“Liberty, Liberty, Liberty. Liberty.” An amazingly simple yet catchy jingle is the cornerstone of Liberty Mutual’s marketing campaign, and what many people think of when they hear “Liberty Mutual.” They are based in Boston, MA and have been in the insurance industry since 1912. They are the sixth largest global property and casualty insurer based on gross written premiums. Life insurance is just one of the many products they offer. They also have auto, homeowners, reinsurance, and business insurance. They are ranked 75th on Fortune 500’s list of companies.
- Pros and Cons of Liberty Mutual Life Insurance
- Products Offered by Liberty Mutual Life Insurance: 50/100
- Financial Strength Rating of Liberty Mutual Life Insurance: 90/100
- Customer Satisfaction Rating of Liberty Mutual Life Insurance: 75/100
- Consumer Complaints Rating of Liberty Mutual Life Insurance: 40/100
- Digital Experience Rating of Liberty Mutual Life Insurance: 60/100
Pros and Cons of Liberty Mutual Life Insurance
| Pros | Cons |
| – Online quotes available for term insurance – Some policies don’t require a medical exam – Easy to bundle policies | – Very basic life insurance policies – Information is limited on the website – Liberty mostly focuses on auto and home insurance |
Products Offered by Liberty Mutual Life Insurance
Liberty Mutual offers basic term and whole life insurance policies.
Term life insurance is available in terms of 10, 15, 20 or 30 years. You have the option to renew or convert to a whole life policy at the end of your term (both at higher rates). Simplified issue term life insurance does not require a medical exam and has a fast approval process. It offers up to $250,000 worth of coverage.
Whole life insurance is a permanent life insurance product that builds cash value. It has level premiums that are the same throughout the entire policy. You can borrow from the cash value you build. Liberty Mutual has a single-premium whole life policy, where the death benefit is immediately higher than the premium you just paid. They also have a Simplified issue whole life policy, which also doesn’t require a medical exam. Anyone between 2 weeks and 65 years old can apply and get up to $250,000 in coverage.
They used to offer variable universal life policies, but they discontinued that in 2018.
>>MORE: Is Whole Life Insurance Good for Retirement Savings?
The website claims to have a choice of riders or add-on benefits to customize your policy, but the it doesn’t mention what those might be.
You can get almost anything insured through Liberty Mutual. In addition to life insurance, they also have auto, motorcycle, boat, RV, homeowners, renters, condo, flood, umbrella, accident, identity theft, pet, tuition insurance, and small business insurance.
The information on life insurance is very basic at Liberty Mutual. It seems like they developed a lot of insurance products, and then said, “Oh, and we should offer some life insurance just in case any current customers want to add that as well.” In other words, if you’re a Liberty Mutual customer already who happens to want life insurance, it’s probably fine. If you’re primarily interested in life insurance, they have very basic policies and it’s hard to find information about them without calling and talking to an agent.
>>MORE: Is Whole Life Insurance Worth It? A Case Study
Financial Strength Rating of Liberty Mutual Life Insurance
Liberty Mutual is a huge company with millions of dollars in assets. A.M. Best gives them an A rating, which means they are very capable of paying claims.
Customer Satisfaction Rating of Liberty Mutual Life Insurance
J.D. Power ranks life insurance companies on a 1,000 point scale. Liberty Mutual ranked 5th overall, with an overall score of 788. The median average score was 761, so Liberty Mutual is above average compared to most other insurance companies.
Here are Liberty Mutual’s individual rankings:
- Overall Satisfaction: 4/5
- Product Offerings: 4/5
- Price: 4/5
- Statements: 4/5
- Interaction: 3/5
- Communication: 4/5
- Application and Orientation: 5/5
Above average almost across the board. Interaction (how customers rated the interaction channels: website, local agent, call center) scored 3 out of 5 and Application and Orientation scored a perfect 5/5.
Consumer Complaints Rating of Liberty Mutual Life Insurance
Liberty Mutual focuses on homeowners and auto insurance. The NAIC lists 167 complaints for auto insurance, 94 for homeowners insurance, and one complaint regarding life insurance. Overall, Liberty Mutual got a complaint index of 3.84, which is quite high. The median average complaint ratio is 1.0, so a company that earns a ratio of 3.84 has almost four times the average number of complaints.
The BBB gives Liberty Mutual an A rating. There are 352 complaints on the website. While it’s true that most of them are about home and auto insurance, Liberty Mutual focuses on those, with life insurance being something of an afterthought. If you’re interested in Liberty Mutual so that you can bundle, it’s worth noting.
Digital Experience Rating of Liberty Mutual Life Insurance
You can easily get a quote for term insurance from Liberty Mutual. It takes less than a minute. To purchase the insurance, you’ll need to click the button that says, “Forward to an agent” and one will contact you.
You can file a claim online 24/7. You can pay your bill and manage your claims. There is a mobile app, but it’s mostly for auto and homeowners’ insurance.
To update or change your beneficiaries, you’ll need to fill out a form, scan it and then email it to Liberty Mutual. To cancel a policy, you’ll have to call customer service—you can’t cancel a policy online. You will also need to fill out a form, scan and email it if you want to change your payment information.
There is no online chat bot, either. If you have a question, you will have to call. Be prepared to wait or be transferred.
Last Thoughts
Liberty Mutual mainly focuses on car and homeowners insurance. If you’re a Liberty Mutual customer already and want to purchase life insurance, they might work for you. However, if you’re shopping around, they have a very limited selection of life insurance policies. If you want any kind of Universal life policy, you’ll have to look elsewhere. If life insurance is what you’re looking for, you should shop around.
