If you’ve been watching television lately, you may have seen one of the Life Insurance Savings Group commercials.
They only offer “guaranteed acceptance life insurance” for 45-85 years olds that have 2-year waiting periods. This means you will NEVER get the best price possible from Life Insurance Savings Group.
This blog post will highlight the drawbacks of buying life insurance from a company that only sells policies from one life insurance company (AIG, in this case).
FOR EASIER NAVIGATION:
- What’s Wrong With The Final Expense Insurance Offered By Life Insurance Savings Group?
- What Is Life Insurance Savings Group?
- Why We Don’t Recommend Life Insurance Savings Group Agency
- Can You Really Get Insurance For Less Than $1 A Day?
- What Does Life Insurance Savings Group Promise?
- What Is Guaranteed Acceptance Life Insurance?
- What Are the Drawbacks Of Guaranteed Acceptance Life Insurance?
- What Are The Dangers Of Buying Life Insurance From An Agency Selling One Insurance Policy Only?
- How Can Funeral Funds Help Me?
What’s Wrong With The Final Expense Insurance Offered By Life Insurance Savings Group?
- They only sell one insurance product – Life Insurance Savings Group is only selling guaranteed acceptance life insurance. This limits your options, is massively more expensive, and doesn’t allow you to compare rates and coverage from different companies.
- Two-year waiting period – Guaranteed acceptance life insurance has a two-year waiting period. If you die within the first two years of the policy, your beneficiaries will not receive the death benefit.
- Most people will qualify with a first-day coverage – People with high blood pressure, diabetes, or obesity can still qualify for a first-day coverage plan at Funeral Funds of America. First-day coverage plan rates will always be lower than guaranteed acceptance life insurance.
- Their premium claim of $1 a day is stupid – The premium for a policy with $25,000 in coverage will NEVER be less than a dollar a day for the average person.
- Limited option – Life Insurance Savings Group only sell guaranteed acceptance plan from AIG. You have limited options and cannot compare rates or coverage from different companies.
What Is Life Insurance Savings Group?
Life Insurance Savings Group IS NOT an insurance company. Do not be misled by their TV commercials!
Life Insurance Savings Group’s primary focus is selling 2-year waiting period final expense life insurance to seniors through television commercials.
Life Insurance Savings Group is a marketing brand of SelectQuote life insurance agency.
Why We Don’t Recommend Life Insurance Savings Group Agency
Working with an independent life insurance agency like Funeral Funds of America that works with multiple 1st-day coverage insurance companies is always a wiser choice.
An independent life insurance agency will be able to offer you a variety of different policies from multiple companies. This allows you to choose the policy and pricing best suits your needs.
Finally, an independent life insurance agency like Funeral Funds of America will work with you to find the best policy for your needs.
Can You Really Get Insurance For Less Than $1 A Day?
While the Life Insurance Savings Group commercial says you can get insurance for less than $1 per day, this is rarely true…and it is stupid.
The policy’s price will depend on several factors, including your age, health, and the amount of coverage you need.
Many consumers say their commercials are misleading because they do not mention that the price is for a limited amount of coverage and a 2-year waiting period plan.
What Does Life Insurance Savings Group Promise?
Life Insurance Savings Group’s final expense insurance commercial promises these things:
- People who are 45-85 years old can get up to $25,000 for funeral and final expenses
- You can get insurance coverage starting at less than a dollar a day (this pricing language is always a red flag!)
- You can be approved even if you have diabetes, high blood pressure, or are overweight.
- Your acceptance is guaranteed regardless of your health!
- No medical exam
- No health questions
- Your rates will never increase
- Your benefits will never decrease
- Your coverage cannot be canceled
Life Insurance Savings Group is pitching that everyone can qualify for life insurance because their acceptance is guaranteed and comes with a 2-year waiting period.
To be clear…if you die of a health or medical reason in the first two years, this policy from Life insurance Savings Group won’t even pay out one penny to your loved one! Rotten stuff, huh?
What Is Guaranteed Acceptance Life Insurance?
Guaranteed acceptance life insurance is a type of 2-year waiting period whole life insurance that does not require the policyholder to undergo a medical exam.
Many different insurance companies offer this type of insurance, but the premiums are always much higher than for policies that do require a medical exam or health questions.
This is because the insurance company is taking on more risk by offering coverage to people without knowing the insured persons’ health status.
What Are The Drawbacks Of Guaranteed Acceptance Life Insurance?
The biggest drawback of guaranteed acceptance life insurance is the mandatory two-year waiting period.
Life Insurance Saving Group doesn’t mention in their commercial that every guaranteed acceptance life insurance has a two-year waiting period (because most people wouldn’t be interested if they knew about the 2-year waiting period)!
If you die within the first two years of the policy, your beneficiaries get no death benefit at all. The insurance company will only return the premiums you paid plus some interest.
This waiting period is in place because these policies are intended for only the sickest of the sick. People in average health should NEVER buy Guaranteed Acceptance life insurance; most people qualify for 1st-day coverage at Funeral Funds of America.
Another drawback of guaranteed acceptance life insurance is the HIGH PREMIUMS. Because the insurance company is taking on more risk by offering coverage without knowing your health status, the premiums are much higher than other types of life insurance.
What Are The Dangers Of Buying Life Insurance From An Agency Selling One Insurance Policy Only?
Here is a copy of the disclaimer you can find at the end of the Life Insurance Savings Group television commercial:
*AIG Companies policies issued by American General Life Insurance Company (AGL), Houston, TX. These are not preneed insurance contracts or agreements. Benefits are payable to the beneficiary or beneficiaries as directed by the owner of policy. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG), Forms and plan provisions may vary by state. Plan not available in all states. Suicide and other limits may apply. Rates effective as of 1/20/21. **Sourced from: https://www.consumer.ftc.gov/articles/0301-funeral-cost-and-pricing-checklist#Calculating. SelectQuote Insurance Services, SelectQuote Insurance Agency. @2022 SelectQuote Insurance Services. All rights reserved.
This disclaimer clearly states that Life Insurance Saving Group only sells guaranteed issue policies from AIG.
The danger is that you will not be able to compare rates and policies from other companies to get the best deal possible. You will also be stuck with a policy that has a two-year waiting period before your beneficiaries can collect the death benefit. And, if you die within those first two years, you will not receive anything.
How Can Funeral Funds Help Me?
Funeral Funds is an independent life insurance agency that offers various life insurance policies from different companies. We are not affiliated with Life Insurance Savings Group or any other marketing brand.
We prioritize finding the right life insurance policy for each client at the best price.
We work with over 20 life insurance companies, which means we can compare rates and policies to find the perfect fit for your needs and budget.
If you’re shopping for life, burial, funeral, and final expense insurance, call us at (888) 862-9456. We’ll be happy to help you find the perfect policy for your family.