Pacific Life Insurance Review 2018

NerdWallet rank: 2nd

Pacific Life ranked No. 2 out of 23 large life insurance companies evaluated by NerdWallet. The ranking is based on a composite score, which takes into account the company’s A.M. Best financial strength rating, J.D. Power customer satisfaction scores and the number of complaints against the company to state regulators, adjusted for market share.

A.M. Best financial strength rating: A+ (superior)

Pacific Life’s financial strength is “superior,” according to ratings firm A.M. Best. Financial strength is important because it indicates an insurance company’s ability to pay claims. That’s crucial for life insurance because a claim might not be made until decades after a policy is purchased.

Consumer complaints: Better than the median

Pacific Life drew significantly fewer than the median number of complaints about individual life insurance to state regulators in 2017, compared with life insurance companies of its size.

The National Association of Insurance Commissioners calculates a “complaint ratio score” for insurance companies, which is based on the number of complaints to state regulators, adjusted for market share. The median score is 1, and a score of less than 1 means fewer complaints. Pacific Life Insurance Co., which issues policies in every state except New York, had a complaint ratio score of 0.02 for individual life insurance. Pacific Life & Annuity Co., a subsidiary that issues policies in New York, had a score of zero.

J.D. Power ratings: Better than most

Pacific Life ranked third out of 24 life insurance companies evaluated for customer satisfaction in the J.D. Power 2017 Life Insurance Study. Pacific Life scored “better than most” for overall satisfaction, “about average” for price, and “among the best” companies for how well it interacts with customers.