Banker's Life Insurance: Is It Still Around?

The Bankers Life and Casualty Company, also known as Bankers Life, is a private American health insurance company that has been in business since 1932. The company offers a range of insurance policies, including life insurance, long-term care insurance, and Medicare supplemental plans. With 1.4 million policyholders across the United States and Canada, Bankers Life is a well-established player in the insurance industry. However, recent developments have brought about changes in the company's operations. As of November 2024, the company is in rehabilitation, and an order of liquidation is set to come into effect, leading to uncertainty about the future of Bankers Life and whether it will continue to exist under the same name.

The company's insurance products

The Bankers Life and Casualty Company, also known as Bankers Life, is a private American health insurance company that was founded in 1932 as a mutual life insurance company. The company has a wide range of insurance products that cater to the needs of its policyholders.

One of the key products offered by Bankers Life is life insurance. They provide comprehensive life insurance policies that offer financial protection to the policyholder's loved ones in the event of their death. This ensures that families can maintain their financial stability and security even during difficult times.

In addition to life insurance, Bankers Life also offers long-term care insurance. This type of insurance is designed to cover the costs associated with long-term care services, such as home health care, assisted living, or nursing home care. With an ageing population, long-term care insurance has become an important consideration for many individuals and families.

Bankers Life also provides annuities as part of their insurance products. Annuities are a popular retirement planning tool that offers a steady income stream during retirement. This can help individuals maintain their standard of living and ensure financial security in their golden years.

Furthermore, Bankers Life offers Medicare products, including Medicare Advantage plans and Medicare Part D prescription drug coverage. These plans supplement the basic benefits provided by original Medicare, ensuring that policyholders have more comprehensive health care coverage. The company also offers in-house supplemental health insurance plans that cover critical illnesses and provide additional support for Medicare beneficiaries.

To cater to a range of health needs, Bankers Life has partnered with Humana to offer vision and dental coverage. This partnership allows them to provide a more comprehensive range of health insurance options to their policyholders.

Bankers Life's insurance products are designed to provide financial security and peace of mind to individuals and families, especially those in their middle age and retirement years. By offering a diverse range of insurance options, the company ensures that its policyholders can tailor their coverage to meet their specific needs and concerns.

With a strong focus on their target demographic, Bankers Life has established itself as a trusted provider of insurance products, helping individuals and families plan for the future and protect their financial well-being.

Customer complaints

There are a number of customer complaints about Bankers Life and Casualty Company, many of which are related to issues with claims and reimbursements. Some customers have reported difficulties in getting reimbursed for long-term care expenses, with the company allegedly nitpicking itemized bills and requesting additional documentation. Others have complained about the lengthy reimbursement process, with some claiming that they have not received reimbursement for several months or even years. There are also complaints about the company's customer service, with some customers reporting that they have had trouble reaching a supervisor or anyone else who can help resolve their issues.

In addition, some customers have expressed concerns about the company's business practices, including allegations of a multi-level marketing scheme and issues with unauthorized charges and refunds. There are also complaints about the lack of transparency in billing statements and claim numbers, as well as difficulties in cancelling policies. Some customers have also reported issues with changing their address and updating their policy information.

It is worth noting that while there are a significant number of complaints, there are also customers who have had positive experiences with the company, particularly in terms of the simplicity of the claims process and the responsiveness of agents. However, the overall sentiment of the reviews suggests that there are areas where Bankers Life and Casualty Company could improve its customer service and claims handling processes.

In-home customer service

The Bankers Life and Casualty Company, also known as Bankers Life, is a private American health insurance company that has been in business since 1932. The company offers a range of insurance products, including life insurance, long-term care insurance, annuities, and Medicare plans.

Bankers Life is committed to providing excellent customer service to its 1.4 million policyholders across the United States and Canada. The company understands that creating a positive customer experience involves more than just delivering timely products and services. It's about building meaningful connections and ensuring customer satisfaction at every touchpoint.

To achieve this, Bankers Life has a dedicated team of insurance customer service representatives who serve as the primary point of contact for customers. These representatives are well-versed in the company's insurance products and are trained to handle various customer queries and complaints efficiently and professionally.

Here's an overview of the in-home customer service process at Bankers Life:

Answering Customer Queries

Insurance customer service representatives at Bankers Life are responsible for providing accurate and timely responses to customer inquiries. Whether customers are seeking information about their existing policies, exploring new insurance options, or needing assistance with claim procedures, the representatives are equipped with the knowledge and resources to address their concerns.

Handling Complaints

The customer service team is trained to handle complaints with a calm and friendly attitude. They listen to customers' issues, access their accounts and policy schedules, and provide resolutions or alternatives to address their specific situations. The team also maintains a customer complaint database, ensuring that all complaints are properly documented and tracked for future reference.

Providing Product Information

Bankers Life's customer service representatives are knowledgeable about the company's diverse insurance products. They guide prospective customers through the range of options, including life insurance, long-term care insurance, annuities, and Medicare supplements. By understanding customers' unique needs, they can make informed recommendations and ensure customers make well-informed decisions.

