When shopping for insurance, particularly Variable Universal Life (VUL) insurance, one of the first questions many consumers ask is: Should I go through my bank or approach an insurance company directly? At first glance, both options might seem similar—they both provide you with a policy that protects your loved ones and helps you build wealth over time. But as you dig deeper, you’ll find that the differences in service, product customization, costs, and expertise can significantly impact your experience and long-term benefits.

Let’s explore both options in detail and help you decide which one fits your financial goals and lifestyle best.

Understanding the Players: Banks vs. Insurance Companies

Banks typically offer insurance products as part of their broader financial services. They often partner with established insurance providers to offer plans such as VUL insurance. This partnership means your bank isn’t the actual underwriter of the policy—they’re more like a broker or distribution channel.

Insurance companies, on the other hand, are direct providers and underwriters of insurance. They specialize in designing and managing insurance products, especially complex ones like VUL, which combine life insurance coverage with investment components.

The Case for Getting Insurance Through a Bank

1. Convenience and Accessibility

If you already bank with a provider, purchasing insurance through them might feel like a natural extension. You can manage your banking and insurance policies from the same place—sometimes even through a single app or dashboard.

This centralized financial management appeals to people who want to simplify their financial lives.

2. Bundled Services and Promotions

Banks often bundle insurance with other financial products, offering discounted premiums or waived fees if you maintain a certain account balance or sign up for multiple services.

For instance, a bank might offer:

• Preferential interest rates on loans if you buy insurance from them
• Lower policy fees for premium clients
• Access to wealth management or investment advice bundled with VUL

3. Trust and Existing Relationships

If you’ve been with your bank for years, you might already trust their advisors and systems. This existing relationship can make the process feel less intimidating, especially for first-time insurance buyers.

The Case for Going Directly to an Insurance Company

1. Specialized Expertise in VUL Insurance

Unlike banks, which juggle multiple financial services, insurance companies focus exclusively on risk management and long-term planning. Their advisors are trained specifically in areas like life insurance structuring, estate planning, and investment allocation within VUL policies.

This can be crucial if:

• You want a tailor-made VUL plan
• You have specific wealth transfer goals
• You’re looking for long-term investment growth from the policy’s cash value

2. Greater Flexibility and Customization

When you go direct, you’re more likely to find a wider range of products and more options for customization. Insurance companies can tweak the coverage amount, investment allocations, riders, and premium structures based on your exact goals and risk tolerance.

Banks typically offer limited versions of these products—standard templates designed for broad appeal, not unique financial journeys.

3. Lower Costs Without a Middleman

Because banks act as intermediaries, there might be additional distribution or referral fees embedded in the cost of the policy. While this isn’t always the case, going straight to an insurer removes the middleman and can reduce fees over time.

These savings can compound significantly when you’re dealing with long-term policies like VUL, where fees directly affect the cash value growth and investment performance.

4. More Transparent Policy Management

Working directly with the insurer gives you firsthand access to policy performance, investment updates, and servicing teams. You’re not filtered through bank representatives, which means faster and more accurate answers when you need them.

A Side-by-Side Comparison

So, Which One Is Better?

If You Value Convenience, Integration, and Simplicity:

Going through your bank could be the better option. This route is ideal for:

• People new to insurance who want a one-stop shop
• Clients already using wealth services with their bank
• Those who prefer dealing with familiar advisors and platforms

If You Prioritize Customization, Expertise, and Long-Term Value:

Buying directly from an insurance company is likely your best bet. Choose this path if:

• You want a flexible and performance-optimized VUL
• You need guidance tailored to estate or retirement planning
• You’re concerned about minimizing fees and maximizing cash value growth

Expert Tip: You Don’t Have to Choose Blindly

Some consumers feel pressured to pick a side, but it’s smart to get quotes from both your bank and direct insurers. Use the comparison to ask better questions:

• What are the fees and commissions?
• How customizable is the investment portion of the policy?
• Who manages my account after the sale?
• Can I switch funds or adjust premiums easily?

In doing this, you’ll uncover which provider aligns better with your financial personality, risk appetite, and long-term aspirations.

Final Thoughts

At the end of the day, there’s no one-size-fits-all answer to whether you should get insurance from a bank or directly from an insurance company. It truly depends on your goals, preferences, and how involved you want to be in managing your policy.

If you’re after convenience and simplicity, your bank may serve you well. But if you’re focused on growth potential, flexibility, and getting the most from your VUL insurance, then an insurance company—with its specialized tools and advisors—might be the smarter route.

Take time to explore both options. After all, choosing the right insurance provider isn’t just about protection—it’s about building your future on your terms.