In today's world, securing your loved ones' financial future is paramount. Life insurance offers a safety net, providing a payout that can ease financial burdens and maintain their well-being in your absence. When considering life insurance providers, Pacific Life Insurance Company stands out as a reputable contender. This review delves deep into Pacific Life's offerings, exploring their financial strength, policy options, customer service, and more.
As you navigate the vast landscape of life insurance providers, it's crucial to compare options and find the company that best aligns with your needs. This review positions Pacific Life within the realm of Best Life Insurance Companies. We'll analyze their strengths and weaknesses, allowing you to make an informed decision as you explore your life insurance options.
Pacific Life Insurance Review
Pacific Life excels in most of the characteristics that define an excellent life insurer. The company receives an unusually low amount of complaints, is scored well by J.D. Power for customer satisfaction, provides a diverse selection of policy types, has some of the most affordable term coverage we've seen, and offers high coverage no-medical-exam life insurance products.
However, it falls short when it comes to online and self-service capabilities. Unlike many other term life insurance providers, you cannot obtain a quote from the company's website or apply for a policy without first contacting an agent.
Pacific Life, established in 1868, is one of the oldest insurance firms we studied. The corporation is based in Omaha, Nebraska, but was formed in Sacramento, California, hence the name "Pacific." It was based there until it relocated to Nebraska in 2005, but it still has a home office in Newport Beach. The organization provides coverage across the country and currently insures 1.2 trillion dollars. You can buy Pacific Life insurance through an agent or broker.
Pros:
- Excellent client satisfaction.
- Cheap term coverage.
- Policy details are available online.
- 90-year-olds qualify for coverage.
Cons
- No online quote
- Cannot apply without an agent.
| AM Best Rating | NAIC Score (avg.) | Years In Business | Policy Types | Accept Credit Cards |
|---|---|---|---|---|
| A+ | N/A | 154 Years | Whole, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL) | Included |
Pros and Cons Explain
Pros of Pacific Life Insurance
Outstanding customer satisfaction: Pacific Life has very happy customers and an impressively low incidence of customer complaints. Of the 91 life insurance companies we reviewed, Pacific Life received the second-lowest number of complaints (based on its size and measured over three years). So it’s little surprise that the company came in fifth in J.D. Power’s 2022 U.S. Individual Life Insurance Study for customer satisfaction as well.1
Cheap term coverage: We reviewed term life insurance quotes from 32 life insurance companies for healthy applicants of different ages. Pacific Life had the second-cheapest quotes in general, just behind Protective and Banner, which tied for offering the most affordable coverage on our list of the best term life insurance companies.
Policy details are online: A number of life insurance companies require you to call an agent to get policy details. But Pacific Life lets you explore product features on your own on its website via product descriptions and downloadable guides. It also prompts you to choose your state so you can see which products are available to you. If you value doing your own research, know that this level of transparency is uncommon.
90-year-olds are eligible for coverage: Pacific Life is one of only six of the 91 insurance companies we reviewed that offer life insurance to 90-year-old applicants.
Cons of Pacific Life Insurance
No online quote: Many companies that offer term life insurance make online quotes available on their website, but not Pacific Life—though you can get a Pacific Life quote through some online life insurance brokers.
Can’t apply without an agent: If you want term life insurance from Pacific Life (or any other type of coverage), you’ll need to connect with an agent. While online applications aren’t yet the norm, they’re not uncommon. About one-third of the companies we reviewed offer an online application process for at least one type of coverage.
Complaint indices.
Pacific Life has the second-lowest amount of client complaints of any of the 91 firms we analyzed, as well as the fewest complaints among the 25 major life insurance companies in the country. To determine how many complaints companies receive, we turned to the National Association of Insurance Commissioners (NAIC), which produces a complaint index that quantifies how many client complaints a company receives in relation to its size.
If a company's complaint index is 1.0, it has received the expected number of complaints. A lower index than 1.0 indicates that the company received less complaints than expected, whereas a higher index indicates that the company received more complaints than anticipated. Pacific Life's complaint index is practically zero (0.04), indicating an extremely low occurrence of complaints.
Third-Party Ratings
Pacific Life performs well in a couple of areas evaluated by third-party rating systems.
