Citizens Life Insurance Review
First of all, in this article you will find our Citizens Life insurance review, and why you should get quotes with other companies as well. We have no affiliation with Citizens Life, this a third party review.
Purchasing life insurance is easier said than done, due in large part to the many companies that sell various types of policies. While a variety of choices can cloud the water, it can also point you in the right direction if you take your time.
Citizens is an insurance holding company that has been providing US customers with coverage since 1969. Furthermore, it has been offering international policies since 1975.
If you aren’t familiar with the Citizens name, it may be because the company has several insurance subsidiaries:
- CICA Life Insurance Company of America (“CICA LIFE”),
- Citizens National Life Insurance Company (“CNLIC”)
- Security Plan Life Insurance Company (“SPLIC”)
- Security Plan Fire Insurance Company (“SPFIC”)
Citizens is anything but a small insurance company, with it holding approximately $1.4 billion in assets at the close of 2015. Along with this, it has roughly $4.5 billion of insurance policies in force.
Benefits of Citizens
There are many benefits of turning to Citizens for life insurance coverage, including but not limited to the following:
- A well known brand both among US and international buyers.
- A history of acquisitions, proving that the company is interested in expansion. Top acquisitions have included Magnolia Guaranty Life Insurance Company, Integrity Capital Corporation, Ozark National Life Insurance Company, Security Plan Life Insurance Company, and Combined Underwriters Life Insurance Company
- A focus on providing policies to all types of consumers.
- Specializes in foreign citizens
Point number three is among the most important. The company makes it clear that it has whole life insurance products for “high net worth, high income foreign residents.”
Furthermore, it also offers “whole life insurance policies to middle income households concentrated in the Midwest and southern United States through independent marketing consultants.”
Note: Citizens also sells final expense insurance to consumers in Arkansas, Louisiana, and Mississippi.
Downfalls of Citizens
While there are some benefits of turning to Citizens for whole life insurance, many have found that there are too many downfalls to overlook.
To start, the company’s independent marketing consultants are only located in certain parts of the country. This makes it difficult for a large number of consumers to do business with the company.
Along with this, it does not have the best reviews or ratings, when compared to highly reputable life insurance companies. For example, Seeking Alpha calls Citizens a “low-quality life insurance company trading at sky-high valuations.”
While this has a lot to do with the company’s stock price, it goes a long way in showing what outsiders think about the quality of Citizens as a whole.
Here are some other points that have been raised in regards to the company’s business model:
- It sells life insurance policies overseas without a physical presence, which involves some gray area in regards to the legality.
- Foreign insurance regulators could eventually crack down on the company, which could lead to its demise.
If you are interested in reading their annual report here is a link for you: https://www.citizensinc.com/pdfhtml/Citizens_2015_Annual_Report.pdf
However, for foreigners looking for life insurance in the United States, we would recommend to get multiple quotes. Many high rated insurance companies will insure non-U.S. citizens. However, if you do not have financial ties to the U.S. then it may a difficult. Just to name a few of these insurance companies:
Any of the previous companies could provide a more secure bet for life insurance. Despite the fact that Citizens has more than $4 billion of insurance policies in force, the company is seen as a big risk.
Finally, there is no denying the fact that Citizens has made a name for itself in the U.S. However their expertise is in international life insurance markets.
Unfortunately, negative ratings and reviews aren’t doing the company any favors. From a consumer perspective, there are better life insurance companies out there.
If you do not have financial links to the U.S. and you still want to get life insurance, then you might want to look into Citizens.