Bank Term Life Insurance vs Term Life from Major Insurance Company?
Question by Fran: Bank Term Life Insurance vs Term Life from Major Insurance Company?
What is the difference between buying a term life policy from let’s say Metlife or HSBC bank. If the policy were to be for the same coverage.
Best answer:
Answer by IndianZZ
term insurance = you pay for the pure insurance cover
i would prefer an insurance from an established insurance company since claiming insurance claim from banks is a pain
and if possible make sure you take policy from a govt run insurance company, private ones treat you like kings when you are paying premium, but you look like the devil to them whenever you go for claim.
apart from some very minor differences ( owing to different rates of agent commissions) there is not much difference
Give your answer to this question below!
Tags: Bank, Company, From, Insurance, Life, major, metlife investments, term, what is the difference
Why would you buy life insurance through a bank?
Whether the life insurance is through a bank or insurance company, the coverage should be issued through an insurance company licensed in your state to do business.
HSBC is one of the 10 largest financial institutions in the world (I believe). I believe their life insurance is issued through a life insurance company which may be a subsidiary of their firm.
The life insurance policy whether through HSBC or another life insurer, would be protected by the insurance guaranty fund in your state for up to $ 250,000 per policy, but check into this with your Department of Insurance in your state for the latest guarantees.
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The major difference with both of the options you have listed is the motives of the entities involved. Buying term life from a bank isn’t the best place to buy unless you really love your bank/banker. Basically they will be limited in the carriers they will have to offer, and the information you give when you apply will be used by the bank to try to cross-sell you other investment products.
If you go directly through Metlife or another company they will only offer you the products that are in their product line even if the product doesn’t fit your needs. The smart choice is to use an independent insurance broker and let them shop around for the best rates and price from hundreds of policies. I like to use http://www.quotesfortermlife.com/blog to get information about insurance.
Even life insurance or annuities sold by a bank are actually backed by an insurance company. Banks are allowed to sell insurance as an agent and get compensation from the insurance company, but they are not actually allowed to back the insurance. You can feel comfortable buying from your bank if you feel they are offering a good competitive product. Just make sure you find out what the insurance company is and make sure they have an “A-” or better rating. Your insurance relationship will be with the insurance company so they will collect the premiums, service your policy and pay your claims so you want to be comfortable with them.
I believe HSBC’s life insurance company is actually Household Life Insurance in most states.
As an employee of Garden State Life Insurance we sell products through Wells Fargo, Wachovia, and Sallie Mae for example.