Last Updated: April 2020
Wells Fargo doesn’t actually sell life insurance.
They used to offer it to their customers, but typically, banks like Wells Fargo simply sell their customers’ contact information to life insurance companies. Sometimes they will partner with a life insurance company to market a life insurance product like Wells Fargo used to do with Prudential (more below).
Below, we’ll review how Wells Fargo plays a role in life insurance, what you should know if you are offered a policy through Wells Fargo, and how to find the best life insurance policy for you.
- History of Wells Fargo Life Insurance
- Wells Fargo No Longer Offers Life Insurance
- Why Buying Life Insurance Through Your Bank is Not Ideal
- How to Find the Best Life Insurance Policy for You
History of Wells Fargo Life Insurance
As a result of their massive scale and portfolio, Wells Fargo has earned prestigious financial ratings from independent rating agencies.
In 2014, Wells Fargo partnered with Prudential Life Insurance Company.
They offered Prudential’s MyTerm policy through kiosks installed in Wells Fargo branches across the country. Bank employees, since they aren’t licensed to sell or even advise on life insurance, directed any life insurance inquiries to these kiosks.
Prudential’s MyTerm is a simplified issue policy. That means little underwriting and fast turnaround times. However, it was an extremely difficult policy to get due to strict simplified underwriting guidelines.
If you qualified, you were able to get up to $150,000 in life insurance coverage for either 10 or 20 years.
Wells Fargo No Longer Offers Life Insurance
When the Wells Fargo unauthorized account scandal was at its height in late 2016, companies began to distance themselves from the bank and what seemed to be rampant fraud.
Prudential announced in December of 2016 that all sales through Wells Fargo would be suspended. They said they wanted to review all records and ensure every policy bought through Wells Fargo was a policy the customer wanted and was aware of.
They also conducted a survey of policy owners prior to the news breaking to the public. Their spokespeople reported there was no indication of fraudulent conduct.
Even with the scandal long since passed, and the review complete, Wells Fargo did not continue to sell life insurance through kiosks at its banking branches. They limited it to the brokerage side of their business, Wells Fargo Advisors.
That is, until early 2018.
Wells Fargo completely pulled out of any life insurance offerings in the early months of 2018. It was an extremely quiet move. While you can still find general information on life insurance through their website, there are no links to actual products or quotes.
You can still get Prudential’s simplified issue product, MyTerm. However, you must work with an insurance agent instead of going through Wells Fargo.
We will break down MyTerm momentarily, but first, it’s important to clarify what a simplified issue policy really is.
Why Buying Life Insurance Through Your Bank is Not Ideal
Even though you cannot get life insurance at a convenient Wells Fargo kiosk at the moment, you never know when that may change.
Buying life insurance when you are already at the bank is convenient. However, typically, your bank will only offer a few life insurance options.
It’s usually better to shop the market.
Here are some other life insurance agencies to review along with Wells Fargo.
How to Find the Best Life Insurance Policy for You
One of the most important things you can do when searching for a life insurance policy is to compare multiple companies. When searching through a bank like Wells Fargo for life insurance, you’re going to limit your options.
Working with an independent insurance agent can help. Agents can compare hundreds of options from dozens of companies easily, to identify the best life insurance policy for you. It doesn’t cost you any extra money.
Give us a call today, or begin getting a quote in minutes with our quote tool!
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