National Life insurance, reviewed.
National Life Group is an A-rated insurer founded in 1848, best known for indexed universal life — permanent coverage whose cash value grows with a market index but can’t lose value to one. The bottom line: a strong, long-standing carrier whose IUL policies reward being designed and funded well, and we’ll show you how to tell if yours is.
✓ Independent & consumer-first✓ 26 years in business✓ Every major carrier reviewed✓ Licensed in all 50 states
What it does well
Old, strong, and built for permanent coverage.
National Life Group’s reputation rests on age, financial strength, and a deep indexed-universal-life bench. It carries an A (Excellent) rating from AM Best and traces back to 1848, per National Life.
Over 175 years in business
National Life Insurance Company was chartered in Vermont in 1848, which makes the group one of the oldest life insurers still operating in the country.
A-rated for financial strength
The group carries an A (Excellent) rating from AM Best — a measure of an insurer’s ability to pay claims over the long haul.
A deep indexed-universal-life bench
Its life subsidiary, Life Insurance Company of the Southwest, is one of the larger writers of indexed universal life in the market.
Living benefits built in
Many of its policies include accelerated-benefit riders that let you draw on the death benefit while living if you become chronically, critically, or terminally ill.
Mutual-style ownership
National Life is held through a mutual structure, so the company answers to policyholders over the long term rather than to a quarterly share price.
A full permanent shelf
Beyond IUL, the group writes term, whole life, and annuities — useful when one household needs more than one kind of coverage.
Hold a National Life IUL and want to know if it’s on track? A licensed professional will read the funding and the caps with you. No obligation.
Call (888) 959-0710The flagship product
Indexed universal life, in plain terms.
An indexed universal life policy is permanent coverage with a cash-value account whose interest tracks a market index. Here’s the part that trips people up: your money isn’t in the market. The insurer credits interest based on how an index like the S&P 500 moves, inside two guardrails.
The floor
Your downside guardrail
A guaranteed minimum credit — often 0% to 1% — so a down year for the index doesn’t subtract from your cash value. You can earn zero, but you don’t go backward from market losses.
The cap
Your upside guardrail
In trade for that floor, gains are limited by a cap or a participation rate. A strong index year is credited up to the cap, not dollar for dollar. Caps can change over time — worth checking.
The cash value
What it can become
Premiums above the cost of insurance build cash value that grows tax-deferred. Over years, that value can be borrowed against — a feature an IUL is often bought for.
IULs are genuinely good products. The catch isn’t the product — it’s the setup. A policy funded near the minimum to chase the biggest death benefit behaves very differently from one funded toward the limit to build cash value. Same carrier, same page of fine print, two different outcomes. Our plain-English guide to how an IUL works walks through the mechanics in full.
The riders
Living benefits you can use before a claim.
A rider is an add-on that changes what a policy can do. National Life is known for building accelerated-benefit riders into many of its plans — the feature that lets you tap part of the death benefit while you’re still living, per the policy’s terms (confirm yours with National Life):
Terminal illness
If a doctor gives a prognosis
Lets you accelerate a portion of the death benefit after a qualifying terminal diagnosis, so money is there when it’s needed most.
Chronic illness
If daily living needs help
May let you draw on the benefit if you can’t perform certain activities of daily living — a partial answer to long-term-care costs.
Critical illness
After a serious event
Some policies allow acceleration following a qualifying critical illness, such as a heart attack or stroke, subject to the rider’s terms.
Easy to miss: accelerating a benefit reduces what’s left for your beneficiary, and an advance may be subject to terms and limits. Whether a draw could affect your taxes or benefits is a question for your tax advisor — the IRS treats accelerated death benefits under specific rules. That’s the kind of detail a review surfaces before you ever need it.
How the plans compare
Where its IUL fits the broader market.
IUL terms vary by carrier and by the year you bought. The table below is an illustrative side-by-side of the levers that matter on a permanent policy — not a quote, and not specific to your contract. Use it to know which questions to ask:
| Feature | National Life (IUL) | Typical IUL peer | Whole life (for contrast) |
|---|---|---|---|
| Coverage type | Permanent (IUL) | Permanent (IUL) | Permanent (whole life) |
| Cash-value growth | Index-linked, floor + cap | Index-linked, floor + cap | Fixed declared rate |
| Down-market floor | Often 0%–1% guaranteed | Often 0%–1% guaranteed | Guaranteed minimum rate |
| Upside limit | Cap / participation rate | Cap / participation rate | No index upside |
| Premium flexibility | Flexible (within limits) | Flexible (within limits) | Fixed, level |
| Living-benefit riders | Commonly included | Often optional / add-on | Often optional / add-on |
| AM Best rating | A (Excellent) | Varies by carrier | Varies by carrier |
Illustrative, not a quote. Caps, participation rates, floors, and rider availability are set by each carrier and product, change over time, and depend on your policy and state. National Life’s A (Excellent) rating is per AM Best; confirm current terms with the carrier. Wondering how an IUL stacks up against a savings vehicle? See IUL vs. a 401(k).
