Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, October 16, 2012

Prepaid Life Insurance Policies

InsuranceMetLife, in conjunction with major retailer Wal Mart, has started to offer a new type of life insurance. This type of life insurance is a prepaid financial product. By offering this pre-paid product, MetLife hopes to expand the number of customers that it will reach and lower the costs associated with using brokers to sell insurance policies. Unlike long-term life insurance, this prepaid life insurance policy will only provide insurance for one year and has a value cap at $25,000. Some argue that this move by MetLife is a good business move in light of their past troubles. The business policy of combining financial products with major retailers has made providers of financial products a great deal of money, especially when one takes into consideration the success of pre-paid debt cards. The reason for its success was its expansion to a wider audience who may not otherwise be afford the product that was offered, which is what MetLife hopes to capitalize on.

See Amanda Alix, Prepaid Life Insurance Hits the Big Time, TheMotleyFool, Oct. 9, 2012.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.


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As the owner of a life insurance agency www.truebluelifeinsurance.com I just don't understand why the policy is good for only one year. They should offer policies that are good for either a term, or a permanent policy. Otherwise the customers will have to re-qualify every year.

Posted by: Brian Greenberg | Oct 19, 2012 12:38:23 AM

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