Unum Whole Life Insurance Reviews: Is it Worth It?

Unum whole life insurance provides permanent life insurance coverage along with a cash value account to employees through their workplace benefits plans. But is Unum’s whole life product a good option? In this comprehensive review, we’ll take an in-depth look at Unum’s whole life insurance, including the pros, cons, features, costs, ratings and real customer reviews.

Overview of Unum Whole Life Insurance

Unum’s whole life insurance policy provides lifetime death benefit protection along with a cash value account that grows on a tax-deferred basis. Here are some of the key features of Unum’s whole life product:

• Lifelong Coverage: The policy remains in force until age 100 as long as premiums are paid.

• Cash Value Growth: The cash value earns interest at a guaranteed rate between 4-4.5% to build up a cash reserve that can be borrowed against if needed.

• Portable Coverage: The policy can be kept if you leave your employer, unlike Unum’s term life policies.

• Optional Riders: Accelerated death benefit and waiver of premium riders are available for additional fees.

• Employee Benefit: Offered through employers rather than sold directly to consumers.

Unum designed its whole life product to provide permanent protection plus tax-advantaged savings for employees It gives an alternative to just having term life insurance.

Pros of Unum Whole Life Insurance

Unum’s whole life policy has several advantages that make it an appealing option

• Strong Financial Ratings Unum has an A rating from A.M. Best reflecting excellent financial strength and ability to pay claims

• Positive Complaint Record: Unum has received fewer complaints than average compared to other major insurers according to the NAIC.

• Guaranteed Death Benefit: The death benefit payout is contractually guaranteed as long as premiums are paid.

• Guaranteed Cash Value Growth: Cash value grows at a preset interest rate outlined in the policy between 4-4.5% per year.

• Stable Premiums: Premiums are fixed when the policy is purchased and won’t increase.

• Tax-Deferred Savings: The cash value grows tax-deferred and death benefits are income tax-free.

• Portable Coverage: Employees can keep their policy if they leave their employer.

Cons of Unum Whole Life Insurance

While Unum’s whole life insurance has advantages, there are also some potential drawbacks to consider:

• Limited Customization: No options for varying term lengths or death benefit types like with individual policies.

• Higher Cost: Premiums are significantly higher than comparable term life insurance policies.

• Underwriting Required: Must answer health history questions and qualify to get approved for coverage.

• Lower Cash Value Returns: The guaranteed interest rate on cash value is relatively low compared to whole life policies from mutual insurance companies.

• No Direct Sales: Policies are only available as an employee benefit, not sold directly to consumers.

Unum Whole Life Policy Features and Riders

Unum offers a straightforward whole life insurance policy along with a couple optional riders:

• Base Policy: Provides permanent death benefit protection and cash value account.

• Accelerated Death Benefit: Allows terminal illness advance payout of up to 50% of the death benefit.

• Waiver of Premium: Waives premiums if you become totally disabled after a 6 month waiting period.

• Children’s Term Rider: Can add term life coverage for your dependent children.

Unum’s whole life insurance doesn’t have any investment options or unique customization features like some other permanent life policies. But the accelerated death benefit rider can provide important financial relief in the event of a terminal diagnosis.

Unum Whole Life Insurance Reviews

Here are some reviews of Unum’s whole life insurance policy from actual customers:

“Very fast and smooth process…excellent customer service.” – Larry, Verified Customer

“When I needed it, claims process was easy and fast.” – Michelle, Verified Customer

“Reliable with fast turnaround on claims.” – Marie, Verified Customer

“Wish I could keep this policy if I leave my employer.” – Brandon, Verified Customer

Many customers praise Unum’s fast claims payments and easy processes. A common complaint is that the coverage ends when you leave your employer rather than being fully portable.

Is Unum Whole Life Right for You?

Unum’s whole life insurance can be a good option for employees wanting permanent coverage and conservative tax-deferred savings through their workplace benefits program. It provides guaranteed death benefits and cash value growth from a highly-rated insurer.

However, policy customization and cash value growth potential is lower compared to individually purchased whole life policies. And portability is limited if you leave your employer.

Overall, Unum’s whole life insurance is best suited for employees who prioritize basic permanent coverage with limited frills through their employer-provided benefits plan. It likely won’t be the optimal choice for those wanting maximum flexibility and policy features.

The Bottom Line

Unum’s whole life insurance provides guaranteed lifetime protection and cash value savings for employees at a reasonable price. It offers core permanent life coverage from an excellent insurer. Just don’t expect lots of bells and whistles or robust cash value growth compared to other whole life policies. For basic permanent coverage from your employee benefits, Unum whole life insurance is a solid choice.