Last updated: May 22nd, 2018
Having life insurance in your overall financial plan can help to provide assurances for your loved ones and survivors in a time of grief and perhaps unexpected loss. This can play out in many different ways, such as the policy payout being used for debt, living expenses for your spouse, and future college funding requirements for any children you may have.
But even though life insurance can be highly beneficial, not all policies – or insurance carriers – are alike. Therefore, it is important that you first ensure that you are moving forward with the right type and amount of coverage. It is also recommended that you check out the insurance company that you’re considering buying your policy through in order to determine whether or not it has a positive reputation with it’s policyholder claims.
One helpful method of doing so is to work with a company that has access to numerous life insurance companies and policies. Matrix Direct offers a diverse selection of term and permanent life insurance plans from several different insurers.
The History of Matrix Direct Life Insurance
Matrix Direct was initially founded in 1995, based in large part on the fact that people were seeking a better – and more simple – way to secure the life insurance coverage that they needed. The company is headquartered in San Diego, California.
Because the selection of the right life insurance coverage can be somewhat difficult, Matrix Direct makes it easy to directly compare the policies and the premium rates from numerous different companies. By doing so, it allows its customers to pick and choose the plan that best meets their needs, as well as their budget.
Today, Matrix Direct is owned and operated by AIG Direct – a wholly owned subsidiary of American General Life Insurance Company. The company was previously owned by Protective Life Corporation. Over the past several years, the company has been advertised either as Matrix Direct or as AIG Direct. There is no additional fee charged to customers for evaluating and/or purchasing life insurance coverage through Matrix Direct. Rather, the company earns its profits through the life insurance policies that it places.
Matrix Direct Life Insurance Review
Over the past two decades, Matrix Direct has helped more than six million people find and secure the life insurance coverage that best fits their specific needs – and the company has done so without the need for its clients to meet in person with a life insurance agent. This, in turn, has helped to save time for the customers it serves.
Matrix Direct represents a number of top rated life insurers, including:
- Voya Financial
- Gerber Life Insurance Company
- Fidelity Life
- Globe Life and Accident Insurance Company
- Legal and General
- Mutual of Omaha
- American General Life Insurance Company
While some of the life insurance plans offered through Matrix Direct require traditional underwriting (i.e., a full line of health-related questions, as well as a medical examination), others will not require an exam – and in some cases, an applicant for coverage will be guaranteed policy approval, regardless of his or her current health condition.
Ratings and Better Business Bureau Grade
Because Matrix Direct is not itself an insurance company, it is not rated by the insurer ratings agencies such as A.M. Best Company, Moody’s, Fitch Ratings, or Standard & Poor’s. However, each of the life insurance companies that is represented has been rated A- to A+ by A.M. Best Company for their financial strength. This means that these insurers have earned one of the three highest ratings out of 15 possible total.
These ratings include the following:
- American General Life Insurance Company = A
- Gerber Life Insurance Company = A
- Fidelity Life Association, A Legal Reserve Life Insurance Company = A-
- Globe Life and Accident Insurance Company = A+
- Prudential Life Insurance Companies = A+
- Transamerica Life Insurance Companies = A+
- Legal & General America, Banner Life Insurance Company = A+
- Mutual of Omaha Insurance Company = A+
Currently (2018), AIG Direct Insurance Services, Inc. (the owner of Matrix Direct) has been an accredited member of the Better Business Bureau for more than eight years (since September 4, 2009). And, the Better Business Bureau has given AIG Direct a grade of A+.
In the past three years, AIG Direct Insurance Services / Matrix Direct has closed out a total of six customer complaints. One of these complaints has been closed out within the past 12 months. Of the total six complaints, two focused on advertising and/or sales issues, two focused on guarantee / warranty issues, one was related to the company’s billing and/or collection issues, and the other one had to do with problems with the company’s products and/or services.
Life Insurance Products Offered Through Matrix Direct
Via the insurance companies that it represents, Matrix Direct / AIG Direct offers a quite a few insurance products. Including term and permanent plan options. With term life insurance provides death benefit protection only, without any cash value or savings build up in the policy. Because of that, a term life insurance policy can frequently be cheaper than a comparable permanent policy – all other factors being equal. This is especially true if the applicant for coverage is young and in good health at the time of application.
