. Insurance companies are able to offer high amounts of term life insurance at low premiums because most term policies, particularly those taken out by younger people, never actually pay a death benefit.
• Universal life insurance: Universal life insurance is a form of permanent life insurance with a flexible premium option. Policyholders can increase the death benefit in times of greater need by paying higher premiums, and they can pay lower premiums during times they wish to save money. However, this will cause the death benefit to decrease. Universal life policies also accrue cash value, which grows at a fixed rate of interest. Policyholders can tap into this cash value to cover unexpected expenses.

Life Insurance Products Offered by Pacific Life Only

• Variable universal life insurance: Variable universal life insurance is a form of universal life insurance in which the cash value doesn't grow at a fixed rate of interest. Instead, it's placed in stocks, money markets and other equities. This gives it greater growth potential but exposes it to higher risk.
• Indexed universal life insurance: Indexed universal life insurance is similar to variable universal life insurance. The difference is that instead of being invested in the market, the cash value is pegged to an equity index.
• Whole life insurance: Whole life insurance is a type of permanent, cash-value life insurance that has a fixed death benefit and fixed monthly premiums. Similar to traditional universal life insurance, the cash value of a whole life policy grows at a fixed interest rate.

What Riders and Add-Ons Does Each Company Offer?

Banner Life and Pacific Life both offer several policy riders that provide additional protection in unique situations. The following list explains the different types of riders available and which company offers them.

Policy Riders Offered by Both Companies

• Accelerated death benefit rider: This rider lets policyholders access their death benefit ahead of time if diagnosed with a critical illness.
• Child rider: This rider provides an additional death benefit to the policyholder's minor child or children. If the unthinkable happens and the policyholder loses a child, the rider generally pays enough to cover funeral expenses.

Policy Riders Offered by Pacific Life Only

• Waiver of premium rider: This rider waives a policyholder's premiums if they become critically ill or physically impaired.
• Conversion rider: This rider lets a policyholder convert from term life to permanent life insurance with no medical exam.
• Long-term care rider: This rider lets a policyholder use their death benefit to pay for long-term care.

Policy Riders Offered by Banner Life Only

• Disability income rider: This rider provides a supplementary income benefit on top of the policy's regular death benefit if the policyholder becomes totally disabled.

Choosing the Right Life Insurance Policy

Your family can receive peace of mind with a term or permanent life insurance policy from Banner Life or Pacific Life. Depending on your unique circumstances, one company or the other might offer a better product at a better price, so you should shop around and compare quotes. A financial advisor can help steer you toward the right policy.