In our Matrix Direct Review, we'll cover everything a consumer should know about purchasing life insurance with this agency.
We've all seen Matrix Direct on TV, radio and/or print with their ads promoting life insurance. So let's start with their marketing.
There's a common TV advertisement promoting "Less than $16/mo buys a 40 year old man a $250,000 term life policy". Maybe you've seen it? Here's a screenshot:
This is the type of ad Matrix Direct has on TV, radio and print. Basically promoting "dirt cheap" life insurance.
What they don't tell you is that those $16/mo. life insurance quotes are "Preferred Plus" rates and only a 10 year guarantee period. Only around 10% of the population can qualify for "Preferred Plus" rates. Furthermore, most 40 year olds purchase a term life insurance policy longer than 10 years which increases the premiums even more.
So why would Matrix Direct advertise $16/mo life insurance rates that most people can't qualify for?
To get you to contact them, that's why...and the thing is, IT WORKS!
According to Ron Harris, Matrix Direct's CEO via Reuters:
"The average Matrix Direct customer buys a life insurance policy of around $500,000 with a premium around $1,000".
So Matrix Direct advertises $16/mo premiums to reel you in, but in reality their average policy is much bigger.
This marketing does a huge disservice to the life insurance marketplace. We have people call us and we'll provide them the best rates they can qualify for and they'll respond, "We can get them for $16/mo, why are you so expensive?".
It's not that we're expensive, it's just the big pocket life insurance agencies are using deceptive marketing tactics. Don't fall for this.
Life insurance is cheap, but it's not as cheap as Matrix Direct makes it out to be.
Matrix Direct is owned by American General
Every consumer should know that Matrix Direct is owned by American General which is a life insurance company. If you call Matrix Direct and get quotes from them, you're really getting quotes from 1 company - American General.
With that said, American General IS a great company. They have a strong financial rating and are in SOME cases the best option.
However, life insurance isn't one size fits all and Matrix Direct doesn't search the market for the best rate unless they absolutely have to.
You will always be better off working with an independent agency who has access to ALL the top rated life insurance companies.
Matrix Direct is a BIG Call Center
Also important to know is Matrix Direct is a high volume life insurance call center. Their agents are given a script to sell you life insurance and are driven by sales quotas.
With life insurance call centers, the personal service is almost non-existant. After you buy a policy with them, you'll most likely never have access to your agent again as you'll now be transferred to a customer service area.
Their agents are highly trained in sales and management doesn't want them to be handling customer service requests.
You'll have a better experience and more importantly, better life insurance rates by speaking with an experienced independent life insurance agent who will be there for you when you need them.
Matrix Direct has very deep pockets because they're owned by a massive insurance company. The only reason you've heard of them is because they have the money to advertise.
The key in finding the best life insurance rates is finding the life insurance company that looks most favorably at YOUR individual situation. This is especially important for anyone with health issues.
An independent life insurance agency like Rootfin isn't married to any company. We represent over 60 life insurance carriers which puts us in a position to find the best rates for our clients. In fact, we regularly replace Matrix Direct policies with much less expensive options.
We'll find you the lowest life insurance rates and answer any questions until you're comfortable applying for life insurance. No sales pressure, EVER.
For quotes or questions about life insurance, please don't hesitate to run instant life insurance quotes on our website or contact us directly.
Update: Matrix Direct has re-branded to AIG Direct. They market under both names.