Liberty Mutual Life Insurance Review

Whole and term life insurance plans at affordable rates

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Liberty Mutual

 Liberty Mutual

overall rating
3.0

Our Take

Liberty Mutual is a provider of whole and term life insurance coverage that you can get over the phone or from an agent. It provides simple policies that allow you to protect your family at a reasonable rate, but it doesn’t have as many options as other insurers.

  • Pros and Cons
  • Key Takeaways
  • Specifications
Pros and Cons
Pros
  • Offers term life insurance in terms of 10, 15, 20, and 30 years

  • Offers term conversion

  • Offers several riders to choose from

  • Offers simplified issue options without a medical exam

  • Offers cash value with tax-deferred growth

Cons
  • High level of customer complaints

  • Does not offer universal life insurance

  • Does not offer guaranteed-issue policies

  • Few policy details on their website

  • Does not have as many riders available as other insurers

Key Takeaways
  • Liberty Mutual provides term life insurance options as well as whole life insurance policies that afford you immediate access to the cash value of your policy.
  • The company offers a 100% return of premium guarantee on some of its policies. 
  • Liberty Mutual offers auto and home insurance so you can purchase all of your insurance policies from one company.
Specifications
  • Year Founded 1912
  • Kinds of Plans Whole, term
  • Number of Plans 2
  • Payment Options Online, phone, automated bank payment, credit card
  • Official Website www.libertymutual.com/life-insurance

Introduction

Liberty Mutual is an insurance company best known for offering auto and home insurance but also offers whole and term life insurance policies. It offers some simplified issue plans that don’t require a medical exam but do require that you complete a form with your medical history. 

We reviewed Liberty Mutual’s policy offerings, riders, pricing, customer service, industry ratings, and more to give you the information you need to decide whether their policies are right for you.  

Company Overview

Liberty Mutual is headquartered in Boston, Mass., and is one of the largest property and casualty insurance providers in the United States, with international subsidiaries in countries including Thailand, Turkey, Poland, and Vietnam. The company has over 45,000 employees and had revenue in 2020 of $43.796 billion. 

Liberty Mutual policies are sold online and over the phone and it is licensed for business in all states except the District of Columbia. 

Available Plans 

Liberty Mutual offers term and whole life insurance policies with a few different options to choose from.

Term Life Insurance

There are two types of term life insurance policies to choose from: Passport Term and Simplified Issue Passport Term.

Passport Term

Liberty Mutual offers a term policy it calls the Passport Term plan. This plan is offered for 10-, 15-, 20-, or 30-year terms with level premiums over that period. You have the option to convert your term insurance to a whole life insurance plan at any point during that period, but your premiums are likely to increase if you do switch. 

Liberty Mutual’s term coverage can go up to 90 years of age or your death, whichever comes first. You can purchase a policy up to $1 million, but, while coverage lasts up to age 90, you can only purchase that coverage if you are between the ages of 18 and 70. This policy requires a medical exam. 

Simplified Issue Passport Term

Liberty Mutual also offers an easier-to-purchase term policy that’s simplified issue so does not require the hassle of a medical exam, although you do need to fill out a medical form to be approved. It also includes the option to convert your policy to a whole life insurance policy at any point. 

The maximum coverage amount for this policy is $250,000 in coverage, goes up to 90 years of age, and can be purchased between the ages of 18 to 65. 

Whole Life Insurance

Liberty Mutual offers two types of whole life insurance plans. 

Whole Life

Liberty Mutual offers a whole life insurance policy that requires a medical exam. It charges you level premiums, meaning your monthly rates won’t go up, and it builds cash value that you can access through a policy loan at a later date. This policy is available for children as young as 15 days old and for adults up to 70 years of age. 

The policy limit is $1 million, but you can choose any amount of insurance you prefer. 

Simplified Issue Whole Life

If you do not want to get a medical exam, you can apply for Liberty Mutual’s simplified issue whole life plan which just requires that you fill out a medical form. These policies only cover up to $250,000 in coverage but are also available for infants who are 15 days old or anyone up to 70 years of age. 

If you are in excellent health, you can often save money on your premiums by undergoing a medical exam.

Available Riders

Liberty Mutual offers a good selection of life insurance riders you can add to your policy to improve your coverage including: 

  • Child protection rider. This rider provides you with life insurance policies for all children who are eligible.
  • Accidental death and dismemberment rider. This rider will increase your payout if you die from injuries or an accident. It also provides coverage in the event of a serious, but not fatal, injury. 
  • Waiver of premium rider. This rider is for coverage of your premiums in case you become disabled. 
  • Accelerated death rider. This rider is included in most plans that Liberty Mutual sells without extra cost. If you get diagnosed with a terminal illness, you can get your death benefit paid out early, up to 90% of the total amount. This can help cover medical expenses. 

