Insurance is a gigantic industry in the US, where there are hundreds of organizations, offering multiple programs to satisfy needs.
But what if there’s no serenity at the end of the day even after paying premiums your entire life? Or your beneficiaries are unable to claim the benefits upon your death?
That would be saddening and you won’t be able to do anything about it as you would have already gone to another world. So, to save you from such troubles here is a comprehensive Columbus Life Insurance review to help you decide whether you pick this company, or look for other options.
About Columbus Life Insurance Company
It all started back in 1903 when Channing Webster Brandon, the founder of the company, came up with the idea of selling affordable policies to Ohio citizens.
Three years later the organization took shape of a registered company and since then, it has been providing services in the insurance sector.
With 100+ years of existence, the company is helping policyholders by offering higher premiums at affordable premium rates. Moreover, the firm has a remarkable financial reputation in the market, which is also recognized by several financial rating agencies.
Presently, the company has 4500+ registered insurance agents along with 35 offices; however, Ohio remains its headquarters since 1906.
With a total of $341,700,000 written premiums on individual life insurance, the company offers multiple insurance-related products including universal life insurance and annuities. And the best part is that the plans can be purchased by every individual regardless of age.
Columbus Life Insurance Reviews
You should fact-check certain things before choosing any life insurance company. There are some essential factors, such as financial ratings, the number of policies offered, and cancellation policy, which are required to be filtered because that’s the best way to judge any insurance organization.
The firm has been doing a tremendous job from day one. However, as there’s no such thing as perfection, this section is dedicated to analyzing the organization’s services from the policyholders’ perspective.
Before going further, let’s see a few other reviews we covered:
- MassMutual Guaranteed Acceptance Life Insurance
- American Amicable Life Insurance
- Costco Life Insurance
- Transamerica Final Expense
Now, let’s start with this one.
Policyholders and potential customers are attracted to the company because:
1. Broad Product Line
Unlike other firms, this company focuses on two major products:
- Life insurance
However, the main policies are further divided into subcategories which are truly magnificent for the policy owners, as they get a wide product range to fit in as per their requirements.
i. Life Insurance
Buying a life insurance policy completes your financial plan. So, whether you are looking for temporary security (term life insurance), or a permanent remedy (universal life insurance), the insurer has everything prepared for you.
As an applicant, you can choose from different insurance plans, like:
- Term life insurance
- Universal life insurance
Term Life Insurance
If you want a term life insurance policy, you can go for the “Nautical Term Life Insurance” program that serves you for a specific time. It’s your opportunity to get yourself financially covered for a fixed duration.
In case of your death during the policy period, your beneficiaries are given tax-free benefits to help them continue with their education plan, mortgage payment, or anything they would like to do with the coverage amount.
- Policyholders (male and female), between the 18 and 75 age-range, can apply for a 10-year program with a benefit of $150,000.
- Policyholders (male and female), between the 18 and 70 age-range, can apply for a 15, 20, and 30-year program with a benefit of $100,000.
Universal Life Insurance
Universal life insurance is another life insurance product that offers fixed coverage amount along with cash accumulation on the current interest rates, and tax-deferred. This policy is further divided into four subcategories:
- Indexed Explorer Plus
- Explorer Plus
- Expedition Survivorship Indexed (SIUL)
a. Indexed Explorer Plus
The indexed explorer plus universal life insurance policy comes with several features. For instance, the policyholder is given three indexed accounts and one fixed account that keeps growing their money.
How? Well, there is a 0% to 1% guaranteed yearly crediting rate on the indexed account, whereas, 2% yearly crediting rate on the fixed account. You can borrow loans from your policy to tackle any emergency. Moreover, you can enjoy flexible premium payments after paying a sufficient amount. Lastly, your beneficiaries enjoy tax-free benefits after your death.
Age Limit and Coverage Amount
- Any male or female, aging from 0 to 79, can apply for the Indexed Explorer Plus policy.
