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RiverSource Life Insurance Company Review

Company Overview

About.com Rating 4.5 Star Rating

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No one likes to think about a time when they will not be around for their family's future. Purchasing life insurance can give you the peace of mind in knowing that your family's future is financially secure. For a decision as important as your family's future, you want a company who is financially stable and offers a life insurance product you can trust.

RiverSource Life Insurance is one such company. It is the 18th largest life insurance company in the nation. RiverSource Life Insurance has been in business for more than 100 years and is a fully-owned subsidiary of Ameriprise Financial, Inc. Ameriprise Financial was founded in 1894 by John Tappan and is headquartered in Minneapolis, Minnesota. Earlier names for the company include Investors Syndicate Life Insurance and Annuity Company and IDS Life Insurance Company. American Express Co. purchased IDS in 1984. The company offers a full line of investment and financial services including wealth management, annuities, retirement planning and insurance services.

Ameriprise Financial became a publicly-traded company in 2005 and is one of the largest financial planning institutions in the U.S. Ameriprise was ranked number 248 in the 2012 Fortune 500 list of largest U.S. corporations according to revenue. The parent company uses three brand names for its products including Ameriprise Financial, Columbia Management and RiverSource. RiverSource Life Insurance sells and services the company's life insurance, annuities and disability income insurance products.

Financial Stability & Better Business Bureau Rating

RiverSource Life Insurance Company has received high ratings from financial rating services A.M. Best, Moody's Investor Service and Standard & Poors. Here's how these financial rating services have rated Riversource Life Insurance:

  • A.M. Best - A+(Superior) with a stable outlook
  • Moody's Investor Service - Aa3(Excellent) with a stable outlook
  • Standard & Poor's (S&P) - AA- (Very Strong) with a stable outlook

Neither RiverSource Life Insurance Company nor its parent company, Ameriprise Financial, is Better Business Bureau accredited. Even though the company has not sought a BBB accreditation, the company's BBB ranking is A+. Over a three-year period there were a total of 29 complaints listed in the areas of products or service, billing and sales issues. All of these complaints were resolved and are now closed.

Life Insurance Products

At Riversource Life Insurance Company, you can purchase three major types of life insurance policies:

  • Term Life Insurance: The term life insurance products provide an income-tax-free death benefit. The policy covers one person and is available in a 10, 15, or 20 year policy term. With the term-life policy, the premium is guaranteed over the term of the policy and you also have the option at the end of the policy period to convert to a permanent life insurance policy.

  • Universal Life Insurance: The universal policy is a permanent policy that covers an individual over his entire lifetime. The policy can accumulate a cash value which you can borrow against income tax-free. Some other features of the policy include income tax-free death benefit to beneficiaries, an optional no-lapse guarantee and a guaranteed minimum fixed interest rate.

  • Variable Universal Life Insurance: A variable universal life insurance policy provides you with the benefits of permanent life insurance while also providing you an opportunity to invest in the market. The policy offers an income tax-free death benefit, flexible death benefit and premium, tax-deferred growth and in certain cases, income tax-free access to the policy's cash value.

Pros & Cons

Pros

  • The company is financially stable company with positive customer service reviews.
  • The website is user friendly and help is readily available both online and over the telephone.
  • Through Ameriprise Financial, Inc., you can take care of all your financial service needs at one company.

Cons

  • Cash value of the variable universal life insurance policy is not guaranteed.
  • There have been a few customer complaints in the areas of service and billing.
  • The variable universal life insurance policy is not available in all states.

Contact Information

You can find out more information about the life insurance products available through the Riversource Life Insurance Company website, by using the agent locator on the website or by calling (800) 257-8740, 8 a.m. to 5 p.m., Central Standard Time, Monday through Friday.

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