National Life Group is a life insurance and annuity provider that has been in business for over 170 years. With their long history and strong financial ratings, National Life Group is considered to be a trustworthy company by many consumers. However, it is always wise to carefully evaluate any insurance provider before purchasing a policy.
What is National Life Group?
National Life Group is a mutual insurance company that offers a variety of life insurance, annuity, and investment products. The company was founded in 1848 in Montpelier, Vermont and is one of the oldest insurance providers in the nation. National Life Group provides insurance and financial services to over 1 million customers across the United States.
Some key facts about National Life Group:
- Operates in 49 states plus the District of Columbia
- Over 1,100 employees
- More than 300,000 life insurance policies in force
- Over $16 billion in assets
- Rated “A” (Excellent) for financial strength by A.M. Best
National Life Group’s insurance subsidiaries include National Life Insurance Company, Life Insurance Company of the Southwest, and Equity Services, Inc. The company offers a range of permanent and term life insurance policies as well as fixed, indexed, and variable annuities. They also provide investment advisory services and brokerage products.
Financial Strength
One of the key factors in evaluating an insurance company’s trustworthiness is their financial strength and stability. Insurance companies are rated by independent agencies to indicate their ability to pay out claims.
National Life Group has received strong financial strength ratings, including:
- A.M. Best – “A” (Excellent)
- Standard & Poor’s – “A+” (Strong)
- Moody’s – “A1” (Good)
- Fitch – “A+” (Strong)
These high marks indicate National Life Group has sufficient financial resources to meet their ongoing insurance obligations. An “A” rating from A.M. Best is their 3rd highest rating out of 16 possible grades.
Key financial metrics:
| Total Admitted Assets | $16.3 billion |
| Policyholder Surplus | $1.9 billion |
| Net Income | $126.6 million |
National Life’s sizable admitted assets, policyholder surplus, and net income provide evidence of their financial stability. Policyholder surplus is extra funds an insurer retains to ensure they can pay out future claims. Overall, National Life Group’s finances appear in good shape.
Customer Service Reputation
In addition to financial strength, National Life Group has received positive reviews for their customer service. According to the National Association of Insurance Commissioners (NAIC), the company has a relatively low rate of consumer complaints compared to competitors.
Here are some pros associated with National Life’s customer service:
- Website and materials are useful and transparent
- Agents are knowledgeable and responsive
- Strong online support resources and tools
- Rapid claims processing
Potential cons to their customer service include:
- Some agents may be pushy about selling
- Call center hold times can be long at times
- Not as many local agent options in some areas
However, overall National Life Group maintains positive customer service ratings across third-party sites like the Better Business Bureau.
Insurance Product Offerings
National Life provides a wide array of insurance solutions including:
Life Insurance
- Term life – Provides temporary coverage for 10 to 30 years
- Whole life – Permanent protection with level premiums
- Universal life – Adjustable permanent coverage with flexible premiums
- Indexed universal life – Policy with returns tied to index performance
Annuities
- Fixed annuities – Guaranteed interest rates with income options
- Fixed index annuities – Interest rates linked to market indices
- Variable annuities – Investment subaccounts with varied risk/return
The company offers competitive pricing on par with other highly-rated insurers. National Life also provides policyholders with helpful online resources to manage their policies.
Overall, the company’s wide range of product options can accommodate most customers’ needs when it comes to life insurance and retirement planning. Their annuity offerings include innovative options like a lifetime guaranteed income rider.
Third-Party Ratings
Here is an overview of how National Life Group is rated by independent agencies:
| Company | Rating |
|---|---|
| A.M. Best | A (Excellent) |
| Moody’s | A1 (Good) |
| Standard & Poor’s | A+ (Strong) |
| Fitch | A+ (Strong) |
| BBB | A+ |
| Comdex | 90 out of 100 |
As shown, National Life earns consistently positive marks across the rating agencies. An “A” grade from A.M. Best is meaningful as they specifically assess the financial strength of insurance companies.
Complaint Index
The NAIC complaint index shows National Life Group generates fewer complaints compared to competitors relative to their market share. The company has a complaint index of 0.27 compared to the industry median of 1.00. This indicates consumers have fewer issues with National Life compared to many insurers.
J.D. Power Ratings
In consumer satisfaction surveys by J.D. Power, National Life earns above average ratings for customer satisfaction.
| Category | Rating | Ranking |
| Individual Annuities | 3/5 stars | Above average |
| Individual Life Insurance | 3/5 stars | Above average |
While not top-tier, these above average ratings indicate National Life Group does a good job keeping customers satisfied. Having happier clients also points to a more trustworthy company.