- The coverage amount for 0 to 19-year-old policyholders is $25000
- 20 to 79-year-old policyholders is $25000 (if choose standard premium rates)
- 20 to 79-year-old policyholders is $100,000 (if choose preferred premium rates)
b. Explorer Plus
Explorer Plus is another universal life insurance program that offers tax-free growth. This means that as long as your money is in this insurance policy, you won’t be charged for any income tax. One more advantage is money withdrawal.
For example, you can borrow loans on your policy’s cash value after passing 12 months. Furthermore, on selecting this plan, you can savor the “no-lapse guarantee” feature after paying minimum premiums. Moreover, the premium amounts are flexible, as well as, affordable.
Age Limit and Coverage Amount
- Any male or female, aging from 0 to 85, can apply for the Explorer Plus plan.
- Juvenile Premium Rates: The coverage amount for 0-19-year-old policyholders is $25000
- Standard Premium Rates: The coverage amount for 20-79-year-old policyholders is $25000 and $100,000 (depending on several factors)
- Preferred Premium Rates: The coverage amount for 20-85-year-old policyholders is $100,000
c. Voyager Universal Life Insurance
Voyager universal life insurance provides numerous ways to protect your beneficiaries after you are gone. In other words, the company assures financial aid up to $100,000 along with a no-lapse guarantee to help your family members continue with their day-to-day tasks. The rest of the features are similar to Explorer Plus and Indexed Explorer Plus universal life insurance plans.
Age Limit and Coverage Amount
- Anyone, aging between 0 and 79, can apply
- Juvenile Premiums: 0 to 19-year-old policyholders with a $50,000 death benefit
- Standard Premiums: 20 to 79-year-old policyholders with a $50,000 death benefit
- Preferred Premium:20 to 79-year-old policyholders with a $100,000 death benefit
d. Expedition Survivorship Indexed (SIUL) Universal Life Insurance
While other features are similar, SIUL offers death benefits for two. Therefore, this insurance policy is ideal for couples, but that’s not a restriction. However, you must know that the death benefit is received after the “second person’s” death. For example, if both husband (insured person 1) and wife (insured person 2) have reached their final resting places, the children (beneficiaries) will be given the compensation.
Age Limit and Coverage Amount
- Only people, aging between 20 and 79, can apply
- Fixed $100,000 death benefit
The insurer offers “Annuity” policies to help people live peacefully after getting retired. It includes four subclasses:
Fixed Indexed Annuity: This annuity program provides fixed annuities and interest-based earnings on paying a single $15,000 premium. It has an age limit of 18 to 85.
AccountMax Annuity: This plan assures higher interest earnings by paying a one-time premium of $10,000. It has a 10-year duration (max) with an age limit of 18 to 89.
LifeSource Plus – Immediate Annuity: This policy converts your retirement savings into a stable income stream for several years and even for an entire life (depending on the payout option you choose). It starts with a $10,000 single premium and you receive a monthly annuity income of $100.
However, you can even add more amount to your one-time premium to increase your annuity amount. Its age limit begins from 18 and ends at 85.
Passport Single-Premium Annuity: This annuity policy offers earnings through fixed interest rates on a single premium starting from $2000. You can invest your money for a maximum of 7 years to enjoy the benefits. Anyone between the ages of 18 to 89 can qualify for this plan.
Additional Rider Plans
You can also include riders of your term life insurance policy by paying additional charges. The riders you can choose are as follow:
- Accidental death rider
- Specific loss rider
- Children’s term rider (from 15 years to 18 years of age)
- Waiver riders
So undoubtedly, the company has a huge portfolio. Plus, offering policies to minors is a great advantage for customers and a catchy selling point for the firm.
2. Outstanding Financial Reputations
Columbus Life Insurance Company is known for its remarkable financial position in the US market. Moreover, the firm has even received high ratings from different financial rating agencies.
For example, in June 2009, they received an A+ (superior) rating from A.M Best for meeting all the insurance obligations. Likewise, MOODY’s called its services “excellent” by giving an Aa3 rating for having extremely rigid financial traits in 2009.
Similarly, Fitch awarded the company with an “AA” (very strong) rating in the same year for satisfying contract and policyholder obligations right on time.
And in 2018, Standard & Poor’s gave AA- rating for being very strong on the financial characteristics. Lastly, Comdex rated the company by giving 95 out of 100 points.
