You may of heard the headlines and advertisements of this strange partnership. We'll discuss how this works and if it's worth it or not.
Walmart is offering life insurance that comes in a box from MetLife. Here's the commercial:
Here's how it works:
1. You pay the full annual premium at the checkout stand. (somewhere in the $99 range from what I hear)
2. You take the box home and call the phone number on the card.
3. Metlife's call center asks you a series of health questions.
4. If you're approved, your coverage is in force for 1 year only.
5. If you're declined, you take the box back to Walmart and they refund your money.
Currently, it's in a few hundred stores in South Carolina and Georgia with plans to expand to other markets.
It's a 1 year term life insurance policy with maximum coverage of $25,000. After the 1st year of coverage is over, your coverage expires.
The idea behind it is to educate consumers about life insurance with a "starter" policy. With the end goal of having the consumer purchase a more substantial policy. MetLife gets agressive with this strategy and is hoping after the expiration date happens, they'll be educated and ready to continue with a more substantial policy.
Here's our Metlife and Walmart partnership review:
The GOOD news:
MetLife is a solid company and we do a lot of business with them. With this partnership, they're creating awareness for life insurance which I appreciate. They're reaching a market where there's a lot of uninsured people.
The BAD news:
This product is a horrible value for consumers. It expires after 1 year. It's hardly the piece of mind life insurance is supposed to bring.
The purpose of this insurance is to educate the consumer, which is costing them around $99. You can get this education for free by searching online or calling a life insurance agency and asking questions.
If you need life insurance, don't buy it in a box from a store that doesn't specialize in it. Our advice is to contact someone who does this for a living. Speak with an expert who will find the best rates on the market and educate you every step of the way.