When it comes to life insurance, there are a lot of different options to choose from. You can get term life insurance, whole life insurance, universal life insurance, and even burial insurance. It can be tough to figure out which type of policy is best for you and your family. In this blog post, we will be reviewing Thrivent life insurance policies. We will discuss the pros and cons of each type of policy so that you can make an informed decision about what is best for you!
A Little About Them
As a fraternal benefit society that limits its membership to followers of the Christian faith, Thrivent Financial for Lutherans is somewhat unique among large life insurance carriers.
Thrivent Financial, as currently structured, came into being following a 2002 merger between Minnesota’s Lutheran Brotherhood and a 100-year-old Wisconsin organization formerly known as the Aid Association for Lutherans.
With its headquarters in Minneapolis and operations center in Appleton, Wisconsin, Thrivent remains a Midwestern entity, though it markets financial products and maintains smaller offices throughout the country (except New York).
Thrivent’s structure as a fraternal benefit society is more similar to a mutual company than a standard corporation. Policyholders are called “members,” and Thrivent’s around 2.3 million members (and not shareholders) technically own the company. Members can be either “benefit members” or “associate members.”
The latter category requires a $20 annual fee and comes with additional perks, such as discounts, access to Thrivent’s credit union, and opportunities to participate in charitable work organized by Thrivent.
Things That Stand Out
Most notably, Thrivent has a longstanding relationship with Habitat for Humanity, and Thrivent members frequently assist with that charity’s building projects.
Although Thrivent’s management philosophy and community involvement remain rooted in its Lutheran origins, Thrivent financial products are now available to Christians of any denomination.
The company’s primary focus is life insurance and annuities, along with banking services for associate members through Thrivent Credit Union. Thrivent financial products are marketed by a nationwide network of agents and in-house representatives.
Policy purchases require membership in Thrivent. Most prospective insureds apply for membership at the same time they apply for coverage.
Some of Their Drawbacks
Two primary drawbacks of Thrivent life would be higher term life rates and limited no exam options.
If you compare Thrivent life with other term life insurance rates from its competitors, you will see that Thrivent is not always competitive.
And Thrivent’s lack of a no exam life insurance option makes getting coverage with them more difficult than some of the other companies in the marketplace that offer similar products.
Financial Ratings
Thrivent Life is a top-rated life insurance company. With a 99 Comdex ranking, there are very few companies out there that rank higher.
- A.M. Best: A++
- Fitch: AA+
- Moody’s: NR
- S&P Global: NR
- Comdex Ranking: 99
Thrivent’s A.M. Best rating of A++ puts it in the top category of insurers. Only around five percent of life insurance carriers enjoy A.M. Best’s top rating, so Thrivent is among the industry’s most financially sturdy companies.
Thrivent is also securely situated within the Fortune 500, having made the list for over 20 consecutive years.
In 2019, Thrivent reported about $8.8 billion in annual revenue, a little more than half of which was composed of revenue from premiums.
The company also reports around 90 billion in total assets, primarily held in investment-grade bonds.
Taken together, Thrivent’s impressive financial ratings and ample holding and revenue stream make Thrivent a reliable choice for potential policyholders.
The Better Business Bureau accredited Thrivent’s predecessor starting in 1999, and the company sports an A+ rating from BBB. Though online consumer reviews of Thrivent are few and far between, what’s out there is mostly positive.
And, for what it’s worth, Thrivent’s website humbly acknowledges that “Ethisphere” has included Thrivent on its “World’s Most Ethical Companies” list.
Products They Offer:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Disability Insurance
- Long-Term Care Insurance
- Medicare Supplement Insurance
- Annuities
- Mutual Funds and Retirement Planning
Life Insurance Policies Offered by Thrivent Life
Thrivent Term Life Insurance:
Thrivent’s level term life policy comes with initial terms of 10, 15, 20, or 30 years.
New insureds can be anywhere from 18 to 75, though longer terms are limited for older applicants so that a new policy’s initial term cannot stretch beyond the insured’s 85th birthday.
Thrivent’s term policies offer death benefits from $100,000 to $2 million, and policy proceeds (if paid out) are income tax-free to the beneficiary (like most other life insurance).
Thrivent-term policies are “level term,” which means the premium and death benefit stays the same throughout a policy’s initial term.
When the initial term ends, the policyholder can opt to renew the coverage for an increased premium.
A terminal illness rider and conversion option come standard with all Thrivent term policies. The conversion option gives the policyholder the contractual right to convert the term coverage to whole life or universal life—provided the option is exercised within five years after issuance.
Thrivent is a company that stands its ground and we respect that. If you would like a quote, please give us a call.