Making sure your loved ones are protected if the worst happens is important to many of us. While no one likes thinking about tragic circumstances, it’s important to be prepared and ensure your family has the funding needed in the event of a life-altering situation. Life insurance is a great way to be prepared.
In this review, I’ll walk you through Chubb Life Insurance offerings so you can decide if this insurance provider is right for you and your family.
Chubb Insurance is the largest P&C insurance company in the world, offering both individual and commercial insurance policies. Chubb has been around for over 200 years and offers home, natural disaster, auto, travel, cyber, liability, life, and various business insurance options.
How does Chubb Life Insurance work?
Chubb offers three types of life insurance:
Medical supplemental insurance - provides accident, sickness, disability, disease, and life protections.
Personal accident & health insurance - provides some accident and health protections.
Employer-provided life insurance - provides accident, illness, and life protection to employees.
Individuals and employers can request a quote to sign up for life insurance services, by submitting a “Find an Agent” request. This will direct you to participating Chubb agents who can help you finalize your request and sign up for services.
Chubb Insurance does not list prices and fees on its website, since all quotes are customized, based on your age, health, family history, and other background information. However, it should be noted that Chubb Insurance customers are primarily high-income families. As a result, you should expect the quotes to be on the higher side.
Chubb Life Insurance features
Unique Life Protector Product
Chubb Insurance offers supplementary life insurance through Combined Insurance, a subsidiary of Chubb. This insurance company offers a product called Life Protector, which is designed to directly pay out an insurance policy in cash to yourself or a loved one when they need it most.
Chubb’s life insurance options can help you through rough times if you become disabled or unable to work due to health reasons. Disability insurance pays you benefits for up to two years, while its SickPayPlus offering will pay you cash if a sickness or accident hinders your ability to work.
One unique offering Chubb Insurance provides is specified disease coverage. This option covers diseases like cancer and will pay you directly in cash if you’re diagnosed with a covered disease.
Who is Chubbs Life Insurance best for?
High-income families. Chubb Life Insurance was developed for wealthier individuals and might be too expensive for low and middle-income families to afford. If you’re a high-income earner looking for extensive life insurance protections with customizable policies, Chubb Insurance is worth exploring.
Employees of Chubb-partnered companies. If your employer offers Chubb Life Insurance as a benefit, you may be able to gain access to the many benefits offered through this insurance company for a fraction of the cost. If your employer offers Chubb Insurance, it’s worth looking into the policy options available to you.
Who shouldn’t use Chubbs Life Insurance?
Low and mid-income families. Chubb Insurance caters to wealthier families and may be out of reach for low and middle-income earners. While it won’t hurt to get a quote from Chubb Insurance if you’re interested in one of its products, I would highly recommend shopping around for more affordable alternatives.
Pros & Cons
Great policy options. I love that Chubb Insurance offers a large selection of options you can enroll in when signing up for life insurance, such as accident and sickness insurance, disability protection, life protector, specified disease coverage, and leisure travel insurance.
Trusted name. Chubb Insurance is one of the top names in the insurance world and has been trusted by families, companies, and individuals for centuries.
Expensive policies. On the downside, it’s disappointing that Chubb Insurance primarily targets high-income families. As a result, its policies are more expensive than other life insurance policies. I wish it offered a slightly more affordable option for low or middle-income earners.
No online quote options. While I understand that every quote from Chubb Insurance is customized and requires more information to apply, it’s a little disappointing that the company directs you to a nearby agency to complete your quote, rather than offering a way to complete your request online.
Life Insurance Calculator. It may be hard to determine how much life insurance you need. That’s why I’m glad online life insurance calculators are easily available to help you determine the right policy options for your family. Chubb Insurance does not offer an online calculator and neither does Pacific Life. Northwestern Mutual does have an online calculator that’s quick and intuitive.
Workplace/Employee Insurance. All three of the companies surveyed offer workplace life insurance options for employers, in addition to its individual policies.
Cash Payouts. All three of the companies surveyed offer cash payouts for life insurance policies (some restrictions may apply).
Life Insurance Products. While Chubb Insurance only offers two plans for individuals to pick from, Pacific Life offers a little more variety with five products (indexed universal, variable universal, universal, whole, and term). Even Northwestern Mutual offers a bit more of a selection with three products (whole, term, and universal).
There are three main types of life insurance: whole, term, and universal. Whole life insurance covers you for the rest of your life and has set payments. Term life insurance covers you for a set number of years (usually 10, 15, 20, or 30). Universal life insurance is similar to whole as it will cover you for the rest of your life, but the payments are more flexible.
What do I need to know before buying life insurance?
Before purchasing a life insurance policy, it’s important to review your finances and your family’s financial needs. From there, decide how much you can afford to spend on life insurance and shop around for policies (using online calculators) that fit your needs. You’ll also want to decide if a whole, term, or universal life insurance policy is best for your family.
How long do you need to have a life insurance policy before you can use it?
Typically it takes one to two years for your life insurance policy to kick in, but the exact terms will vary across policies. Some policies allow your benefits to begin immediately.
The bottom line
Chubb Insurance is a trusted name in the insurance world that caters mostly to high-income families and businesses. While Chubb does offer impressive benefits in its life insurance policies, I would recommend shopping around to see if you can save money on similar life insurance products.
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