Bank of America is one of the largest financial institutions in the United States, offering a wide range of financial products with a retail presence that spans across the country. Many people are surprised to learn that Bank of America used to offer life insurance and accidental death insurance. While you can no longer purchase a new life insurance policy from Bank of America, there are many people who still have Bank of America life insurance policies in place. Here’s what you need to know about Bank of America’s life insurance policies.
About Bank of America
Bank of America, often abbreviated as BofA, is one of the largest banks in the United States. In terms of assets, it’s the second-largest bank in the country, right behind Chase Bank. They are currently based in Charlotte, North Carolina, but have headquarters in a number of major financial centers, including New York City, Dallas, Toronto, London, and Hong Kong. The modern iteration of Bank of America was founded in 1998 when NationsBank acquired BankAmerica. BankAmerica was founded in 1923 in California and was later purchased by the Bank of Italy, who ran its operations for decades. NationsBank was originally founded in Charlotte in 1874 as Commercial National Bank. Bank of America has been highly praised for its banking services and has offered a number of other financial products over the years as well.
What Life Insurance Products Did Bank of America Offer?
Bank of America offered life insurance until 2013. They stopped providing life insurance in an effort to focus on banking, which is their specialty. Bank of America did not offer their own life insurance policies – instead, they offered life insurance through a network of third-party partners. They used insurance marketing agencies to partner with Monumental Life Insurance Company as well as other insurers.
Bank of America offered term life insurance policies, which last for a specific period of time. These policies are typically more affordable than permanent life insurance policies and are designed to cover funeral costs as well as existing debts, such as mortgage payments or student loans.
They also offered accidental death and dismemberment policies. These are not technically a form of life insurance. They will only pay out if the death is as a result of an accident, and have very strict rules about which situations qualify. Many of these plans also will provide a payout if you experience a serious injury as the result of an accident. Accidental death and dismemberment insurance is generally not a good investment. It’s statistically very unlikely that you will die as the result of an accident. However, many people purchase it because it’s relatively affordable.
How Can I File Claims on My Bank of America Life Insurance Policy?
If you have an existing Bank of America life insurance policy or an AD&D policy, you can still file claims. However, the process of filing a claim on these policies can be somewhat frustrating. You’ll need to contact Bank of America via phone at (866)-817-2836. Their offices are open Monday through Friday, 9 AM to 6 PM Eastern time. They will then give you the contact information for the insurance company that actually issued the policy. You can then file a claim with them.
Should I Switch My Bank of America Life Insurance Policy?
Depending on your personal situation, you may want to consider switching to a different insurance provider. There are a number of benefits to moving to another insurer, the biggest one being that you’ll likely get better customer service. With an independent insurance provider, you’ll be able to go directly through their team if you have any questions or concerns, instead of being routed through the bank.
Another major advantage of switching to another insurance provider is that you can get a better selection of life insurance products, including riders that you can use to customize your policy. You may also be able to get lower rates, depending on factors like your health and your lifestyle. Before switching to another insurance provider, get quotes from several different options, and compare them to your current rates. If you can find lower rates elsewhere, it’s likely not going to be worth it to stay with Bank of America. However, if your Bank of America policy has lower rates than other companies out there, then it might make more sense to stay with them regardless of any issues with customer service.
Should I Buy Life Insurance Through Another Bank?
It’s very common for banks to partner with insurance marketing agencies to offer life insurance policies to their customers. However, it isn’t always the best place to get insurance. This is because your bank isn’t the one actually providing the insurance policy. They’re just routing your information to the company that sells the insurance as a way to make money. Because of this, their policy options are usually very limited, and it can be difficult to get in touch with their customer service if you need help.
What Should I Look for in a New Life Insurance Policy?
There are so many things to consider when switching to a new life insurance policy. Since switching policies can be a hassle, it’s important to make sure that your new policy provides truly excellent value for money. Here are some key questions to consider when shopping for another life insurance provider.
- What kind of policy do I want? There are many different types of life insurance policies, and a good insurance company will have a wide range of options to choose from. Term life insurance provides the best value for most people – it’s affordable and can provide good long-term coverage. However, some people prefer a permanent life insurance policy with a cash value component. Older adults who may not qualify for either of these policies might be interested in a final expense policy. Many companies also offer riders that you can use to customize your policy.
- What is the application process like? Some insurance companies have a very in-depth application process that includes a medical exam and interview. Others only require you to answer a set of basic questions. Find out what the insurer’s application process is like and make sure you are comfortable with it.
- Does the company have good customer service? Dealing with your life insurance company shouldn’t be a hassle. Ideally, you should be able to easily reach them by phone or email. Many life insurance companies also allow you to pay your bill and file claims online, making things even more efficient.
- Is the insurer financially trustworthy? You’ll need to be confident that your insurer can pay out claims regardless of the current financial climate. A good way to check this is by looking at their AM Best rating.
If you have a Bank of America insurance policy and are considering switching to a different provider, make sure to get quotes from several different companies. You also may want to consider talking to an independent insurance agent.