TruStage Life Insurance Review

Life insurance isn’t the most exciting dinner table conversation topic, but it’s one of those things we all need to face as adults sooner or later. If you’ve searched for various types of insurance, you’ve probably seen TruStage, which is a company built around providing insurance through credit unions. But is TruStage a company you should consider? Let’s dig into the details so that you can decide whether this insurer is worthy of your premium dollars.

TruStage Insurance Overview: The Credit Union Connection

Unlike other giant insurance companies, TruStage doesn’t have funny mascots or a jingle about their insurance. Instead, TruStage is in a specific niche for specializing in insurance and working directly with credit unions throughout the country. In fact, TruStage is the consumer brand of CMFG Life Insurance Company, which is part of the CUNA Mutual Group, who has been in the insurance business for nearly 85 years.

So what sets TruStage apart? Their relation to credit unions! TruStage was created by CUNA Mutual Group to provide insurance products specifically to credit union members. This doesn’t mean you need to join a credit union to purchase a policy. It does explain why they aren’t as established as State Farm or Prudential.

TruStage provides simplified issue life insurance options. This means simplified issue life policies have less medical underwriting hurdles to navigate. Because of this, the process of obtaining coverage is faster and easier; however, less underwriting means you will experience some compromises due to their issuance. Most policies are limited to lower amounts of coverage than fully underwritten policies and often don’t have as flexible pricing structure. However, for many consumers looking for simple coverage with low hurdles, they are attractive options.

Products and Services

TruStage offers three main types of life insurance products:

Term Life Insurance

TruStage’s term life insurance has term coverage for a specified number of years (the “term”), usually between 10-30 years, coverage amounts range from $5,000 to $300,000 which is much lower than many competitors’ maximum coverage amounts.

The application process is pretty straightforward – you’ll answer a few health questions, but there is no medical exam. The monthly premiums are level for the entire time you have a term, and if you are under age 60, you may be able to convert your term policy to a whole life policy without having to answer any other health questions, if you find your needs change.

Whole Life Insurance

TruStage has whole life insurance with coverage amounts of $2,000 to $100,000. Whole life policies grow cash value over time that you can borrow if you’d like. The premiums are fixed for life, and coverage never expires (as long as you pay your premiums).

Their whole life options come in two options:

• Simplified Issue Whole Life: Requires answering a few health questions but no medical exam.
• Guaranteed Acceptance Whole Life: Available for those aged 45-80 with no health questions or medical exams. Acceptance is guaranteed, though there’s typically a two-year waiting period before the full death benefit applies for non-accidental deaths.

Final Expense Insurance

TruStage’s final expense insurance is just a smaller whole life policy limited to cover costs associated with the end of one’s life (like funeral expenses and medical bills). The coverage amounts of final expense insurance run between $2,000 and $25,000, there is no expiration date, and premiums remain fixed.

TruStage’s application process is simple and requires no medical exam, making it accessible for seniors and those worried about their health who may not qualify for other forms of life insurance as easily.

Membership and Benefits

Even though TruStage sells to everyone regardless of credit union membership, the credit union affiliation comes with perks. If you are a member of a credit union, you may receive:

• Special offers or incentives through your credit union
• More personalized service at your local credit union branch
• Convenient payment options through your credit union account with respect to your insurance premiums.

In addition to these tasty perks provided by the credit unions, TruStage has a number of standard benefits when it comes to their policies:

• 30-days money-back guarantee: If you aren’t happy within the first 30-days of policy initiation, you can cancel for a full refund.
• Digital account access: You have the ability to manage your policy, make a payment, as well as update your beneficiaries online.
• Customer service: While not 24/7, TruStage does offer phone support seven days a week, with extended hours.

How the Insurance Process Works?

The TruStage insurance journey typically follows these steps:

Application Process:

• Initial Quote: Start online or by phone to get a preliminary quote based on basic information like your age, location, and desired coverage amount.
• Application: Complete the application by answering health questions. The simplified process means no medical exam for most policies, though they may review your prescription history and medical records with your permission.
• Decision: For most TruStage products, you’ll receive an approval decision quickly – often immediately or within a few days.
• Policy Issuance: Once approved and after you’ve made your first payment, TruStage will issue your policy documents. These can typically be accessed electronically or sent by mail.

