National Life Group life insurance

Overview

National Life Group is the trade name of a family of companies based in Montpelier, Vermont, led by National Life Insurance Company (NLIC), founded in 1848, and Life Insurance Company of the Southwest (LSW) of Addison, Texas, which writes most of its new business. It ranked #14 among U.S. life insurance groups by 2024 individual life direct premiums written, according to NAIC market share data, with $3.41 billion in premiums and a 2.18% share.

The group is ultimately owned by National Life Holding Company, a Vermont mutual insurance holding company, so there are no outside shareholders. It sells through independent agents and through its own "Affiliated Partner" agents, and says it focuses on middle-income households earning roughly $75,000 to $175,000. It is best known for indexed universal life (IUL) and term policies that include "Living Benefits" — the right to draw part of the death benefit early after a terminal, chronic or critical illness — and for 403(b) and 457 retirement annuities sold to public school teachers.

For 2025, National Life reported $7.7 billion in premiums and deposits, $634 million of life insurance sales, $3.2 billion in benefits paid, $447.2 billion of life insurance in force and $65.7 billion in total assets. It is led by chairman and CEO Mehran Assadi, who became CEO in 2009.

History

National Life was chartered on November 13, 1848, as the National Life Insurance Company of the United States by six Vermonters: Benjamin Balch, Joseph B. Danforth, Dr. Julius Y. Dewey, Homer W. Heaton, Timothy Redfield and Paul Dillingham. Dr. Dewey was the first medical director and was elected president in 1851. The company's first death claim, in 1850, was for a policyholder who died in San Diego on his way to the California Gold Rush. In the late 1800s National Life fought off several attempts by outside investors to take control and convert it from a policyholder-owned mutual.

The modern group took shape in the 1990s. In 1995 National Life bought a majority interest in Life Insurance Company of the Southwest, a Texas insurer chartered in 1955, and launched its first variable life product. In 1999 it reorganized into a mutual holding company structure: NLIC became a stock company owned through NLV Financial Corporation by National Life Holding Company, the National Life Group name first appeared, and National Life bought the remaining third of LSW. As part of that reorganization NLIC set up a closed block to protect dividends on certain older participating policies.

Mehran Assadi became CEO in 2009 and chairman in 2017. Under him the company adopted the motto "Do good. Be good. Make good." and grew quickly through independent agents selling IUL. National Life says it passed one million customers in 2019 and entered the Fortune 1000 in 2018.

Life insurance products

National Life's product lines are indexed universal life, whole life, term life and universal life, with variable universal life also available.

Indexed universal life. IUL is the group's signature product, mostly issued by LSW. Cash value earns interest tied to a market index such as the S&P 500, subject to a cap, a participation rate and a 0% floor, and owners can choose a fixed rate instead. IUL suits people focused on building cash value for needs such as supplementing retirement income; it carries more moving parts and non-guaranteed elements than whole life.

Term life. Term coverage provides a guaranteed death benefit for a set number of years or to a specific age at a fixed premium, with no cash value. As with its permanent policies, Living Benefits riders are available on term coverage.

Whole life and universal life. Whole life offers a guaranteed death benefit, guaranteed cash value, level premiums and the potential for non-guaranteed dividends. Universal life offers flexible premiums with interest credited at a current rate that will not fall below a guaranteed minimum.

Variable universal life. VUL is issued by National Life and sold by prospectus through Equity Services, Inc., the group's broker-dealer; cash value is invested in subaccounts and can lose value.

Riders. National Life offers accelerated benefit riders that pay part of the death benefit if the insured becomes terminally, chronically or critically ill — the feature it markets as Living Benefits — plus waiver of premium, accidental death benefit, paid-up additions, supplemental term and lifetime income riders. Using accelerated benefits reduces the death benefit; see accelerated death benefit riders: how they work and how they're taxed and chronic illness riders vs long-term care riders for how these compare with long-term care coverage.

Other products

National Life sells fixed indexed annuities with an optional guaranteed lifetime income rider, fixed annuities and variable annuities (it has never offered guaranteed living benefits on its variable annuities). Single-premium deferred annuity sales reached $3 billion in 2025. It is a major provider of 403(b), 457 and IRA annuities for K-12 educators and offers business-planning products such as deferred compensation funding.

Buying and service

National Life does not sell policies directly online; you buy through a licensed agent, and the website has a form to have an agent contact you. Existing customers can call Customer Relations at 800-732-8939 (Monday to Thursday 8 a.m. to 9 p.m. and Friday 8 a.m. to 7 p.m. Eastern), email [email protected], fax life service requests to 802-229-7054, or manage policies, payments and address changes through the customer website and the National Life mobile app. Physical mail goes to the Vermont campus.

Claims

To report a death, beneficiaries can fill out the online Death Claim notice on nationallife.com or call 800-732-8939. National Life says it replies within five business days of receiving the notice, by mail or email as you prefer (California beneficiaries receive replies by mail), with the forms needed to complete the claim. Living Benefit claims have a separate online notice form. Expect to provide a certified death certificate and a claimant statement.

Ratings and reputation

In the J.D. Power 2026 U.S. Individual Life Insurance Study, released in October 2026, which measures customer satisfaction with buying and owning a policy, National Life Group ranked 12th of 23 brands with 652 points against a study average of 649, down from 7th in 2025.

National Life reports financial strength ratings for NLIC and LSW, as of December 31, 2025, of A+ (Superior) from AM Best, A+ (Strong) from S&P Global Ratings and A1 (Good) from Moody's, and its ratings page listed the same ratings in October 2026. Its ratings page does not list a Fitch rating. These are strong ratings, though below the AA-level ratings of the largest life mutuals.

At the end of 2025 the group reported $3.9 billion of statutory capital and said 97% of its fixed income securities were rated NAIC 1 or 2, the two highest credit-quality categories.

LSW faces a class action in federal court in the Northern District of California on behalf of California public school educators and other public employees, which alleges that guaranteed lifetime income rider fees on its indexed 403(b) annuities were not disclosed on the state's 403bCompare.com fee site. The court certified the class in July 2026. LSW disputed the claims, and in October 2026 the parties asked the court to preliminarily approve a proposed $1.1 million settlement, against about $3 million of disputed fees; the settlement still needed court approval, and InsuranceNewsNet's report did not say LSW admitted wrongdoing.

Who it suits

National Life suits middle-income families, small business owners and educators who want an agent-sold IUL or term policy with accelerated benefits for serious illness built in. It suits less well people who want to buy online, who prefer the simplicity of guaranteed whole life from an AA-rated mutual, or New York residents who want LSW's products.

• Strengths: Policyholder-owned mutual holding company structure since 1999, with roots back to 1848; Living Benefits for terminal, chronic and critical illness across many policies; A+ ratings from AM Best and S&P; extended service hours on weekday evenings.
• Weaknesses: No direct online sales; IUL performance depends on caps and participation rates the company can change; ratings are a step below the top mutuals; LSW policies are not available in New York.

How to contact National Life Group