If you watch television at all, you are likely familiar with GEICO. The insurance giant has ads on almost every platform, with the famous (or infamous, depending on your perspective) Gecko mascot.
For the most part, GEICO specializes in auto insurance. However, the company also provides homeowner’s policies and renter’s insurance. Basically, if you own anything of value, GEICO can cover it financially.
If you search on the company’s website, you’ll also notice that they offer life insurance. This claim is a bit misleading, though, as GEICO doesn’t underwrite the policies. Instead, the site directs you to a partner firm, Life Quotes.
Before buying any kind of life insurance, it helps to know what you’re getting. In this review, we’ll outline what you can expect when searching for a quote through GEICO and whether it is a smart move for your specific situation. Here’s what you need to know.
GEICO Company History and Rating
In case you’re unaware, GEICO is actually an acronym, standing for the Government Employees Insurance Company. The business was founded in 1936, during the height of the Great Depression. The owners, husband and wife Leo and Lillian Goodwin, targeted government employees and service members.
With World War 2, GEICO became much more prominent and expanded its enterprise in the late 50s. Eventually, the company began offering policies to everyone, which helped bring tons of new business and sales. By the mid-90s, GEICO launched an aggressive ad campaign that continues to this day. The Gecko got his start in the year 2000, and the rest is history.
GEICO is a massive corporation with over $32 billion in assets. With such vast sums of cash on hand, the company has an A++ rating from A.M. Best (highest in its category) and an AA+ from Standard and Poor. Overall, GEICO is ranked as a top-tier insurance carrier.
While all of those accolades sound good (and they are), they don’t mean much when it comes to life insurance. Since GEICO doesn’t underwrite life insurance policies, it doesn’t matter how much the company has in assets. Instead, we need to pay attention to Life Quotes, the subsidiary that works with GEICO to provide life insurance options.
Thankfully, Life Quotes is also highly rated, with an A+ rating from the Better Business Bureau (BBB). However, Life Quotes also doesn’t underwrite any policies, so it doesn’t have a credit rating.
So, what does this mean for you? In reality, you are not purchasing a policy from either GEICO or Life Quotes. Instead, you are getting rates from up to 50 different companies. Life Quotes is a life insurance aggregator, which uses your information to deliver immediate results.
How Does GEICO/Life Quotes Work?
As with any other insurance aggregator, you will have to enter some details into the system, including:
- Age – As a rule, the older you are, the more you pay each month for premiums.
- Gender – Because women live longer than men, they almost always have lower rates.
- Height and Weight – If you are overweight, you will likely pay more.
- Location – Some insurance companies are not available in all 50 states. By providing your address, you can filter out any policies that won’t apply to your situation.
Once you enter these details, a second menu will pop up that asks you about your overall health and lifestyle. These are yes or no questions, including whether you have any serious illnesses or are taking any medications. As a rule, the more complicated your health status, the riskier you are to underwriters.
After filling out the questionnaire, you will receive quotes from a wide array of companies. Some of the insurance carriers listed on Life Quotes include:
Some of the world’s biggest companies are offered through Life Quotes, so you are sure to find a quote that meets your needs. Once you choose a quote, you will be directed to purchase from that company directly.
Insurance Policies Offered by GEICO/Life Quotes
For the most part, you’ll be directed to buy term life insurance. However, some of the quotes may include whole or universal policies. The primary difference between the two options is that whole life insurance covers you forever, while term plans can expire.
When looking at term insurance rates, you can choose a 10, 15, 20, 30, or 35-year term. Not all insurance companies offer the same selection, so it helps to know how long you want coverage for ahead of time. The rates vary from $13 per month for a 10-year term with a $500,000 death benefit to over $30 a month for a 30-year period. These rates are based on a 30-year-old male in excellent health.
By comparison, a female with the same terms and coverage amount could spend between $11 and $25, respectively.
What to Consider:
If you’re unsure what kind of insurance to purchase for yourself or your loved ones, here are some factors to consider when making a final decision:
- Dependents – Do you have children? For how long will they be financially dependent on your income? What about the costs of higher education?
- Spouse – Are you the primary breadwinner for the household? If so, what will your spouse do once you’re gone? While the specific amount of coverage necessary will vary between individuals, you should plan for the death benefit to cover at least a few years of income.
- Cash Value Growth – Whole life insurance allows you to put money away for later, which will grow tax-free. You can use it for retirement or to pay for large expenses. Universal insurance enables you to invest your funds even more aggressively.
- Cost – Whole life insurance is always going to cost more than a term policy, and many companies will increase rates as you get older. By comparison, most term life insurance is very affordable, even with a substantial death benefit.
- Burial Expenses – The average funeral is roughly $7,000 in the U.S. Are your loved ones able to pay those costs out of pocket when you’re gone?
- Health Issues – Do you have a chronic condition like asthma or diabetes? Not all insurance companies will cover you. In many cases, you will have to take a medical exam to qualify for a policy.
Overall, it helps to discuss your life insurance needs with your spouse and family members if possible. By talking it out, you can determine the best option that will work for everyone. While it can seem difficult to have a conversation about such a heavy subject, it’s always better for everyone to be on the same page. Talking it out can also expedite the claims process so that your beneficiaries can receive funds as soon as possible.
Bottom Line: Is GEICO/Life Quotes Insurance Worth It?
Because Life Quotes is an aggregator, you can get the same results through virtually any other online portal (like the one we offer for free). However, one of the most significant downsides is that you will get offers from many different companies. So, once you give out your personal information, expect to receive calls and emails for a while.
In most cases, it is better to work with a life insurance consultant who can discuss your needs in person. This way, you can be sure to find a quote that works without getting spammed with offers. At NextGen Life Insurance, we’ll take the hassle out of finding a life insurance policy.
The only substantial benefit of searching for life insurance through GEICO/Life Quotes is that both companies are well-rated. Also, the carriers they link to are all high-quality, so you can feel confident with any quotes you receive. Other than that, there is no significant reason why Life Quotes is any better or worse than another insurance aggregator.
Contact NextGen Life Insurance Today
If you’re tempted to fill out the online form through GEICO/Life Quotes, contact us first. We’ll walk you through the various life insurance elements so that you can make an informed decision.
We’ll help you determine the right amount of coverage for your needs and ensure that you don’t pay for anything you.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I like these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.