Most people are very familiar with GEICO from their frequent GEICO gecko commercials.
You know, the ones with the cute little green lizard with a very pronounced English accent, selling the virtues of saving people money on car insurance?
But there’s also GEICO life insurance, the coverage we’re going to discuss in this review.
Founded in 1936 and headquartered in Chevy Chase, Maryland, GEICO is a wholly owned subsidiary of Berkshire Hathaway of Warren Buffet fame.
It’s the second largest provider of auto insurance coverage in America, with more than 15 million policyholders (State Farm is #1, in case you’re interested).
The company has more than 150 offices across the country but generally works with customers by either telephone or over the Internet.
In addition to auto insurance, GEICO also offers both life insurance and homeowner’s insurance.
GEICO has a rating of A++ for financial strength by insurance industry rating service A.M. Best. They are also rated
B+ (on a scale of A+ to F) by the Better Business Bureau.
Why GEICO Life Insurance Isn’t Necessarily GEICO Life Insurance
When you apply for GEICO life insurance, you do so through their website.
So, it’s GEICO life insurance, right?
Not necessarily. In fact, not at all.
GEICO itself doesn’t actually provide life insurance.
Remember, GEICO is mainly in the business of auto insurance, and they’re one of the very best companies in that area. But they don’t actually provide life insurance; at least, not directly.
Instead, when you’re drawn to the GEICO website, you’re actually buying life insurance from a third-party vendor.
Because of its marketing power, GEICO generates millions of leads – largely from their auto insurance ads. And auto insurance leads to life insurance inquiries.
There is a GEICO life insurance webpage to be sure.
But when you go there, the life insurance quotes and policies are actually provided through a company called Life Quotes, in partnership with GEICO.
So GEICO provides the marketing, and Life Quotes provides the life insurance.
For the record, there’s nothing shady about that arrangement. Many larger companies (and even smaller ones too) work within business alliances and networks.
It enables a company to specialize in one niche, but also to offer their clients related services supplied by dedicated third party providers.
Life insurance is what Life Quotes does best, and that frees GEICO to concentrate on auto insurance, which is what they do best.
About Life Quotes
Based in Darien, Illinois, Life Quotes is really an insurance broker that began operations in 1984. That means they don’t actually write life insurance policies themselves.
Instead, they collect information about visitors to their site and set them up with the best life insurance policy for that person from a selection of different life insurance companies.
The company even discloses on the Life Quotes website that they generate “revenues from the receipt of commissions and fees paid by insurers based upon the volume of business produced and also generates revenue from the sale of website traffic and insurance leads to agents and brokers.”
So not only will your life insurance policy not be provided by GEICO, but it won’t be provided by Life Quotes either.
Some other life insurance company – perhaps one you’ve heard of, or even one you have another policy with – will actually provide your policy.
In case you’re wondering, Life Quotes has a Better Business Bureau rating of A+, and has been accredited by the agency since 1997.
Since beginning operations, the firm has provided insurance policies to more than 350,000 customers.
The GEICO Life Insurance Process
OK, so we’ve established that GEICO Life Insurance isn’t actually GEICO Life Insurance – it’s actually Life Quotes.
Or more precisely, it’s whatever company Life Quotes places your policy with.
When you go onto the GEICO Life Insurance web page, you’re invited to enter your zip code to begin getting insurance quotes.
Alternatively, you can call an 800 number to begin the process.
The webpage does offer a significant amount of life insurance-related information and even discloses that the policies come from Life Quotes, through GEICO Insurance Agency, Inc.
Once you enter your zip code, you’re immediately taken to the Life Quotes site, though the page says “GEICO PORTFOLIO.”
It’s on this page that you begin the “GEICO” life insurance application process.
After completing the first screen, you go to a second that asks non-medical questions. That’s followed by another that does request medical information.
Once you complete the medical questions page you’re given quotes from one or more companies, with a choice of terms from 10 to 30 years, plus a whole life option.
Now notice the two companies offered are not GEICO Life Insurance, but completely unrelated companies.
One is Prudential, which is one of the largest and most respected insurance providers in the country.
The bottom line is that while you’re not actually getting your life insurance from GEICO Life Insurance, you may very well be getting it through a solid company.
The Problem with Online Insurance Brokers
One of the inherent problems with online insurance brokers is that they generally provide the best service for customers with the best profiles.
For example, if you’re a young, healthy nonsmoker working in a nonhazardous occupation, you’ll get the benefit of the very low advertised life insurance rates.
However, if you’re older, have certain health conditions, or work in a hazardous occupation, online insurance brokers are not usually the best choice.
If you need high risk life insurance, you’re better off working with an independent life insurance broker.
We can work with you on an individual basis to find the life insurance policy that will be the best fit for you and your circumstances.
Should You Get Insurance from GEICO Life Insurance/Life Quotes?
If you’re shopping for life insurance, you owe it to yourself to check out all the best life insurance companies.
Certainly, check out GEICO/Life Quotes and see what they have to offer.
And if you have your auto insurance with GEICO, as millions of people do, investigating their life insurance offers makes sense.
But since they are essentially online life insurance brokers, your search shouldn’t stop there.
For most life insurance customers, the best strategy will be to use an independent life insurance broker.
This is particularly true if you have any kind of health-related condition like high blood pressure or other factors that may preclude you from getting the best-priced policies advertised.
One of the disadvantages of many online insurance brokers is that they are volume oriented.
Their primary mission is to write as many life insurance policies as possible.
That goal is best accomplished by providing policies for people who are in perfect health and primarily interested in getting the lowest premium rates.
If you have any health conditions, the life insurance process will, of course, be more complicated.
You’ll need a more hands-on approach, which you’re more likely to get from an independent broker.
We work with many different life insurance companies, including those that specialize in health conditions.
We can get you the best coverage at the lowest possible premium.
Send us an email or call us at 800-277-3098, and put our experience to work for you.