Once you’ve decided to purchase life insurance, you then have to sort through dozens of companies wanting to sell you a policy. From local agents to online brokers, there are more options than ever and the competition to earn your business is heavy.
The popular online insurance broker Policygenius is one of those options. And like most online brokers, the company’s aim is to provide consumers a way to purchase insurance with as little hassle as possible.
In this Policygenius review, we’ll go in-depth into the company’s life insurance quoting and buying process. Does it make sense to buy a policy through Policygenius, given your particular situation? Or can you save more money and find a policy that better matches your needs elsewhere?
Let’s dive in…
Policygenius makes finding a good life insurance policy at a great rate fast and easy. An online marketplace that has partnered with a huge network of affiliated insurance companies, it consistently offers some of the lowest prices from many of the top providers in the industry.
- Requires a medical exam. That's good if you're healthy, because it'll help you get the lowest rate possible.
- Medical exams can be conducted in your home or office.
- Offers a wide range of policies: from $25,000 to $10 million in coverage.
- Requires a medical exam. That's bad if you're unhealthy, because you might end up paying more.
- Policygenius isn't an insurance provider, so you may have to fill out more forms after you submit your initial application.
- Some top insurers aren't listed on the site.
PolicyGenius Life Insurance Review
Policygenius was founded in 2014 and is based in New York City. Its goal is to make the process of buying insurance simpler, easier, and cheaper for the consumer. As the company has grown, it now offers all types of insurance, including home, auto, renters, health and disability insurance (we’ll only be covering the life insurance products).
The first thing to understand about Policygenius is that it’s not a life insurance company; it merely helps you find the right policy to suit your needs.
This type of business model for selling insurance is not new. Agents or brokers that represent multiple companies (often referred to as independent agents), operate in just about every town throughout the United States.
Where Policygenius differentiates itself from other independent brokers is its technology. By moving as much of the life insurance buying process as possible online (sometimes up to 100% online), the company saves its customers time and hassle compared to the traditional buying process.
Beyond making the quote and application process easier, Policygenius also has one of the largest networks of affiliated insurance companies among independent agents. More high-quality companies competing for your business is a good thing, as it all but assures that you’ll pay the lowest possible price.
Policygenius then makes money by earning a commission from each sale (which is bundled into the policy price). And since life insurance companies value their relationships with online brokers like Policygenius, they don’t discount the price of a policy if you were to shop directly through them.
When searching on Policygenius, you’ll see the A.M. Best rating for each life insurance provider. In short, the A.M. Best rating is a financial health rating for each insurance firm. This is important, because your insurance company’s main role is to pay out to your beneficiaries in a time of great need.
That “great need” might be 20 years in the future. So, the last thing you want is to pay your premiums for 19 years only to find out that in Year 20 your life insurance company went bankrupt.
That’s why I prefer doing business with insurance companies with an “A” rating or better from A.M. Best.
Life Insurance Products Offered
Policygenius offers term and permanent insurance policies. Term life insurance is a policy that has a definite end date, whereas a permanent policy, also known as a whole life policy, is a combination of life insurance and an investment product.
I strongly believe that term policies are a much better value than any type of whole life insurance. This is mostly due to the excessive fees you pay for buying whole life insurance policies.
Personally, I was surprised to learn that Policygenius offers permanent insurance, as it heavily promotes term insurance on its site. I reached out to company representatives, and was told that Policygenius recognizes that there are a very small number of situations in which a consumer could benefit from a whole insurance policy.
Rest assured that the company is not going to try and persuade you to buy a permanent policy, which is a very common practice among life insurance agents (due to commissions often being 10X more for selling such a policy).
Term policies can be purchased for lengths of five to 30 years, with coverage between $25,000 and $10 million.
Policies sold through Policygenius are medically underwritten, which means they require a medical exam. This has been a common practice in the life insurance industry for some time. And while there are a number of insurance companies that do offer policies that don’t require a medical examination, you’re typically paying some sort or premium (or the coverage limits are limited).
Overall, if you’re a healthy person, you’ll likely save the most amount of money going through the medical examination process with a life insurance company. Medical examinations can be scheduled at your convenience at your home or office, typically take 20-30 minutes, and are free.
What Does the Buying Process Look Like?
Remember that Policygenius is not an insurance provider. Therefore, the buying process will vary based on the insurance provider you select. After filling out the application on Policygenius, each insurance provider will have its own requirements.
Applying through Policygenius is quick and easy. When you apply, you’ll have to provide some basic information including your name, your zip code, some questions about your family history, and how much coverage you want. This process is all online, and the site will guide you through the application.
After finishing the initial application, you may receive a call from a Policygenius representative. For the purpose of this review, a team member here at The Ways To Wealth filled out the application and received a call the next day. If you do receive a call, the agent will likely go through the application with you to be sure everything looks correct.
If you’re healthy, consider this a good thing as you’ll then qualify for the lowest rate. Additionally, you may be required to fill out another form with the insurance provider you ultimately choose.
Policygenius does have several customer support options, including phone, live chat, and email. However, once you have an active life insurance policy, specific policy questions must be directed at your provider.
One nice thing the company does for customers is to provide reviews of each of its insurance partners directly on the Policygenius website. As a result, you can read up on each one before even applying, rather than trying to blindly guess which company is the right fit for you.
Policygenius offers a valuable service that will help ensure consumers find the right life insurance policy to meet their needs. Here are some of the pros:
- You’re shown a list of insurance quotes from a slew of different companies, all in one place.
- They negotiate with insurance providers to find you the best rate possible.
- Top-rated customer service with phone, email, and live chat.
- On-site reviews of each insurance provider.
- Has an “A” rating from the Better Business Bureau (BBB) and 4.9/5 on TrustPilot.
- Also offers other types of insurance, such as auto insurance, renters insurance and pet insurance.
Although Policygenius has a lot of strengths, there are some areas in which it may leave something to be desired. Here are some of the main cons of this service:
- Because Policygenius is not an insurance provider, your experience may vary depending upon the policy (and provider) you select.
- You may have to fill out additional forms after choosing an insurance provider.
- Not every insurance provider is represented on the site.
Policygenius Life Insurance Review: Conclusion
Policygenius aims to educate consumers about life insurance while guiding them toward the best insurance coverage to suit their needs. It simplifies the process by curating a list of only the best insurance companies in the industry.
Policygenius will also shop around for you. As one of the largest brokers of life insurance in the U.S., its network of insurance carries is unmatched compared to what you’d find at a local agency. That means the options it presents are typically the lowest-cost options you will find. After you select a policy, you will work directly with an insurance provider. At that point, any questions about your policy should be addressed to them.
Overall, Policygenius is laudable for its ease of use and makes finding life insurance a much simpler and easier process. At the end of the day, you are likely to have a low-cost policy that meets your individual needs.