Life Insurance with Wells Fargo and Best Alternatives

Quick summary box

• Wells Fargo does not underwrite life insurance itself. Instead, its non‑bank affiliates offer policies from unaffiliated insurers, and the bank’s employees are not licensed to advise on life insurance.
  
• MyTerm scandal led to reputational damage. In 2016 Prudential suspended sales of its MyTerm product through Wells Fargo after allegations that bankers enrolled customers without their knowledge.
  
• Availability today is limited. Wells Fargo no longer markets its own life‑insurance product; at most, it refers customers to licensed agents or external carriers. Independent brokers generally provide more options and unbiased advice.
  
• Best alternatives include independent brokers and reputable carriers. Companies like Liberty Financial Group can shop multiple insurers for term and whole life policies, often with faster underwriting and competitive prices.
  
• Florida customers should consider local service. Liberty’s Florida‑based advisors understand state insurance laws and can help with additional needs such as hurricane‑ready homeowners coverage.
  

What this means in plain English

When you hear about “Wells Fargo life insurance,” it is easy to assume that the bank sells its own policies. In reality, Wells Fargo does not manufacture life‑insurance products. According to Wells Fargo Advisors’ disclosure, its insurance products are offered through non‑bank insurance agency affiliates and are underwritten by unaffiliated insurance companies. These products are therefore not insured by the FDIC and are not bank deposits or obligations. That means a Wells Fargo banker is not a life‑insurance agent; at most, the bank may connect you with an outside carrier.

Historically Wells Fargo partnered with insurers such as Prudential to sell simplified‑issue policies like the MyTerm life plan. Employees directed customers to self‑service kiosks or online enrollment since bankers weren’t licensed to sell insurance. However, a 2016 lawsuit alleged that some bank employees enrolled customers without permission, prompting Prudential to investigate and suspend its MyTerm program. Since the scandal, Wells Fargo’s involvement with life insurance has been minimal.

As a result, if you approach Wells Fargo for life insurance today, you’ll likely be referred to a partner agency or told that the bank doesn’t currently offer policies. This means you should treat Wells Fargo like any other referral source and consider whether an independent broker could offer better options.

Who qualifies and typical requirements

Because Wells Fargo itself does not underwrite life insurance, qualification depends entirely on the third‑party carrier it partners with. Generally, term and whole life policies from mainstream insurers require:

• Age limits. Most carriers issue term policies from ages 18 to 75 and whole life from birth to 85. Wells Fargo’s former MyTerm product targeted ages 18 to 60.
  
• Health status. Applicants must answer health questions and may undergo a medical exam. Preferred rates are offered to nonsmokers with no serious conditions. Carriers evaluate height/weight, blood pressure, cholesterol, family history and lifestyle factors (see the high‑cholesterol and diabetes sections for specifics).
  
• Financial justification. The death benefit should be appropriate for your income and family needs. Carriers often cap coverage at a multiple of income.
  
• State residency. You must live in a state where the policy is approved. Florida residents should ensure the carrier is licensed in Florida and meets state regulatory requirements.
  

If you have health concerns like diabetes, ADHD or high cholesterol, underwriting decisions will vary. Some carriers are more lenient than others. For example, MoneyGeek reports that insurers typically offer preferred rates to applicants with Type 2 diabetes when A1C is below 7.5% and there are no complications. JRC Insurance notes that carriers may accept total cholesterol up to 275 or 300 if the ratio of total cholesterol to HDL is healthy. This underscores why using a broker who can shop multiple carriers is advantageous.

How underwriting actually looks for this case

Underwriting through a bank referral vs. independent broker differs mainly in flexibility. When Wells Fargo partnered with Prudential’s MyTerm, the process was simplified: applicants answered a handful of questions and were usually issued $25,000 to $500,000 of coverage without an exam, but the policy had rigid eligibility and lacked customization. After the scandal, such bank‑affiliated simplified products are rare.

With a traditional carrier, underwriters review your age, health history, lifestyle and financial profile to assign a risk class. A few key points:

• Medical exams and records. Applicants may be required to provide blood and urine samples to check glucose levels (A1C), cholesterol, kidney function and other metrics. Underwriters also request attending physician statements to verify conditions like ADHD or heart disease.
  
