Liberty Mutual Life Insurance Review

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Liberty Mutual

 Liberty Mutual

Our Take

Liberty Mutual is a major insurance company that sells auto and property insurance. Prior to 2018, it also sold individual life insurance and annuity products, but that section of its business was acquired by Protective Life Corporation. Through the Liberty Mutual website and the company’s agents, customers can still purchase term and whole life insurance policies. However, the policies are issued by Protective Life rather than Liberty Mutual. While you can get quotes for term life insurance through Liberty Mutual’s site, its quote feature has fewer options—especially when it comes to requested coverage amount and term length—than if you got a quote directly from an insurance agent.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • Get quotes for up to $10 million in term coverage online

  • Simplified coverage available

Cons
  • Online quotes not available for all insurance options

  • No guaranteed issue policies

  • Surrender charges may apply if you cancel your policy

Key Takeaways
  • Liberty Mutual was founded in 1912 and is headquartered in Boston, Massachusetts.
  • Its individual life insurance and annuity segments were acquired by Protective Life Corporation in 2018.
  • The company sells both term and whole life insurance policies.
  • Policies are available to residents in all 50 states.
Company Overview

Liberty Mutual was founded in 1912 and is based in Boston, Massachusetts. It is the sixth-largest property and casualty insurer in the world based on gross written premium. 

In 2018, Liberty Mutual sold its individual life and annuity business to Protective Life Corporation, a wholly owned U.S. subsidiary of Dai-ichi Life Holdings. While Liberty Mutual advertises life insurance policies, it redirects customers to Protective Life’s site and operates as a separate and independent entity. 

Through Protective Life, term and whole life coverage is available to residents in all 50 states.

  • Year Founded 1912
  • Kinds of Plans Term, whole
  • Number of Plans 4
  • Payment Plan Options Monthly, annually
  • Customer Service Online, Agent
  • Phone 1-800-290-8711
  • Official Website www.libertymutual.com

Liberty Mutual is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.

Pros Explained

  • Get quotes for up to $10 million in term life coverage online: Through Liberty Mutual’s website, you can get quotes for up to $10 million in term coverage with a 30-year term. 
  • Simplified coverage available: Not all of the plans sold through Liberty Mutual’s website require medical exams. Depending on your desired coverage, you may qualify for simplified underwriting and skip the exam. 

Cons Explained

  • Online quotes not available for all insurance options: Only term life coverage is available for online quotes, and there are limits on coverage amounts and term length. If you’re interested in higher coverage amounts, longer terms, or whole life coverage, you’ll have to contact an agent. 
  • No guaranteed issue policies: Many companies offer guaranteed issue policies where you can’t get denied because of your health history. However, Liberty Mutual and Protective Life don’t sell guaranteed issue policies. All of their policies require medical exams or health questionnaires.  
  • Surrender charges may apply if you cancel your policy: If you cancel your whole life policy, you may have to pay a surrender charge.  

Available Plans

Through the Liberty Mutual website or insurance agents, you can purchase term or whole life coverage. The company offers both simplified policies and policies with full underwriting. 

Term Life 

Term life insurance is a popular choice for families who want to protect their loved ones. It’s a form of temporary coverage that lasts for a specified term. If you pass away during the covered policy term, your beneficiaries will receive a lump sum payout of the plan’s death benefit. Once the term expires, your beneficiaries don’t receive a benefit. 

  • Protective Series Passport Simplified Issue: With the Series Passport Simplified Issue policy, you can get up to $250,000 in coverage without a medical exam. You can select a term of 10, 15, 20, or 30 years. 
  • Protective Classic Choice Term: With Classic Choice term, you can select a term of 10, 15, 20, 25, 30, 35, or 40 years. Policies are available with death benefits of $10 million or more with full underwriting. 

Whole Life 

For those who want the peace of mind of permanent coverage, whole life insurance can be a good choice. Unlike term life policies, whole life plans last for your lifetime and can accumulate cash value over time. 

Liberty Mutual and Protective Life have two whole life options: 

  • Protective Non-Participating Whole Life: With this policy, you can get a level death benefit with all premiums and benefits guaranteed. 
  • Protective Series Whole Life Simplified Issue: If you opt for the Protective Series Whole Life Simplified Issue policy, you can get up to $250,000 in coverage without undergoing a medical exam. 

Available Riders

When shopping for life insurance through Liberty Mutual, you have the option of adding insurance riders—also known as endorsements—to your policy. Riders allow you to customize your policy, access benefits early under certain circumstances, or get coverage for other people. 

Liberty Mutual and Protective Life offer the following riders and benefits: 

Accidental Death

If you add the accidental death rider to your policy and die as a result of a covered accident, your beneficiaries will receive an additional death benefit. 

Children’s Term Life

By adding the children’s term rider to your policy, you can get term life insurance for your children. 

Guaranteed Insurability

The guaranteed insurability rider allows you to increase the face amount of your policy in the future without undergoing additional health exams. 

Customer Service

Liberty Mutual life insurance policies are sold through insurance agents. You must contact an agent to apply for coverage and set up your medical exam, if required. You can fill out the Contact Agent form to find an agent near you. Or, you can call 800-699-6459. 

Liberty Mutual and Protective Life do have an online portal for policyholders. When you log in, you can make payments, change beneficiaries, or begin the claims process. 

