Does Bank Of America Offer Life Insurance? Bank of America is a bank, not a life insurance company. However Bank of America may act as agents working with different life insurance companies to offer you life insurance. If you work with a Bank of America agent they should disclose what company or companies they are quoting. Personally I think you are better off working with a professional in the field. Particularly an agent who is an independent who can work with multiple companies and is not beholden to any.
About Bank of America
The Bank of America Corporation (simply referred to as Bank of America, often abbreviated as BofA or BoA) is an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina. Founded in San Francisco, Bank of America was formed through NationsBank’s acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JPMorgan Chase, and the eighth largest bank in the world. Bank of America is one of the Big Four banking institutions of the United States. It services approximately 10.73% of all American bank deposits, in direct competition with JPMorgan Chase, Citigroup and Wells Fargo. Its primary financial services revolve around commercial banking, wealth management, and investment banking.
Does Bank Of America Offer Life Insurance?
Bank of America offered life insurance until 2013. They stopped providing life insurance in an effort to focus on banking, which is their specialty. Bank of America did not offer their own life insurance policies – instead, they offered life insurance through a network of third-party partners. They used insurance marketing agencies to partner with Monumental Life Insurance Company as well as other insurers.
Bank of America offered term life insurance policies, which last for a specific period of time. These policies are typically more affordable than permanent life insurance policies and are designed to cover funeral costs as well as existing debts, such as mortgage payments or student loans.
They also offered accidental death and dismemberment policies. These are not technically a form of life insurance. They will only pay out if the death is as a result of an accident, and have very strict rules about which situations qualify. Many of these plans also will provide a payout if you experience a serious injury as the result of an accident. Accidental death and dismemberment insurance is generally not a good investment. It’s statistically very unlikely that you will die as the result of an accident. However, many people purchase it because it’s relatively affordable.
What Does a Bank of America Have to do with Life Insurance?
Bank of America used to sell term life insurance and accidental death and dismemberment insurance to customers through other life insurance companies.
Bank of America contracted with a 3rd party direct marketing company, Affinion.
Affinion acted as the customer service branch between Bank of America and Monumental Life Insurance Company (now owned by Transamerica) to sell and assist with accidental death insurance policies.
In 2013 Bank of America stopped offering accidental death and dismemberment policies to its customers.
They cited wanting to increase focus on serving customers through their specialty, banking.
Even though they no longer sell life insurance, many customers still have a previously purchased policy through Bank of America.
If you are looking for a life insurance policy, compare Bank of America alongside other life insurance companies like AICPA Life Insurance.
Should I Buy Life Insurance Through Another Bank?
It’s very common for banks to partner with insurance marketing agencies to offer life insurance policies to their customers. However, it isn’t always the best place to get insurance. This is because your bank isn’t the one actually providing the insurance policy. They’re just routing your information to the company that sells the insurance as a way to make money. Because of this, their policy options are usually very limited, and it can be difficult to get in touch with their customer service if you need help.
What Should I Look for in a New Life Insurance Policy?
There are so many things to consider when switching to a new life insurance policy. Since switching policies can be a hassle, it’s important to make sure that your new policy provides truly excellent value for money. Here are some key questions to consider when shopping for another life insurance provider.
- What kind of policy do I want? There are many different types of life insurance policies, and a good insurance company will have a wide range of options to choose from. Term life insurance provides the best value for most people – it’s affordable and can provide good long-term coverage. However, some people prefer a permanent life insurance policy with a cash value component. Older adults who may not qualify for either of these policies might be interested in a final expense policy. Many companies also offer riders that you can use to customize your policy.
- What is the application process like? Some insurance companies have a very in-depth application process that includes a medical exam and interview. Others only require you to answer a set of basic questions. Find out what the insurer’s application process is like and make sure you are comfortable with it.
- Does the company have good customer service? Dealing with your life insurance company shouldn’t be a hassle. Ideally, you should be able to easily reach them by phone or email. Many life insurance companies also allow you to pay your bill and file claims online, making things even more efficient.
- Is the insurer financially trustworthy? You’ll need to be confident that your insurer can pay out claims regardless of the current financial climate. A good way to check this is by looking at their AM Best rating.
If you have a Bank of America insurance policy and are considering switching to a different provider, make sure to get quotes from several different companies. You also may want to consider talking to an independent insurance agent.