Last Updated: December 2019
In our Matrix Direct review, we’ll cover everything a consumer should know about purchasing life insurance with this agency.
You’ll learn how their marketing works, which life insurance companies they represent, and if you should choose Matrix Direct for your life insurance needs.
- Matrix Direct has Deceptive Marketing
- Matrix Direct is Owned by AIG
- Matrix Direct is a Big Call Center
- The Best Alternatives to Matrix Direct
We’ve all seen Matrix Direct on TV, radio, and print with their ads promoting life insurance. So let’s start with their marketing.
Matrix Direct has Deceptive Marketing
There’s a common TV advertisement promoting “Less than $16/mo buys a 40 year old man a $250,000 term life policy”.
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.
Before you make your decision to go with one company, make sure that you look into all of the best life insurance companies that you can to make a well-educated decision. We have reviewed over 50 life insurance carriers and agencies to help you compare rates and find the right company for your specific needs.
Life insurance can be cheap, but it’s not as cheap as Matrix Direct makes it out to be. Especially for those who suffer from health issues that may struggle to find coverage.
Matrix Direct is Owned by AIG
Every consumer should know that Matrix Direct is owned by AIG Direct. In fact, if you go to MatrixDirect.com it redirects you to AIGDirect.com.
If you call Matrix Direct and get quotes from them, you’re really getting quotes from AIG.
With that said, AIG is a great company. They have a strong financial rating and are, in some cases, the best option.
They Only Represent 8 Life Insurance Companies
It’s always best to compare as many companies as possible when searching for life insurance. That’s why we don’t recommend Matrix Direct.
They can only sell you a policy from one of these companies.
- American General Life Insurance Company
- Gerber Life Insurance Company
- Fidelity Life Insurance
- Globe Life Insurance
- Prudential Life Insurance
- Banner Life Insurance Company
- Mutual of Omaha Life Insurance
These are great companies. But why limit yourself to 8 companies when other agencies will show you rates from these carriers plus dozens more?
Life insurance isn’t one size fits all and Matrix Direct doesn’t search the entire market for the best life insurance rates. You will always be better off working with an independent agency.
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, personal service is almost non-existent. 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, get a better rate for your policy.
The Best Alternatives to Matrix Direct
Matrix Direct has very deep pockets because they are owned by a massive insurance company. The only reason you’ve heard of them is that they have the money to advertise.
The main point of this article is to show you the importance of finding the best carrier that will work with your specific situation.
The easiest way to do that is to work with an independent agent who has access to all of the top companies. It is their job to match you to the best company for you.
Start by filling out our quote tool to get rates from all the top life insurance carriers.
Other Life Insurance Company Reviews
Below are other life insurance agency reviews to compare along with Matrix Direct.