Shopping for term life insurance can seem intimidating. It’s time-consuming and you’re relying on your own judgment in an area where you may not feel comfortable.
In this review, I’ll explain what Policygenius is, how it can be useful and how it compares to life insurance companies that insure you directly.
Jennifer Fitzgerald, Francois de Lame and Policygenius have raised $268 million as of May 2022, including $125 million in March 2022 alone. That makes it the most well-funded direct-to-consumer insurance startup ever.
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Policygenius partners with insurance companies but doesn’t underwrite policies. It is to the insurance industry as Expedia is to the travel industry.
It also employs a team of independent, licensed to help you figure out which life insurance option is right for you — or whether you need it at all.
Though the agents don’t draw commissions, the company does earn commissions from insurance companies if you buy a policy through its website or app. But federal regulations ensure you won’t pay extra if you buy life insurance through Policygenius rather than straight from the carrier.
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Unless you choose Policygenius’ relatively new accelerated underwriting product, the purchasing process will take days or weeks. The company says that’s natural when you’re making a decades-long financial decision that could cost tens of thousands of dollars. But there are much faster options in the digital marketplace.
I tried out the Policygenius website and app, and I talked directly with company representatives. I came away with the impression that Policygenius arrived at everything within its ecosystem through careful consideration.
Before I finished my research for this Policygenius review, I expected to find more detractors or at least to uncover more significant downsides.
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Policygenius itself doesn’t have an A.M. Best rating since it doesn’t actually issue insurance policies. When I entered my personal information into the quote tool, it showed me prices from the following companies (A.M. Best rating in parentheses):
None of the companies that it quoted had A++ A.M. Best ratings, which says is a requirement if you’re going to buy a policy with a term of more than 20 years.
If you isolate price, it’s hard to beat what Policygenius offers. That’s despite the company’s tendency to work with prominent brands. For example, a 35-year-old Florida female in excellent health wanting a 20-year term policy with $500, 000 coverage would pay as little as $18 per month buying through Policygenius.
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Although it wasn’t pushy or prominent, Policygenius also showed me a whole life product quote. thinks whole life insurance is a bad idea for almost everyone.
My Policygenius review focused on the company’s traditional, slower application process. But Policygenius has developed a relatively new product called SimplySelect, which it offers in collaboration with insurer Brighthouse Financial.
It’s an accelerated underwriting product attached to the equivalent of a telemedicine appointment. So although you can’t get a decision instantly — it typically takes three or four days — you don’t have to submit to an in-person medical exam that involves blood and urine tests.
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That combination tends to make me skeptical of a company’s product quality. But it only took a few minutes to understand that Policygenius has used its resources to keep customers, not just acquire them, by offering a variety of products, well-known brands and different levels of touchpoints based on customer research.
Using Policygenius doesn’t bypass ’s primary criterion for selecting a term life insurance company. You still need to make sure that the company from which you buy has an A++ A.M. Best rating.
Policygenius also wants you to go through a gatekeeper who advises you over the phone. It will take an average of four to six weeks before you get an actionable offer according to the company website. Whereas, the whole purchasing process can take less than 15 minutes at a company such as Fabric.
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But Policygenius can be a timesaver when it comes to shopping for term life insurance. You can get quotes from 20+ companies just by entering your information once.
Also, if you want a person to help you with your purchase decision, it’s better for it to be someone who won’t make more money by directing you toward a certain decision. Policygenius checks that box.
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A 35-year-old who doesn't smoke could pay between $243 and $288 per month for a $250, 000 whole life policy, depending on their gender and health. That same person might may between $481 and $571 for a whole life policy with a $500, 000 coverage amount.
Whole life insurance is five to 15 times more expensive than a comparable term policy — it’s more expensive because it’s a permanent policy that doesn’t expire, while term policies last for a set number of years. Whole life policies also come with a cash value account that you can access while you’re alive, which is another reason why they’re more expensive.
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Methodology: Rates are calculated for male and female non-smokers obtaining a $500, 000 whole life insurance policy, a $500, 000, 20-year term policy, and a $500, 000 30-year term policy based on 10 different carriers offered through the marketplace. Individual rates will vary as specific circumstances will affect each customer's rate. Rate illustration valid as of 05/01/2023.
Much like other types of life insurance, your age, health, and gender will affect your whole life insurance rates. The type of whole life insurance you purchase will also impact the cost of your policy.
Whole life insurance rates are commonly paid on a monthly or annual basis. Most insurance companies will set up an automatic electronic transfer from your preferred bank account in order to pay for the policy.
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Many whole life insurance policies will require you to pay premiums for the rest of your life, or up until age 100. Some policies offer the option to make higher monthly or annual payments and then stop paying when you reach age 65.
Other less common whole life payment options include 10-pay and 20-pay, plans which arrange payments so your policy will be fully paid over the course of 10 or 20 years.
After the payment period, you’ll no longer have to pay premiums and you’ll still have lifetime coverage. However, the premiums on these policies are more expensive than traditional whole life policies, which makes this option less practical for many people.
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Methodology: Rates are calculated for male and female non-smokers in a Preferred Plus health classification obtaining a $250, 000, $500, 000, or $1, 000, 000 whole life insurance policy fully paid up at age 100 offered through MassMutual. Individual rates will vary as specific circumstances will affect each customer’s rate. Rate illustration valid as of 05/01/2023.
Methodology: Rates are calculated for male and female non-smokers in a Preferred Plus health classification obtaining a $250, 000, $500, 000, or $1 million whole life policy paid up in 20 years, offered through MassMutual. Individual rates will vary as specific circumstances will affect each customer’s rate. Rate illustration valid as of 05/01/2023.
Methodology: Rates are calculated for male and female non-smokers in a Preferred Plus health classification obtaining a $250, 000, $500, 000, or $1 million whole life policy paid up in 10 years, offered through MassMutual. Individual rates will vary as specific circumstances will affect each customer’s rate. Rate illustration valid as of 05/01/2023.
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Working with an independent broker can help you find the best insurance policy for you and walk you through the application process. At , our experts are licensed in all 50 states and can provide you with unbiased advice on where to start.
Other less common whole life payment options include 10-pay and 20-pay plans, which arrange payments so your policy will be fully paid over the course of 10 or 20 years.
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Whole life insurance is a type of permanent life insurance that provides coverage for your entire life. You pay a premium, usually monthly or annually, and in exchange, the insurance company will pay a tax-free death benefit to your beneficiaries upon your death.
A portion of your premium goes toward the cost of maintaining the insurance policy and the rest goes toward a cash value account, which gains interest.
How your cash value grows depends on the type
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