Geico Life Insurance Review
By James Tobin, CFP
Bequest Mutual Rating
Expert Review Of GEICO Life Insurance
Jim Tobin, CFP®
Why you can trust this review
At Bequest Mutual, we value our editorial independence. We keep our reviews strictly factual so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews.
If you have been shopping for home and auto insurance with GEICO and you were offered GEICO term life insurance and and wanted to do some research first, you have landed in a good spot. This GEICO life insurance review will address, product offerings and alternatives, as well as advice on how to get the best deal possible on life insurance.
History Of GEICO Life Insurance
With all the television advertising it would be near impossible to not be familiar with GEICO. Face it, the lizard is everywhere!
"But, I thought GEICO only sold home and auto insurance"
If that was your response when you were offered a GEICO life insurance quote, nobody could blame you. In fact, truth be told, you'd be right.
You see, although GEICO is much admired for their home, auto & renters coverage, they don't actually sell life insurance.
If you're confused because you were recently offered a GEICO term life insurance quote, it's understandable. The truth is that is that GEICO is simply sending your GEICO life insurance quote information to a third party called "Life Quotes, Inc.", who than acts as an agent.
The arrangement between GEICO and Life Quotes, Inc. is not public but you can bet GEICO is getting some cheddar for supplying the leads.
GEICO Life Insurance Review : Product Offerings
Through Life Quotes, Inc. GEICO is promoting term life insurance. A quick visit to the GEICO life insurance quote page prompts you to enter some personal information and the quote results are then displayed.
This is no different than most call center environments, and in some ways similar to all online agency's (Bequest Mutual included). However, despite the similarities with truly independent agents, there are also big differences.
GEICO Term Life Insurance Quote V. Independent Agent
Range Of Options
Although technically independent agents, call center agents do not have the broad range of carriers available to them that truly independent agents do. This is not an issue if you are in excellent health, but if you have any existing conditions, it may well be.
If you have a health condition like say lupus or rheumatoid arthritis, having access to the carrier looks most favorably on you unique circumstance is of the utmost importance.
Because big call center agencies offer fewer carriers, the chances they they will have access to the right carrier is less than certain.
Banks and huge call center agencies have fewer carriers to choose from than most independent agents for simple business reasons.
High volume producers like banks and call centers negotiate the highest commissions in the industry because of that volume. In order to maintain the volume requirements for specific carriers they must limit the number of carriers. This is sound business for them, but it limits the ability to find the carrier that best fits your unique situation. In short their business model has no use for niche carriers.
Experienced independent life insurance agents not only have the niche carriers available, they know specific carrier niches.
As stated earlier, if you are in perfect health knowing the guidelines shouldn't matter because you will be preferred plus everywhere. In this case you really can just use the quote tool.
However, if you have a health condition, having an agent that knows the underwriting guidelines at various carriers is the key to finding the best deal possible for your specific condition.
Experienced independent agents will also be better situated to know which carriers allow for no exam options, specific riders and conversion privileges, financial ratings and underwriting turn around times.
In the context of this article service has two distinct meanings. Let's deal with them one at a time.
Service (In The Traditional Sense)
because even the busiest of independent agents don't have the volume of call centers, you are far more likely to have an experienced agent take the time needed to understand your situation. There is no pressure to handle X amount of calls per hour/shift.
This is simply not the reality in call center environments. Call centers typically have script monitors and a metrics board front and center that lists calls taken and applications taken per hour. Not exactly an environment that leads to a thought out decision process.
Service (Insurance Specific)
In this context, "service" can mean the changing of beneficiary, address, the activation of a rider or conversion privilege. These are common enough chores that call center agents will not be available to help with. You will simply be instructed to use the 1-800 number on the policy to contact the carrier. Sometimes, this can be a good experience, other times it will result in you listening to musak from the 80's and wondering why you used a call center.
Alternatively, professional independent agents are willing and even eager to do service work for clients because it's in their self interest. it's how they get referrals and family members.
GEICO Life Insurance Quote : Review Of Pricing
The pricing tool that is used by GEICO to promotes term life insurance is very similar to the one on this site or any other agents. Because insurance rates are set by law (state department of insurance), the rates are the same everywhere.
It is for this reason that this site puts so much emphasis on using an experienced agent who knows the carrier niches. Choosing the "best" rate from the wrong carrier can get turned upside down during the underwriting process and get expensive as a result.
For an example of why knowing the underwriting guidelines of and carrier niches is so important please see this case study of life insurance with Depression.
GEICO Term Life Insurance : The Verdict
To recap, unlike some multi line carriers like Allstate, GEICO does not sell and underwrite it's own life insurance. Rather it uses a third party broker. The third party, Life Quotes, Inc. offers competitively priced major life insurers through a call center.
There is a convenience factor in handling all of your insurance matters in "one stop". However, such "one stop" shopping can be expensive if you have a less than stellar physical condition.
Experienced independent agents are better equipped to handle high risk cases that may require niche carriers. additionally you will get better service from agents that are not being monitored for call length.
Thank you for choosing the Bequest Mutual to research GEICO life insurance reviews. If you have any questions about the life insurance process please do not hesitate call or send over an email.