Chance are, if you’re reading this article, you’re probably thinking to yourself…
“I know Geico offers great car insurance, but I didn’t know they also offered life insurance?”
This makes sense; after all, it’s almost impossible to go a day without hearing Martin the Geico remind you that…
“Fifteen minutes could save you 15% more on your auto insurance!”
Which we have to admit is a pretty “catchy” slogan.
It’s even more “catchy” cause it’s true!
But one thing you may…
Notice about Martin’s pitch that he doesn’t say fifteen minutes could save you 15% more on your LIFE INSURANCE. In our opinion, this is because purchasing life insurance is a lot more complex than purchasing auto insurance.
Now, we’re not suggesting…
Purchasing a life insurance policy through Geico Insurance can’t save you money; we’re just saying it will probably take more than 15 minutes!
When you try to purchase life insurance through Geico, you’ll discover that Geico doesn’t actually offer any life insurance policies directly. Instead, it relies on partnerships with certain life insurance companies and brokerages to help its customers find the coverage they need.
But let’s not…
Get ahead of ourselves; let’s first backtrack a little and focus on Geico as a whole, 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.
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What is GEICO Life Insurance?
Thanks to its clever and effective ad campaigns, GEICO has become one of the most recognized names in the insurance industry. Their marketing is hard to forget, from snooty cavemen to lizards with Michael Caine-like accents and even a surprise appearance by 80’s rock group Ratt.
Despite all the advertising, however, GEICO is simply an insurance company, no more and no less. If you’re reading this article, you might be wondering why GEICO, a car insurance company, is being discussed on a life insurance site. Well, the truth is that GEICO doesn’t underwrite life insurance policies, and you cannot purchase life insurance directly from GEICO.
However, GEICO is a well-known company in the insurance industry with a massive customer base, so it’s not uncommon for their customers to inquire about life insurance. In such cases, GEICO, through its affiliate, The GEICO Insurance Agency, Inc., refers its customers to an independent online broker called Life Quotes.
GEICO and Life Quotes have a referral agreement that allows Life Quotes to leverage GEICO’s famous name and marketing power. When you request a life insurance quote on GEICO’s website or when you shop for life insurance through GEICO, you’re working with an independent broker – Life Quotes. In turn, Life Quotes shows you policies issued by one of several life insurance companies in their network.
There isn’t really a good reason for GEICO to be involved in the life insurance process, except maybe it’s the only insurance company phone number you have handy. However, if you’ve already made it that far, you’ll need to know whether Life Quotes is worth your time. So, this review will focus on what it’s like to shop for GEICO life insurance through Life Quotes.
- A.M. Best: A++
- S&P: AA+
- Moody’s: NR
- Fitch: NR
GEICO, a wholly-owned subsidiary of Warren Buffett’s Berkshire Hathaway, is undoubtedly a financial powerhouse. It reports well over $40 billion in assets, including over $8.5 billion in reserves. This places GEICO among the top companies in the insurance industry. However, as mentioned earlier, shopping for GEICO life insurance does not mean you will be getting a policy issued or backed by GEICO, so its formidable finances will not be behind the policy.
Instead, it would be best to focus on the financial ratings of the life insurance company that will issue the policy. Fortunately, Life Quotes has several strong companies in its network.
Shopping for “GEICO life insurance” through Life Quotes.
Once GEICO has referred you to Life Quotes, the process of shopping for life insurance becomes similar to working with most large independent agents.
To begin, you’ll need to fill out an online quote form, which can be accessed by selecting the “Find My Price” option on Life Quotes’ homepage. You’ll be asked for some basic information, such as your date of birth, gender, height, weight, tobacco-use history, and the type of insurance and coverage amount you’re looking for. Additionally, you’ll be required to provide your name, phone number, and email address, as Life Quotes doesn’t offer quotes without contact information.
Once you’ve entered all the necessary information, you’ll be presented with a range of options from insurers that Life Quotes works with. Compared to other online independent brokers, Life Quotes has a sizeable network, including some very well-known and well-regarded insurers such as Mutual of Omaha, Lincoln Financial, Pacific Life, L&G, and Protective.