Complaint Index

The complaint index is a tool you can use to compare insurance companies. The National Association of Insurance Commissioners (NAIC) releases complaint ratios each year, a number that reflects how many consumer complaints a company received relative to its share of the insurance market. 

The average complaint ratio is 1.0. Companies with ratios above 1.0 received more complaints than expected, while companies with ratios under 1.0 received fewer complaints. 

For 2020, Liberty Mutual’s complaint ratio was 1.82, higher than the national complaint index. However, the company’s complaint ratio doesn’t include its individual life insurance business since that segment was sold to Protective Life Corporation. 

Since Protective Life Corporation is now the issuer of Liberty Mutual’s individual life insurance products, we looked at its complaint ratios. In 2020, Protective Life’s complaint ratio was 0.79, better than the national complaint index. 

Note

From 2018 through 2020, Protective Life Corporation has had better-than-average complaint ratios, receiving relatively few complaints considering its share of the market.

Third-Party Ratings

Liberty Mutual is not included in the 2020 J.D. Power Individual Life Insurance Study that evaluated 24 top life insurers on pricing, products, and customer service. However, Liberty Mutual’s parent company, Protective Life, was ranked 13th in the study, with a rating slightly below the industry average. 

Liberty Mutual is regarded as a strong insurance company. AM Best, a credit rating agency that evaluates companies and issues its opinions on their financial strength, gave Liberty Mutual an A (Excellent) Financial Strength Rating. 

Protective Life has an A+ (Superior) rating from AM Best, signaling the organization’s confidence that Protective Life can meet its policy obligations. 

Cancellation Policy

As with other insurance companies, Liberty Mutual and protective Life have a 10-day free look period. You can use the free look period to review your policy documents and contracts and cancel your policy for a full refund. 

However, cancellation procedures once the free look period expires vary based on your policy type. Term life policies can be canceled at any time, but you won’t get a refund of the premiums you paid. With whole life coverage, there may be a surrender charge. 

To cancel your policy, contact your insurance agent. 

Price

According to the J.D. Power 2020 U.S. Individual Life Insurance Study, Liberty Mutual and Protective Life’s policies are about average in price. While you can get a quote online, Protective Life only allows you to get quotes for Protective Series Passport Term Life. For all other policies, you must contact an agent. 

Below are quotes for individuals in excellent health for $500,000 in term coverage.

   25-Year-Old Woman  25-Year-Old Man
10 Years $16.65 $20.70
15 Years $18.00 $22.50
20 Years $20.70 $25.20
30 Years $27.45 $33.30

As with other companies, Liberty Mutual and Protective Life require you to select “male” or “female” when getting quotes or submitting an application. If you identify as nonbinary, you are still eligible for life insurance, but you should be aware that companies have not yet updated their procedures to reflect a current understanding of gender issues. 

Competition

Liberty Mutual’s term and whole life policies offer high coverage amounts and simplified issue options, but how does the company stack up to Mutual of Omaha, a top-rated insurance company? 

With Mutual of Omaha, you can purchase insurance over the phone or through an agent. However, you can also purchase some policies online, making it quicker and more convenient than Liberty Mutual. Mutual of Omaha also offers guaranteed issue whole life policies, so eligible consumers can get up to $25,000 of coverage without answering health questions or going through a medical exam. 

Mutual of Omaha is widely regarded as a top life insurance company. In the J.D. Power 2020 U.S. Life Insurance Study, the company was ranked fifth out of 24 insurance companies.

  Liberty Mutual/Protective Life  Mutual of Omaha
Market Share Not applicable 17th in the U.S., 1.4%
Number of Plans 4 11
Dividends for 2020 Not applicable Not applicable
Wellness Program Discounts/Quit Smoking Incentives Not applicable Not applicable
Service Method Agent Online, phone, agent
AM Best Rating A (Excellent) A+ (Superior)
Price Rank About Average About Average
Complaints Trend 0.79 (Protective Life) 0.65
Final Verdict

While Liberty Mutual is a well-known insurance company, it no longer sells individual life insurance itself. Instead, it sold that portion of its business to Protective Life Corporation; all life insurance policies are issued by Protective Life. 

The company offers simplified and fully underwritten term and whole life policies with high coverage amounts. However, you need to work with an agent to get quotes and apply. And, guaranteed issue policies aren’t available. 

If you’re looking to purchase insurance on your own online or want to get coverage without answering questions about your health, you’ll have to go through another company.

How We Review Life Insurance Companies

Our reviews of life insurance companies are based on a quantitative approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation. 

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Willkie Farr & Gallagher. "Protective Life Acquires Liberty Mutual’s Individual Life and Annuity Business in $3.3 Billion Multi-Party Deal." Accessed March 4, 2021. 

  2. NAIC. "Liberty Mutual Fire Insurance Company - Complaint Index." Accessed March 4, 2021. 

  3. National Association of Insurance Commissioners. "Protective Life Corporation - Complaint Index." Accessed March 4, 2021. 

  4. J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed March 4, 2021. 

  5. AM Best. "AM Best Affirms Credit Ratings of Liberty Mutual Holding Company Inc. and Its Subsidiaries." Accessed March 4, 2021. 

  6. AM Best. "AM Best Affirms Credit Ratings of Protective Life Corporation and Its Key Life Subsidiaries." Accessed March 4, 2021.