Bankers Life Insurance offers a wide variety of life insurance policies and several optional riders for more coverage customization. You can't get quotes online, though, and it has more customer complaints than average despite strong Better Business Bureau and AM Best financial stability ratings.
Business Insider compared Bankers Life Insurance to the best life insurance companies and found it to be a standard offering with some situational policies for those looking for permanent life insurance with under $100,000 in death benefits.
Bankers Life Insurance Overview
Bankers Life Insurance offers term, whole, universal, and indexed universal life insurance.
Bankers Life permanent life insurance policies have low starting face values, as low as $2,500, compared to some of its larger competitors with policies that start at $100,000. It can be appealing to those who might want a cheaper permanent life insurance option. Some of its permanent policies also offer coverage without a medical exam.
Its universal life insurance policies also offer some decent benefits. Its fixed interest universal life insurance has a 3% guaranteed minimum interest rate. Its indexed universal life insurance has a 1% floor, but only offers growth tied to the S&P 500. Compared to larger competitors with multiple investment strategies, Bankers Life's options are limited.
Ultimately, if you're looking for a large life insurance policy or a wide array of investment options to build cash value, you'll want to look elsewhere. However, for those looking for small policies with no exams required, Bankers may be worth a look.
Bankers Life Insurance Pros and Cons
Bankers Life Insurance Pros
- Convertible term life insurance
- Some no medical exam whole life options
- High guaranteed interest rates on universal life insurance
Bankers Life Insurance Cons
- More complaints than expected given its size
- Term life only goes up to 20 years
- Whole life insurance does not pay dividends
- Limited investment options with indexed universal life
- No online quotes available
Bankers Life Insurance Plans and Coverage
Life insurance from Bankers Life provides a death benefit to pay off debts, cover final expenses, and replace lost income following your death. You can choose from the following options, with varying coverage lengths and flexibility in premiums.
Term Life Insurance from Bankers Life
This coverage provides temporary protection for a predetermined number of years, usually between 10 and 30 years. Because term life expires and does not guarantee a death benefit, it is often the cheapest policy a provider will offer.
Banker's term life insurance is called ReliaTerm. It's available for individuals up to age 75 (and renewable to age 95), with coverage amounts starting at $100,000 and 10 or 20-year terms.
This convertible term life insurance policy comes with the option of switching to long-term, permanent insurance (for five years or up to age 70) without having to prove insurability.
Whole Life Insurance from Bankers Life
Whole life insurance is a type of permanent life insurance that offers a fixed death benefit with level premiums. It offers cash value growth that can be used by the insured in their lifetime.
Bankers Life offers five whole life insurance policies.
BasicLife: This whole life insurance product features a guaranteed death benefit starting at $2,500 with level monthly premiums and access to long-term cash value via loans. Limits and exclusions are broken down into two age groups: 17-49 and 50-85. It's available with minimal health questions and no medical exam.
BasicLife Graded: This whole life policy features a death benefit that increases over the first two years before reaching 100% in year three. It's available in amounts from $2,500 to $50,000 for individuals ages 50-85, with level monthly premiums and access to long-term cash value via loans.
InnovativeLife SP I: This whole life product features a guaranteed death benefit in amounts beginning at $30,000 for individuals ages 0-85. It has a single premium payment and access to long-term cash value via loans.
InnovativeLife SP II: This whole life product features a guaranteed death benefit for individuals ages 0-85 with a single premium payment and access to long-term cash value via loans. It has a higher minimum benefit amount than the SP I.
SecureView: This whole life policy features a guaranteed death benefit, in amounts beginning at $30,000 for individuals ages 17-75, with level monthly premiums and access to long-term cash value via loans.
Universal Life Insurance from Bankers Life
Universal life insurance is a type of permanent life insurance that offers flexible premiums and adjustable death benefits throughout the policy's life. It also offers a cash value component that the policyholder can use during their life.
Bankers Life's fixed-interest universal life insurance, called the TurningPoint FIUL offers flexible long-term protection that builds cash value at a guaranteed minimum interest rate of 3%. Death benefits for the TurningPoint FIUL start at $30,000, and policies are available up to age 85. They also come with a 15-year no-lapse guarantee.
Indexed Universal Life Insurance from Bankers Life
Like universal life insurance, indexed universal life offers adjustable death benefits and flexible premiums. The biggest difference is that indexed universal life insurance grows cash value based on changes in an index.
Bankers Life's indexed universal life insurance, called the Clearvantage IUL, tracks the S&P 500 and guarantees a minimum rate of 1% to protect your policy against downturns in the market.
Death benefits for the Clearvantage IUL start at $30,000, and policies are available up to age 85. They also come with a 15-year no-lapse guarantee.
Additional Coverage Options (Riders) From Bankers Life Insurance
Bankers Life offers an extensive list of additional coverage options depending on your base policy. Not all riders are available with all insurance products.
Accelerated death benefit: For individuals diagnosed with a terminal illness, this rider affords access to part of your death benefit while still living.
Accidental death benefit: This rider provides an additional lump sum if you die within 90-180 days of a covered accident.
