Trustage Life Insurance: Is It Worth The Hype?

TruStage Life Insurance offers a range of life insurance options, including term life insurance, whole life insurance, and guaranteed acceptance whole life insurance. The company provides coverage for individuals aged 18 to 85, with no medical exam required for any policy. TruStage's life insurance policies are underwritten by CMFG Life Insurance Company, which has been in business since 1935 and is rated 'A' (Excellent) for financial stability by AM Best. However, TruStage has received a higher-than-average number of consumer complaints, and its coverage amounts are relatively low compared to competitors. The company partners with over 3,000 credit unions across the United States and offers online applications and instant decisions for its insurance products. While TruStage provides the convenience of online applications and no medical exams, its prices are higher than those of many competitors.

TruStage's online application process

After receiving your quote, you can click the "Apply" button and proceed to identify your beneficiaries. You will then be asked to answer questions about your medical history, tobacco use, driving record, and criminal record. Once you've completed the medical and lifestyle questionnaire, TruStage will request your personal and payment information to finalise the application.

The entire process can be completed online, and you can even get an instant decision in most cases. TruStage also offers the option to apply over the phone, and you can call a representative if you need any assistance filling out the application.

It's important to note that while TruStage offers the convenience of an online application without a medical exam, their prices tend to be higher compared to other life insurance companies. Additionally, their maximum coverage amounts are relatively low, and they have limited rider options.

TruStage's high prices

While TruStage offers a range of life insurance options, its prices are higher than most competitors. The company's term life insurance is substantially more expensive than top competitors, and its whole life insurance premiums are also higher than those offered by other companies. For example, for a 70-year-old non-tobacco-using female, TruStage charges $154.25 per month for $25,000 in coverage, while Mutual of Omaha would charge only $128.29 per month. Similarly, a 65-year-old female will pay $67.00 per month from TruStage for $10,000 in guaranteed acceptance coverage, compared to $50.00 from Mutual of Omaha or $62.61 from Gerber.

TruStage's prices are likely due to the convenience and accessibility of their online application process, which does not require a medical exam. However, this convenience comes at a cost, and customers may be able to find lower rates and better coverage elsewhere. The company's maximum coverage amount of $300,000 is also relatively low compared to other providers, who can provide coverage into the millions.

In addition to high prices, TruStage also has limited rider options and low coverage caps. Their term life insurance policy is a simplified issue policy with no medical exam, but information about an applicant's health and other factors will be gathered from various data sources, and coverage may be denied. The company also has a high volume of consumer complaints, mainly regarding delays in paying claims and premium refunds.

Overall, while TruStage may be a convenient option for those looking for quick coverage without a medical exam, their high prices, low coverage amounts, and limited rider options may be deterrents for potential customers. It is recommended that individuals shop around and compare quotes from multiple insurers before making a decision.

TruStage's low maximum coverage amounts

TruStage's maximum coverage amount is relatively low compared to other providers. For term life insurance, the maximum coverage amount is $300,000, which is low compared to other companies that can provide coverage in the millions.

For whole life insurance, the coverage amounts available vary by age. For ages 18-70, the coverage amount is $5,000-$100,000. For ages 71-75, the coverage amount is $5,000-$50,000, and for ages 76-85, the coverage amount is $5,000-$25,000.

For guaranteed acceptance whole life insurance, the coverage amount is limited to $2,000-$25,000.

The low maximum coverage amounts offered by TruStage may not be sufficient for individuals with higher coverage needs. It is important to consider one's financial situation and goals when determining the appropriate amount of coverage.

Additionally, TruStage's term life insurance policy has a maximum age limit of 69 for purchasing a new policy, and the policy can be renewed up to age 80. This age limit may not be suitable for individuals seeking coverage beyond that age.

While TruStage offers the convenience of online applications and no medical exams, the low maximum coverage amounts may be a limiting factor for individuals seeking higher levels of protection. It is crucial to compare policies and coverage amounts from multiple providers to ensure one's specific needs are met.

TruStage's whole life insurance

TruStage Whole Life Insurance is a permanent coverage option that you can keep for your entire life. It offers a locked-in rate that never increases, meaning you won't pay more due to age or health concerns. As long as premiums are paid, your coverage cannot be canceled. This type of policy is designed to provide financial security for your loved ones after your passing, helping them cover expenses such as funeral costs, medical bills, and other debts.

One of the key advantages of TruStage Whole Life Insurance is its simplicity and ease of application. There are no medical exams required, and coverage can start as soon as the first premium is received. The application process involves answering a few health questions online, without the need for invasive tests. TruStage also offers guaranteed acceptance for individuals aged 45 to 80, with no health questions or medical exams, providing instant coverage with the first payment.

The whole life insurance coverage amounts available from TruStage vary by age, and quotes can be obtained online. While the rate remains fixed, the policy builds cash value over time, allowing for loans against the value, although any unpaid amounts will decrease the death benefit. TruStage's whole life insurance is underwritten by CMFG Life Insurance Company, which has consistently been rated 'A' (Excellent) for financial stability by AM Best.

While TruStage Whole Life Insurance offers convenience and peace of mind, there are some considerations to keep in mind. The coverage amounts tend to be relatively low compared to other providers, and the premiums are generally higher than those of competitors. Additionally, TruStage has received a higher-than-average number of consumer complaints, mainly regarding delays in paying claims and premium refunds.

In summary, TruStage Whole Life Insurance provides a straightforward way to secure permanent coverage for your loved ones, without the hassle of medical exams. However, it is important to compare the coverage amounts, premiums, and customer satisfaction across different insurance providers to make an informed decision.

TruStage's term life insurance

TruStage offers term life insurance to applicants aged 18 to 69. The policy is a simplified issue term life insurance policy, which means there is no medical exam, but you will need to answer some questions about your health and lifestyle. The policy has a conversion feature, meaning you can convert all or part of it to permanent life insurance coverage later on.

Term life insurance policies from TruStage offer coverage from $5,000 to $300,000. The rates are generally based on your age and gender. You will be given the option to renew the policy every five years until you turn 80, but your premium will increase each time you renew coverage.

Frequently asked questions