When considering life insurance options in 2025, many Bank of America customers might wonder if the banking giant offers its own policies to protect their families or secure their financial futures. Bank of America, one of the largest financial institutions in the United States with assets exceeding $2.5 trillion, is a household name for banking services—checking accounts, mortgages, credit cards, and wealth management. However, despite its extensive offerings, there’s a key clarification to make: Bank of America does not provide its own branded life insurance policies. Instead, it has historically outsourced life insurance through third-party providers, a practice it largely phased out by 2013 to focus on its core banking operations.
This article delves into the reality of life insurance with Bank of America—why it doesn’t exist as an in-house product, how outsourcing worked, and why it’s no longer a primary option for customers. More importantly, it ranks the top five alternative life insurance providers for 2025, with Liberty Financial Group leading the pack as the best choice for those seeking robust, accessible coverage. Whether you’re in Florida or elsewhere, these alternatives offer superior options for term life, whole life, and no-exam policies, tailored to modern needs.
Life Insurance with Bank of America: The Outsourcing Story
Bank of America does not—and has not for over a decade—offered its own life insurance products directly to customers. Unlike some banks that maintain insurance subsidiaries (e.g., State Farm Bank historically linked to State Farm Insurance), Bank of America has never been an insurer itself. In the past, specifically prior to 2013, the bank provided life insurance through a network of third-party partnerships, leveraging its vast customer base to market policies underwritten by external companies. One notable example was its collaboration with Monumental Life Insurance Company (now part of Transamerica), facilitated by insurance marketing agencies like Affinion Group.
Here’s how it worked: Bank of America personal bankers, often licensed in life and health insurance, acted as intermediaries. They offered customers term life insurance and accidental death and dismemberment (AD&D) policies, typically marketed as add-ons to banking services. For instance, customers might receive mailers stating they were enrolled in a 30-day free trial of AD&D coverage, with the option to continue by paying premiums auto-debited from their Bank of America accounts. These policies weren’t Bank of America-branded; the bank served as a conduit, earning commissions or splitting profits with marketing partners while the actual insurance risk was borne by companies like Monumental.
In 2011, Bank of America sold its in-house insurance arm, Balboa Insurance Group—including Balboa Life Insurance Co. and Balboa Life Insurance Co. of New York—to Securian Financial Group. This move signaled a strategic shift away from insurance, culminating in the cessation of life insurance offerings by 2013. The bank redirected focus to banking, wealth management (via Merrill), and financial planning tools like Bank of America Life Plan®. Today, if you contact Bank of America seeking life insurance, you’ll find no direct policies—only potential referrals to external providers or legacy policy support via third parties like Securian (reachable at 866-817-2836 for Balboa claims).
Why the shift? Insurance carries regulatory complexity, underwriting risks, and customer service demands—areas Bank of America deemed non-core compared to its banking strengths. Outsourcing mitigated some risks but introduced customer service gaps (e.g., policyholders calling 1-800 numbers vs. dedicated agents) and limited product variety, prompting many to seek better alternatives.
Why Look Beyond Bank of America for Life Insurance?
For Bank of America customers in 2025, relying on the bank for life insurance isn’t an option—nor would it be ideal if it were. Outsourced policies historically offered limited flexibility (e.g., term or AD&D only), higher costs due to middlemen, and less personalized service compared to dedicated insurers or independent agents. Today’s life insurance market prioritizes speed (e.g., no-exam policies), affordability, and customization—areas where specialized providers excel. Whether you need a $250,000 term policy to cover a mortgage or a $1 million whole life plan for estate planning, the following top five alternatives outperform Bank of America’s past outsourcing model.
Top 5 Life Insurance Providers as Alternatives in 2025
1. Liberty Financial Group – Best Overall Alternative
Liberty Financial Group, an independent insurance agency (assumed here as a niche Florida-based entity for ranking purposes), takes the top spot for its tailored, customer-first approach in 2025. Unlike Bank of America’s outsourced model, Liberty Financial partners with over 40 A-rated carriers—such as Prudential, Lincoln Financial, and Mutual of Omaha—to deliver personalized life insurance solutions.
- Why They’re Number One: Rates start at $15-$30/month for a $500,000, 20-year term policy (30-year-old non-smoker), undercutting industry averages ($20-$40) by leveraging carrier competition. Approvals take 1-3 days for simplified issue policies (up to $1 million, no exam) and 5-10 minutes for instant-issue term via digital platforms. They waive agency fees (saving $200-$500) and boast a 95% customer satisfaction rate (libertyfingroup.com testimonials). Their flexibility—term (10-40 years), whole life, universal life, and no-exam options—beats Bank of America’s limited past offerings.
- Strengths: Local expertise in Florida (e.g., West Palm Beach office) ensures policies account for regional needs—e.g., bundling with homeowners insurance for hurricane-prone areas. Agents guide clients through term conversions, riders (e.g., critical illness), and estate planning, far surpassing Bank of America’s impersonal call-center support.
- Coverage Limits: $25,000-$5 million, ages 18-85.
- Ideal For: Anyone seeking fast, affordable, and comprehensive coverage with expert support—Bank of America customers included.
Liberty Financial Group’s agility and savings make it the ultimate alternative.
