Geico Life Insurance: 2023 Review 2023, Cost & Coverage

Geico Life Insurance
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Over the past decade, GEICO has risen to dominance in the property and liability insurance market thanks to its popular ownership and innovative marketing strategies. Nonetheless, despite GEICO’s prehistoric humans and reptiles, it is not a major player in the life insurance market. True believers will tell you that there is no such thing as “GEICO Life Insurance,” at least not under that name. A. M. Best has given GEICO its highest possible financial strength grade of A++. Only the largest and most financially stable insurance businesses are given this rating. GEICO also boasts an Aa1 rating from Moody’s and an AA+ rating from Standard & Poor’s; both are superb grades. In this article, we will discuss the Geico life insurance policy, its cost, and how it works for seniors.

Geico Life Insurance Company: History and Structure

GEICO was formed as the Government Employees Insurance Company by Leo Goodwin in 1936. In the beginning, the company only offered insurance to public servants and military personnel. Goodwin has experience working for USAA, a company that was an early leader in marketing insurance to service members. The company’s roots may be traced back to the nation’s capital.

Despite its name, the privately held company has never been a government agency, and David Lloyd Kreeger led a group of businessmen to purchase it in 1948. Later that year, GEICO joined the stock market. Kreeger was elected president of the corporation in 1964. It was during Kreeger’s tenure that GEICO first offered auto insurance to the general public and temporarily ranked among the top five American property-casualty insurers. However, the mid-1970s recession was devastating to GEICO, and the company just narrowly made it through the decade. The firm struggled to survive after a consortium of rivals decided to absorb a sizable portion of its clientele.

Evolution Continues

In 1996, Berkshire Hathaway of Omaha, Nebraska, acquired 100% of GEICO. Warren Buffett, a renowned businessman, is the CEO of Berkshire Hathaway, a holding company that owns numerous businesses. These include everything from insurance firms to candy manufacturers to furniture retailers.

Berkshire Hathaway owns a number of insurance firms, the most well-known of which is GEICO. Since Berkshire Hathaway’s purchase of GEICO, the business has zeroed in on the vehicle insurance industry and has been extensively advertising to drivers. 

In terms of market share, Berkshire Hathaway’s insurance subsidiaries are currently the third largest in the United States, behind only State Farm and Allstate. Much of that expansion can be attributed to GEICO.

There was once a GEICO life insurance firm called GELICO, which insured government workers. Banner Life Insurance Company was founded in 1981 after the purchase of GEICO. During the 1990s, American National Insurance Company of Texas acquired Garden State Life Insurance Company, another GEICO subsidiary.

Most of Berkshire Hathaway’s other insurance activities are in the property-casualty and reinsurance industries. The Berkshire Hathaway Life Insurance Company of Nebraska is a subsidiary that offers a more limited range of life insurance products.

Chevy Chase, Maryland, is home to GEICO’s corporate headquarters. Since Berkshire Hathaway acquired GEICO, the company has changed its sales strategy to place more emphasis on direct marketing rather than using an intermediary sales agency. The company’s website promotes a variety of other coverage options, including life insurance, all of which are available from other businesses. Therefore, GEICO acts in this sector as an insurance broker. There is no broker or dealer because the company does not trade in variable life insurance products.

What Is Geico Life Insurance?

Geico Life Insurance, officially known as Geico Insurance Company, LLC, is a subsidiary of Geico Corporation, one of the largest and famous auto insurance providers in the United States. Geico Life Insurance offers a variety of life insurance products to help individuals protect their loved ones financially in the event of the policyholder’s death.

Their life insurance policies typically fall into two main categories: term life insurance and permanent life insurance. Term life insurance provides coverage for a specified term, usually 10, 20, or 30 years, offering a death benefit if the insured passes away during the policy term. Permanent life insurance, on the other hand, provides lifelong coverage and includes a cash value component, allowing policyholders to accumulate savings over time.

Also, Geico Life Insurance aims to provide affordable and customizable life insurance solutions to meet the diverse needs of their customers. Customers can choose the coverage amount, policy duration, and additional riders or benefits according to their preferences and budget. Geico’s reputation for customer service and competitive pricing has made it a popular choice for individuals seeking life insurance coverage in the United States.

What Type of Life Insurance Does Geico Sell?

Life policies are also available through Geico, which is more known for its vehicle insurance offerings. One type of life insurance that Geico offers is term life insurance, which is available for terms of 10, 15, 20, or 30 years. In the event of the policyholder’s death during this time, the death benefit will be paid out to the beneficiaries. The plans offered by Geico’s term life insurance division are reasonably priced and offer financial security to beneficiaries in the event of the policyholder’s death.

Also, whole life insurance and universal life insurance are just two of the permanent policies offered by Geico. A whole life insurance policy lasts for the policyholder’s entire life, and the cash value component accumulates as time passes. The premiums and death benefits of universal life insurance can be adjusted as the policyholder’s circumstances change.