AM Best rated the company well due to its financial strength. The credit rating agency rated it an A+, indicating a strong ability to meet its ongoing insurance commitments. This is AM Best's second-highest grade, following A++, which indicates a "superior" ability to settle claims.
Tip: AM Best is an independent credit rating firm that evaluates the financial soundness and claims-paying ability of over 16,000 insurance companies worldwide. AM Best has a rating scale ranging from A++ to D.
pacific Life also excels with customer service. It rated fourth in a J.D. Power customer satisfaction study, earning 793 points out of a potential 1,000 points—well above the average corporate score of 774 points and 46 points behind the leader, State Farm.
Competition
| Insurance Provider | Coverage Options | 2022 Dividends | Online Application | AM Best Rating | Term Policy Affordability | Complaint Index | J.D. Power Ranking |
|---|---|---|---|---|---|---|---|
| Nationwide | We provide a variety of plans including Term, Whole Life, UL, IUL, VUL, and Final Expense. | Dividends were not applicable for us in 2022. | Yes, we facilitate online applications for convenience. | Our financial strength is rated at A+. | Our term policies are competitively priced at an average cost. | Our NAIC Complaint Index over three years averages at 0.07. | We are proud to be ranked 6th by J.D. Power. |
| Pacific Life | Our offerings include Term, Whole Life, UL, IUL, and VUL insurance | Like Nationwide, we did not distribute dividends in 2022. | Currently, we do not offer an online application process. | We also hold an A+ rating for our financial stability. | We are known for our excellent pricing on term policies. | Our three-year average NAIC Complaint Index is a low 0.04. | Our J.D. Power ranking is a commendable 5th place. |
| MassMutual | We offer Term, Whole Life, UL, and VUL coverage. | In 2022, we distributed nearly $1.85 billion in dividends | Yes, we provide the option to apply online. | We boast a superior A++ AM Best Rating. | Our term policies are priced better than average. | Our NAIC Complaint Index three-year average stands at 0.133. | Our service quality is reflected in our J.D. Power ranking of 9th. |
Policies available.
Pacific Life offers an extensive range of policy options. If you're not sure what kind of insurance you need, chances are you'll find it here. It's worth noting that if you're 50 or younger, you could be eligible for up to $5 million in coverage under practically any Pacific Life life insurance policy. If you are between the ages of 51 and 60, you are eligible for up to $3 million.
Whole Life Insurance
Unlike term insurance, whole life insurance, often known as cash-value insurance, is a sort of permanent coverage that is intended to last a lifetime. Pacific Life lists whole life insurance among its product options, but according to its website, it does not currently sell whole life policies in any state.
Universal Life Insurance
Universal life (UL) insurance is a sort of permanent or cash-value life insurance. Cash value growth is determined by current interest rates, and premiums and death benefits are variable. UL policies are more likely to lapse in their later years than whole-life policies.
Versa-Flex Venture VUL: This policy is accessible to applicants aged up to 90 years old. If you pay the specified premium, you can keep the policy from expiring for four to twenty years, depending on your age. (You can add a no-lapse guarantee rider for an extra price that guarantees lifetime coverage.)
PL Promise GUL: Includes a lifetime no-lapse guarantee rider at no extra charge. This secures your death benefit for life if interest rates do not perform as expected and your cash value is insufficient to cover insurance costs.
Term Life Insurance
Term life insurance is a temporary type of life insurance that is designed to last for a period of years, typically between 10 and 30. If you pass during that time, your beneficiaries receive the death benefit. Term policies don’t have a cash value, but may come with an option to convert the coverage to permanent insurance. They’re also often renewable on an annual basis once the initial term expires (for a higher premium).
Pacific Elite Term: This policy is convertible for up to ten years after it is issued and is available for terms of ten, twenty, and thirty years. It includes a terminal illness rider at no additional charge.
PL Promise Terms: This policy is available in increments of 10, 15, 20, 25, and 30 years and can be converted to permanent coverage at any time throughout the term duration.
Variable Life Insurance
Variable universal life (VUL) allows you to invest the cash value of a universal life policy in the stock market via subaccounts, which work similarly to mutual funds. Variable life is the most risky type of life insurance since the cash value might fall if your assets underperform. PacLife's VUL insurance are open to 90-year-old applicants.
