This article will cover a lessor known company that offers guaranteed universal life insurance – Sagicor Life. Unlike MetLife, AIG, and many of the well-known insurance companies, Sagicor is certainly not a household name. However, Sagicor has been offering life insurance since 1840, so they certainly are not the new kid on the block.
Sagicor Life Insurance Company – History
Sagicor is the combination of two root words: Sage = Wisdom and Cor = heart – Their motto is Wisdom with Heart.
Sagicor is very well known for their non-medical life insurance. This type of coverage is very quick to issue and does not require a medical exam or any extensive underwriting. Sagicor often has the lowest rates for non-medical life insurance.
“Non-med” life insurance products have lower face amounts. The reason for this is because carriers take on more risk when there are no exams or lab tests required. Premiums are higher for non-med products for the same reason – increased risk.
This article covers Sagicor’s Guaranteed Universal Life product – called Sage NLUL (No Lapse Universal Life). This product is also very competitively priced and among the lowest on the market for their fully underwritten products.
As you will see below, Sagicor is unique in that they offer both Simplified Issue (non-med) and Fully Underwritten Guaranteed Issue Life Insurance.
Some folks are a little hesitant to purchase life insurance through a company with which they are unfamiliar. However, unlike some types of permanent insurance that have “moving parts”, where internal costs can increase, guaranteed universal life is just that — fully guaranteed.
The death benefit is guaranteed and premiums are guaranteed to stay level. Just like term insurance, there isn’t a concern that rates could increase due a carriers poor investment earnings. So, this makes the financial strength of the carrier less important.
There has never been a life insurance company in the history of the US that has not paid a death claim.
Financial Ratings
- AM Best Rating: A- (4th best)
- S & P Rating: BB- (6th best) Downgraded in 2015.
Strengths of Sagicor’s Guaranteed Universal Life Insurance
- Face amounts as low as $25,000. Very few carriers offer GUL with face amounts under $50,000.
- Rates most competitive with lower face amounts. Even though almost all carriers offer permanent life insurance (including GUL) with face amounts as low as $100,000, Sagicor has the best rates – in many cases – when the face amount is close to $100,000 or lower.
- Simplified issue underwriting for face amounts $400,000 and lower. No medical exam required, which translates into very quick underwriting decisions. Sagicor’s underwriting process is quite a bit different than most other carriers offering guaranteed universal life. More information on what is involved in this streamlined process is below under Simplified Issue.
- Fully underwritten policies available for face amounts above $400,000. Because of the higher face amounts (and increased risk by the life insurance company), a medical exam is required. They want to see lab results and make sure applicants don’t have any diseases that could shorten their lifespan.
- Completely electronic application process. They have an optional paper application, but they prefer applicants use their e-application. This process is fully automated. Sagicor is a leader in the electronic application and make the process very simple.
- Rare combination of Simplified Issue and Very competitive rates. Usually, Simplified Issue policies are higher cost. However, Sagicor offers both the convenience of a non-medical product AND very competitive rates.
Weaknesses of Sagicor’s Guaranteed Universal Life Insurance
- Fewer underwriting classes available – even on their fully underwritten policies. They only offer two “non-rated” underwriting classes for non-smokers: Preferred and Standard. Most carriers offer three or four underwriting classes.
- Only competitive with lower face amounts. Even though they offer higher face amounts, their “sweet spot” is in the $25,000 to $150,000 range. Their rates are still fairly competitive with higher face amounts.
- Financial ratings weaker than most of our carriers (recently downgraded by S&P).
A note about Sagicor’s Simplified Issue policies: Although they have a quick and streamlined process, occasionally it can become more involved (and take longer). They check the following three databases:
- Medical Information Bureau
- Prescription Drug Database
- Motor Vehicle Report
If there are any “hits”, then a human becomes involved in the process. Up to this point, the process is fully automated. An example of a “hit” would be where the MIB report shows a previous declination or rate-up. At this point, a case manager and underwriter are assigned to the case to find out more information.
If something turns up during the automated process, then the underwriter has the discretion to requires medical records or require more in-depth underwriting that would be involved in a fully underwritten application.
Who would want to purchase a Sagicor Guaranteed Universal Life Insurance policy?
Let’s look at a fictitious case study. Peter is divorced and 57 years old. His two kids are in college. His 20-year term policy is due to expire in a couple of years and Peter isn’t comfortable with the idea of carrying no life insurance.
Peter decides to purchase a $150,000 guaranteed universal life policy. He wants to leave $75,000 to each of his kids, regardless of when he dies. However, Peter is a little concerned about his health since he hasn’t excercised much and hasn’t been to his doctor recently. Not to mention, he hates needles.
Since Sagicor has very low rates and they don’t require a medical exam, this is his best course of action. He applies for coverage and is approved a few days later.
Everyone’s situation is different
In the example above, the simplified issue Guaranteed Universal Life policy is a good fit. However, everyone has unique needs and health situations. It’s best to speak with an advisor and ask questions. Sometimes, the best question is “what questions should I ask?”
We’re here to help you make the right decision when it comes to life or disability insurance.