Life insurance from Geico is meant to give policyholders and their families financial stability and peace of mind. Long-term financial security for one’s loved ones has never been more convenient than with life insurance, where customers can typically select the coverage level and policy period that best meet their needs.

What Are 3 Reasons You May Be Denied From Having Life Insurance?

The most common reasons to be rejected for life insurance include being too elderly, having physical or mental health concerns, having a dangerous job or hobby, drug usage (including, sometimes, cannabis), having very poor credit, or having a criminal background.

Here are some of the most prevalent reasons why a life insurance provider can reject your application:

#1. Physical Health

All life insurance providers take your physical health into account. In fact, before issuing a policy, the vast majority of life insurers will demand that you submit to a medical examination and blood testing. After all, they are gambling on the fact that you will outlive the length of your life insurance policy.

You could have a chronic health condition such as high cholesterol, obesity, or diabetes. Insurers will see you as more of a danger if you have a serious health problem. Life insurance companies have varying criteria for denying coverage due to health problems.

When your blood pressure, cholesterol, and glucose levels are all in check, you won’t need to worry about some of the most frequent chronic health problems. However, life insurance applicants with more serious diseases, such as cancer or HIV, are virtually always declined.

#2. Mental Health History

Many life insurance providers, sadly, may refuse to provide coverage if you have a preexisting condition related to your mental health.

Although not all insurance companies stigmatize mental illness, many will refuse to pay out claims even for very minor mental health disorders.

Some of my friends were turned down for life insurance because they were visiting a therapist for anxiety. That’s an extreme situation, but recognize that more serious disorders like PTSD, bipolar disorder, or any history of self-harm may be grounds for life insurance denial.

#3. Drug Use

Naturally, if you use illicit drugs and tell your life insurance company about it (or it shows up in your bloodwork), you won’t get coverage. But what about states that have legalized the use of marijuana? What about the prospect of regulated medical cannabis?

Ultimately, it is hard to say. One insurance company has rejected candidates who said they used any legal medical marijuana, even on an intermittent basis. However, these same individuals ultimately found insurance through different providers.

What Disqualifies a Life Insurance Payout?

Life insurance policies often have certain exclusions and conditions that can disqualify a payout. Common disqualifiers include suicide within the policy’s initial period, typically the first two years. Similarly, engaging in high-risk activities without disclosing them throughout the application process could result in a claim denial. Misrepresentation or concealment of important information, such as pre-existing medical conditions or smoking habits, can void the policy if discovered. 

Additionally, some policies have specific clauses related to illegal activities or deaths caused by war or acts of terrorism. It’s crucial for policyholders to be truthful and transparent during the application process and to thoroughly read and understand the policy terms to ensure their beneficiaries receive the intended benefits without disqualification.

Shopping for “Geico Life Insurance” Through Life Quotes

After GEICO refers you to Life Quotes, working with them is not much different from working with any other large independent agent when it comes to searching for life insurance.

To get started, click the “Find My Price” button on the Life Quotes homepage to access the online quote form. Your age, gender, height, weight, history of tobacco use, desired insurance coverage, and desired coverage quantity will all be requested. Life Quotes requires your personal information (name, phone, and email address) in exchange for a quote.

After you fill out the form, you’ll be shown quotes from multiple insurers with whom Life Quotes has partnerships. Life Quotes provides a large network of insurers, including several large and reputable names like Mutual of Omaha, Lincoln Financial, Pacific Life, L&G, and Protective, in comparison to other online independent brokers.

If you’re having trouble locating coverage, it’s in your best interest to compare plans from many providers. After comparing prices, the next step is to submit an application for insurance. The application process can be complicated, but a Life Quotes agent will help you through it step by step. Depending on the policy, a medical exam may be required or optional (no exam, life insurance).

Decisions on coverage applications might take anywhere from minutes to weeks, depending on the insurer and policy. In the event that you are granted coverage, you will be presented with a binding insurance offer detailing the total premium amounts. The policy will be issued and premium payments will begin once you make the decision to buy.

Geico Life Insurance Cost

Costs for GEICO’s life insurance policies on LifeQuotes and Ladder Life vary according to the amount of coverage desired, the need for a medical exam, and the inclusion of any applicable riders. 

GEICO’s network of insurance providers will provide you with competitive rates, allowing you to pick the most affordable option. 

We were able to get an estimate for $250,000 in term life insurance for a healthy 30-year-old female. We were able to get quotations from Protective Life, Sagicor Life, and Transamerica thanks to LifeQuotes. 

Protective LifeSagicor LifeTransamerica
Monthly Premium With 10-year Term $8.90$9.12$8.39
Monthly Premium With 20-year Term$10.95$11.46$11.18
Monthly Premium With 30-year Term$14.66N/A$15.27

GEICO and its partners, like all life insurance providers, ask for your gender when you request a quote or apply for coverage. You can still receive life insurance if you identify as nonbinary, but you should know that insurers may not have revised their underwriting guidelines to reflect the heightened awareness of gender issues in recent years.

