Kemper Life Insurance: Legit Or A Scam?

Kemper Life Insurance is a subsidiary of Kemper Corporation, a major US insurer that provides home, auto, life, and health insurance solutions. Kemper Life offers term and whole life insurance policies, including guaranteed issue life insurance for those who can't qualify for traditional coverage due to health issues. However, the company has received a high number of complaints relative to its size and provides limited information and tools on its website. In this paragraph, we will explore whether Kemper Life Insurance is a legitimate option for individuals and families seeking peace of mind and financial protection.

Kemper's limited online presence

Kemper Life Insurance's website offers limited information on its life insurance policies. The website is difficult to navigate and lacks educational resources, such as a coverage calculator. Kemper's website does not list the riders that can be added to your policy for additional coverage. For whole life insurance, they mention that multiple riders can be added but do not specify what they are.

Kemper's website does not have an online portal for policyholders to manage their accounts or make payments. However, the website has forms available if policyholders need to make changes to their policies.

Kemper's website provides contact information, including a phone number and email address, for those seeking more information or wishing to connect with a local agent.

Kemper's high number of customer complaints

Kemper Life Insurance has received a high number of complaints relative to its size, according to the National Association of Insurance Commissioners (NAIC) Complaint Index. This index is calculated based on the number of complaints a company receives relative to its size, with companies expected to have an index of 1.0. Kemper's complaint indexes were 3.23, 3.63, and 6.15 in 2022, 2021, and 2020, respectively, indicating a severe issue with customer satisfaction and service.

NerdWallet, a personal finance company, also found that Kemper Life Insurance companies have collectively drawn far more complaints to state regulators than expected for companies of similar size. This is reflected in their rating of 2.5 out of 5 stars for overall performance, which takes into account consumer experience, complaint data, and financial strength ratings.

Kemper's website offers limited information on its life insurance policies and does not have an online portal for policyholders to manage their accounts or make payments. The website is difficult to navigate and lacks educational resources, such as a coverage calculator.

The company's customer service can be contacted by phone or email. However, policy changes cannot be made online and require filling out forms available on the website.

Kemper's financial strength and ability to pay claims

Kemper Life Insurance is owned by Zurich Insurance Group, a Swiss insurance company. Kemper has a high number of complaints relative to its size, as measured by the NAIC (National Association of Insurance Commissioners) Complaint Index. For the three years of 2022, 2021, and 2020, Kemper's complaint indexes were 3.23, 3.63, and 6.15, respectively. This indicates that the company has severe issues with customer satisfaction and service.

Despite the high number of complaints, Kemper has received a strong financial strength rating from AM Best, a credit rating agency that assesses companies based on their balance sheets, debt, and other factors. Kemper received an A- ("Excellent") rating, indicating that its ability to meet policyholder obligations, such as paying claims, is deemed excellent. However, this rating is a downgrade from the higher-level A rating that AM Best previously assigned to Kemper.

Kemper offers a range of life insurance products, including term life insurance, whole life insurance, and final expense insurance. Term life insurance provides coverage for a fixed number of years, typically with level premiums and a guaranteed death benefit. Whole life insurance is a type of permanent life insurance that provides coverage for an entire lifetime, including a cash value component. Final expense insurance, or burial insurance, offers a small amount of coverage for end-of-life expenses, such as funeral or final medical bills, and is often used by those who cannot obtain a traditional life insurance policy due to pre-existing health conditions.

Kemper's life insurance products are underwritten by several companies, including United Insurance Company of America, The Reliable Life Insurance Company, Union National Life Insurance Company, and Mutual Savings Life Insurance Company. Together, these companies have more than 4.5 million policies in force.

While Kemper's financial strength rating suggests it has the ability to pay claims, potential customers should be aware of the high volume of complaints the company has received relative to its size.

Kemper's policy options and coverage

Kemper offers term and permanent life insurance policies. The company sells term life insurance, with coverage ranging from $25,000 to $250,000. Kemper also offers a straightforward whole life insurance policy with level premiums. It also sells guaranteed issue life insurance to applicants from 3 to 80 years old.

Kemper's term life insurance provides coverage for a fixed number of years and usually has level premiums that never increase. It also offers a guaranteed death benefit that gets paid if the policyholder dies during the term.

Kemper's whole life insurance is a type of permanent life insurance that provides coverage for the policyholder's entire lifetime. It has level premiums, a guaranteed death benefit, and a cash value component. A portion of the premium paid goes toward a cash value, and the policyholder has the option to withdraw or borrow money from their cash value.

Kemper also offers final expense insurance, also known as burial insurance, which provides a small amount of coverage that is often used to pay for end-of-life expenses, such as funeral or final medical bills. This type of insurance is usually only recommended if the policyholder has pre-existing health conditions and cannot pass a medical exam or get approved for a traditional life insurance policy.

Kemper's life insurance products are subject to state availability and may not be available in all states.

Kemper's customer service and satisfaction

Kemper Life Insurance is a subsidiary of Kemper Corporation, which is owned by Zurich Insurance Group. Kemper offers a range of life insurance policies, including term life insurance, whole life insurance, and final expense insurance, to meet different needs and budgets. Their products are available in 50 states and the District of Columbia.

When it comes to customer service and satisfaction, Kemper Life Insurance has received mixed reviews. On the one hand, they strive to provide excellent customer service by assisting policyholders with inquiries, claims, and policy management. They have multiple contact options, including phone, email, and mail, and their website provides forms for policy changes and initiating the claims process. Additionally, Kemper has a strong financial rating of A- from A.M. Best and Standard & Poor's, indicating financial stability and the ability to fulfill obligations.

However, Kemper has also garnered a high number of complaints relative to its size, as measured by the NAIC complaint index. Their website offers limited information and resources, making it difficult for prospective customers to find details about their policies and coverage options. The lack of transparency may contribute to dissatisfaction among customers.

While Kemper's financial strength and commitment to customer service are positive aspects, the high volume of complaints and limited online resources may detract from overall customer satisfaction. It is advisable for prospective customers to research customer reviews and consult insurance professionals for a comprehensive understanding of Kemper's customer service and satisfaction.

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