Quick Answer
TruStage term life insurance goes up in price because the increases are built into the policy. The premium is based on five-year age bands, and it rises each time you enter a new band, through age 75, until the coverage ends at age 80. The policy can look inexpensive at first but become much more expensive as you get older. These increases apply to the term policy, not to TruStage’s whole life plans, whose premiums are fixed for life.
Here’s What This Means for You:
- TruStage term life prices increase every 5 years automatically
- Your monthly payment keeps rising as you get older
- It starts cheap but can become expensive later on
- Many people don’t realize it’s not level term coverage
- Rising costs can make the policy hard to keep long-term
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WARNING!!! Let’s read the FINE PRINT print for a TruStage term life insurance policy:
“TruStage® Term Life Insurance to Age 80 is made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company. This is a term policy that increases when entering each five-year band: 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75. Renewable to age 80.”
TruStage term life policy offers are good until you turn 70. You start with a lower monthly premium, and then every five years, TruStage has a mandatory price increase. When you hit a new 5-year age band, the premium goes up in price.
You pay more as you get older until you get to the point where it’s too expensive to pay the premium. And when you reach age 80, the coverage ends.
This article will examine the TruStage price increase to see if their term life insurance is best for you. You can also read our other reviews on Globe Life, AARP, Lumico, and Colonial Penn by clicking the link.
About TruStage life insurance
TruStage Life insurance is a subsidiary of CMFG (CUNA Mutual Financial Group) Life Insurance. All their life insurance products are issued by CMFG, which provides insurance and financial products to credit union members around the U.S. However, they expanded their offerings to include anyone interested in a life insurance policy.
Today, credit union membership is not required.
TruStage was formerly known as CUNA (Credit Union National Association) Mutual Company which was founded in 1935 when credit unions were formed to help Americans with their finances.
In February 2012, the company changed its name to CMFG. They are headquartered in Madison, Wisconsin, with additional branch offices in Fort Worth, Texas, and Waverly, Iowa.
TruStage life insurance offers both term and whole life insurance policies and health, AD&D, and auto insurance. Life insurance and AD&D are both underwritten by CMFG. Their auto and home insurance is provided by Liberty Mutual.
The company also partners with GoHealth to provide health insurance. They also provide financial products such as bonds, commercial loans, mortgage loans, and asset protection services.
TruStage life insurance financial ratings
The company’s financial ratings are important to assess the company’s ability to pay claims to beneficiaries. But, it does not affect the quality of the products they provide to clients. It shows the financial stability of the company.
TruStage Life Insurance has achieved an “A” rating or excellent with A.M. Best, a nationally recognized statistical rating organization for insurance companies in the United States. They offer ratings depending on the company’s ability to meet financial obligations to policyholders.
16 total ratings are ranging from Superior to Suspended. The company received the third-highest rating from A.M. Best.
TruStage life insurance products
TruStage sells term life insurance, simplified issue whole life insurance, and guaranteed acceptance whole life insurance. Only the term policy has the built-in price increases this article is about. According to TruStage, the premiums on its whole life and guaranteed acceptance whole life policies are fixed for life.
If you are looking at the guaranteed acceptance whole life plan for burial coverage, know that it has a two-year limited benefit period: TruStage says a non-accidental death in the first two years pays the premiums paid plus 10%, while an accidental death pays the full coverage amount.
TruStage term life insurance
Term life insurance is the most promoted product of the company (and should not be used for your burial insurance needs). While they offer whole life insurance and other financial products, their marketing focuses more on term life insurance (which IS NOT appropriate for burial or final expense insurance).
Term life insurance is one of the major types of life insurance you can buy from TruStage. The purpose of term life is to protect your family financially when you pass away. It pays a death benefit that can cover the funeral cost, mortgage payments, other monthly bills, and pay for your children’s education.
One of the features of TruStage term life insurance is the ability to obtain coverage without a medical exam. You can also get a lower death benefit amount according to your needs.
The face amount starts from $5,000 going up to $300,000. You can be approved instantly. You don’t have to wait weeks before getting covered. Once approved, you can make the first payment, and you’re fully covered.
Key features of TruStage term life insurance:
- You can qualify for term life insurance without a medical exam.
- Coverage lasts until age 80 instead of a fixed 10-, 20- or 30-year term.
- The premium goes up each time you enter a new five-year age band, through age 75.
- If you die during the term your policy covers, your beneficiaries will receive a cash payout in the face of your policy.
- Your beneficiary will receive the payout tax-free. There is no income tax on a life insurance death benefit.