What Death Doesn’t Life Insurance Cover?

Life insurance policies typically have specific exclusions to protect the insurer from covering certain types of deaths. Common exclusions include death resulting from illegal activities, such as participating in criminal acts or drug-related incidents. The policy may not cover deaths from extreme sports or dangerous hobbies unless reported and agreed upon. War and acts of terrorism-related deaths are often excluded as well.

Suicide is another significant exclusion, especially within the policy’s initial period, typically the first two years. If the policyholder dies by suicide during this period, the policy might not pay out the death benefit, although some policies have provisions that waive this exclusion after a certain number of years.

Additionally, if the policyholder provides false information or withholds important details during the application process, the insurer may deny the claim, considering it a material misrepresentation. For instance, not disclosing a significant medical condition or smoking habit could lead to a claim denial.

It’s crucial for policyholders to thoroughly read and understand the policy terms and conditions, as well as to be honest and transparent during the application process, to ensure that their beneficiaries receive the intended benefits without encountering coverage limitations or exclusions.

What Age Does Life Insurance Not Pay?

Life insurance policies generally do not have a specific age at which they stop paying out. As long as the policyholder pays the premiums and the policy is in force, the insurance company is obligated to pay the death benefit to the beneficiaries upon the policyholder’s death, regardless of their age at the time of death.

However, there are policies, like term life insurance, that cover 10, 20, or 30 years. Once the term period ends, the policy no longer provides coverage, and if the policyholder passes away after the term expires, there is no death benefit paid out.

Permanent life insurance policies, such as whole life or universal life insurance, provide coverage for the entire lifetime of the insured individual, as long as the premiums are paid. These plans cover and pay out the death benefit regardless of the policyholder’s age at death.

Geico Life Insurance for Seniors

Geico offers life insurance options tailored to seniors, providing financial security and peace of mind during their later years. Its life insurance policies for seniors typically include whole life insurance, which offers coverage for a lifetime. Whole life insurance accumulates cash value over time, providing a valuable financial asset for seniors. Due to their guaranteed rates, these policies make it easier for seniors to budget for coverage.

Geico’s policies for seniors are designed to be accessible and convenient, allowing seniors to apply for coverage online or through their local Geico agent. Seniors can typically obtain coverage without undergoing a medical exam, and the application process is shortened for their convenience.

Additionally, Geico recognizes seniors’ requirements and provides individual services to help them find the correct insurance and policy. The company’s customer service representatives can provide guidance and answer any questions seniors may have about their life insurance policies, ensuring they make well-informed decisions to protect their loved ones financially. Geico’s commitment to customer service and straightforward policies make it a popular choice for seniors seeking reliable life insurance coverage.

What Life Insurance Company Does Geico Use?

Geico partners with Life Quotes, Inc., an independent online insurance agency, to offer life insurance policies to its customers. Through this partnership, Geico provides a platform for customers to compare quotes and purchase life insurance policies from various insurers, enabling them to find coverage that suits their needs and budget. Geico’s collaboration with Life Quotes, Inc. allows customers to access a range of life insurance options, including term life, whole life, and universal life policies, ensuring flexibility and choice in selecting the most appropriate coverage for their circumstances. 

Through Life Quotes, Inc., Geico may provide various customers with a variety of life insurance coverage.

Why Do You Need Life Insurance?

Life insurance can help you plan for the future and give your loved ones financial security if the worst happens. No amount of money can replace a loved one, but term life insurance can help secure their financial future. GEICO Insurance Agency, LLC and its partners may offer low-cost life insurance based on your needs, coverage, and duration. You can get a life insurance quote from us either online or by calling (888) 532-5433.

What Do Life Insurers Look For in a Policyholder?

There are many criteria that go into determining your insurance score when applying for life insurance. Insurance costs and availability will change based on the score. 

Each insurance company uses its own method for determining an insurance rating. This means that, unlike a credit score, this one cannot be checked. However, there are aspects of your life that can be improved to raise this number. 

In general, life insurance companies want to insure those who are considered to be low-risk. An applicant with a low probability of default will be given favorable terms and consideration. 

Bottom Line

In conclusion, life insurance quotes from several providers can be easily compared thanks to GEICO and its partners. Some plans may not even require a medical exam, and you can acquire coverage of up to $25,000,000. 

Plan availability, pricing, and quality of service may vary by provider, so shop around. Since GEICO isn’t the one issuing the insurance, you also won’t have access to their 24-hour customer assistance. If you’d rather work with a familiar company, contact them directly for a price quote and further information.

Frequently Asked Question

How much is $100000 in life insurance a month?

A $100,000 whole life insurance coverage will run you roughly $88 per month, or $1,056 per year, on average. Age, gender, lifestyle, health, tobacco use, and desired coverage affect monthly costs, which range from $100 to $1,000.

How many years is best for life insurance?

A 30-year term life insurance policy is suitable for new parents, mortgage holders, and professionals with hefty education debt.

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