• Red flags. Frequent changes in medication (e.g., unstable stimulant dosage for ADHD) or coexisting mental health issues can raise concerns. For diabetes, an A1C above 8.5% and complications such as neuropathy may lead to substandard ratings. A driving record with DUIs or reckless driving may also result in table ratings.
  
• Positive factors. Regular doctor visits, stable employment and consistent medication adherence show responsible behavior. For cholesterol, underwriters prefer applicants who are taking statins and have a total cholesterol‑to‑HDL ratio below 5:1.
  

When applying through a bank, you are typically limited to the underwriting guidelines of the single carrier they partner with. Independent brokers can shop multiple carriers and might find one more forgiving of your health history. That is especially important for Florida residents, where carriers may have unique guidelines due to state regulation.

Typical pricing outcomes and classes

Life‑insurance premiums are determined by risk class. For example, carriers often categorize applicants as Preferred Plus, Preferred, Standard Plus, Standard or substandard (“Table 1” through “Table 8”).

• Preferred Plus. Requires excellent health, normal weight, no tobacco use, and normal lab results. Diabetes or ADHD on stimulants generally disqualify applicants from this class.
  
• Preferred. Allows minor health issues; MoneyGeek notes that diabetics with A1C between 7.0 and 8.0 and no complications may qualify. Applicants on statins with good cholesterol ratios may also qualify.
  
• Standard Plus and Standard. Fit applicants with controlled chronic conditions such as Type 2 diabetes with A1C up to 8.5% or high cholesterol managed with medication. ADHD patients with stable stimulant dosage and no substance abuse often fall here.
  
• Substandard/Table. Applied when serious conditions exist, such as diabetes with A1C above 9.0, multiple comorbidities, or severe ADHD interfering with employment. Premiums are significantly higher and coverage options may be limited.
  

Pricing also varies by policy type. Term insurance is generally cheaper than whole life because it provides pure death benefit protection. Universal life and whole life accumulate cash value and have higher premiums. Bank‑affiliated simplified‑issue policies often cost more per dollar of coverage because they accept limited information.

Example illustration: A healthy 40‑year‑old non‑smoker may pay roughly $20–$30 per month for a 20‑year, $500,000 term policy from a competitive carrier. A diabetic applicant with A1C around 7.2% might pay $40–$60 for similar coverage, depending on other factors. These numbers are generic illustrations and not quotes; actual premiums vary by carrier and underwriting.

Best alternatives and when to choose them

If Wells Fargo no longer actively offers life insurance, what are your options? Consider the following routes:

Independent broker (recommended)

An independent broker, like Liberty Financial Group, works with many carriers and can match you with a policy that fits your health profile and budget. Unlike a bank referral, a broker advocates for you and can explain the underwriting differences among carriers. This is especially important for clients with diabetes or mental health conditions because each insurer treats these risks differently. Brokers also provide local service; in Florida you can meet an agent who understands state regulations.

Direct‑to‑consumer insurers

Some insurers sell policies online directly to consumers. For example, Haven Life (backed by MassMutual) and Ethos offer term policies with accelerated underwriting. These products can be convenient if you are healthy and need coverage quickly. However, they may limit coverage amounts and cannot customize riders as much as a broker‑assisted policy.

Captive agents (e.g., State Farm, New York Life)

Captive agents represent a single carrier. They can be a good option if you have strong loyalty to a particular brand and your health profile fits within that insurer’s sweet spot. However, you won’t know if other carriers could offer lower premiums.

Group life or workplace plans

Employers may offer group term life as part of benefits. These plans often guarantee limited coverage amounts without medical underwriting. They are beneficial if you have serious health issues but the coverage may be insufficient for family needs.

When to choose a bank referral

If Wells Fargo begins to offer life insurance again, you might use them if you value the convenience of bundling financial services. But remember the limitations and potential service concerns highlighted by past scandals. Always compare the bank’s offering against multiple quotes from independent sources.

