Perhaps not as well known as some of the other top 10 dividend-paying whole life insurance companies we’ve outlined, Lafayette Life is a great life insurance company to familiarize yourself with.
In the following lafayette life review, we’ll focus on the company’s history, strong ratings, life insurance policies, and unique features offered.
lafayette life insurance company review
When shopping for the best life insurance companies and policies, it’s important to familiarize yourself with the various companies available to find the one that best meets your needs.
The Insurance & Wealth team has compiled many life insurance reviews from the leading participating whole life carriers to assist our clients in their search for the carrier that best meets their needs, goals and objectives.
on life in lafayette
Lafayette Life Insurance Company is a member of the Western and Southern Financial Group. lafayette life was founded in 1905 as a mutual insurance company.
Being a mutual insurance company means that Lafayette Life is owned by participating policyholders, who share ownership rights in the company, as well as share in the company’s profits through dividends. by contrast, corporations are owned by shareholders and operated in a manner that maximizes shareholder value.
lafayette life is available in 48 states and the district of colombia. does not currently do business in new york or alaska.
as of 2015, lafayette life had more than $394 million in life insurance in force.
Lafayette Life Ratings
lafayette life insurance company enjoys high ratings from all major rating agencies.
as of May 2018:
- am best a+ rating, superior (second highest rating)
- s&p rating aa, very strong (3rd highest rating)
- fitch rating aa, very strong (3rd highest rating)
- comdex classification 97 out of 100
- defined benefit plans
- 401k profit sharing plans
- deferred annuities
- fixed annuities
- immediate annuities
- term life insurance
- whole life insurance
- lower initial cost
- income protection
- mortgage protection
- conversion option
- business succession planning
- sale purchase agreements
- key man insurance
- estate planning
- infinite banking
- executive bonus plans
- deferred compensation plans
- retirement planning
- building wealth
- guaranteed death benefit,
- cash accumulation guaranteed and
- guaranteed level premiums.
- inheritance 15
- contend 15
- patriot 15
- sentinel 15
- 10 pays lifetime
- freedom 15
- purchase paid additions to increase your coverage and cash value
- use dividends to pay premiums
- earn interest with the company through the accumulation of dividends
- receive cash in the amount of the dividend
in addition, lafayette life has an a+ rating from the better business bureau (bbb).
lafayette life products and services
lafayette life focuses on retirement services, annuities and life insurance.
types of life insurance policies offered
Although Lafayette Life is best known for its excellent whole life insurance, the company offers both term life and whole life.
each type of coverage has a unique purpose. however, in the whole life versus term life insurance debate, we believe one product trumps the other.
term life insurance benefits
whole life insurance benefits
Lafayette life insurance policies [plans and features]
lafayette life offers two main types of life insurance: term and total.
lafayette life term life insurance
lafayette life offers convertible term life insurance that allows you to have a large guaranteed death benefit for a lower initial cost than whole life insurance. The policy is convertible, which allows the owner to convert the policy to whole life before the end of the term.
why consider convertible term life insurance?
Some of the top reasons to consider convertible term life insurance are the low up-front costs and the ability to convert to permanent life without evidence of insurability.
Lafayette life whole life insurance
whole life is a type of permanent coverage that lasts your entire life and offers specific guarantees, including:
lafayette life offers six different whole life policies.
10 Payment Whole Life: The advantage of a 10 payment limited whole life insurance policy is that you get permanent coverage after only 10 years of level premium payments. the policy can be designed to maximize high cash value growth. after 10 years of premium payments, you have a solid whole life insurance plan that provides a lot of utility.
dividends from whole life insurance
It is possible to increase the additional cash value and death benefit through the use of dividends paid on participating whole life policies. dividends are not guaranteed. however, lafayette life has paid dividends to participating policyholders since the company’s inception in 1905.
dividends from mutual life insurance can be used to:
additional benefits of whole life insurance
tax-free life insurance policy loans
Using your cash value as collateral, you can get a life insurance loan to use for whatever you need.
Lafayette’s life practices indirect recognition. When you take out a loan, Lafayette Life continues to credit interest and dividends on your full cash value, not the cash value minus your loan. This is a great advantage for anyone using a policy loan who wants to maximize the potential arbitrage available to purchase other income-producing assets.
tax-deferred cash value growth
The Internal Revenue Code has a special section for the tax benefits of cash value life insurance. Under IRC 7702, cash value life insurance grows tax-deferred. By obtaining policy loans, instead of directly withdrawing your cash value, you can avoid paying taxes on the growth of your cash value.
tax-free death benefit
The life insurance death benefit is paid tax-free to your beneficiary. The death benefit is taxed if your estate exceeds the federal estate tax exemption limit or if your estate exceeds your state’s estate tax. therefore, if your estate is large, proactive asset protection planning is necessary.
Lafayette Life Whole Life Insurance Riders
accelerated death benefit plus rider: You may access a portion of the death benefit for a qualifying terminal illness, medical condition, or chronic illness.
Long Term Care Rider: The Long Term Care Rider provides a monthly benefit if the insured is unable to perform two out of six adls.
paid additions: allows you to purchase additional “paid” insurance.
guaranteed purchase option: allows you to take out additional life insurance without having to prove insurability. this is a great rider to add to child life insurance.
Term Insurance Rider: Provides additional death benefit protection at a fraction of the cost of whole life.
Lafayette Life Insurance Company Review Conclusion
lafayette life is a solid choice when considering whole life insurance from a mutual company that practices non-direct recognition. although the company has excellent policies available, a prudent buyer should still consider comparable options available on the market.
Interested in seeing how your Lafayette Life illustration stacks up against the competition? Call us today for a free life insurance consultation with an advanced markets professional.