- TruStage term life is cheaper than whole life plans since it only covers you for a limited time (this applies to all term life insurance policies).
Pros & cons of TruStage term life insurance
PROS:
- No medical exam required only answer a few health questions
- An easy online application process
- Get instant approval
- Available in lower death benefit amounts starting from $5,000.
CONS:
- It is not a good product for burial or final expense insurance due to the factors above.
- Rates increase every five years to age 75
- The policy will expire at age 80 or when the term ends
- The maximum death benefit is only $300,000, Cannot purchase a policy greater than $300,000
- No available policy riders
- Rates appear to be expensive compared to other companies.
Traditional term life – how it works
Term life insurance is simple and affordable and protects for a specific period, typically 10 to 30 years. This type of insurance policy endorsed by Dave Ramsey and other financial gurus. Some insurance companies offer level term life insurance where the premiums remain fixed for the duration of the policy.
Most life insurance companies offer level term life insurance lock-in premiums at your current age. For example, if you purchased a $100,000 20-year term policy in your forties and pay $65.50 monthly, you will pay the same premium in your sixties when the term ends.
If you pass away during your policy term, TruStage will give your beneficiaries a 100% benefit payout. If you outlive the term, you can convert your policy to whole life insurance with permanent coverage without proof of insurability or undergoing the medical underwriting process again.
You also have the opportunity to renew the policy every year until you reach 95 years old or let the policy expire because you don’t need it anymore.
This is how TruStage term life insurance works
When buying TruStage term life insurance, you are not required to take a medical exam or physical as part of the underwriting process. The application can be made online in less than 10 minutes. All you need to do is answer two health questions.
You can buy $5,000 to $300,000 coverage. You can apply if you are a U.S. citizen between 18 and 69.
What makes TruStage term life different from other types of life insurance policies? The answer is it terminates. Yes, your policy ends and does not cover you for the rest of your life. Term life only lasts for several years. TruStage term life lasts until you reach age 80.
If you pass away within the term, your beneficiary will receive the death benefit. However, if you turn 80 years old, or if your term comes to an end, the coverage is lost.
What’s wrong with TruStage term life insurance?
TruStage advertises that their term life rate is based on age and gender. The premium is based on 5-year age bands. The premium stays the same only until you reach the next age band. It then increases each time the policyholder enters a new five-year age band: 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75.
Your rates will go up every five years.
This type of premium increase is common with term life insurance if one doesn’t look closely at the fine print.
Let’s go back to their fine print:
TruStage® Term Life Insurance to Age 80 is made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company. This is a term policy that increases when entering each five-year band: 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75. Renewable to age 80.
Your monthly premiums are lower when you apply, but they will increase every five years. The premium could end up being as expensive as you get older. For example, you are a 42-year-old male in good health who doesn’t smoke.
TruStage price increases
The site shows that you can look up in advance what your premium will be after each new age band begins.
According to the TruStage rate chart, your monthly premiums increase higher the bigger your coverage. So if you get a $300,000 policy when you’re 42-year-old, you will pay $143 at the start and $622.10 before your policy ends.
You can get TruStage term life insurance without a medical exam. However, your rates could be higher if you’re a smoker because of the added risk to the company. Your rates will be higher for coverage amounts of more than $100,000 due to tobacco use.
According to the TruStage website:
“Initial premium rate is based on age and gender for all death benefit amounts; tobacco or nicotine substitute use is an additional premium factor for death benefits of $101,000 through $300,000.”
TruStage makes it easy for you to determine your premium with their online quoting system and the rate chart on their website.
Important Note: TruStage term life can look inexpensive at first, but the price keeps rising with each age band. Several A-rated life insurance companies offering 10 to 30-year term policies are cheaper and have a level premium. The premium is fixed and guaranteed to never increase for the entire term.
Bottom line:
Based on the rate chart TruStage term life insurance tends to be more expensive than other companies offering level term policies. Additionally, term life insurance is never appropriate for your burial needs as you age.
If you purchased term life insurance with TruStage with a premium that increases in price every five years, we hope you will replace it with level premium term life insurance.
We encourage you to consult an independent life insurance agency like Final Expense Guy that can compare different policies and prices before buying a policy from TruStage. We will help you weigh your options before you make your final decision.
Frequently asked questions
Is TruStage Insurance legitimate?
TruStage is a trusted, reputable insurance company that has been in business for many years. But their insurance plans are not a good fit for many people. They offer a wide range of insurance products and services, including life, auto, and home insurance.
Is TruStage Insurance still in business?
TruStage is still in business and offers its customers quality insurance products and services.
