Have you seen a tv ad about life insurance to cover funeral costs lately? This most likely is the Life Insurance Savings Group commercial. This advertisement talks about $25,000 of coverage for rates as low as $1 a day and even $5 a week.
This Life Insurance Savings Group review will examine if these claims are too good to be true when purchasing final expense coverage.
Is The Life Insurance Savings Group Legit?
The Life Insurance Savings Group is legitimate and is a marketing funnel for the large insurance agency SelectQuote. Their tv advertisements focus on final expense whole life insurance, but they also have term insurance options.
It is important to note that the Life Insurance Savings Group and Selectquote is not an insurance company but an insurance agency. Agencies partner and distribute products on behalf of the insurance companies, which is a standard way many insurance providers prefer to operate.
For example, rather than contacting an insurance company like Aetna life insurance directly, you would contact an insurance agency that represents and distributes products on their behalf.
How do the Plans Work?
The Life Insurance Savings Group commercials show final expense whole life plans. These plans offer three permanent benefits, including the price never increases, coverage never terminates, and a cash value builds over time.
The Life Insurance Savings Group has two offerings within whole life plans: guaranteed issue and simplified issue.
Guaranteed Issue (As Seen on TV)
As advertised on tv, these plans do not ask medical questions. What they don’t tell you is that a two-year waiting period is required. This means you must wait two full years before full coverage is issued. The premiums will also be more expensive than plans that ask health questions.
The commercial leaves out all of these negative aspects of the plan.
Simplified issue plans require answering a series of medical questions for approval. If you respond favorably to the health questions, you will qualify for burial insurance with no waiting period. This means the policyholder will have full coverage on day one and be awarded the lowest-priced plan.
The coverage amounts range from $2,000 – $40,000 for this particular policy, and ages 45 – 85 are eligible to apply.
Term Life Insurance
The Life Insurance Savings Group also has term insurance plans. The coverage will initially cost less than whole life policies but will cancel once the policyholder reaches a specific age. These plans are temporary coverage and come in 10 – 30 year terms depending on your age. A term is how long the policyholder will be insured.
For example, if a 60-year-old took out a 20-year term plan, the coverage cancels when they turn 80.
The website shows that these term plans require medical exams with a health professional and can take anywhere from 4 – 7 weeks before the policy is active.
Some term plans, like AARP life insurance, increase in price as you age. Eventually, making it near impossible for seniors to afford coverage toward the end of the term. Before purchasing any term plan, ensure the monthly premium does not increase.
A simple rule would be to avoid using term insurance for your final expenses, as the coverage will not be permanent and could leave your family in a vulnerable financial situation.
Life Insurance Savings Group Rates
Getting a quote is not easy with the Life Insurance Savings Group. If you click on the “Get a Free Quote” button on their website, you will be prompted to give your information. After entering your contact information, quotes do not display, and you will receive a message saying “your quote is being processed” and “answer your phone.”
They could easily show you the quote before speaking with them.
Instead, the company is playing marketing games, leaving the customer in the dark before connecting with one of their representatives.
The website states, “We shop highly rated insurance companies to save you time and money,” under this statement are five insurance company logos, leading customers to believe they represent the listed carriers.
It is difficult to confirm if they represent all five of these companies due to the lack of transparency on their website. Read our carrier reviews to better understand the companies they claim to represent.
- Globe Life Insurance
- AIG Life Insurance
- Americo Burial Insurance
- Mutual of Omaha Living Promise
What The Life Insurance Savings Group Commercial Did Not Tell You
Within the Life Insurance Savings Group tv commercial, important details were not discussed. Having the entire picture will help you decide if these plans are right for you.
There are Waiting Periods
The most crucial detail that the Life Insurance Savings Group commercial did not disclose was waiting periods are required for those who do not medically qualify. A waiting period means the policyholder is not fully insured until two full years pass from taking out coverage. This will also raise your monthly premium, making the plan less affordable.
It Will Cost More than $1 a Day
If you are looking for the $1 a day or $5 a week price that the commercial is advertising, you may not find it. These prices are for young, healthy applicants with low coverage amounts. $1 a day is a nice marketing slogan but usually leaves the customer frustrated and misled.
How to Find the Best Final Expense Insurance
Transparency is essential when starting your life insurance search because companies have different price points and underwriting standards. Clearly showing which companies the insurance agency represents and the prices applicants can expect to pay are essential in deciding which agency to work with.
The Life Insurance Savings Group does not show much on its website. You will be forced to get on the phone with one of their agents if you want to learn anything about price or the company your policy would be with.
a. The Life Insurance Savings Group is a legitimate company that is a marketing vehicle for the well-known insurance agency SelectQuote.
b. They mainly market their guaranteed acceptance plan on TV commercials but also have simplified issue coverage that requires health questions to be answered.
c. This organization lacks transparency on its website, making it difficult to know what insurance companies they represent and how much you can expect to pay each month. This is always a red flag when buying life insurance. If you are in the dark before the agent contacts you, purchasing through a different insurance agency is best.