GEICO is one of the most popular insurance companies in the United States for auto and home insurance. So it’s not surprising that many GEICO customers look to this insurer for their life insurance needs, too.
How does GEICO compare with other life insurance companies on the market?
Let’s take a look at GEICO life insurance in this complete review.
In this review:
- Does GEICO Have Life Insurance?
- Life Insurance Products
- GEICO Life Insurance Rates
- Company Ratings
- Is GEICO Right For You?
Does GEICO Have Life Insurance?
GEICO itself does not sell or underwrite life insurance. Instead, GEICO works with a separate company, Life Quotes Inc., to help you select a life insurance policy.
Life Quotes Inc. is an independent insurance broker or a third-party recommendation company — kind of like an online insurance agency.
If you want life insurance with GEICO, you’ll be sent to Life Quotes, Inc., which will connect you with an actual life insurance company.
When I refer to GEICO in this life insurance review, please know that I actually mean Life Quotes, Inc., which is doing business under GEICO’s branding.
GEICO Life Insurance Products
GEICO (Life Quotes Inc.) only offers term insurance coverage. While they sell term insurance in a variety of lengths, whole life and universal life insurance are not an option.
Term policies offer level coverage and level premiums for a pre-set period of time and then expire.
With GEICO, you could get terms ranging from 5 to 30 years and death benefits ranging from $5,000 all the way up to $25 million.
Once the policy’s term expires, you’ll need to find another life insurance plan or go without life insurance.
I recommend term life for almost any applicant who needs a large death benefit to protect a growing family or pay off a large debt such as a mortgage.
Term offers affordability and simplicity; It does not offer permanence or cash value.
GEICO Life Insurance Rates
GEICO, like most life insurance companies, works on a tiered system that categorizes policyholders into one of three or four categories.
Each category will have different premiums, and depending on things like your age, health, and current medical issues, you may be classified into:
- The best rank, Preferred is for healthy, able-bodied people with no medical problems.
- The middle rank, Standard includes most applicants, either because they’ve had their own medical issues in the past or because they have a family history of medical problems.
- The lowest rank, Substandard includes people who have injuries, chronic medical conditions, or a history of serious health problems such as heart trouble or strokes. If you’ve experienced a heart attack or stroke in the past six years, you’re considered a high-risk customer and classified as Substandard to the insurance company.
The best rates, the ones for Preferred customers, are the rates you’ll see advertised. However, most policyholders will fall into the Standard or Substandard classes. Be aware of these marketing tricks when shopping for life insurance!
If you’re a high-risk applicant, you can still find life insurance that you can afford. You’ll just need to work with an independent agent who can connect you with a company that favors people with your medical conditions.
GEICO makes getting life insurance quotes simple. You could get a quote for any type of term life policy you can imagine.
Just enter the amount of term life insurance you’re shopping for — from $5,000 to $25 million. You’ll also enter the state that you live in, your birthday, gender, and whether you’re a smoker.
After that, this portal will show you a variety of life insurance plans that match your specifications. You’ll also see a ballpark figure for how much you’d pay in premiums.
Keep in mind this estimate could change if the insurance underwriting process uncovers a new health problem or some other risk factor in your profile.
Yes, I’d like to see more transparency in GEICO’s application process, but I will say this: For an auto insurance company GEICO makes term life insurance shopping simple.
How To Apply
Let’s say you click on life insurance quotes from GEICO and are comfortable using Life Quotes Inc. to find insurance options.
What happens next? Life Quotes, Inc., will start asking you more questions to determine your eligibility for life insurance.
Questions will include but not be limited to:
- How old are you?
- Do you currently suffer from any medical issues?
- Have you suffered any medical issues in the past six years?
- Have you ever been diagnosed with a serious or chronic condition?
- Do you work? How much? Does it involve anything dangerous or potentially life-threatening?
- What are your lifestyle habits? Do you smoke, drink, etc.?
- Do you exercise?
These questions not only measure your current physical shape but they also can reveal your chances of staying in good shape for the entirety of your life insurance term.