The decision that matters
Is your IUL funded to actually perform?
With an IUL, funding is everything. A policy paid near its minimum keeps the insurance in force but leaves the cash value thin. A policy funded toward its limit — the most premium the IRS rules allow before it loses its tax treatment — is built to grow. Same contract, very different result.
A review reads three things: how much premium is going in versus the room you have, what the current caps and floor are, and whether the policy is on track to stay in force at the age you’re planning for. If it’s humming, we say so. If it’s underfunded, there’s usually a fix that keeps what’s working.
An IUL doesn’t fail quietly because the carrier is weak. It underperforms because it was funded for the wrong goal. That’s fixable — and worth catching early.
Already have a policy?
Have your National Life IUL read line by line.
If you already hold a National Life or LSW policy, a licensed professional will read the in-force illustration with you — the funding, the caps, the riders — and tell you whether it’s on track. Often the answer is that it’s in good shape, and we’ll say so plainly.
Free · no obligation · Mon-Sat · 10am-9pm
- Whether your premium is funding cash value or just the death benefit
- What your current cap and floor are, and how they’ve moved
- Whether the policy stays in force to the age you’re planning for
- Which living-benefit riders you actually have, and what triggers them
When NOT to call us
When to keep your National Life policy as is.
Sometimes the right move is to do nothing, and we’ll be the first to say it. If your policy is funded toward its limit, the cash value is tracking the illustration you were shown, and the riders match what your family needs, you’re likely in good shape — leave it alone.
There’s another reason to be careful: an older policy can hold a lower cost of insurance than you’d get today, and replacing permanent coverage can restart fees and waiting periods. A new IUL also starts a fresh measurement window for its tax treatment. So before anyone suggests a change, the burden is on us to show it’s clearly better for you — not just different. A review that ends in “keep what you have” is a successful review.
Want the full picture on cash-value coverage before you decide anything? Start with our guide to how cash-value life insurance works, or bring any policy to a free policy review.
Straight answers
National Life questions, answered.
By Braxton Mondell, licensed in all 50 states · Updated June 2026
01Is National Life Group a good insurance company?
Yes — it’s a financially strong, long-established insurer. National Life Insurance Company dates to 1848 and the group holds an A (Excellent) rating from AM Best for financial strength. It’s best known for indexed universal life, and whether a given policy is a good fit comes down to how it’s designed and funded for your goals.
02Is National Life Group legit?
Yes. National Life Group is the marketing name for a real, state-regulated group of insurers, including National Life Insurance Company (Montpelier, Vermont) and Life Insurance Company of the Southwest. The group has paid claims for over 175 years and is rated A (Excellent) by AM Best.
03What is National Life Group known for?
Indexed universal life, mostly. Its IUL policies link cash-value growth to a market index like the S&P 500, with a floor that protects against index losses and a cap or participation rate that limits the upside. Many also carry living-benefit riders that let you access the death benefit early for qualifying illness.
04How does a National Life IUL work?
You pay premiums, the cost of insurance and fees come out, and the rest builds cash value that earns interest tied to an index’s movement — never below a guaranteed floor (often 0% to 1%). Gains are capped or limited by a participation rate. Funded well and reviewed regularly, that cash value can grow tax-deferred and be borrowed against later.
05Is a National Life IUL a good investment?
An IUL is life insurance first, not a securities investment. Designed and funded properly, it can build tax-advantaged cash value with downside protection. The results depend on how the policy is structured, how much premium goes in, and the caps in force — which is exactly what a review checks. This is educational, not tax or investment advice.
06How do I reach National Life Group customer service?
Current policyholders can use the number on their policy or sign in at nationallife.com. If you’d like someone to read your policy with you first — the index strategy, the riders, the funding — a licensed professional on our team can walk through it and help you contact the carrier.
This is an independent review. Policy Review Center is not affiliated with or endorsed by National Life Group; product and company names are used for identification only. Plan details come from the carrier and can change — confirm current terms with National Life. Educational only, not tax, legal, or investment advice; any coverage changes are completed through licensed insurance professionals.
See how yours is doing. Then decide.
Call and a licensed professional will read your National Life policy with you — the funding, the caps, the riders — and tell you straight whether to keep it as is or fine-tune it.
Looking at another carrier? Browse all our independent carrier reviews.