How long has TruStage been in business?
TruStage has been in business for over 50 years.
What is TruStage’s financial rating?
TruStage has an A.M. Best rating of “A” (Excellent).
What is TruStage’s website?
TruStage’s website can be found at www.trustagememberbenefits.com.
What is TruStage insurance’s phone number?
The TruStage insurance phone number is (844) 313-9811.
How can I make TruStage insurance online payment?
TruStage insurance offers a variety of payment options, including online payments. To make an online payment, visit their website and log in to your account. From there, you can make a payment using your preferred payment method.
How old do you have to be to apply for TruStage insurance coverage?
You must be 18 years old to apply for TruStage insurance.
Do you need a medical exam to qualify for TruStage term life insurance?
No, you do not need a medical exam to qualify for TruStage term life insurance.
Can you get first-day coverage with TruStage?
Yes, you can get first-day coverage with TruStage. They offer a variety of term life insurance products that allow you to get coverage immediately.
What are the different life insurance products offered by TruStage?
TruStage offers term life insurance, simplified issue whole life insurance, and guaranteed acceptance whole life insurance.
At what age can you apply for TruStage term life insurance?
You can apply for TruStage term life insurance between 18 and 69, though the monthly premiums will increase as you get older.
What TruStage insurance product increased in price?
The increases described in this article apply to TruStage term life insurance. They are built into the policy: the premium goes up when you enter each new five-year age band. TruStage says the premiums on its whole life and guaranteed acceptance whole life policies are fixed for life.
Does TruStage term life insurance increase in price?
Yes, TruStage term life insurance prices will increase as you get older.
When does the TruStage price increase take effect?
The increase takes effect when you enter the next five-year age band. TruStage’s disclosure lists the bands as 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75.
How does TruStage life term life insurance price increase work?
The monthly premiums for TruStage term life insurance will increase as you get older. The rates are tiered, so the older you are, the more you will pay.
What does TruStage term life insurance provide?
TruStage term life insurance pays a death benefit if you die while the policy is in force. The coverage lasts until age 80.
What are the disadvantages of TruStage life term insurance?
The main disadvantage of TruStage life term insurance is that the monthly premiums increase as you age, making it difficult to afford over time.
How much coverage does TruStage term life insurance provide?
TruStage Term life insurance provides coverage up to $300,000.
Does TruStage term life insurance have a cash value?
No, TruStage term life insurance does not have a cash value.
What are the terms of TruStage term life insurance?
TruStage term life insurance is not a fixed 10-, 20-, or 30-year term. It is renewable to age 80, with a premium that goes up as you enter each new five-year age band.
Does TruStage term life insurance expire?
Yes. TruStage term life insurance ends at age 80.
At what age does TruStage term life insurance expire?
TruStage term life insurance expires at age 80.
What happens when TruStage term life insurance expires?
When your TruStage term life insurance expires, it is no longer valid, and you will need to purchase new coverage if you wish to continue protecting yourself and your family.
What is the difference between term life insurance and whole life insurance?
Term life insurance provides coverage for a period of 10, 20, or 30 years. Whole life insurance provides coverage for your entire life.
How do you renew TruStage term life insurance?
TruStage term life insurance is renewable to age 80. As it continues, the monthly premium increases each time you enter a new five-year age band.
What happens if you miss a payment on TruStage term life insurance?
If you miss a payment on your TruStage term life insurance, your policy will lapse, and you will no longer have coverage.
What is the minimum death benefit you can buy with TruStage Term life?
The minimum death benefit you can buy with TruStage Term life is $5,000.
What is the maximum death benefit you can get with TruStage Term life?
The maximum death benefit you can get with TruStage Term life is $300,000.
How much does a policy from TruStage Life Insurance cost?
The price of TruStage term life depends on your age band, gender, and coverage amount, and for larger amounts, tobacco use. It then goes up as you enter each new age band.
Can you convert your TruStage Term life policy to a permanent policy?
Yes, you can convert your TruStage Term life policy to a permanent policy. The process is typically easy and can be done online or over the phone.
How do you access your TruStage Term life policy information?
You can access your TruStage Term life policy information online or over the phone.
Is TruStage term life expensive?
TruStage term life can be expensive, especially if you are older.
How do I cancel my TruStage insurance policy?
You need to contact customer service to cancel your TruStage insurance policy.
What is the free-look period for TruStage?
The free-look period for TruStage is ten days.
What is the best way to avoid TruStage life insurance price increases?
The best way to avoid TruStage price increases is to purchase a whole life insurance policy with level pricing.