Term life insurance is offered for a set amount of time, or “term.” These terms will typically be five years, ten years, fifteen years, twenty years, and even thirty years. There is also an option for one-year renewable term life insurance coverage.
Because Matrix Direct works with so many life insurance carriers, customers are able to search through a wide array of term life insurance coverage options, as well as various premium prices for such coverage.
These products may include:
- Renewable Term Life Insurance – A renewable term life insurance policy will typically stay in force for between one and five years, after which the policy can be renewed without a medical exam or providing evidence of future insurability. Should the insured opt to renew his or her coverage, though, the new premium will be based on the insured’s current age and health condition.
- Level Term Life Insurance – With level term life insurance, the amount of life insurance coverage, as well as the premium price, will remain level throughout the entire term of the policy. These policies may remain for a number of years, or they may last until the insured reaches a certain age, such as 65.
- Convertible Term Life Insurance – A convertible term life insurance policy will provide the insured with the option of converting the coverage over into a permanent life insurance policy at or before a certain date. This can allow the insured to lock into a policy that can remain in force for the remainder of his or her life (provided that the premium is paid). It can, however, also result in the policyholder having to pay a higher amount of premium for the permanent coverage.
- Return of Premium (ROP) Term Life Insurance – As its name suggests, a return of premium life insurance policy gives the policyholder the option of receiving back the premiums that he or she paid in if the insured survives through the entire term of the policy. (If the policy is canceled before the end of its stated term, however, premiums will not typically be returned.
Permanent life insurance coverage is also offered via Matrix Direct. A permanent policy will provide both death benefit protection and a cash value component where the money is allowed to grow and compound tax-deferred. This can allow the funds within the cash value to increase exponentially over time.
There are several different types of permanent life insurance protection that are offered through Matrix Direct. These include:
- Whole Life Insurance – Whole life insurance, which may also oftentimes be referred to as “ordinary life” insurance, is the most basic type of whole life insurance coverage. With these policies, the death benefit and the premium amount are typically locked in and guaranteed not to change. This is the case even as the insured gets older, as well as if they develop a harmful health condition. A return on the cash value is based upon a rate that is set by each insurance company. There are some types of whole life insurance policies that will pay the policyholder a dividend. This dividend (while not guaranteed), may be taken as cash, or alternatively, it can be used to purchase additional life insurance coverage.
- Universal Life Insurance – Universal life insurance is another form of permanent life insurance protection. Similar to whole life, there is death benefit protection and a cash component ass well. A policyholder with universal life may, within certain guidelines, alter the time and the amount of the premium payment to best fit their changing needs over time. The death benefit may also be adjusted.
Matrix Direct / AIG Direct Insurance Services also offers the option to purchase accidental death insurance. With an accidental death policy, a benefit will be paid out if the insured should die as the result of a covered accident. These funds can be received in addition to other life insurance coverage that the insured may have.
In addition, these types of policies may also pay out a benefit if the insured is involved in an accident and he or she loses a limb, suffers blindness, and/or is paralyzed as a direct result of that accident.
There is no medical examination required to qualify for this type of coverage through the carriers that Matrix Direct / AIG Direct represents. And, those who apply for this coverage are guaranteed to be approved – regardless of their current health condition.
Other Products and Services Available
Matrix Direct doesn’t just provide life insurance policies, there are other products and services offered as well. These include:
- Disability Insurance Coverage – If an insured becomes disabled due to a covered illness or accident that renders him or her unable to work, disability insurance can provide income to them. This can help with paying for everyday living expenses so that savings do not have to be drained.
- Estate Planning – For those who have built up a large nest egg throughout their lives, a good estate plan can be an essential part of your overall financial plan in order to ensure that assets are distributed according to your wishes. Having life insurance within this type of plan can also help to ensure that funds are available for paying estate taxes that may be due.
How to Get the Best Premium Rate on Life Insurance Coverage with Matrix Direct
When you are looking for the best premium rate on life insurance coverage, it can be beneficial to work with a company that has access to numerous different insurance carriers and policies so that you can determine which will work the best for your specific needs.
Did you know that Matrix Direct is an independent insurance brokerage? Because we work with a lot of the top life insurers, we are able to provide you with all of the important information that you need. To get started in this easy process, take a moment to fill in your information on the quote form located on this page!
If you would like to discuss life insurance options in more detail, we are also available to chat via phone. We can be reached directly, toll-free, at 1-888-552-6159.