Nassau Re – Phoenix Life Insurance Company Review

About Nassau RE

Although itself only founded about five years ago, Nassau RE is the heir to the Phoenix Mutual Life Insurance Company that formed in Hartford, Connecticut, way back in 1851.

Nassau did not rise from the ashes of Phoenix.  Instead, after Phoenix Life was involved in a series of mergers and acquisitions over its long history, the company was purchased by newly formed Hartford-based Nassau Financial Group in 2015.

Nassau Financial is now the parent company of multiple insurers issuing policies under the Nassau brand, including (along with Phoenix Life and several others) the companies formerly known as Constitution Life, Pyramid Life, Pennsylvania Life, and Union Bankers.

Nassau RE’s “flagship company” is Connecticut-chartered Nassau Life and Annuity Company—lineal descendent of Phoenix Life.

Along with the life insurance and annuity industry, Nassau is also involved in reinsurance, distribution, and asset management.

Only recently as of July 1, 2020, Nassau Financial acquired Foresters Life Insurance and Annuity Company, which, as it merges with Nassau Life, is expected to expand Nassau’s total assets and provide more reach for the growing company.

Nassau issues policies through independent agents throughout the United States, though not every Nassau affiliate does business in every state.

Nassau RE Financial Ratings

A.M. Best: B+
Fitch: BB+
Moody’s: NR
S&P Global: NR
Comdex Ranking: 36

Nassau’s financial ratings look weak compared to a lot of other players in the life insurance industry.  However, a big part of that is due to the company’s novelty.  Being only about five years old, Nassau has not yet had the opportunity to demonstrate stability.

With over $26 billion in assets and around half a million in-force policies and annuities (many of which were inherited from its ancestor company, Phoenix Life), Nassau is a moderate-sized insurer with decent financial weight behind it, enhanced even more by its recent finalized merger with Foresters Financial.

Nassau currently has an A+ rating from the Better Business Bureau, but that, too, may be misleading.  Without much history under its belt, reviews of Nassau’s customer service are sparse.

Products Offered by Nassau RE:

• Term Life Insurance
• Whole Life Insurance
• Annuities

Life Insurance Policies Offered by Nassau RE

Nassau Safe Harbor Term:

Safe Harbor Term provides fixed-premium term life insurance for new applicants from age 18 to 80 in coverage amounts from as low as $50,000 to as high as $500,000.

Initial term lengths of 10, 15, 20, and 30 years are offered, though the 30 and 20-year terms are only available through ages 55 and 65, respectively.

Likewise, maximum coverage amounts gradually decrease for applicants over 50:  $400,000 for new insureds in their 50s, $300,000 from 61 – 70, and tapering off to $150,000 for new insureds age 71 and over.

Safe Harbor Term features four built-in living benefits riders:  Chronic Illness, Critical Illness, Terminal Illness and Unemployment.  Nassau also offers an optional Accidental Death Benefit rider for an extra premium.

Nassau Safe Harbor Term Express:

Safe Harbor Term Express is very similar to the standard Safe Harbor Term policy in most respects.  However, the Express version features simplified underwriting, with no medical exam or statement from an attending physician required.

Coverage limits are also reduced for Express—capping out at $400,000 for new insureds below age 51 and decreasing to $300,000, $200,000, and $100,000 for new insureds in their 50’s, 60’s, and 70’s (respectively).  Express has the same menu of riders as regular Safe Harbor Term.

Nassau Remembrance Life (whole life):

Nassau’s Remembrance Policy is best categorized as a final-expense whole life insurance policy, but with relatively high maximum benefits for the final-expense class.

Policies are simplified-issue, requiring a medical-history questionnaire but not an exam.

New insureds must be between ages 50 and 80, and coverage amounts range from $10,000 to $50,000.

However, new insureds in their 70’s are limited to $35,000, and new insureds in their 60’s are capped at $40,000.

As is standard fare with cash value whole life insurance, Remembrance features fixed premiums, guaranteed-for-life benefits, and cash-value accrual.

Critical Illness and Terminal Illness riders come standard, and an Accidental Death Benefit rider is available in some states.

Nassau Universal Life:

Although Phoenix Life offered a well-regarded fixed indexed universal life policy, Nassau is not presently issuing universal life coverage.  That will likely change soon, though, as the acquisition of Foresters is expected to portend Nassau’s emergence into the universal life market.

Available Life Insurance Riders

Accelerated Living Benefits Riders: 

Living benefit riders, such as Chronic Illness, Critical Illness, and Terminal Illness riders, which come standard with Nassau’s Safe Harbor Term policies, provide for optional acceleration of up to 95% of policy proceeds if an insured is diagnosed with a qualifying medical condition (e.g., heart attack, cancer, ALS), inability to perform at least two activities of daily living, or less than 12 months to live.

Accidental Death Benefit:

If purchased, the rider pays out up to $250,000 in supplemental proceeds if an insured’s death result from a qualifying accident occurring before the insured reaches age 70.

Unemployment Rider:

Nassau’s unemployment rider waives premium obligations for up to six months if an insured becomes unemployed for at least four weeks and is receiving state or federal unemployment benefits.

Conversion Option:

Standard with Safe Harbor Term policies, the conversion option allows policyholders to convert term coverage into permanent coverage without additional underwriting.  The option must be elected within five years for 10-year policies, 7 years for 15-year policies—or within 10 years for 20 and 30-year term policies.