Life Quotes’ large network allows you to compare quotes from different companies to find the best rate or to find coverage if you’re in a situation where it’s hard to find coverage. If you find any quotes you like, the next step is to apply for coverage. A Life Quotes representative will walk you through the application process, which varies depending on the insurer and coverage you’re requesting. Some policies may require a medical exam, while others may not (no exam life insurance).
After you submit your application, you’ll need to wait for a coverage decision, which can take anywhere from a few minutes to a couple of weeks, depending on the insurer and policy. If you receive a positive coverage decision, you’ll see a firm offer of insurance with the final rates required. If you decide to purchase, the policy is issued, and you’ll start making premium payments.
What Types of Life Insurance Does GEICO / Life Quotes Sell?
Life Quotes primarily markets term life insurance, although many of the carriers in its network also offer whole life and universal life policies.
Thanks to a wide variety of insurers to choose from, Life Quotes can offer terms ranging from as short as one year (with annual renewable term policies or “ART” policies) to as long as 30 years. Life Quotes also markets policies that provide term coverage through a specified age, such as “to age 65” or “to age 75”. However, longer-term lengths may be unavailable for older applicants.
Life Quotes markets fully underwritten, simplified issue, and guaranteed acceptance policies within the broader assortment of term policies. A fully underwritten policy has the most thorough underwriting requirements, typically including a medical exam. For young and healthy applicants, fully underwritten policies usually result in the lowest rates but also require the most legwork upfront.
Simplified issue policies consider health information but don’t require a medical exam. You need to provide a detailed medical history in the application and usually give the insurer permission to pull health history reports, but you won’t have to have a blood test or check-up. Simplified issue policies generally cost a little more than fully underwritten policies.
Finally, guaranteed acceptance life insurance policies do not consider health information in the underwriting process. You can get coverage if you’re within the policy’s acceptable age range. However, guaranteed acceptance policies have notably higher premiums, and there is often a year or two waiting period before the policy’s full coverage amount kicks in. The big advantage of guaranteed acceptance is that some people who wouldn’t otherwise qualify for coverage can obtain a policy.
Rounding out the term-life options offered by Life Quotes are “ROP” (“return of premium”) term policies. ROP policies allow the policyholder to recoup the premiums paid into the policy if the term ends without coverage being triggered. ROP policies require a larger premium but can be a good option for the right individuals.
Policy limits marketed by Life Quotes start as low as $25,000 and go as high as $9 million. However, not every carrier offers coverage within the entire range, and not every applicant will be eligible for coverage over the entire range. As a general rule, younger and healthier insureds can obtain policies with higher coverage amounts and longer terms.
Life Quotes Conclusion.
Life Quotes can be considered a good option in the rapidly growing world of online life insurance brokers. If you are looking for straightforward term coverage, Life Quotes can help you find a reputable company that offers a term policy that fits your needs. You can even compare a few rate quotes to try and find a good deal on a term policy. However, it’s important to remember that GEICO won’t actually issue the policy, even though Life Quotes is affiliated with them.
One potential downside of using Life Quotes is that you may encounter difficulties if you have a pre-existing health condition, are interested in more sophisticated policies like Whole Life or Universal Life, or want term coverage with coverage-enhancing riders. While Life Quotes works with carriers who provide all those options, their model primarily revolves around selling term insurance policies requiring relatively little agent time per policy.
Therefore, if you want more personalized life insurance coverage, you may be better off working with a broker specializing in more complex policies requiring more individualized attention upfront.
Life Quotes’ website may not be the most helpful resource if you are still unsure about what type of coverage you need. While it does have a few well-written articles with good information about ordinary term coverage, it doesn’t provide much information about whole life or universal life.
Overall, compared to other online brokers, Life Quotes doesn’t offer as many useful tools or resources. However, if you are looking for straightforward term coverage and are comfortable with a relatively hands-off experience, Life Quotes can still be a decent option.