Facilitating Sales

When customers are interested in initiating or upgrading their policies, the customer service representatives seamlessly connect them with the sales team. They ensure a smooth transition by providing the sales agents with the necessary customer information, so customers don't have to repeat their queries.

Multi-Channel Communication

Bankers Life understands the importance of providing multiple communication channels for its customers. Customers can connect with the company through their preferred method, be it phone calls, emails, web portals, live chat, or in-person visits. This flexibility ensures that customers can reach out conveniently and receive assistance promptly.

First-Contact Resolution

The company prioritizes achieving first-contact resolution whenever a client calls. This means that the customer service representatives aim to resolve issues during the initial interaction, eliminating the need for customers to speak with multiple individuals. This approach not only solves the immediate problem but also empowers customers with knowledge for handling similar situations in the future.

By delivering exceptional in-home customer service, Bankers Life fosters trust, satisfaction, and loyalty among its policyholders. The company's commitment to its customers has been a cornerstone of its success and longevity in the insurance industry.

The company's history

The Bankers Life and Casualty Company, doing business as Bankers Life, is a private American health insurance company headquartered in Chicago, Illinois. It was founded in 1932 as a mutual life insurance company and has been a subsidiary of CNO Financial Group since 1992.

In its early years, Bankers Life minimised its overhead to undercut the monthly insurance premiums of its competitors. However, by June 1935, corporate mismanagement had rendered the company insolvent, and its assets were seized for liquidation by the Illinois Insurance Department. John D. MacArthur purchased the company for $2,500 and ran it from the office of his existing insurance company, Marquette Life.

Under MacArthur, Bankers Life continued its policy of minimal overhead, offering $1, $2, and $5 monthly premium policies to undercut competitors' $10 minimum monthly premiums. The company also began mailing sales pitches to middle-income families, a demographic traditionally underserved by the insurance industry. By combining these methods with mass-marketing and brand management techniques, the company experienced significant growth. By 1941, Bankers Life had $8.38 million in assets under management and over $20 million in life insurance policies, outgrowing the Marquette Life office and moving to a four-story building in Mayfair that served as its headquarters for the next four decades.

In 1942, MacArthur established two shell companies, one of which, the Illinois Standard Life Insurance Company, would become the new home for Bankers Life. In December of that year, he merged Bankers Life, the second shell company, and the Hotel Men's Mutual Benefit Association—another life insurance company he had acquired—into Illinois Standard Life to form the West Side Assessment Life Insurance Company, later renamed the Bankers Life and Casualty Company. While the Hotel Men's Mutual Benefit Association did not bring many new policyholders, the Illinois Insurance code allowed the new company to assume the 1879 founding date of the Hotel Men's Mutual Benefit Association as its own.

Between 1943 and 1946, the company opened branch offices in Florida, Michigan, Missouri, and West Virginia, expanding its operations across 14 states by 1951. By 1956, Bankers Life had become one of the largest health and accident insurance companies in the United States.

In 1970, MacArthur established the MacArthur Foundation, which would inherit the majority of his estate after his death, including his position as the sole shareholder of Bankers Life. Upon MacArthur's death in 1978, his shares in Bankers Life, worth over $415 million, passed to the foundation.

In 1984, the MacArthur Foundation sold Bankers Life to the Texas-based Great Southern Life Insurance Company, a subsidiary of the I.C.H. Corporation. In 1992, I.C.H. Corporation sold Bankers Life to Conseco, an insurance industry holding company, for $600 million. In 2010, Conseco changed its name to CNO Financial Group, and Bankers Life moved its headquarters to the Merchandise Mart building in downtown Chicago.

In 2012, Bankers Life processed about 8.5 million claims and paid out $1.3 billion in policy benefits. By 2015, the company had $19 billion in assets under management.

As of 2024, Bankers Life is in rehabilitation, with an Order of Liquidation effective as of November 30, 2024. This means the company's policy obligations will be covered by various state life and health insurance guaranty associations.

The company's current status

The Bankers Life and Casualty Company, doing business as Bankers Life, is a private American health insurance company headquartered in Chicago, Illinois. It was founded in 1932 as a mutual life insurance company and has been a subsidiary of the CNO Financial Group since 1992.

Bankers Life has 1.4 million policyholders across the United States and Canada, most of whom are within the company's target demographic of middle-aged and retirement-aged adults with annual household incomes between $25,000 and $75,000. The company offers a range of insurance products, including life insurance, long-term care insurance, annuities, and Medicare products, including plans for Medicare Advantage and Medicare Part D prescription drug coverage.

As of November 2024, Bankers Life Insurance Company is in rehabilitation. The US Department of Justice indicted Greg Lindberg, and the appeal of the Order of Liquidation of December 30, 2022, by Lindberg's company, GBIG Holdings, LLC, has concluded. As a result, there will be no further appeals, and the liquidation process will move forward as of November 30, 2024, when the Order of Liquidation becomes effective. From this date onwards, the company's policy obligations will be covered by various state life and health insurance guaranty associations, subject to applicable statutory limits and requirements.

Frequently asked questions