Step‑by‑step: how to apply with Liberty Financial Group

 📞 Call Liberty Financial Group at 888.414.3873

📩 Or click here to request a free consultation

1. Initial consultation. Contact Liberty via phone or online to schedule a consultation. A licensed agent will discuss your goals, existing coverage and budget.
   
2. Health assessment. You will complete a questionnaire covering medical history (e.g., diabetes, ADHD, cholesterol) and lifestyle. The agent may request medical records or suggest carriers that offer no‑exam policies.
   
3. Carrier comparison. Liberty shops multiple insurers and provides side‑by‑side comparisons of premiums, policy types and riders. The agent explains differences such as term length, conversion options and living benefits.
   
4. Application submission. Once you choose a policy, Liberty submits the application and arranges a medical exam (if required). You may be asked to provide blood samples, measure A1C or cholesterol levels, and answer additional questions.
   
5. Underwriting and approval. The insurer reviews your application. Liberty communicates with underwriters to clarify any issues and advocates for the best possible class.
   
6. Policy delivery and review. After approval, Liberty reviews the policy with you, ensures the coverage matches your needs and helps set up premium payments. The agent also assists with beneficiary designations and policy servicing.
   

Florida notes and lender‑specific notes

Florida residents should be aware of state‑specific regulations, such as the Florida Office of Insurance Regulation’s oversight of rate filings and the requirement for insurers to maintain adequate reserves. Florida also prohibits unfair discrimination based on genetic information. Working with a local agent ensures compliance and may provide insight into hurricane exposure and estate‑planning considerations.

If you are financing a business with an SBA 7(a) loan, your lender may require life insurance to secure the loan. Under the SBA’s SOP 50 10 8, lenders must obtain a collateral assignment for each policy, naming the lender as assignee and verifying this assignment with the home office of the insurer. Liberty agents can coordinate this documentation and ensure it doesn’t delay your loan closing.

FAQ (People‑Also‑Ask style)

Why doesn’t Wells Fargo sell its own life insurance? Wells Fargo offers insurance through non‑bank affiliates and the policies are underwritten by outside insurers. The bank’s employees are not licensed to sell or advise on life insurance, and a past cross‑selling scandal led to Prudential ending its partnership with Wells Fargo.

Can I still get life insurance through Wells Fargo? You may be referred to an affiliated agency or outside carrier. Availability varies, and there is no longer a specific “Wells Fargo” life‑insurance product.

Is bank‑sold life insurance more expensive? Not necessarily, but bank‑affiliated products often have limited options and simplified underwriting. Independent brokers can shop multiple carriers, which may result in better rates for your health profile.

What happens to the policy if Wells Fargo goes out of business? Because the insurance company, not the bank, underwrites the policy, your policy remains in force as long as premiums are paid. FDIC insurance does not apply to insurance products.

Do I need life insurance for an SBA loan? If the business’s success depends on your continued participation, the SBA’s SOP requires life insurance coverage equal to the loan amount and term, with the lender named as assignee.

Can diabetics or people with ADHD get life insurance? Yes. Many carriers offer coverage to applicants with well‑controlled Type 2 diabetes (A1C below 7.5%) and to those with ADHD on stable medication. The rate classification depends on control and absence of complications.

Internal link suggestions

• Homeowners insurance in Florida: link anchor “protect your home from hurricanes” to highlight Liberty’s homeowners coverage.
  
• Seniors life insurance: anchor “coverage for seniors” to direct readers to Liberty’s burial and final expense plans.
  
• High‑risk life insurance: anchor “insuring medical conditions” to connect to Liberty’s high‑risk program for diabetics and others.
  
• Business insurance: anchor “small business coverage” to cross‑sell general liability and property insurance for entrepreneurs.
  
• Home & auto bundling: anchor “multi‑policy discounts” to show customers how bundling can save money.

Call to action

If you’re exploring life insurance and want impartial advice beyond the limited options a bank might provide, speak with Liberty Financial Group. Our independent agents will listen to your needs, compare multiple carriers and help you find a policy that fits your health profile—whether you’re managing diabetes, taking stimulant medication, or just seeking affordable protection. Contact us today for a no‑pressure quote and discover the peace of mind that comes with tailored coverage.