Are you thinking about purchasing a life insurance policy for your family? If so, you may be wondering if Geico Insurance might be the right fit for you. After all, it’s almost impossible to go a day without being here that…
“Fifteen minutes could save you 15% more on your auto insurance!”
Which you have to admit is a pretty “catchy” slogan. It’s even more “catchy” cause it’s true.
But one thing you may…
Notice here is that Geico doesn’t say fifteen minutes could save you 15% more on your LIFE INSURANCE. And that’s because, purchasing life insurance is a lot more difficult that purchasing auto insurance.
Now we’re not suggesting…
That purchasing a life insurance policy through Geico insurance can’t save you money, we’re just saying that it’s probably going to take you more than 15 minutes!
Purchasing life insurance is a whole lot more difficult than purchasing auto insurance. With auto insurance, nobody’s really worried about how high your cholesterol levels are or what your blood sugar levels are. And you’re also probably not going to need to provide a blood and urine sample!
But guess what?
When you decide to purchase a life insurance policy that’s probably exactly what you’re going to need to do. It’s also one of the reasons why Geico Insurance doesn’t “actually” sell life insurance directly!
Yep, that’s right, Geico Insurance doesn’t actually sell life insurance! But before we get ahead of ourselves, let’s backtrack a little bit and focus on Geico as a whole and provide a few reasons why we have nothing but respect for Geico as an insurance company and discuss why we feel they are such a strong competitor in the insurance market.
***Important Side Note***
InsuranceBrokersUSA is not affiliated with Geico Insurance in any way, nor do we offer any of their insurance products. In fact, we often find ourselves in direct competition with their life insurance department so… please make not of this as you read this review article.
Because we have the highest respect for Geico Insurance, don’t expect to find us disparaging them in any way.
Geico Insurance Review.
History – Founded back in 1936, Geico is well known for car insurance and various policies for all different types of vehicles but not many people know that they have actually diversified into the life insurance market. Going right back eighty years, the business was initially set up as an auto insurance provider to all those working for the federal government. Previously, the owner had worked for USAA who were famous for insuring many of the military personnel but they soon decided to go it alone and start up a new business.
Over the years, Geico has become known for their interactions over the phone and internet. This being said, they also have a local agent program just like many other companies and this network now has 150 offices across the United States.
Finances – According to Geico themselves, they have around $27 billion worth of ‘admitted assets’ as well as a policy surplus of $15.7 billion. With Geico, much of their business is broken down into different entities with Casualty, Indemnity, Choice, Secure, and many others but these figures have been combined for the overall business.
Pre-Warning – Before we head into the ratings for Geico and start looking at the products available, we should note that Geico does not sell life insurance directly. Essentially, the Geico employees are helping you to make the right purchase by referring you to a business called Life Quotes Inc. If you visit Geico and click on the life insurance section, sooner or later you will be sent to this different entity. From there, Life Quotes will act as a life insurance brokerage and help put you in contact with various other companies.
Should you be worried?
Although this may seem like a misdirection, Life Quotes Inc does work with over 30 life insurance companies which should, in theory, put you in a strong position because you will receive the best price and policy of these 30.
This allows Geico to continue to do what they do best (property and casualty) while passing their life insurance business over to folks specializing in that field! Which is why it’s difficult for us to see fault with this decision that Geico has chosen to make.
Throughout all of Geico’s growth in recent years, one thing has remained constant and that is their strong customer service and financial ratings:
- M. Best – A++
- SP – AA+
- Moodys – Aa1
- Fitch – AA+
- BBB – A
Regardless of how they get life insurance to the end user, Geico seems to be doing a grand job and this is highlighted with the A rating from the Better Business Bureau.
When it comes to life insurance, the customer experience with Geico is considered to be just as good as some of the biggest companies in the country which means there isn’t an overload of complaints regarding how things operate. If we also consider that they are the second largest car insurance provider, they must be doing something right and good practices often travel across when diversifying a business.
Looking at the finances, they have brilliant ratings from A.M. Best, Moodys, Fitch, and SP which is great news for life insurance. Looking to the future, you need to be sure that your provider will stand the test of time and pay out your claim whenever it is needed. With Geico, you have a company that stayed secure throughout the global economic crisis and is now thriving through it all.
As we mentioned previously, Geico is well known for their car insurance products and this is where it all started. Soon enough, they moved onto motorcycles, ATVs, and then umbrella insurance. Not long after, they were competing with the other large companies for homeowners insurance as well as renters, condo, RV, boat, co-op, flood, personal watercraft, mobile home, travel, ridesharing, business, and, of course, life insurance. As you can see, they offer just about every insurance product you could ever want or need!
In the life insurance world, we have three main offerings with term life, whole life, and universal life and it looks as though Geico has decided to enter the market with these three in tow. Written through Life Quotes Inc, you will have a choice between temporary and permanent insurance policies. If you go with permanent, you then need to decide between how your cash value component will grow. With a whole life policy, you will see a fixed interest rate and the money will grow each year. With universal, your rate of return will be tied to the market so you could make more or you could earn less money than the fixed rate in a whole life policy.
For the finer details, the term life policy will be available in different lengths depending on your needs; 5, 10, 15, 20, and 30 years are all available. With the permanent policies, they will remain in place until you pass away at which point the death benefit will pass over to the beneficiary. For coverage, you will generally see policy limits as low as $3,000 and all the way up to $25,000,000 which means that it will suit a wide array of people. Whether you need to cover your final expenses or help your family to live on after you pass, you are likely to find something for you.
Flexibility – With life insurance, we always like to suggest flexibility as an important factor because this will allow anyone to mold the policy around their needs. With Geico, you have options in abundance and this starts with how often you wish to pay premiums. If you want to pay monthly, this will be available and it will be taken from your account on a fixed date. However, you can also choose quarterly, semi-annually, or annually. With this last option, you will pay less money because you won’t have to pay any interest. When paying monthly, the insurance company is essentially lending you the coverage each month. If you can pay for the year ahead, there will be no interest added to your payment.
Additionally, you can also choose between a level or variable death benefit and many other factors. If you sit down with an insurance agent or a trusted finance specialist, they can help you to choose the right variables for your policy to put you and your family in the best position moving forward.
Riders – Finally, riders also allow for flexibility and they add even more protection. With Geico, you can buy riders such as Accelerated Death Benefit and a Living Death Benefit. If you happen to come down with a serious illness or disability, the Waiver of Premium rider means that Geico will waive any premiums for a certain amount of time or until you are once again in a position to pay. With these riders in place, you may have to pay more money but they can certainly prove useful in the long run!
Which all sounds great!
Which is why you may be asking yourself, why would another life insurance agency write such a glowing review article for one of its competitors? That’s simply, we’re not worried about how good our competitors are we’re just worried about how good we are!
Here at InsuranceBrokersUSA, we strive to be on the cutting edge of the life insurance industry, which means that in addition to offering dozens of traditional term and whole life insurance policies from many of the top insurance companies, we also strive to help folks take advantage of all the “new” trends in the industry which can help our clients purchase traditional term and whole life insurance coverage without:
- Having to take a medical exam.
- And without having to wait weeks to be approved.
Which is why…
If you are considering purchasing a life insurance policy, before you make any “final” decisions, give us a call and see what we could do for you!