An email from Rite Aid recently had me doing a double-take. The subject line is “Rite Aid and Wells Fargo Team Up to Offer Long-Term Care Insurance”.
I can see how a pharmacy could have a path into the long term care insurance business. But a bank?
Upon further research I learned Wells Fargo has an insurance arm selling everything from auto insurance to pet insurance.
Some types of insurance are really through another company with Wells Fargo as the middleman while others seem to be sold by Wells Fargo Insurance.
This isn’t even unusual. According to a source half of all U.S. banks sell an insurance product. Banks that do have a higher median net income. Who can blame then now that they can’t earn as much from fees to you and me.
Back to my original offer. Should I buy an insurance product from a bank/pharmacy partnership?
One reason it is tempting is convenience. How easy to sign up right at my bank or pharmacy. It’s just as convenient for them since I’ve already given them my contact information effectively authorizing sales mail (snail or electronic).
You already know you them and are reasonably happy (hopefully). Why introduce a new business relationship that may bring new hassles or problems.
I worry about having too many eggs in one basket. Heck if we are concerned about Google hosting too many of our online services there is no sense in putting all your financial services in one place.
Privacy concerns are another issue. It’s not necessarily in the consumer’s best interest to have the company that fills their prescription to be selling insurance where premiums may be based on health status.
Maybe I’m over-thinking it but I would hesitate to buy insurance from either of these companies. What’s your thought on buying insurance from banks and/or pharmacies?
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