- Pacific Select VUL II: In addition to variable subaccounts, this insurance also includes indexed and fixed account alternatives.
- Pacific Select Harbor VUL offers a variety of investing possibilities, but no indexed accounts.
- Pacific Admiral VUL provides low-cost investment solutions in addition to indexed accounts.
Warning: VUL policies may lose value since their cash value is placed in market securities. As a result, they must be sold with a prospectus by a licensed securities dealer and are not guaranteed.
Indexed Universal Life Insurance
Indexed universal life (IUL) policies are a type of universal life insurance in which cash value gains correlated to the performance of a stock market index like the S&P 500. Unlike VUL policies, the cash value cannot lose value based on market performance. Though less risky than VUL insurance, IUL policies are complex. The cash value is still subject to loss if the amount credited to it is not sufficient to keep up with policy expenses.
Pacific Life provides several IUL options:
- Pacific Horizon IUL: A simple IUL policy that provides three indexed accounts, a restricted variety of riders, and excludes "performance factors," which might boost the interest credited to the cash value.
- Pacific Trident IUL: Offers cash value protection through minimum cash surrender value guarantees and minimum interest guarantees.
- Pacific Discovery Xelerator IUL 2: Provides extra performance parameters for an additional fee, which can improve the amount attributed to the monetary value.
- Pacific Indexed Accumulator 6 provides performance characteristics and high cash surrender values in the policy's early years.
- Pacific Indexed Estate Preserver 3: This is a second-to-die VUL policy with coverage for two persons.
Available Riders
Riders can extend or expand the coverage and benefits included in your life insurance policy. Pacific Life offers several riders, including:
- Chronic sickness care: If you develop a chronic illness that prevents you from doing at least two activities of daily living (ADLs), you can advance the entire death benefit (up to $3 million) in monthly or annual installments.
- If you are diagnosed with a terminal illness, you may be eligible to receive up to 75% of the death benefit early.
- Long-term care rider: Pacific Life's Premier Care policy combines universal life insurance and long-term care benefits. Long-term-care expenses can be covered for two to eight years if necessary, and you can boost the amount of monthly benefits you're entitled for with inflation protection.
- Accidental Death Benefit Rider: If an insured individual dies as a result of an accident, an additional death benefit is provided.
- Children's level term insurance rider You can purchase up to $10,000 of coverage for each dependant child aged 15 days to 18 years.
- Guaranteed insurability (GI) rider: This rider allows you to boost your death benefit at specific ages or after triggering events without having to take a medical test or reapply for coverage. GI riders usually die around the age of 45.
- Disability waiver of premium rider: If you become disabled before the age of 65, policy premiums will be waived after a 180-day waiting period.
Customer Service
You can contact Pacific Life's customer service department for life insurance at (800) 347-7787 between 6 a.m. and 5 p.m. Pacific Time, Monday through Friday. If you prefer, you may submit a contact form with your personal information and the topic of your inquiry. You should have a response within 48 hours.
Price
Pacific Life has some of the most cost term insurance premiums among the 32 firms we analyzed. We obtained quotations for 30-year $250,000 term policies for males and females in good health ages 25, 40, and 55 years old. Pacific Life's term policy prices were second only to Protective and Banner, who tied for the cheapest term life insurance. Even if you aren't specifically seeking for term coverage, you might want to consider supplementing your permanent life insurance with one of the company's relatively reasonable term policies.
Is Pacific Life Insurance Right for Me?
Pacific Life is a strong, well-established life insurance company with a record of pleasing its customers. As researchers, we appreciate how much policy-specific information is available online. If these features appeal to you, you’re likely to find a policy type that works for you, since Pacific Life offers so many. It’s an especially good choice if you’re looking for high coverage, no-medical-exam life insurance or cheap term insurance and are comfortable working through an agent to get a quote and apply. If you’re looking for an IUL policy, it’s worthwhile to consider Pacific Life because it offers up to five IUL policies, depending on your state, with distinct features and consumer profiles.
However, if you are looking for a whole life policy, Pacific Life may not have one available in your state. The company also does not provide last expenditure or funeral insurance products.