Today, we will show you more about Brighthouse Financial, their official ratings, and the most popular products available. Brighthouse Financial is an excellent life insurance company. However, the question always comes down to rather or not it is the best company for you.
2017 Review of Brighthouse Financial
Nowadays, there is more information available than ever before. Whether you want to learn about cloud patterns, flower arranging, or sports, one simple search online will tell you everything you need to know and much more. Despite this, there is still a lack of clear information when it comes to life insurance.
Over time, this has been rather damaging because it means that people are put off buying it and this leaves them (as well as their families) vulnerable.
Today, we have a Brighthouse Financial life insurance review as a continuation of our life insurance companies reviews series. If you’re currently in the process of buying life insurance, we have already given our opinions for some of the largest life insurance companies in the market (and their products) so your decision is easier than ever before.
About Brighthouse Financial
If you haven’t heard this name before, you can be forgiven because it is actually one of the newest you will find in the market. In 2016, MetLife announced that they would be launching a ‘spin-off’ company with individual life insurance and annuities included in this with a focus on the retail market.
In March 2017, the company launched as Brighthouse Financial and it is now an independent company.
Initially, this might bring some concerns because you don’t know whether you can trust a young company but this doesn’t need to be the case. As they are essentially an ‘operating segment’ of MetLife, they benefit from the huge brand name and already have some fantastic official ratings as we will see below.
Brighthouse Financial Official Ratings
When looking through life insurance companies to join, there are some factors more important than others and their financial status is perhaps the most important of all. When you buy a product from a store, you aren’t too worried about the company’s financial position. However, life insurance is a product that lasts for a significant period of time and you need to be sure that they will exist thirty years down the line.
Furthermore, you also need to be certain that any insurance company you choose can pay the claims that come their way. Considering life insurance has the aim of providing funds for loved ones, this is a crucial piece of information.
In the life insurance industry, A.M. Best is perhaps the most trusted agency as they have been rating companies for many decades. For Brighthouse Financial life insurance, they were recently awarded an ‘A’ rating which is equivalent to ‘Excellent’. In total, there are sixteen levels of rating from A.M. Best and this is the third highest which means that you would be in a secure position should you choose the company.
Normally, we like to look at the rating from the Better Business Bureau (BBB) for customer service purposes. However, there is no official rating to be seen just yet since this independent company is still new. This being said, we would expect the customer service to be just as good as MetLife which means that you will be looked after both now and long into the future. Whether you have questions, requests, or even a problem with the policy, the company is normally very good at interacting with consumers.
Aside from these, Brighthouse Financial is very open with information and they post some interesting numbers on their website. As a result, we can see that Fitch has given them a ‘Strong’ rating which is the same as S&P. Additionally, they have an ‘Upper Medium’ rating from Moody’s so the overall financial outlook is very positive.
Also on their website, they have shared general financial information including the fact that they have over $240 billion worth of assets. In ‘account investments’, they have over $100 billion and nearly three million Americans have a policy or annuity contract with them. Despite being young and relatively new to the market, they are clearly trusted and have numbers of which older companies would be proud.
Brighthouse Financial Life Insurance Policies
Although they do offer annuities, we are going to be concentrating on the company’s different types of life insurance policies today since this is what brought you here.
Within this section of the business, they have two main options depending on your needs – term life vs permanent life. Of course, one of these will only last a certain period of time while the other runs until you pass away so they are very different.
One Year Term
With this first annual renewable term policy, there is an opportunity to obtain short-term coverage for specific needs. As the base product has been designed to cover a certain event or occurrence, there are no options to convert it into the universal product nor is there anything guaranteed past one year.
Once the policy has been installed, the death benefit and premiums are secured for one year only and you will need to reapply if you want it to last longer. Alternately, there is a way to extend it to five years and even the opportunity to convert and this is by adding the Convertible and Renewable Options rider which is something we will see in more detail in a moment.
In terms of the basics, it comes with a minimum face amount of $100,000 and can be obtained by anyone between the ages of 18 and 85 for the standard issue. Also, there is a ‘substandard’ option and the upper limit here falls to 80.
