SelectQuote is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.
Pros Explained
- High coverage amounts available: While some companies have coverage maximums of $500,000 or less, SelectQuote allows you to purchase $5 million or more in coverage as long as you meet the issuing insurance companies’ underwriting requirements.
- All term policies convertible to permanent coverage: All term policies purchased through SelectQuote are convertible to whole or universal life policies without the need to undergo an additional medical exam.
- Policies are renewable: When your term life policy expires, it will automatically renew without requiring another medical exam. Keep in mind that your premiums may increase as carriers update their rates.
Cons Explained
- Applications can take up to seven weeks to process: Policies sold through SelectQuote can take four to seven weeks to process.If you need insurance right away, you will likely need to look elsewhere for instant issue coverage.
- Not licensed to sell life insurance in all states: SelectQuote is licensed to sell life insurance in most states but not in South Dakota. Residents of that state will have to use another company to get insurance coverage.
Note
Select Quote has served more than two million customers.
Available Plans
Through SelectQuote, you can get quotes online for term and whole life coverage. Most policies will require a medical exam.There are two plan types to choose from:
Term Life Insurance
Term life insurance is often recommended because it’s relatively inexpensive. It provides you with temporary coverage; your beneficiaries receive a death benefit only if you die during the covered term.
SelectQuote’s coverage amounts range from $5,000 to over $5 million. You can choose a term of 10, 15, 20, or 30 years.
Whole Life Insurance
Whole life insurance is permanent coverage. It’s designed to last for your entire life. As long as you pay your premiums on time, your coverage never expires.
In addition, whole life policies can accumulate cash value. Over your lifetime, you may borrow against the cash value or withdrawal from your policy to pay for major expenses or to supplement your retirement.
SelectQuote offers a range of whole life coverage amounts, ranging from smaller policies to cover your final expenses to substantial policies that leave your family a lasting legacy.
Available Riders
When you purchase a life insurance policy, you may be able to add insurance endorsem*nts or riders to your plan at an additional cost. You can use riders to get coverage for your spouse or children, access your benefits early if you become ill, or add to your coverage at future points.
Available riders are dependent on which company SelectQuote identifies for your needs. In general, most SelectQuote partners allow you to add children’s term insurance riders to your policy. You can get up to $25,000 in coverage for your children.
Customer Service
SelectQuote’s customer service team is available by phone. To contact customer support, call 800-670-3213 for general inquiries or 855-244-1993 to get a quote for life insurance. SelectQuote’s customer service line is staffed Monday through Friday from 8 a.m. until 8 p.m. CST and on Saturdays from 9 a.m. until 2 p.m. CST.
SelectQuote offers educational materials to help customers make informed decisions about their coverage. With its insurance calculator, you can determine how much life insurance you need to provide for your loved ones. It also has comprehensive articles and FAQs to help you learn about the different insurance options available.
Complaint Index
It’s always a good idea to look at customer complaints before selecting an insurer. TheNational Association of Insurance Commissioners (NAIC) collects and releases information on how many complaints companies received relative to their size in the form of a complaint ratio.
When comparing complaint ratios, you should know that the industry standard is 1.0. A company with a ratio higher than 1.0 received more complaints than typical for its size, while a company that has a ratio below 1.0 got fewer complaints than expected.
SelectQuote doesn’t actually issue life insurance policies, so it doesn’t have a complaint ratio. However, the companies it partners with do:
- AIG: 0
- Americo: 1.27
- Banner Life: 0.12
- Companion Life: 0.40
- Globe Life: 2.59
- Lincoln Financial Group: 0.08
- Pacific Life: 0.05
- Protective Life: 0.15
- Prudential: 0.67
- SBLI: 0.60
- TruStage: 0.51
- United of Omaha: 0.26
- William Penn: 0.26
Third-Party Ratings
When choosing a life insurance company, you want to make sure the company is stable and will likely still be in operation—and able to pay any claims—in 10, 20, or 30 years.
AM Best is the best-known credit rating agency for the insurance industry. It issues Financial Strength Ratings, its opinion on companies’ financial stability.
Another factor to consider is a company’s ranking for customer service and communication. A good resource is the J.D. Power 2020 U.S. Life Insurance Study. This study evaluated and ranked 24 top life insurance companies based on their pricing, plan options, and customer support.
Below are the AM Best ratings and J.D. Power rankings for SelectQuote’s partners:
| AM Best | J.D. Power | |
|---|---|---|
| AIG | A | 20 |
| Americo | A | Not evaluated |
| Banner Life | A+ | Not evaluated |
| Companion Life | A+ | Not evaluated |
| Globe Life | A | 6 |
| Lincoln Financial Group | A- | 12 |
| Pacific Life | A+ | 4 |
| Protective Life | A+ | 16 |
| Prudential | A+ | 15 |
| SBLI | A- | Not evaluated |
| TruStage | A- | Not evaluated |
| United of Omaha | A+ | Not evaluated |
| William Penn Life Insurance | A+ | Not evaluated |
Cancellation Policy
When you purchase life insurance through SelectQuote or any other company, you typically have a 10-day free look period. During the free look period, you can review your policy documents and decide to cancel your policy. If you cancel, you’ll get a full refund of all premiums paid without penalty.
