Erie Life Insurance Review: For Those Who Think Ahead

This life insurer is a good fit for: Households preparing for the future.

• Average annual costs for 35-year-old non-smoker: Male: $189 and Female: $178
• Whole life policy limits: $10,000 - $10 million
• Riders/Add-ons: Guaranteed Insurability (through age 40), Child Rider, Waiver of Premium, Accelerated Death Benefit (ADB) for terminal illness, Long-Term Care Rider
• Eligibility: Whole life policies are sold to anyone from 15 days to age 85. Policyholders must be under the age of 70 to take advantage of Erie's policy conversion privilege.
• Discounts available: Multi-policy
• Other insurances offered: Auto, motorcycle, RV, boat, classic car, ATV, snowmobile, golf cart, homeowners, renters, condo, mobile home, business

Top perks

Customer satisfaction

Erie life insurance is sold through its subsidiary, Erie Family Life Insurance Company. As a whole, Erie came in second place for customer satisfaction in the 2022 J.D. Power U.S. Insurance Shopping Study. A high level of satisfaction among current Erie policyholders bodes well for consumers looking for a top life insurance company that's receptive to their concerns.

No-exam policies

Policy seekers who would prefer to purchase insurance without the hassle of a medical exam have that option with Erie -- as long as they're under the age of 55.

Financially secure

With a financial strength rating of "A" from A.M. Best, Erie Life Insurance is financially secure.

Liberal policy conversion

Some insurers provide a small window of time during which policyholders have the ability to convert a term policy into a permanent life policy. Erie gives customers up to age 70 to make the change.

What could be improved

Available in only 12 states

Given that Erie has been around since 1967, it's a bit of a surprise that it's not available in more states. While that's not a problem for life insurance policyholders, it could present a problem for those who bundle coverage by adding a homeowners or auto policy. Once they move to a state not covered by Erie Insurance, they'll have to let those homeowners and auto policies go, losing their bundling discount.

Limited public information

When searching for insurance of any kind, it's helpful to be able to narrow down the companies you might be interested in by checking out their website. The Erie Life Insurance website includes only the most basic information. Unless a policy seeker is interested in speaking with an agent, it's difficult to learn much about rates or policy details.

No online quotes

Most life insurance companies allow potential policyholders to enter a few facts and receive an online quote. While it may not be the exact amount they'll have to pay, it will be close enough to give them an idea of how that company stacks up to its competitors. Erie does not provide that.

Erie Life Insurance prices are very much in line with national averages. For example, according to National Association of Insurance Commissioners (NAIC) data, a non-smoking 35-year-old male will pay around $189 annually for a $100,000 policy. A non-smoking 35-year-old female can expect to pay around $178 annually. These premiums are quite in line with national averages: $190 annually for a male and $170 annually for a female.

If you want a life insurer that offers both no-exam policies and alternative eligibility criteria (credit history, driving record, prescription history, and more): Bestow Life Insurance shines where Erie does not. But keep in mind that the maximum available death benefit on a Bestow policy is lower than the maximum death benefit on an Erie permanent policy.

And if you're looking for the company with the highest customer satisfaction ratings in the U.S.: State Farm may be a better choice. However, Erie Life Insurance offers more opportunities for policy conversion than State Farm.

Term life

Term life policies are available in 10, 15, 20, or 30-year terms. As the name implies, buying a term policy means it will be in effect for a specific length of time. Once that time expires, so does the policy. However, if the policyholder dies within that window of time, their beneficiaries will receive policy death benefits.

If you want to lock into a premium that never goes up, be sure to ask for a "level term" policy. Most insurers only offer level term policies, but Erie gives customers an option.

Whole life

A whole life policy provides you with insurance coverage for your entire life as long as the premiums remain up to date. Payments are guaranteed to never change, regardless of your health, and the policy builds cash value that can be borrowed. Keep in mind, whole life coverage is much more expensive than term life.

Universal life

Universal life insurance represents another type of permanent coverage. Like whole life, you're covered your entire life as long as the premiums are paid. And like whole life, a universal life policy builds cash value. When you die, the policy will pay death benefits to your beneficiaries. Universal life policies can be confusing, so be sure you fully understand the myriad of details before signing up.

ERIExpress life

ERIExpress Life is available to applicants ages 18 to 55 and provides a death benefit of up to $500,000. ERIExpress Life allows a person to apply for a policy with no medical exam and be approved on the same day.

Note: No-exam policies are more expensive than traditional policies because the insurer is taking a bigger risk underwriting the coverage. Unless there's a specific reason you can't have a medical exam, you'll save money by going the traditional route.

Guaranteed insurability option rider

By adding a guaranteed insurability option (GIO) rider today, a policyholder ensures that they can increase their death benefit later in life, no matter what's going on with their health. In addition, the premium on the additional coverage will be based on the risk class they were assigned when they first purchased an Erie policy. Policyholders can only add a GIO rider up to age 46.

Child rider

A child rider allows a policyholder to purchase level term insurance coverage for their children, stepchildren, or adopted children. If more children are added to the family later, they're automatically covered. Parents can choose a death benefit from $1,000 to $10,000. If both parents want to add a child rider to their policies, that's a total of $20,000 in coverage.

It doesn't matter how many children are covered. A single premium covers them all. And when the policy is set to expire, it can be converted to a permanent life policy, worth five times the face value of the policy. As long as the rider is in force, the condition of the child's health is not considered.

Coverage ends when a child turns 25 or the policyholder (typically a parent) turns 65.

Waiver of premium

A waiver of premium rider keeps a policyholder's policy active, even if they become disabled and are unable to pay the premiums.

Accelerated death benefit

An accelerated death benefit (ADB) is available to policyholders with a life expectancy of two years or less. It allows them to use some of their policy's death benefit while still alive. The amount they use is subtracted from the death benefit paid to their beneficiaries following their death.

Long-term care rider

A long-term care accelerated death benefit (LTC) rider can only be added to qualifying universal or whole life policies. If a policyholder becomes unable to complete at least two activities of daily living independently, an acceleration of death benefit kicks in, covering their long-term medical expenses. The amount paid is subtracted from the death benefit that will be paid to their beneficiaries upon their death.

Once an applicant provides Erie with their contact information, an agent will schedule a phone call. The agent will explain the different types of coverage. The agent will either provide the person with an application form or ask a series of questions and fill one out for them.

Depending on the type of coverage chosen, the applicant may be required to undergo a simple medical exam. This exam typically consists of getting weighed and providing a blood and urine sample.

Once Erie has collected enough information, it will provide the applicant with a premium quote. They can then decide whether it's the right policy for them.

Erie is not transparent regarding the maximum age to purchase a term life policy. However, the company sells whole life policies for anyone between the ages of 15 days to 85 years old.

Not only does Erie have an A rating for financial strength, but the company as a whole came in second place for customer satisfaction in J.D. Power's 2022 U.S. Insurance Shopping Study. Those who are looking for a company that prioritizes customer service would do well to check out Erie.

Erie Life Insurance is best suited for people who:

• Are planning for the future
• Want a term policy they can later convert to permanent coverage
• Want to set a child up with guaranteed coverage in adulthood

But you may want to consider Bestow Life Insurance if you want to explore alternative eligibility criteria, or State Farm Life Insurance if you're looking for the insurer with the highest customer satisfaction ratings in the U.S.