Some tasks in life are enjoyable, others are tolerable, and a few are hard to stomach. For most people, shopping for life insurance falls into the last category.
There are several reasons for this, including:
- Morbidity aversion (we all hate contemplating death)
- Lack of transparency (many insurance products are difficult to understand)
- It’s an annoying process (Filling out paperwork and talking to agents who won’t leave you alone)
Nationwide Insurance released a survey that highlighted these concerns, among others. For example, most people thought their insurance policy was too long, complicated, and confusing. Only 40% of those polled have read through their insurance policy contract. And 57% of all respondents said that they knew more about their favorite TV show than they knew about their insurance policies.
I get it, shopping for insurance can be a painful process. But PolicyGenius is doing everything they can to make the process transparent and simple.
PolicyGenius Review Background
Founded in 2014 by two former consultants, PolicyGenius is the easiest way to shop for insurance that I have found.
The shopping process takes about 5 minutes to complete, and is done entirely online. You no longer have to contact an insurance agent or worry about annoying phone calls because your information is never shared with a third party.
PolicyGenius is an independent insurance broker providing unbiased quotes from more than 25 different life insurers. Examples include:
- American General
- Mutual of Omaha
They don’t recommend one insurer over another, they simply provide personalized quotes so that you can find the most affordable and appropriate coverage.
Do You Need Life Insurance?
A large percentage of the American population is underinsured when it comes to life insurance. While this topic can be emotional, the decision to purchase life insurance is primarily a financial decision.
The primary purpose of insurance is provide a hedge against large financial losses. In the case of life insurance, you are protecting your human capital (or your lifetime earning potential).
If you pass away, a life insurance policy pays a sum of money (called the death benefit) to a person of your choosing (called the beneficiary).
This money is often needed for a number of reasons:
- To replace your annual income that your family used for living expenses.
- To settle any outstanding debts that you leave behind so that your family is not burdened with them (including a mortgage, student loans, car loans, personal debt, etc.).
- To help your spouse or children pay for educational expenses or other important expenses.
- To cover burial expenses and other mortality related costs.
As you can see, most individuals who are employed need to have life insurance. And if you think you might need coverage, PolicyGenius is a great place to start.
Getting a Personalized Quote
To provide a little guidance, I decided to go through the PolicyGenius application experience before posting this article.
1) Go to the PolicyGenius site.
If you know how much coverage you need, you can automatically proceed to the quote process (#3 below). If you aren’t sure, PolicyGenius can help you figure it out by clicking “I don’t know how much I need” as seen in the photo below:
2) Input your information
To provide a coverage estimate, you have to input your basic information:
- Page 1 asks for your age, gender, height, weight, income, and tobacco use.
- Page 2 asks your marital status and if you have children or other dependents.
- Page 3 asks how much financial support your want to provide for your family per year.
- Page 4 asks how much debt you currently have.
- Page 5 asks if you currently have life insurance, and about your current savings and investments.
After finishing that, you will get a recommendation on the amount of coverage needed for your situation. It will look like this (the amount and length will vary):
3) Compare personalized quotes
Now you are ready to input your health information and compare quotes from various insurance companies.
After entering your basic health information, you will have to enter your email address to save your progress and review personalized quotes from all the insurers.
Here you can see the quotes for my policy ($400,000 of coverage, 30 year term):
American National provided the lowest price for me. You can also see that National Life Group offers a policy without any medical underwriting. It’s much more expensive because life insurance premiums obviously depend on the health status of those insured.
If you scroll down the page a little bit, you will see quotes from the other available insurers:
My quote had almost 20 total different insurers available, and several were priced at about $28 per month (also keep in mind, you can select annual pricing to save up to 10% on your quote). That’s very competitive pricing.
Also notice that PolicyGenius provides the A.M Best insurance rating, and the Better Business Bureau rating for all insurers. You’ll likely find A to A+ ratings for nearly 100% of the companies because PolicyGenius screens available insurers and only includes reputable companies in their system.
4) Review PolicyGenius Recommendations and Apply
If you are finished reviewing quotes, you can decide on one and apply.
The nice thing about applying through PolicyGenius is that they handle all the paperwork for you. This includes:
- Scheduling a medical exam (unless you picked insurance without medical underwriting)
- Retrieving medical records
- Obtaining the stated price from the insurer
- Keeping you informed on the application process and answering all questions
Once you submit the application, it takes a couple of weeks to finish the process and be covered.
Also note that you can chat or call to speak with a PolicyGenius employee at any point in this process if you have questions.
PolicyGenius Review Summary
Shopping for insurance through PolicyGenius the easiest, smoothest process that I have found online. In addition to life insurance, they now offer quotes for long-term disability insurance, renters insurance, and pet insurance. They also have an “insurance checkup” feature to help determine if you are underinsured in other areas of your life.
I’m hoping they continue to expand their insurance lines moving forward because insurance shopping doesn’t get any easier than this.