Last Updated: March 2020
Although Bank of America no longer offers life or accidental death insurance, many people still have policies that they purchased through Bank of America.
Below, we’ll show you how life insurance through Bank of America works, the types of policies they used to offer, and how to file a claim. You’ll also learn how to compare your existing policy to others on the market.
- What Does a Bank of America Have to do with Life Insurance?
- How to File a Bank of America Life Insurance or Accidental Death Insurance Claim
- Should You Replace Your Existing Bank of America Life Insurance Policy?
- What is Accidental Death & Dismemberment Insurance?
- Why Your Bank Keeps Sending You Offers for Life Insurance
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
Bank of America no longer offers life insurance or accidental death and dismemberment insurance. However, if you have an existing policy, you can contact the company that issued your policy to file a claim.
What Does a Bank of America Have to do with Life Insurance?
Bank of America used to sell term life insurance and accidental death and dismemberment insurance to customers through other life insurance companies.
Bank of America contracted with a 3rd party direct marketing company, Affinion.
Affinion acted as the customer service branch between Bank of America and Monumental Life Insurance Company (now owned by Transamerica) to sell and assist with accidental death insurance policies.
In 2013 Bank of America stopped offering accidental death and dismemberment policies to its customers.
They cited wanting to increase focus on serving customers through their specialty, banking.
Even though they no longer sell life insurance, many customers still have a previously purchased policy through Bank of America.
If you are looking for a life insurance policy, compare Bank of America alongside other life insurance companies like AICPA Life Insurance.
How to File a Bank of America Life Insurance or Accidental Death Insurance Claim
If you have an existing AD&D or life insurance policy with Bank of America, your policy is still in force.
To make a claim you should call the company that issued the policy, not Bank of America. You can find the name of the company on any billing documents or statements for your policy.
If you can’t find this, then contact Bank of America customer service here.
Should You Replace Your Existing Bank of America Life Insurance Policy?
You can also replace your existing Bank of America policy with a new life insurance policy. Depending on your situation, you may be able to get more coverage or better rates.
If you feel like you are paying too much for life insurance, or just want to see what your other options are, we recommend using our quote tool to compare rates from all the top-rated life insurance companies.
We have also reviewed over 50 life insurance carriers and agencies here to help you compare rates and find the right company for your specific needs. You can also review the best quotes for your specific age here.
Here are some other niche life insurance companies to consider along with Bank of America.
- AICPA Life Insurance
- Aflac Life Insurance
- USAA Life Insurance
- FEGLI Life Insurance
- Costco Life Insurance
What is Accidental Death & Dismemberment Insurance?
An accidental death and dismemberment (AD&D) policy is different from life insurance.
Although it’s frequently lumped into the same category.
Traditional life insurance will pay out regardless of the cause of death.
Accidental death and dismemberment policies only pay if the death is caused by an accident. Something like a car wreck or a bridge collapsing.
Dying by an accident is statistically unlikely. Extremely unlikely. Most people pass away from illnesses, which AD&D does not cover.
Most policies will also pay part of the benefit if you lose your sight, hearing, or two limbs. This is the dismemberment portion. It is also extremely unlikely.
Because of how infrequently people file AD&D claims, the insurance companies can afford to offer exceptionally cheap policies. A $250,000 benefit may only set you back $10 for the month. By itself, accidental death and dismemberment insurance isn’t particularly helpful. It’s more important to get the other bases covered first, life and disability.
Life insurance will pay out to your family regardless of your cause of death. Whether it’s an accident or illness.
A long-term disability policy will cover a disability, whether it is the loss of a limb or if you cannot work because your chemo treatment is making your too ill.
Accidental death and dismemberment is an extra buffer on top of those two pillars.
Companies that Offer Accidental Death Insurance
If you are looking for accidental death and dismemberment, have your life insurance agent shop the market for you.
Many companies with excellent financial ratings offer accidental death and dismemberment life insurance policies, including:
| Company | A.M. Best Rating | Customer Reviews |
|---|---|---|
| Prudential | A+ | 4.3 / 5 |
| Mutual of Omaha | A+ | 4.0 / 5 |
| AIG | A | 4.1 / 5 |
| Transamerica | A | 3.9 / 5 |
Benefits to AD&D Plans Through Your Bank
Before you allow your scam alarm to blast on full volume, this practice is not entirely disadvantageous to the consumer. It is also legal.
If you are already on the market for an accidental death and dismemberment policy, it can provide great rates. Because the direct marketing company can buy in bulk from the insurance company the life insurance underwriting process is minimal, and the rates are typically low.
Why Your Bank Keeps Sending You Offers for Life Insurance
Bank of America is not alone in offering life insurance to its consumers or at least selling customer information to marketing companies.
If you have ever received a letter or a phone call offering life insurance, it’s almost a guarantee it isn’t through your bank.
Companies, like previously mentioned Affinion, offer customer appreciation packages to large financial institutions.
They take care of all the customer service, the marketing costs, and the policies on behalf of the bank. All they need is customer information.
Marketing companies sometimes buy customer information outright. Other times they may split some of the money they make with the bank instead of buying the information.
The direct marketing agency contracts through one or several life insurance companies to get group rates on accidental death and dismemberment insurance.
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How do I request a statement of life insurance cash and face values?
Call your life insurance company and ask for an “inforce illustration”.
my mom just passed away sept 2 2020 from natural cause she was told she was getting life insurance threw ad for a pay out if she was to die of 500.000.00 they charged her 58.95 for several years now i called them upon her death and they told me she was only covered open accidental death and hung up on me i have a beneficiary form from ad insurance my mom signed and it says please make the benefits payable at the time of death of the above named insurure beneficiary says nothing about accidental death how can i fight this please help
Sorry you’re going through this Steven. From the coverage amount and premium you mentioned, it sounds like an accident only policy.
Unfortunately this misunderstanding of what you actually have happens a lot.
I encourage everyone reading this who has a life insurance policy to call us for a policy review. We’ll call your life insurance company together and we’ll ask them the hard questions so you understand exactly what you have. Free service, no strings attached. Call 888-430-7668 during business hours and ask for a policy review.
My dad had a add policy from bank of America. Policy didn’t explain what kind of accident.
My dad passed away on September 9, 2020 his death certificate reads accident. Due to cracked ribs and blunt trauma to lungs. Is this something I can make a claim on?
It depends on how the policy reads. I’d call and get a copy of the policy. AD&D policies specify exactly in what situations the policy will pay out.
Sorry for your loss.