Brighthouse Financial Review

1
FatCamera/Getty Images

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Life insurance is never a comfortable topic to discuss. After all, you’re talking about what happens after you die. Although it’s something you’d probably prefer to avoid thinking about, leaving your loved ones financially protected is one of the best gifts you can give them. Brighthouse Financial offers life insurance policies that generate a tax-free payout after you pass away.

Brighthouse Financial life insurance offers two types of products: annuities and life insurance. Annuities can help you save for retirement and protect your savings by providing a guaranteed steady stream of income. Payments can be set up to a specific number of years up to the rest of your life.

Life insurance guarantees a payment to your beneficiaries in the event of your death. Brighthouse Financial offers both term and permanent life insurance.

Brighthouse Financial life insurance

Brighthouse Financial had a long journey to become the company it is today. It traces its roots back to Travelers Insurance Company, which was founded in 1863. Travelers Insurance was eventually purchased by MetLife. In August 2017, a spin-off of MetLife was completed, and an independent, publicly traded company called Brighthouse Financial, Inc. was established.

Brighthouse Financial life insurance policies are only available through a financial professional. When it comes to life insurance, Brighthouse Financial offers both term and permanent life insurance options. Term life insurance provides coverage for a fixed number of years, like 1, 10, 20 or 30 years. Beneficiaries will receive a death benefit if you pass away during the term.

Permanent life insurance provides coverage for the rest of your life and includes universal life, whole life, variable universal life and indexed universal life. This type of life insurance can also grow into cash value that you can use during your lifetime.

Types of coverage

Brighthouse Financial provides you with a number of life insurance options. You can choose from coverage for a set period of time or a lifetime.

Term life insurance

Brighthouse Financial has two term life insurance policies to choose from. Term life insurance features fixed premiums for the life of the policy. Brighthouse offers a One Year Term policy with an add-on rider to extend the policy to five years. This contract also includes the option to convert the policy into a whole life policy.

Brighthouse SimplySelect offers guaranteed coverage life insurance protection for 10, 20 or 30 years. It features a quick and simple purchase process while avoiding invasive testing.

Permanent life insurance

In addition to Brighthouse’s One Year term convertible policy, Brighthouse also offers SimplySelect, which can also be converted to whole life.

Hybrid life insurance

Brighthouse has an indexed universal life policy that combines long-term care with life insurance called SmartCare. Policyholders can use some of the death benefit to pay for long-term care. This means your beneficiaries won’t receive the full amount of the payout — whatever you use for long term care before you pass away is deducted from the payout left to your loved ones.

SmartCare also features a quick and simple purchase process while avoiding invasive testing. It also offers an accelerated underwriting process. With SmartCare, the extension of benefits for long-term care is a key feature of the product and each policy is comprised of a Long-Term Care Acceleration of Death Benefit Rider. This benefit pays for long-term care needs for the first two years, and an Extension of Benefits Rider, which provides long-term care benefit payments for two or four additional years.

Brighthouse Financial ratings, reviews, customer satisfaction and complaints

One of the most critical parts of finding the right life insurance policy is research. You’ll want to choose a company with strong financial ratings so that your loved ones will receive a payment in 20, 30 or more years down the road. Besides a life insurance company’s financial stability, it’s a good idea to look into how customers feel about the company and its claims-paying ability. Ratings also indicate that a life insurance policy is credible and trustworthy.

Take a closer look at Brighthouse Financial’s ratings. You’ll notice that the operating companies are financially stable.

Brighthouse Financial reviews
AM Best financial strength rating A (excellent)
Fitch financial strength rating A (strong)
Moody’s financial strength rating A3 (upper medium)
S&P Global financial strength rating A+ (strong)
J.D. Power Customer Satisfaction score 729/1,000, #22 in the ranking
Better Business Bureau rating A+

Reasons why Brighthouse Financial is a great option

Brighthouse’s customer ratings from J.D. Power doesn’t rank the company as above average, but its strong financial strength ratings and A+ from the Better Business Bureau are solid selling points to a Brighthouse Financial life insurance policy. In addition, you can fast-track a life application using SimplySelect and SmartCare to avoid the longer underwriting period and the invasive testing processes many insurers have. Furthermore, Brighthouse is one of the few insurers that bundles long term care as part of a life insurance policy.

You should consider Brighthouse Financial’s term life insurance if you are looking to acquire the maximum death benefit for a lower cost and if you want to ensure that funds are readily accessible during a specific time period. If you’re looking to grow cash value and use the cash value for retirement income or for something else, permanent life insurance would be better for you.

Additional features offered by Brighthouse Financial

Brighthouse Financial offers riders that you can add to your life insurance policy.

  • Accelerated death benefit — allows you to use some of your policy’s death benefit to pay for medical care and living expenses if you’re diagnosed with a terminal illness.
  • The Convertible and Renewable Options Rider — extends your coverage on a one-year term policy to five years. After the first year, you can convert to Brighthouse Conversion Whole Life.

Frequently asked questions

What is the best life insurance company?

Asking what the best life insurance company will get you many different answers depending on who you ask because there are many life insurance companies. To determine which one is best for you, it’s important to review customer ratings from J.D. Power, the Better Business Bureau and analyze a life insurance company’s financial strength reported by Moody’s, AM Best, Fitch or S&P Global.

What is the cheapest life insurance?

Term life insurance is typically cheaper than permanent life insurance. A term life policy has an expiration date and only pays out when you die. A permanent life insurance policy is more expensive because you’re paying for a death benefit to leave your beneficiaries, as well as an interest-earning cash value account you can access while you’re alive.

Is a Brighthouse Financial life insurance payout taxable?

In most cases, the amount of money your beneficiary receives is tax-free. If your death benefit is $500,000, your beneficiary will receive the full $500,000 without having to report the payout as income.

Do I need life insurance?

If you’re the sole breadwinner in your family or responsible for taking care of young children, a life insurance policy is essential. If something happens to you, your loved ones who rely on you could benefit from a life insurance payout to cover your funeral expenses and remaining debts, as well as help ensure they’re financially cared for while they adapt to the change.

Written by
Grace Kim
Insurance Contributor
Grace Kim has two years of experience in writing for finance and insurance domains such as The Cheapest Car Insurance Companies in New Jersey at Bankrate and Reviews.com. She has written about auto, homeowners, renters and life insurance. She holds an M.Sc from New York University in Corporate Communications and has spent most of her professional experience writing about finance and tech topics.