For example, one minor or major stroke 10 years ago won’t automatically disqualify you for quality term coverage, but a history of transient ischemic attacks (TIAs) might send up red flags.
Life Quotes, Inc., will use your answers to these questions to help you find the right life insurance company.
Does Geico Life Insurance require a medical exam?
Traditional life insurance policies require you to take a medical exam before finalizing coverage. Whether the plan requires a medical exam will depend on the actual carrier and type of policy you choose.
If you need a large death benefit like $1 million or more, expect the insurance provider to ask for a medical exam. Most companies will send out a paramedic to your house to complete this medical exam.
During the exam, the paramedic will measure your weight, blood pressure, height, cholesterol, and some other basic vital signs. To complete this exam the paramedic will need a blood and urine sample.
The insurance company will review your exam results. If the tests reveal health problems or risk factors, you could be turned down for the policy, or you could get premiums you can’t afford.
Life Quotes Inc. / GEICO makes no guarantees about your application. They have no control over the prices or premiums you’re offered by these other insurance companies; Life Quotes Inc. is simply a medium between you and the life insurance company you choose.
You shouldn’t allow your health issues to stop you from seeking life insurance to protect your loved ones if you died unexpectedly.
More and more companies offer a no medical exam policy. No exam plans cost more in premiums and normally offer lower death benefits.
GEICO Life Insurance Reviews
Any GEICO Life Insurance Review is actually a review of Life Quotes, Inc.
When you buy term life insurance through Life Quotes, you are connected to about 30 different carriers. Many of the carriers have A or A+ ratings from A.M. Best.
These kinds of online portals are great for shoppers who have minor health problems or are young and healthy.
You can get term life coverage from some of the best life insurance companies when you work with Life Quotes Inc. doing business as GEICO.
Still, it’s important to find out who is providing your life insurance coverage. Look into that company’s A.M. Best grades and other financial strength ratings to determine whether you really want to buy the policy.
You should always find out about an insurance company’s:
- Customer Satisfaction: Companies like J.D. Power and the Better Business Bureau can tell you a lot about an insurer’s track record with its existing customers. The BBB measures an insurer’s responsiveness to complaints. J.D. Power considers several customer satisfaction criteria.
- Financial Strength Ratings: A.M. Best measures the financial stability of insurance companies. An A++ or an A+ rating tells you A.M. Best expects the company to remain stable through the coming years and decades.
- Policy Access: Life insurance tends to change slowly, although the coronavirus pandemic has expedited changes in recent months. If you prefer shopping for coverage or managing your policy on a company’s mobile app, make sure your company offers these sorts of modern tools. Some of the best insurers (New York Life, MassMutual, Northwestern Mutual) don’t sell life insurance online.
- Policy Options: If you want a specific kind of rider such as an accelerated death benefit in case you become terminally ill and want to access your life insurance to pay medical bills, make sure your company provides this kind of customization. Most leading companies do.
- Customer Reviews: Check Consumers Advocate, TrustPilot, or other online reviews before buying coverage. If you spot problems that affect you, consider a different company. I have written a number of life insurance company reviews.
Is GEICO Life Insurance Right for You?
If you want a simple term life insurance policy and you’re a fairly simple life insurance applicant, GEICO should work well for you.
GEICO’s website provides an adequate jumping-off point to the coverage you need. You’ll see a variety of quotes from solid companies.
But if you have a complex medical history, we’d suggest you try a different route.
- Not For Complicated or High-Risk Applicants: More complicated applicants will need a more personal approach. An independent life insurance agent who takes time to understand your individual needs can better match you with the right life insurance company for your situation.
- Not For Permanent Life Insurance: If you want whole life insurance or another permanent life insurance product like universal life, or final expense coverage, you’ll need to shop somewhere besides GEICO. Once again, an independent life insurance agency will be your best avenue.
You have plenty of choices for life insurance — just like you do with home insurance, renters insurance, and auto insurance. In fact, you have even more life insurance choices; hundreds of companies offer this kind of insurance.
GEICO is a household name, a reputable brand, and a company that can boast top-notch financial strength ratings. You could be confident if this was your pick.