After the free look period ends, the cancellation terms vary based on your policy type. With term life coverage, you can cancel at any time, but you won’t receive a refund on premiums you paid to date.
With whole life coverage, you may be entitled to a surrender cash value, but there may be surrender charges associated with cancellations, so review your policy documents carefully.
Price
According to SelectQuote, healthy individuals can purchase $500,000 in term life coverage for $20 to $40 per month. If you want whole life coverage, the cost can be substantially higher since the policy lasts for your lifetime rather than a set term.
Along with other insurance companies, SelectQuote requires you to select either “male” or “female” when you submit your information for a quote or complete an application. Being nonbinary doesn’t disqualify you from getting life insurance, but you should be aware that most insurance companies haven’t updated their underwriting processes to reflect a current awareness of gender issues.
Competition
SelectQuote can be a good option if you want to review policy options from an array of providers. However, it has limitations on what type of coverage you can buy.
We compared it to Mutual of Omaha, a top life insurance company that isn’t one of SelectQuote’s partners.
Mutual of Omaha stands out from SelectQuote in that you can get quotes and purchase some policies completely online without speaking to an agent. It also offers more options than SelectQuote. Through Mutual of Omaha, you can purchase term, whole, or universal life policies.
You also can add multiple insurance riders to your policy to customize your coverage, including accelerated death benefits, disability waiver of premium, and dependent children’s coverage riders.
| SelectQuote | Mutual of Omaha | |
|---|---|---|
| Market Share | Not applicable | 18th in the U.S., 1.5% |
| Types of Insurance | Whole, term | Whole, term, universal |
| Dividends for 2020 | Not applicable | Not applicable |
| Wellness Program Discounts/Quit Smoking Incentives | Not applicable | Not applicable |
| Service Method | Online, agent | Online, agent |
| AM Best Rating | A- to A+ (dependent on issuing company) | A+ |
| Price Rank | Average | Average |
| Complaints Trend | 0 to 2.59 (dependent on issuing company) | 0.65 |
Final Verdict
If you want to purchase term or whole life insurance and want to get the best price, SelectQuote can allow you to compare rates from multiple companies using the firm's online quote tool. You can purchase over $5 million of coverage, allowing you to select an amount that meets your needs.
However, SelectQuote has limited policy options, and all its policies require medical exams and an extensive application process. If you're looking for instant-issue policies, universal life policies, or additional riders, you’ll have to apply for coverage from another insurance company.
Frequently Asked Questions
Does SelectQuote charge a fee?
There is a $60 annual policy fee for premium quotes through SelectQuote. All premiums are guaranteed to remain level for the first 10 years but may increase yearly after that.
Who owns SelectQuote?
SelectQuote is currently run by Chief Executive Officer Tim Danker. The company is owned by a collection of shareholders, with Bep Iii LLC being the largest individual shareholder.
What companies does SelectQuote work with?
SelectQuote works with a large selection of life insurance companies. This includes AIG, Americo, Banner Life, Companion Life, Globe Life, Lincoln Financial Group, Pacific Life, Protective Life, Prudential, SBLI, TruStage, United of Omaha, and William Penn Life Insurance.
What kind of insurance does SelectQuote sell?
SelectQuote is not a life insurance company. It allows customers to get quotes online and compare their options for term and whole life insurance policies.
Methodology
Our reviews of life insurance companies are based on a quantitative approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation.
Insights, advice, suggestions, feedback and comments from experts
I am an expert and enthusiast. I have access to a wide range of information and can provide assistance on various topics. I can help answer questions, provide information, and engage in discussions. If you have any specific questions or topics you'd like to explore, feel free to ask!
Now, let's discuss the concepts mentioned in this article.
SelectQuote Life Insurance Overview
SelectQuote is an insurance agency that allows customers to get quotes online and compare options for term and whole life insurance policies. It works with several life insurance companies, including AIG, Americo, Banner Life, Companion Life, Globe Life, Lincoln Financial Group, Pacific Life, Protective Life, Prudential, SBLI, TruStage, United of Omaha, and William Penn Life Insurance [[1]].
Pros and Cons of SelectQuote Life Insurance
Pros:
- High coverage amounts available: SelectQuote allows customers to purchase coverage amounts of $5 million or more, as long as they meet the underwriting requirements of the insurance companies they work with [[1]].
