Lafayette Life Insurance Company Review 2023
By James Tobin, CFP®
Bequest Mutual Rating
Lafayette Life Insurance Company History
Launched in 1905, Lafayette Life has now turned into a successful behemoth valued at billions of dollars. The company collects over $364M every year in insurance premiums in the US alone, which is surprisingly still below 1% of all premiums in the market.
Although Lafayette does provide term life insurance policies, it is primarily focused on its whole life insurance business. It is also focusing its efforts on its annuity sales, which is predicted to be a cash cow in the near future.
Lafayette Life is aware of the fact that its convertible term insurance products are a great way to attract customers to their whole life insurance products. Therefore, it prices these products competitively to attract the maximum number of customers.
Lafayette Life Insurance Company Ratings
Lafayette Life Insurance received strong ratings for financial stability. This indicates that the company is in strong position to meet its obligations going forward.
- A.M. Best Company: Lafayette Insurance rating given by A.M. Best was an A+ (Excellent).
- Fitch Ratings: Lafayette Insurance rating given by Fitch was an AA (Excellent).
- S&P Ratings- ONL Insurance rating given by Moody's was an AA- (Strong).
- Comdex Score- 95/100
Lafayette Life Term Insurance
The company does provide conventional term life insurance products, which have term periods of 10, 20, and 30 years respectively. The features and benefits offered in them are no different from those offered by the best life insurance companies.
Lafayette’s term policies allow customers to convert their policies into the permanent products offered by Lafayette Life Insurance. However, the conditions for such conversions may vary from policy to policy.
Although most insurance carriers do provide policy conversions, Lafayette actually allows customers to convert into a better policy, which offers great value for their purposes.
Other Lafayette Products
Apart from term life insurance products, the company also offers whole life insurance, which is its flagship product.
Renowned for its strong dividend history and the PUA (paid-up addition) rider in its policies, Lafayette’s products actually hold their own against products offered by other major market players in the whole life insurance marketplace.
Lafayette also offers some of the best annuity products available in the market today.
Lafayette Life Insurance Term Rates and Quotes
The company’s insurance products can be bought either with the help of independent brokers or their own company agents. Unfortunately, most independent agents are not affiliated with Lafayette Life. Therefore, you will have to use their website and approach one of their agents for a reliable quote since there’s no direct quote generation tool you can use.
After you’ve obtained a quote from them, you can weigh their insurance premium quote against other quotes from other carriers generated by our nifty quote tool on this website.
Are Lafayette Life Insurance Rates Competitive?
Yes. But there are certain conditions.
Not exactly the answer that you wanted, eh? But it is what it is.
Since Lafayette insurance quotes are not available in most comparison tools, making a comparison is a matter of great difficulty.
We’ve found that companies like Lafayette that have opaque pricing policies are never really the market price leaders. They lag behind the major carriers when it comes to pricing.
If you want less expensive premiums, companies like Lincoln, Protective, and Banner Life may be able to offer you a better deal. Impaired risk insurance carriers like Prudential tend to have slightly higher premiums though.
Cases where Lafayette is not a great choice
Different insurance carriers have different risk appetites for certain health conditions. Although Lafayette Life offers competitive prices for some products, it’s not always the case. If you suffer from a difficult health condition, you should consult an independent insurance agent for finding out the insurance carrier that will approve your application with inexpensive premiums.
However, if you’re already using other services from Lafayette, such as their annuity products, you may be able to gain more advantages by keeping all your assets in-house.
Lafayette Life Suicide Exclusions
All insurance policies in the US have a 2-year suicide exclusion cost attached to them. Some states may have this reduced to 1 year though (It varies from state to state).
Lafayette Life Insurance Customer Service
The National Association of Insurance Commissioners reports a 2018 complaint index of .11 for Lafayette. This is well below the national average of 1 percent.
Additionally, while Lafayette Life Insurance is not rated by JD Power & Assoc., it has a BBB rating of A+.
Lafayette Life Insurance Contact Info:
Cincinnati, OH 45202
The Lafayette Life Insurance Review Final Verdict
Is Lafayette Life Insurance Company right for you? It really all depends on your situation.
If you have notable health impairment(s), you will likely be better suited by shopping around on the open market where it is convenient to make apples to apple comparisons.
Moreover, having the use of an independent expert who can send your application to a carrier that is likely to view you in the best possible light has value that Lafayette Life can't offer.
However, if you happy with other services being being provided by Western & Southern Cos., it may be convenient to keep things "in house".
Thank you for choosing Bequest Mutual Life Insurance to shop for life insurance.