Henry Wells and William Fargo started Wells Fargo & Company in 1852 to provide banking and express services out to California.
These two men also founded American Express. Since then, Wells Fargo has grown into one of the 4 major banking companies in the United States.
As a result of their massive scale, and portfolio, Wells Fargo has earned prestigious financial ratings from independent rating agencies.
About Wells Fargo Life Insurance
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) were to direct any life insurance inquiries to these kiosks.
If you qualified, you were able to get up to $150,000 in death benefits for either 10 or 20 years. (Death benefit is the amount that the insurance company pays to the beneficiary when the insured person passes away. A beneficiary is a person designated to receive the money.)
Why Can’t You Get Wells Fargo Life Insurance Anymore?
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.
We will break down MyTerm momentarily, but first, it’s important to clarify what a simplified issue policy really is.
What is Simplified Issue Life Insurance?
First, simplified issue life insurance is a type of no exam life insurance. This name implies its meaning, for these types of policies, you do not have to take a medical examination to get coverage. As a result, they are more expensive due to higher risk.
The Two Types of No Medical Exam Life Insurance Are:
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is life insurance that is guaranteed for anyone. This means that anyone can get a policy.
There are no health questions asked, and no medical examination for a guaranteed issue policy. As a result, they are the most expensive type of no exam life insurance because they have the highest risk to insurers.
Simplified Issue Life Insurance
Simplified issue life insurance is a type of no medical exam life insurance that involves the insurance agent or company asking you a few additional questions regarding your health.
Generally, these include questions like:
These are just a few examples of questions asked. Additional questions may be asked, but they are usually not too invasive.
Simplified issue policies are cheaper than a guaranteed issue, and you will normally be approved as long as you are not terminally ill or otherwise uninsurable.
How Much Coverage Does Simplified Issue Life Insurance Offer?
Simplified issue policies tend to limit benefits to between $250,000 and $300,000. Prudential limits theirs to $250,000.
For people who are in good health, who can pass a medical examination, simplified issue is not the policy for you. Unless you need quick coverage, that is.
That being said, there are dozens of other affordable life insurance options out there as well, especially for those in good health.
However, for those who are smokers, have poor health, need coverage fast or for those are in an older age bracket, with fewer life insurance options available to them, simplified issue life insurance is the right choice.
Prudential’s MyTerm Simplified Issue Policy
|Death Benefit||$50,000 – $250,000|
MyTerm is a term policy available in 10, 15, 20, or 30-year terms. You can get a death benefit in increments of $25,000 starting at $50,000.
The maximum coverage they issue on this policy is $250,000. (What was available through Wells Fargo was a limited version of this policy.)
They also add a terminal illness rider, free of charge. Riders add extra provisions to your policy, essentially making it customizable to your needs.
The terminal illness rider allows you to access your death benefit before you pass away if you are both diagnosed with a terminal disease and have less than six months to live.
What We Like About this Policy
Prudential is an excellent life insurance company. AM Best gives them an A+ for superior financial strength. Standard and Poor’s gives them an AA-. They have an excellent reputation for customer service and are well regarded across the industry.
This particular policy is simple. It doesn’t fuss around with complicated clauses. Neither does it overwhelm you with a million options to try and choose from.
Why MyTerm Life Simplified Issue Isn’t Right for Everyone
Type of insurance and benefit limits aside, it is extremely difficult to qualify for. Their underwriting for this product is some of the strictest we have ever seen.
To qualify, you must answer around 20 health questions. If you mark even one of them as a yes, your application will be declined. That doesn’t sound so bad until you look at the questions. One of them asks, “Have you ever been diagnosed with…” then lists a series of medical conditions. One of those conditions is high blood pressure.
So if you have ever had high blood pressure, you’re out. That’s harsh, even for insurance. Even most other companies offering simplified issue (no exam) policies don’t ask about high blood pressure. It’s just so common. And high blood pressure is just one of many disqualifying conditions.
Prudential is also one of the more expensive insurance companies out there. There are many other companies out there offering no exam life insurance who also have excellent policies. Companies like:
If you are looking for no exam life insurance, talk to an independent life insurance agent. They can shop the market for you and help determine which company will best fit both your family’s needs and your wallet.
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. No one will argue with that. Skipping the medical exam is also a plus.
A no exam policy is attractive. Many people are just too busy to deal with traditional life insurance underwriting. If you don’t have the time, but do have the extra money, a no exam might be right for you.
You still owe it to yourself to shop the market. (You could also have an independent life insurance agent do it for you.) Compare several no exam policies to see which company will offer you the best deal.
Finding the Best Life Insurance for You
One of the most important things you can do when searching for a life insurance policy is to speak with an insurance agent. Particularly, an independent one.
Because we are not bound to working with one specific life insurance agency, we can compare hundreds of options from dozens of competitors easily, to identify the best life insurance policy for you.
Give us a call today, or begin getting a quote in minutes with our quoting engine!
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