Compare Protective Life Insurance vs. Pacific Life Insurance

Protective Life and Pacific Life have more than a century of experience providing life insurance coverage, and both are rated A+ (Superior) for financial stability by A.M. Best. Both companies have stellar reputations and hundreds of thousands of policyholders. They offer competitive premium rates that are comparable to one another.

But for all their similarities, these two companies have some key differences you should be aware of when shopping for a policy. Your family's needs and budget will determine which company has the right solution for you. The only way to be sure you're getting the best deal is to research and compare quotes.

In this guide, we compare Protective Life insurance vs. Pacific Life insurance and break down the product offerings from both companies.

Compare Protective Life Insurance vs. Pacific Life Insurance: Product Offerings

Protective Life and Pacific Life both offer term life insurance and several forms of permanent life insurance. However, each has at least one niche offering not available from the other company. The following list explains the available coverage types and which companies offer them.

Life Insurance Products Offered by Both Companies

• Term life insurance: Term life insurance provides coverage for a specific term rather than for the rest of the policyholder's life. Because coverage expires at the end of the term, which usually occurs while the policyholder is still alive, term life insurance is much cheaper than permanent life insurance. It allows people to obtain large amounts of protection for low premiums during the years they need it most, such as when their children are young. Protective Life and Pacific Life both offer term policies from 10 to 30 years in 5-year increments.
• Whole life insurance: Whole life insurance provides coverage for the rest of the policyholder's life at a fixed monthly premium. No matter what happens with the market or insurance rates, once a policyholder locks in a premium and benefit amount on a whole life policy, neither will change, assuming the policyholder doesn't lapse on their payments. Because whole life policies always pay a death benefit at some point, whether a year or 50 years down the road, the insurance company has to charge more in premiums. Another benefit of a whole life insurance policy is that it builds cash value over time.
• Universal life insurance: Universal life insurance is another form of permanent insurance. It differs from whole life insurance in that both the premiums and the benefit amount are flexible. The policyholder can adjust them as their needs change. They can pay more for a higher benefit amount while their kids are young and reduce their premium payments and accept a lower benefit amount when their kids grow up and become self-supporting. Like whole life insurance, universal life insurance builds cash value at a fixed interest rate.
• Indexed universal life insurance: Indexed universal life insurance is just like traditional universal life insurance, except with one key difference: An indexed policy's cash value does not grow at a fixed, guaranteed rate of interest. Instead, it is pegged to an equity index such as the S&P 500. As the index gains or loses value, so does the policy's cash value at the same rate. 

Life Insurance Products Offered by Protective Life Only

• Variable life insurance: Variable life insurance has many of the same features as whole life insurance. It offers a fixed, permanent death benefit and fixed monthly premiums. It also builds cash value. The difference is in how the cash value is invested. Rather than growing at a fixed interest rate, the cash value of a variable life policy is invested in the market — usually stocks and money markets. So, it has stronger growth potential than a whole life policy, but there's also a greater risk of loss.

Life Insurance Products Offered by Pacific Life Only

• Variable universal life insurance: Variable universal life insurance combines the features of variable life insurance and universal life insurance. It offers flexible premiums and benefit amounts along with a cash value that is invested in equities.

How Do Premium Rates Compare Between Protective and Pacific Life?

Life insurance premiums depend on a number of factors, such as the policyholder's age, gender, preexisting health conditions and history of tobacco use. Both Protective Life and Pacific Life have competitively priced products, and for a healthy, nonsmoking applicant, the premium differences between the two companies are negligible. However, just because a typical person can get similar rates from Protective Life and Pacific Life doesn't mean every applicant can, which is why you should take the time to build out quotes from both companies before deciding.

The following table shows the average monthly premiums from each company for a 20-year, $250,000 term life policy.

Source: Finder

Which of These Companies Offers Better Policy Riders?

Policy riders provide additional coverage in specific situations such as the death of a child or the diagnosis of a critical illness. Protective Life and Pacific Life both offer a robust array of riders.

Policy Riders Offered by Both Companies

• Waiver of premium rider: This rider waives premiums upon diagnosis of a critical illness.
• Accelerated death benefit rider: This rider pays the death benefit early if the policyholder is diagnosed with a critical illness.
• Child rider: This rider provides an additional death benefit for a minor child under 18.

Policy Riders Offered by Protective Life Only

• Accidental death benefit rider: This rider provides an additional death benefit for qualifying accidents.
• Disability income rider: This rider pays a monthly benefit if the policyholder becomes disabled.
• Term insurance rider: This rider temporarily increases the death benefit of a whole life policy for a specified term.
• Guaranteed insurability rider: This rider allows a policyholder to purchase additional insurance in the future without a medical exam.

Policy Riders Offered by Pacific Life Only

• Conversion rider: This rider allows a policyholder to convert a term life policy to whole life without a medical exam.
• Long-term care rider: This rider lets a policyholder use their death benefit to pay long-term care costs.

Deciding on the Right Life Insurance Policy

You can find competitive life insurance from either Protective Life or Pacific Life. Both companies are financially stable and have stellar reputations. But one company might be a better fit based on you and your family's unique needs. A financial advisor can help guide you to the right policy.