Trustage Life Insurance: Is It Worth Your Trust?

TruStage offers a range of life insurance options, including term, whole, and guaranteed acceptance life insurance. Their policies are underwritten by CMFG Life Insurance Co., a subsidiary of CUNA Mutual, which has an excellent ability to pay claims according to credit rating agency AM Best. TruStage's life insurance products offer the convenience of an online application without a medical exam, but this comes at a higher price compared to other life insurance companies. Their maximum coverage amounts are also relatively low, with term life insurance policies capped at $300,000. While TruStage has received thousands of positive reviews, they have a higher-than-average complaint ratio with the National Association of Insurance Commissioners (NAIC). Overall, TruStage may be a good option for those who value the convenience of applying for life insurance online and are willing to pay a higher price for lower coverage amounts.

TruStage's whole life insurance policy

The whole life insurance policy is available to people aged between 18 and 85 and offers $2,000 to $100,000 of coverage. Premiums remain the same for the duration of the policy, and the policy builds cash value over time, which you can borrow against. However, you cannot customise the coverage with life insurance riders.

One of the benefits of TruStage's whole life insurance policy is that it is offered in partnership with CMFG Life Insurance Company, which has an A rating from credit rating agency AM Best for financial stability. This means the company has an "excellent" ability to pay claims.

However, there are some drawbacks to the policy. Firstly, the maximum coverage amount of $100,000 is relatively low compared to other providers. Additionally, TruStage has received a higher-than-average number of complaints, according to a NerdWallet analysis of data from the National Association of Insurance Commissioners. The company also offers limited rider options.

Overall, TruStage's whole life insurance policy may be a good option for those looking for straightforward, permanent coverage without the need for a medical exam. However, the low coverage cap and limited rider options may be a drawback for some.

TruStage's term life insurance policy

TruStage Term Life Insurance Policy

TruStage offers a term life insurance policy that is essentially five-year term life, renewable for a higher rate at the end of each five-year period. The term life policy amounts range from $10,000 to $300,000 and are generally based on the policyholder's age and gender. The maximum age for buying a TruStage term life policy is 69, and it can be renewed up to the age of 80.

TruStage's term life insurance is a simplified issue policy, which means there is no medical exam, but information about the policyholder's health and other factors will be gathered from various data sources and could result in a denial. The policyholder's premium will increase every five years as they enter a new age band.

Compared to the best term life insurance companies, TruStage's maximum coverage amount of $300,000 is relatively low. The cost of TruStage life insurance is also substantially more expensive than top competitors, so it is recommended to shop around for other life insurance quotes before buying a TruStage policy.

One of the benefits of TruStage's term life insurance is that it offers a 30-day cancellation policy. If the policyholder is dissatisfied with the policy for any reason, they can cancel within the first 30 days for a full refund.

Pros and Cons of TruStage Term Life Insurance

Pros

• No medical exam required
• Online application and quotes available
• Instant decision and same-day coverage in some cases
• 30-day money-back guarantee

Cons

• High prices compared to competitors
• Maximum coverage amounts are relatively low
• Limited rider options
• Low customer satisfaction scores

TruStage's guaranteed acceptance whole life insurance policy

The policy includes a "graded death benefit", which means that if the policyholder dies of natural causes within the first two years of taking out the policy, the beneficiaries will be reimbursed for the premiums paid, plus 10%. After this two-year period, the full death benefit will be paid out.

While this policy is convenient and easily accessible, it is important to note that the premiums are higher than those of other life insurance companies offering similar policies. Additionally, TruStage has received a higher-than-average number of complaints, and there are limited rider options and low maximum coverage amounts.

About TruStage

TruStage is the consumer-facing brand of CMFG Life Insurance Company, which is owned by Cuna Mutual Group. TruStage partners with over 3,200 credit unions across the US to offer a range of life insurance policies, including term life, whole life, and guaranteed issue life insurance. Their policies are underwritten by CMFG Life Insurance Co., which has an "A" rating for financial stability from AM Best.

Applying for a Policy

You can apply for a TruStage life insurance policy online or over the phone. The application process involves answering questions about your medical history, tobacco use, driving record, and criminal record. You will also need to provide personal and payment information. TruStage's website is straightforward and easy to navigate, with specific information about different types of life insurance.

Customer Satisfaction

TruStage has received mixed reviews from customers. While some praise the company for its polite customer service and quick payouts, others have reported communication mix-ups and a lack of understanding of their policy options. TruStage has also drawn a higher-than-expected number of complaints to state regulators, according to a NerdWallet analysis.

TruStage's no-exam life insurance

TruStage offers no-exam life insurance with a simple application process. You can receive a quote and apply for coverage from your smartphone for an instant decision. Your policy becomes active 30 days after approval, as soon as your first premium is received. You can even get a full refund within 30 days if you're not completely satisfied.

While TruStage's no-exam life insurance offers convenience and a simple application process, there are some drawbacks. TruStage's maximum coverage amounts tend to be low, and their prices are higher compared to other life insurance companies. Additionally, TruStage has received a higher-than-average number of complaints from customers.

TruStage's limited riders and low coverage caps

TruStage's life insurance policies have limited riders and low coverage caps. The company's term life insurance policy is essentially five-year term life, renewable for a higher rate at the end of each five-year period. The maximum coverage amount is $300,000, which is relatively low compared to the best term life insurance companies, which can provide coverage amounts into the millions.

TruStage's whole life insurance policy is also available up to a maximum coverage of $100,000. While the rate will never increase and the death benefit is guaranteed, there is a 30-day waiting period after purchase before coverage begins.

The company's guaranteed acceptance whole life insurance policy is available to those aged 45 to 80 and offers coverage of $2,000 to $25,000. However, if the policyholder dies within the first two years of taking out the policy, their beneficiaries will only be reimbursed for the premiums paid, plus 10%.

While TruStage's life insurance policies may be appealing due to the lack of a medical exam requirement, the low coverage caps and limited riders are significant drawbacks. The company also receives a high volume of consumer complaints, which is worth considering when deciding on a life insurance provider.

Frequently asked questions