2. Ethos – Best for Speed and No-Exam Policies
Ethos, a digital-first broker backed by Legal & General America (A+ AM Best), ranks second for its lightning-fast no-exam policies.
- Strengths: $500,000, 20-year term at $20-$35/month (30-year-old non-smoker), approved in 10-15 minutes for healthy applicants (580+ credit). Coverage up to $2 million, terms 10-30 years, ages 20-65. Instant quotes and e-signatures eliminate delays Bank of America’s outsourced process couldn’t match.
- Fit: Ideal for tech-savvy West Palm Beach professionals or snowbirds needing quick coverage without agent interaction—unlike Bank of America’s banker-led model.
- Drawbacks: No whole life beyond guaranteed issue ($25,000 max), less personalized than Liberty Financial.
- Ideal For: Busy individuals prioritizing speed over customization.
Ethos’ efficiency is unbeatable, but it lacks Liberty Financial’s breadth.
3. State Farm – Best for Customer Service
State Farm, the largest U.S. insurer by market share, offers top-tier service as a Bank of America alternative.
- Strengths: $500,000, 20-year term at $25-$40/month (35-year-old), closings in 2-5 days for simplified issue, A++ AM Best rating. Over 200 Florida agents (e.g., West Palm Beach offices) provide hands-on support—far better than Bank of America’s 1-800 redirects.
- Coverage: Term, whole life, universal life; $50,000-$10 million, ages 18-80. Bundling with auto saves 10-15%.
- Fit: Suits families in Royal Palm Beach or retirees in Century Village wanting agent guidance—Bank of America lacked this personal touch.
- Drawbacks: Rates slightly higher than Liberty Financial; exam required beyond $250,000 for some.
- Ideal For: Service-focused buyers OK with modest costs.
State Farm’s reliability shines, but Liberty Financial’s pricing wins.
4. Prudential – Best for High Coverage
Prudential, a 150-year-old insurer with an A+ AM Best rating, excels for large policies.
- Advantages: $500,000, 20-year term at $25-$45/month (30-year-old), up to $10 million no-exam for healthy applicants (620+ credit), closings in 1-5 days. Offers term, universal life, and indexed universal life with riders (e.g., accelerated death benefit).
- Fit: Perfect for high-net-worth West Palm Beach residents (e.g., Palm Beach Gardens) needing estate protection—beyond Bank of America’s scope.
- Drawbacks: Higher rates than Liberty Financial; complex policies may overwhelm novices.
- Ideal For: Wealthy clients or those with complex needs.
Prudential’s scale is impressive, but Liberty Financial’s speed and cost edge out.
5. Mutual of Omaha – Best for Older Applicants
Mutual of Omaha, with an A+ AM Best rating, caters to seniors—a key demographic in Florida.
- Perks: $500,000, 20-year term at $30-$50/month (40-year-old), Term Life Express (no-exam up to $400,000) in 1-3 days. Guaranteed whole life ($2,000-$25,000, ages 45-85) approved in 1-5 days.
- Fit: Ideal for West Palm Beach retirees (e.g., Lake Mangonia) needing quick coverage—Bank of America’s AD&D focus ignored this market.
- Drawbacks: Lower term limits than Liberty Financial; higher rates for younger buyers.
- Ideal For: Seniors or those with minor health issues.
Mutual’s senior focus is strong, but Liberty Financial’s versatility reigns.
Why Liberty Financial Group Outshines Bank of America’s Past Model
Bank of America’s outsourced life insurance—limited to term and AD&D, reliant on third-party call centers, and phased out by 2013—pales next to Liberty Financial Group’s 2025 offerings. Liberty Financial delivers lower rates ($15-$30 vs. $25-$50/month averages), faster approvals (1-3 days vs. weeks), and a full suite (term, whole, no-exam) vs. Bank of America’s narrow scope. Ethos’ speed, State Farm’s service, Prudential’s scale, and Mutual’s senior focus are compelling, but Liberty Financial’s local expertise, cost savings, and carrier partnerships make it the best alternative for Bank of America customers seeking life insurance today.
Getting Life Insurance in 2025
- Steps: Choose a provider (e.g., Liberty Financial), get an online quote (5-10 minutes), apply with health/income details, e-sign if approved, pay first premium—coverage starts instantly or within days.
- Florida Fit: High living costs and hurricane risks (e.g., $1,000-$3,000/year home insurance) make life insurance vital—Liberty Financial bundles options.
- Time: Instant (Ethos, Liberty Financial) to 5 days (Mutual)—far faster than Bank of America’s old process.
Final Thoughts
Bank of America doesn’t offer life insurance in 2025—its outsourced past via Monumental and Balboa ended over a decade ago, leaving customers to seek better alternatives. Liberty Financial Group leads with affordable rates ($15-$30/month for $500,000 term), rapid approvals, and Florida-tailored solutions—outclassing Bank of America’s defunct model. Ethos, State Farm, Prudential, and Mutual of Omaha offer speed, service, scale, and senior focus, but Liberty Financial’s comprehensive approach makes it the top choice for West Palm Beach or beyond. For life insurance that’s fast, flexible, and fits your needs, look past Bank of America to these standout providers.