All these ratings explain that the insurance company has been financially sound for several decades. This also signifies that they are best at keeping their promises. And policyholders, as well as, beneficiaries don’t find any complications on claiming their coverage.
3. Guaranteed Claims and Responsible Customer Support
Shopping for life insurance from this company assures 100% benefits within 60 days.
You can claim by calling the representatives from 8:00 am to 4:45 am (Monday to Friday). After calling customer support, you will receive all essential claim forms via email. However, during your claim call, the representative will ask for:
- Full name, address, and date of birth of the person claiming for the coverage
- Life policy number
- Policyholder’s or beneficiary’s (in case of insured’s death) name and relationship
- Social security number
- Policyholder’s final death certificate
The second way is by filling the “Claim Form” from the official website. Once filled and submitted, the agent will contact you immediately to take the process further.
4. Cancellation Possibility
Not all insurance firms allow policy cancellation from the policyholder’s side. And even if they do, the insured has to go through hectic legal procedures and penalties.
But you are saved as you can cancel your policy anytime. All you need to do is contact the agent or advisor who helped you buy the insurance plan, or directly call the organization to talk to customer support.
5. Digital Access
As digitalization is getting common over time, many insurance companies have their existence online.
So being a policyholder, you can use view your policy details and change beneficiary by signing in your account on Columbus Life’s website. More to this, you can ask for a duplicate policy, amend your personal and contact information, and explore the FAQ section to acquire more details.
Unfortunately, the Columbus Life Insurance Company has a few loopholes, which appears to be unpleasant for many prospects, potential, and even existing policyholders. Here are the details:
1. Stringent Underwriting
If you are planning to buy an insurance plan from them, get ready to answer some of the most difficult questions about your health, habits, and profession.
The organization is extremely strict about health, and there’s a straight rejection if you’re old and suffering from a life-threatening disease. Contrarily, if you have a smoking habit, but your overall health is good, you can expect high premium rates.
Likewise, medical marijuana or recreational drug users can also qualify for the insurance policy, but they have to go through numerous medical examinations to estimate the health risk. And even after qualifying, they are required to pay extremely higher premiums (higher than the ones offered to cigarette smokers).
Also, if you’re into a dangerous occupation like police or firefighting, the company may not offer you any policy. As you would be their biggest financial risk.
2. Automatic Cancellation
There are times when you are broke, financially unstable, or facing a crisis, so you can’t pay the premium on time. And if it’s a continuous attitude, insurance providers have all the rights to cancel your plan. But, companies do ask for your approval if they desire to cancel the insurance agreement from their side.
However, if you couldn’t pay your current month’s premium, then the insurer has a “No mercy” policy for you. It might cancel your plan without even inquiring or asking your permission. The same auto-cancellation rule applies to your application if they find any false documents or details during the verification process.
3. Almost Same Life Insurance Plans
It’s alright if you think that the company has nothing new to offer in most of its products. Well, you’re not the only one who thinks this way. There are countless other customers, who have been pretty puzzled to see the offered plans.
So yes! Surprisingly, the majority of Columbus’s universal life insurance policies look similar except for the SIUL plan. And this could be a major threat to the company’s reputation, as customers don’t find options to look for.
4. Lacking Full Information
Columbus Life’s website seems pretty confusing when it comes to finding premium rates. Also, there are no exact quotes and not even a sample pricing table. Instead, the company asks to contact their agent to find premium charges for every plan.
This is a serious drawback for a 110-year-old organization that has been working on its goodwill.
5. Low Benefits
$150,000 is the highest-paid coverage on the term life policy, whereas, the max death benefit you can get from your universal life insurance plan is $100,000. These are extremely low amounts if compared to other life insurance providers.
With long insurance companies list, it gets difficult to select the right one. Of course, a potential policy buyer wants to enjoy greater benefits from the insurance firms. But sometimes, they end up being disappointed with their chosen organizations.
So, by looking at each Columbus Life Insurance review, it seems like the organization has a wide policy range with 100% claim surety, but with a difficult qualifying criterion.