Making Changes to Your Policy

TruStage allows policy updates like beneficiary changes and address updates either online through their customer portal or by contacting customer service. For more substantial changes like coverage increases, you may need to apply for a new policy.

Claims Process

Filing a claim with TruStage follows a fairly standard process:

• Notification: The beneficiary notifies TruStage of the policyholder’s passing, typically by phone.
• Documentation: TruStage requires a death certificate and completed claim forms.
• Review: The company reviews the claim and documentation.
• Payment: Upon approval, TruStage issues the death benefit to the named beneficiary, typically within a few weeks.

Most customer feedback suggests that TruStage’s claims process is relatively straightforward, though, as with any insurer, having all proper documentation ready speeds things along considerably.

Financial Stability: Ratings and BBB Insights

When buying life insurance, you’re essentially purchasing a promise that could be decades from fulfillment – so the financial stability of your insurer matters tremendously.

TruStage life insurance policies are issued by CMFG Life Insurance Company, which has earned solid financial strength ratings:

• A (Excellent) from A. M. Best
• A2 (Good) from Moody’s

These ratings indicate strong financial stability and a high likelihood that the company will be able to pay claims even in adverse economic conditions.

When it comes to customer satisfaction, TruStage’s Better Business Bureau profile is somewhat ambiguous. They have an A+ rating from the BBB itself, which highlights how the company works with the bureau itself on complaints, but reviews from customers on the BBB site average just about 1.5 out of 5 stars, which is fairly typical of insurance companies (people rarely go online to say good things about their insurer but love to go online to share horrible experiences).

Common complaints revolve around three areas:

• Difficulty canceling policies
• Premium increases on some products
• Communication challenges during the claims process

It’s worth noting that TruStage does respond to most BBB complaints, showing some commitment to addressing customer concerns.

What the Internet Is Saying: Quora and Reddit Insights?

Diving into online forums provides a more unfiltered look at customer experiences with TruStage. Here’s what real people are saying:

From Quora

Conversations about TruStage on Quora mostly reference its credit union affiliation. Many people on Quora appreciate the convenience of insuring through a trusted credit union, but comments indicate the policies are likely not the most competitive for everyone.

One comment said: “I got TruStage from my credit union. It was easy, but then I shopped around and realized I got twice the coverage for the same price elsewhere. However, their customer service has been great.”

Another said: “They’re good for basic coverage without medical exams. If you’re healthy and don’t mind going through underwriting, you will probably get better rates elsewhere.”

From Reddit

Reddit discussions are often a bit harsher, and insurance insiders are often commenting. Common themes tend to be:

• TruStage is easy, but it’s usually more expensive than a fully underwritten plan for healthy people.
• Some members are fine with the credit union being part of TruStage, and feel that gives them internet cred
• Several plaintiffs have indicated that TruStage sends high volumes of mail solicitations out if the client is a credit union member

One comment on Reddit that was particularly insightful said this: “TruStage meets a specific niche – simple coverage with a few health questions. It’s good for a person who wants make-their-bed insurance or has a health concern. If you’re seeking the “best price” and you’re very healthy, this isn’t it.”

Conclusion: Is TruStage Right for You?

TruStage does offer some advantages for specific types of insurance needs, especially if you are more concerned with ease and accessibility rather than wringing every dollar out of your premium. They excel in situations where convenience is key – if you want to avoid medical exams, have existing health conditions, or just want to work with your credit union insurance. Their streamlined application and guaranteed acceptance options can make life insurance more accessible for folks who otherwise might struggle or feel excluded by traditional insurance providers.

TruStage is not the right fit for every scenario, however. If you are a healthy individual and looking for a higher level of coverage (e.g. $500,000 or more) or you are looking for the lowest-cost option, other insurers (with fully underwritten policies) may provide more value. Like anything in finance, choosing the right life insurance is about matching your needs to a provider’s particular strengths. TruStage might not meet every need, but it surely is a good option for people looking for straightforward and easy coverage (especially in the credit union space).