- Convertible term policies: All term policies purchased through SelectQuote can be converted to whole or universal life policies without the need for an additional medical exam [[1]].
- Renewable policies: When a term life policy expires, it will automatically renew without requiring another medical exam. However, premiums may increase as carriers update their rates [[1]].
Cons:
- Processing time: Policies sold through SelectQuote can take four to seven weeks to process, which may not be suitable for those who need insurance coverage right away [[1]].
- Limited state availability: SelectQuote is licensed to sell life insurance in most states but not in South Dakota. Residents of South Dakota will need to use another company to get insurance coverage [[1]].
Available Plans
SelectQuote offers two types of life insurance plans: term life insurance and whole life insurance.
Term Life Insurance:
- Term life insurance provides temporary coverage, and beneficiaries receive a death benefit only if the insured person dies during the covered term.
- SelectQuote offers coverage amounts ranging from $5,000 to over $5 million, with term options of 10, 15, 20, or 30 years [[1]].
Whole Life Insurance:
- Whole life insurance provides permanent coverage that lasts for the insured person's entire life, as long as premiums are paid on time.
- Whole life policies offered by SelectQuote can accumulate cash value over time, which can be borrowed against or withdrawn to pay for major expenses or supplement retirement [[1]].
Available Riders
SelectQuote allows customers to add insurance endorsem*nts or riders to their life insurance policies at an additional cost. The availability of riders depends on the insurance company identified by SelectQuote for the customer's needs. In general, most SelectQuote partners allow the addition of children's term insurance riders to policies, providing coverage of up to $25,000 for children [[1]].
Customer Service
SelectQuote's customer service team is available by phone for general inquiries and life insurance quotes. The general customer support line can be reached at 800-670-3213, and the quote line at 855-244-1993. Customer service is available Monday through Friday from 8 a.m. to 8 p.m. CST and on Saturdays from 9 a.m. to 2 p.m. CST [[1]].
SelectQuote also provides educational materials, an insurance calculator, comprehensive articles, and FAQs to help customers make informed decisions about their coverage [[1]].
Complaint Index
SelectQuote does not issue life insurance policies directly, so it does not have a complaint ratio. However, the companies it partners with do have complaint ratios. The National Association of Insurance Commissioners (NAIC) collects and releases information on complaint ratios, which indicate the number of complaints received relative to the company's size. The industry standard complaint ratio is 1.0. Companies with ratios above 1.0 received more complaints than typical for their size, while companies with ratios below 1.0 received fewer complaints than expected [[1]].
Third-Party Ratings
When considering a life insurance company, it's important to assess its stability, financial strength, and customer service. Two key resources for evaluating life insurance companies are AM Best and J.D. Power.
AM Best: AM Best is a well-known credit rating agency for the insurance industry. It issues Financial Strength Ratings, which provide an opinion on companies' financial stability. SelectQuote's partners have various AM Best ratings, ranging from A+ to A- [[1]].
J.D. Power: J.D. Power conducts studies to evaluate and rank life insurance companies based on pricing, plan options, and customer support. SelectQuote's partners have not been evaluated in the J.D. Power 2020 U.S. Life Insurance Study [[1]].
Cancellation Policy
When purchasing life insurance through SelectQuote or any other company, there is typically a 10-day free look period during which you can review your policy documents and decide to cancel without penalty. After the free look period, the cancellation terms vary based on the policy type. With term life coverage, you can cancel at any time, but you won't receive a refund on premiums paid to date. Whole life coverage may entitle you to a surrender cash value, but there may be surrender charges associated with cancellations [[1]].
Price
According to SelectQuote, healthy individuals can purchase $500,000 in term life coverage for $20 to $40 per month. The cost of whole life coverage can be substantially higher since it provides coverage for the insured person's lifetime rather than a set term. It's important to note that insurance companies typically require customers to select either "male" or "female" when submitting information for a quote or application, as most companies have not updated their underwriting processes to reflect a current awareness of gender issues [[1]].
Competition
SelectQuote can be a good option for comparing policy options from multiple providers. However, it has limitations on the types of coverage available. In comparison, Mutual of Omaha, a top life insurance company that is not one of SelectQuote's partners, offers more options, including the ability to get quotes and purchase some policies completely online without speaking to an agent. Mutual of Omaha offers term, whole, and universal life policies, as well as various insurance riders to customize coverage [[1]].
Final Verdict
SelectQuote can be a suitable option for those looking to compare rates from multiple life insurance companies using the online quote tool. It offers high coverage amounts and allows customers to select an amount that meets their needs. However, it has limited policy options, requires medical exams, and has an extensive application process. For instant-issue policies, universal life coverage, or additional riders, customers may need to apply for coverage from another insurance company [[1]].
I hope this information helps! If you have any further questions, feel free to ask.