Trustpilot Reviews
On Trustpilot, an independent review site, National Life Group currently has around 200 reviews with an Average rating of 4.1 out of 5 stars. Here is a summary:
- 5 stars – 61% of reviewers
- 4 stars – 22%
- 3 stars – 9%
- 2 stars – 5%
- 1 star – 3%
The majority of written reviews cite good customer service, knowledgeable agents, and a smooth claims process as benefits of National Life Group. The most common complaints relate to high policy surrender fees. But overall, National Life earns favorable marks on Trustpilot.
Sample positive reviews:
“I’ve had a policy with National Life for 10+ years. They have always provided great service and competitive rates.”
“Superior customer service from my agent and the home office staff. I highly recommend!”
“Very easy to work with. Excellent assistance when I had to file a claim.”
Sample negative reviews:
“My surrender fees are really high. I’m thinking of switching providers.”
“Wish their website had more tools and resources.”
“Agent was a bit pushy about upgrading my policy, but otherwise no issues.”
Based on the predominantly positive reviews, National Life Group delivers a good customer experience overall. But some clients are frustrated by high fees when cancelling a policy early.
Awards and Recognition
National Life has earned awards and recognition that further indicate their positive reputation:
- Awarded “World’s Most Ethical Companies” by Ethisphere Institute (2016-2019)
- Fortune 100 Best Companies to Work For (2009-2019)
- Training Top 125 Award Winner from Training Magazine (2007-2019)
- Celent Model Insurer Award for data analytics initiatives
Being named one of the world’s most ethical companies demonstrates National Life’s trustworthy business practices. The great workplace awards also show that National Life treats its employees well.
Community Involvement
National Life has a strong focus on community service and corporate philanthropy. Each year, the company provides over $2 million in charitable giving and their employees volunteer 15,000 hours with local nonprofits.
Some of their key community initiatives include:
- Financial literacy programs for students and adults
- Fundraising campaigns for cancer research
- Sponsoring mentoring programs for at-risk youth
- Awarding scholarships to help students afford college
Their community involvement demonstrates a sense of social responsibility and giving back. Companies more concerned with profits alone are less likely to dedicate resources to philanthropy.
Management Background
National Life has experienced and ethical leadership, including:
- CEO Mehran Assadi – 35 years in insurance industry
- CFO and COO Ronald Joelson – 15 years with National Life
- Chief Actuary Richard Lyon – 30+ years as an actuary
- Chief Investment Officer Anthony Malloy – Formerly with Fidelity, Prudential
The senior management team has extensive expertise in the insurance and financial sectors. They also boast long tenures at National Life, indicating stable leadership.
In addition, National Life’s board of directors includes accomplished professionals with backgrounds in business, academia, and public policy. Policyholder interests are represented on the board as well.
There are no major red flags or controversies associated with National Life’s executives or directors. This competent and steady leadership contributes to their trustworthy reputation.
Regulatory Actions
National Life Group has generally avoided major regulatory penalties and fines. They have paid out some smaller settlements related to administrative issues over the years, including:
- 2017 – Paid $80,000 settlement for license reporting delays in South Carolina
- 2012 – Paid $17,000 fine for administrative errors on 72 policies in California
- 2009 – Paid $150,000 for violations of illustration regulations in three states
While no company is perfect, these minor infractions suggest National Life is not engaged in frequent or systemic wrongdoing. No severe disciplinary action has been taken on National Life by state insurance departments or other watchdogs. Their limited regulatory record enhances their reputation for fair business practices.
Conclusion
Based on their long history, positive financials, good customer service ratings, community involvement, experienced management, and minor regulatory record – National Life Group can be considered a trustworthy insurance provider overall. While no insurer is perfect, National Life exhibits many attributes of an ethical company.
However, it is always wise to use caution when purchasing insurance. Make sure to thoroughly evaluate all options and understand the full terms of a policy before deciding. For most customers seeking a reputable insurer with competitive rates, National Life Group is likely to meet expectations. But individual experiences can vary.
Ultimately, National Life’s strong financial footing, customer satisfaction, transparent operations, and community engagement demonstrate a trustworthy insurance company committed to meeting policyholder needs. The company’s 170+ year track record further confirms their staying power. So policy buyers can have confidence in National Life’s financial strength and business ethics.