With payments, you also have a number of options and this can be useful because you can pay monthly, quarterly, semi-annually, or even once during the one-year coverage. With the annual option, you will pay less because there is no interest added since you pay for the year upfront.
On this base product, the company will use simplified issue life insurance underwriting and the face amount will adjust depending on whether you are in employment or not. If you actively work, the maximum will be $1 million whereas this falls to $250,000 without work. Although no medical examination is necessary, you will have to answer a few medical questions and this will decide whether you can receive coverage as well as the premiums you will pay.
Base w/ Riders
As mentioned previously, you can also choose to add the Convertible and Renewable Options rider and this allows you to extend the coverage a little.
For example, you may know that you require coverage for longer than one year but not more than five. Here, the face amount will completely depend on whether you smoke and a couple of other issues. Regardless of this, the option is available to all those above 18 and below the age of 75.
Additionally, there is another key difference with the rider attached in that there is banding within the face amount for the policy. For example, Band 1 covers anything between $100,000 and $249,999. Overall, there are four bands with the second reaching $500,000, the third reaching $999,999, and the fourth and final band being anything above one million dollars.
Once again, there are also the four different payment options which makes the policy quite flexible.
Finally, it follows the same simplified underwriting we saw with the base option.
Guaranteed Level Term
Brighthouse offers level term life insurance for 10, 15, 20 and 30 year terms.
Available for ages 18-75, depending on age, the policy is level until the term expires and then it can be renewed annually. A conversion option is also available by the end of the term or age 70.
This is an inexpensive option for those that cannot afford permanent coverage but want the option of converting if necessary down the road, with no evidence of insurability. It is also a preferred choice of many business owners looking for key man insurance.
All the typical health classes are available for the fully underwritten policy. Guaranteed issue and simplified issue life insurance underwriting are also available.
The policy offers disability waiver of premium and accelerated death benefit riders.
Check out our term life insurance quotes page for rates from Brighthouse as well as other top rated competitors.
Premier Accumulator Universal Life (PAUL)
As opposed to covering the short-term, PAUL is universal life insurance that has been designed for the protection of the death benefit. High cash value accumulation is the hallmark of this policy, which brings some very good benefits. Namely, the fact that you can be flexible with the policy while it brings in a steady growth of the cash value.
Looking at some of the key features, you will notice that there are low surrender charges, guaranteed issue classes, rewarding cash value accumulation, and an opportunity to add two life insurance riders. If you are interested in this extra protection, you will find Waiver of Specified Premium in addition to Acceleration of Death Benefit.
Depending on your health class rating or perhaps even your preferences, this policy is available on a fully underwritten basis as well as guaranteed issue life insurance. If you have small health problems, this means that you will still find coverage options as long as you are willing to pay the premiums that come with it.
Although there is a ‘juvenile’ risk class, the coverage is available for all those aged between 18 and 85. Depending on whether you smoke and some other factors, you will be placed into a risk class and this will affect how much money you pay.
Furthermore, this will decide the minimum face amount available. For example, the Elite class has a minimum of $250,000 while the Preferred class is at $100,000. After this, the upper limit will be calculated from here.
Just as we saw with the term life policy, there are four different ways to pay so this offers flexibility once again. However, the decision of how frequently to pay is somewhat more important for the universal life policy because it lasts for a longer period of time. If you make a mistake with this decision on the term life option, the decision is undone in just twelve months. With the universal life option, it remains in place until you pass away unless they allow you to change.
Overall, this is a good option if you are looking for a policy that will stay with you as you age. With the cash value life insurance in tow, you will continue to earn money and you have options to use the cash in your policy as loans, withdrawals, or even to pay premiums.
Permanent life should be considered for those doing more long term planning, such as business succession using life insurance to fund buy-sell agreements.
Brighthouse Financial Review Summary
All things considered, Brighthouse Financial is a fantastic life insurance company and they are already helping millions of people despite only being officially open for trading for very little time.
Of course, you will have to assess your own needs to see if either policies meet them and this should always be the first step. If necessary, you could even write down a list of requirements for yourself with a tick list. Then, the company and product with the most ticks is the answer.
Regardless of how you do it, Brighthouse Financial is worth a consideration if the permanent option matches your needs or if you need a short-term policy!