Erie Life Insurance Review
- Erie Insurance writes policies in the home, property, life and auto categories. Keep reading to find out about Erie life insurance options for consumers.
Life insurance offers peace of mind to insured individuals whose loved ones rely on their income. In exchange for monthly payments (premiums), an insurance company agrees to pay a lump sum to a designated beneficiary when the insured person passes away. This money can be used to cover household expenses or pay funeral costs. Erie life insurance plans provide this type of coverage.
About Erie Insurance
Founded in 1925, Erie Insurance is now a Fortune 500 company with millions of customers. Its founders, Henry Orth Hirt and O.G. Crawford, met while working at an insurance exchange. Dissatisfied with their compensation and work environment, the two men left the exchange and eventually started an insurance company focused on providing excellent customer service. The founders distinguished their company, Erie Insurance Exchange, from its competitors by allowing customers to call collect when they had problems. Customers were even encouraged to call Henry Orth Hirt if they needed assistance.
Initially, Erie Insurance Exchange only offered coverage in Pennsylvania, but the company quickly expanded to include other states, followed by a name change in 1967. The Erie Family Life Insurance Company sold several types of policies, including auto, inland marine and fire coverage. Since the 1960s, the company has continued to expand. Erie Insurance now covers consumers in 12 states and has approximately six million customers.
What Life Insurance Products Does Erie Insurance Offer?
Erie Insurance offers four types of insurance: life, home and property, auto and leisure, and business. Each category includes multiple insurance products; for example, the auto and leisure category covers automobiles, motorcycles, boats and recreational vehicles. The company has a robust life insurance program, with term life, whole life, universal life and ERIExpress life available to consumers.
Term life is one of the most affordable types of life insurance on the market. A term policy only covers the insured individual for a set amount of time. Erie offers terms of 5, 10, 15, 20 and 30 years. Because the coverage only remains in effect for the agreed-upon term, the monthly premiums are typically lower than the premiums for whole life and universal life policies.
Erie also offers level term insurance, which is a type of term life insurance that has a level premium payment for the life of the policy. This type of plan may be helpful for customers who want the security of knowing that their premiums won't increase at any point during the policy's term.
Unlike term life insurance, whole life covers the insured individual for the rest of their life, provided the premiums are paid as agreed. This type of policy also builds cash value. Erie allows its customers to borrow against the cash value of their whole life policies, which may be helpful when unexpected expenses arise. At Erie, whole life policies can have values of anywhere from $10,000 to $10 million.
Universal life insurance combines the affordability of term life with the cash value of a whole life policy. Erie's universal life policies also come with payment flexibility and the option to change the amount of coverage without having to sign a new contract. Like whole life, universal life allows the insured individual to borrow against the cash value of the policy. Erie also allows its customers to withdraw the cash value of their universal life policies.
ERIExpress life insurance policies are designed to make it easier to obtain life insurance. Although the application contains medical questions, customers aren't required to undergo a medical exam. As a result, an ERIExpress life insurance policy may be approved in as little as one day. These plans have coverage amounts ranging from $10,000 to $500,000.
The Pros and Cons of Erie Insurance
One of the major advantages of Erie Insurance is that the company offers four types of life insurance to suit the varying needs of its customers. Customers who need lower monthly premiums have the option of selecting term coverage while customers who have a little more money to spend can build cash value with a whole life or universal life policy. Another advantage is that ERIExpress has a simpler application process, making it much easier to obtain life insurance coverage.
The most significant disadvantage of Erie Insurance is that coverage is only available in 12 states, so not everyone who needs life insurance will be able to buy it from Erie. Customers may also have to answer medical questions on their applications. Their answers may affect their eligibility for coverage.
Erie Insurance Company Reviews
Reviewers note that the company is still delivering excellent customer service nearly 100 years after it first opened its doors. Customers also appreciate that Erie offers the option to lock in rates on some policies. What customers don't like is that Erie seems to offer fewer online tools than other insurance companies.
Is an Erie Insurance Life Insurance Policy Right for You?
Consumers may benefit from Erie's life insurance products if they live in one of the 12 states served by the company. ERIExpress coverage may also be a good fit for people who are concerned that they would be turned down if they had to undergo a thorough medical exam.