These Liberty Mutual riders can be added to both whole and term life insurance policies. You will need to contact the company to find out the cost of each rider and whether you qualify for them. 

Riders can be a cost-effective way to enhance your life insurance coverage 

Customer Service: Great Phone, Mobile, and Online Options

Liberty Mutual offers customer service via phone, online account, text, and mobile app. The call center hours of operation are 24/7 and the number is 1-800-290-7933. 

Customer Satisfaction: More Complaints Than Average 

The National Association of Insurance Commissioners (NAIC) rates insurance companies based on the number of consumer complaints to help potential customers better understand customer satisfaction. Companies with an average number of consumer complaints get a score of 1. Companies with scores below 1 have fewer than average complaints and companies with scores higher than 1 have more than average complaints.  

Liberty Mutual has an NAIC complaint index of 2.22, which means that the company gets more complaints than other life insurance companies. On the whole, Liberty Mutual gets 0.20% of the national complaint market share. Many of the complaints received were for billing issues and bad customer service.

Financial Strength: A (Excellent)

AM Best independently evaluates a company’s financial strength, by looking at things like the company’s credit rating, financial performance, and assets to figure out how financially healthy the company is and whether it can meet its financial obligations. 

Liberty Mutual has an A (Excellent) rating from AM Best. 

Cancellation Policy: Must Contact the Company to Cancel

Liberty Mutual’s cancellation policies are not listed online so you will have to contact them to get details before purchasing your plan. You will likely have to fill out forms to cancel your policy and a separate form to surrender your policy if it is a whole life policy that has a cash value. 

Talk to your Liberty Mutual agent about whether they offer a free look period and what kinds of cancellation fees they charge before purchasing a policy.

Price of Liberty Mutual Life Insurance: Varies Based on Policy Type

What you pay for a life insurance policy through Liberty Mutual will vary depending on factors including your level of coverage, your age, your gender, and your general health. 

We used the online quote generator to obtain estimated premiums for non-smokers in good health based on a 20-year term policy worth $500,000. Note that the online tool doesn’t give estimates for all ages, and you might need to call Liberty Mutual to obtain a quote if you’re over age 55.

Age  Male Female
30 $45.90 $36.45
40 $80.10 $61.20
50 $216 $153.90
55 $347.40 $226.80
Lock in your Rate Young

If you’re on the fence about buying life insurance or waiting until you think you’ll need it, consider that you can lock in a lower premium rate when you’re younger since premiums go up as you age. 

How Liberty Mutual Compares to Other Life Insurance

Liberty Mutual offers whole and term life insurance direct-to-consumer via phone or online. Liberty Mutual also offers home and auto insurance policies, unlike many of its competitors, which allows you to purchase all of your insurance policies from one company.  

Liberty Mutual has significantly more complaints than average, but has an A (Excellent) AM Best financial strength rating, making it a good option among its competitors who have high complaints but low ratings. However, a similar company like Aflac might be a better option to buy your life insurance from. 

Liberty Mutual vs. Aflac Review

Liberty Mutual and Aflac are both insurance companies that offer individual whole and term life insurance policy options. Both also have high financial strength ratings, although Liberty Mutual has more complaints and a slightly lower financial strength rating. Aflac only allows you to purchase a policy over the phone, while Liberty Mutual allows you to purchase a plan through an agent as well. Aflac also has a line of business selling group life insurance to employers.

Some other key differences between Liberty Mutual and Aflac include:  

  • Liberty Mutual has more customer service options, including a mobile app and the ability to text questions to the company.
  • Aflac offers supplementary insurance coverage if you already have an employer-sponsored life insurance plan. 
  • Aflac offers insurance options that Liberty Mutual doesn't, like critical care coverage, but Liberty Mutual offers auto and home insurance.
  • Liberty Mutual offers a free Accelerated Death Benefit rider as a standard on most of their policies.
  Liberty Mutual Aflac
Types of plans Whole, term Whole, term
Customer service Phone, online, text, and mobile app Phone, fax, online
NAIC complaint index 2.22 1.27
Optional riders available Yes Yes
AM Best rating A A+
Final Verdict

Although Liberty Mutual offers a variety of insurance products like auto insurance and home insurance, it might not be the best bet for your life insurance coverage. While it offers cheap term policies if you are younger, there are high monthly premiums for those who are over 50. It also doesn’t offer the same complement of policy options that some other companies offer. 

However, it can be a good choice for you if you already get other forms of insurance from Liberty Mutual and can get a competitive rate for bundling your policies. Otherwise, you might be better off shopping around for another provider who has more policy options and lower rates.

Methodology 

All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.