Additional insured level term: This rider provides coverage for an additional individual, such as a spouse.
Children's term insurance: This rider provides additional coverage for eligible children.
Disability income: This rider provides additional coverage in the event you become disabled.
Guaranteed insurability benefit: This rider allows more coverage for a child's whole life policy, regardless of their health status.
Payor benefit: This rider waives premiums on your child's whole life policy in the event you become disabled or die.
Reinstatement without proof of eligibility: In the event of cognitive impairment, this rider reinstates coverage within 90 days of lapsing.
Waiver of premium: This rider allows for premiums to be paused in the event you become disabled or unemployed.
Bankers Life Insurance Cost
As a general rule of thumb, the younger and healthier you are, the cheaper it is to get life insurance. Premium costs vary depending on a variety of factors, including coverage details, age, gender, and associated risk factors — such as tobacco use, medical history, and occupation/hobbies.
Bankers Life does not offer online quotes. All quoting and purchasing must be done through a local agent. However, Bankers Life mentions that premiums start at $16 monthly (for a 65-year old female seeking coverage in the amount $2,776).
How to File a Claim With Bankers Life Insurance
To submit a life insurance claim with Bankers Life, follow these steps:
Step 1: Begin by downloading a claims form online (specific to your state and policy type); complete the claims form, being sure to sign and date it. Return your claim form, along with the insured's death certificate, online at My.BankersLife.com; via fax (312-396-6629); or by mail:
Bankers Life and Casualty Company Life Claims Department
P.O. Box 1937
Carmel, IN 46082-1937
Step 2: Within 1-2 weeks, your claim will be assigned to an agent for review.
Step 3: Additional information — including but not limited to divorce decree, property settlement agreement, and estate/trust paperwork — may be requested from the claimant or beneficiary.
Step 4: Once all of the required information is received, a claim determination will be made. If you are deemed eligible for benefits, you will be contacted by your agent for payment delivery instructions.
Still have questions? Visit Bankers Life online support or contact a claims specialist 24/7 by calling 800-621-3724.
Bankers Life Insurance Customer Reviews and Ratings
Bankers Life has mostly negative reviews online, receiving an average of 2.3 stars on Trustpilot and 1.5 stars on its Better Business Bureau page. Reviewers reported Bankers Life canceling their policies without giving them advanced notice.
Online reviews of life insurance companies are often overwhelmingly negative, as people who leave reviews often only do so because they have something to say, which is usually negative. It's also worth mentioning that reviews pertain to Bankers Life as a whole, not just its life insurance. A number of reviewers also mentioned issues with Bankers Life's long-term care insurance.
The National Association of Insurance Commissioners' complaint index rates insurance companies based on how many complaints they receive against their share of the market. A 1.00 means that a company has an expected number of complaints based on its size. A lower score indicates fewer complaints than expected and a higher number indicates more complaints than expected. Bankers Life scored a 2.49, indicating that it has more complaints than expected.
Bankers Life received an A (Excellent) financial stability rating from AM Best.
Alternatives to Bankers Life Insurance
Bankers Life vs. Legal and General Life Insurance
Legal & General America is a known leader in term life coverage — boasting customizable coverage in five-year increments for up to 40 years, which is uncommon in the industry. In contrast, Bankers Life's term life insurance only goes up to 20 years. Legal & General also offers no exam policies that go up to $2 million, and death benefits over $10 million for those who take an exam. Term life insurance is also convertible.
Legal & General offers universal life insurance with a 2% guaranteed interest rate, which is lower than Bankers Life's 3% guaranteed rate. Its suite of available riders is also somewhat underwhelming.
Ultimately, those looking for term life insurance will want to go with Legal & General, while Bankers Life provides better universal life insurance.
Read our Legal & General life insurance review.
Bankers Life vs. Mutual of Omaha Life Insurance
Mutual of Omaha might appeal to new applicants in uncertain health who could find Term Life Express a good fit: it requires no medical exam, comes with coverage up to $300,000, and is available for individuals up to age 80 (with the option to renew up to age 94). Plus, quotes for term life are available online for consumers who want to shop around independently without having to speak with an agent.
However, Bankers Life's whole life insurance options are far more comprehensive than Mutual of Omaha's, which consists of one burial insurance policy with up to $25,000 in coverage.
When it comes to universal life insurance, Mutual of Omaha offers more aggressive policies that require active management, but Bankers Life offers better minimum interest guarantees. The decision between these two companies for universal life insurance ultimately comes down to your risk tolerance and how actively you want to manage your policies.
Read our Mutual of Omaha life insurance review.
FAQs About Bankers Life Insurance
Yes, Bankers Life Insurance offers five whole life insurance plans.
Yes, Bankers Life's ReliaTerm insurance is convertible within the first five years of the policy's life or before the insured turns 70, whichever comes first.
Yes, Bankers Life Insurance offers BasicLife and BasicLife Graded, both no-exam permanent life insurance policies.
Why You Should Trust Us: How We Reviewed Bankers Life Insurance
The four primary criteria Business Insider uses to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.
Read more about how Business Insider rates life insurance.
