Bankers Life
 | |
| Company type | Subsidiary |
|---|---|
| Industry | Insurance |
| Founded | 1932 |
| Headquarters | Chicago, Illinois, United States |
| Products | Annuities Health insurance Life insurance |
| Parent | CNO Financial Group |
| Website | www |
The Bankers Life and Casualty Company, commonly known as Bankers Life, is a privately held American firm specializing in health insurance, with its headquarters situated in Chicago, Illinois. Established in 1932 originally as a mutual life insurer, it became a part of CNO Financial Group in 1992. Bankers Life currently provides coverage to approximately 1.4 million policyholders throughout the United States and Canada, focusing mainly on middle-aged and senior individuals whose annual household earnings range from $25,000 to $75,000.
Overview
Bankers Life’s product lineup includes life insurance, long-term care insurance, annuities, along with Medicare offerings such as Medicare Advantage and Medicare Part D prescription drug plans. The company also supplies supplemental health insurance products addressing critical illnesses and Medicare supplement policies (Medigap). Vision and dental coverage are available through a collaboration with Humana.
Its insurance solutions are distributed through a sales force exceeding 5,000 agents operating out of more than 320 offices across the nation.
Early years
Founded in Chicago, Illinois in 1932 as a mutual life insurance firm, the Bankers Life and Casualty Company distinguished itself by maintaining low overhead expenses to provide more affordable monthly premiums than competitors. However, by mid-1935, due to poor management, the company became insolvent and the Illinois Insurance Department took control of its assets. On July 2, 1935, John D. MacArthur purchased the company for $2,500 and managed it through his existing enterprise, Marquette Life.
MacArthur upheld the strategy of minimizing expenses by offering policies with monthly premiums of $1, $2, and $5—significantly below the industry standard minimum of $10. To expand sales without increasing the number of agents, Bankers Life targeted middle-income households through direct mail campaigns—a segment largely ignored by competitors. This approach, combined with aggressive mass-marketing and brand development efforts, fueled rapid expansion: from 1935 to 1941, assets grew from $5,802 to $404,598 while life insurance coverage surged from $166,000 to over $20 million. Such growth prompted relocation to a dedicated four-story office building in Chicago’s Mayfair district.
In 1942, MacArthur restructured the company from a mutual insurer into a joint-stock corporation to consolidate ownership. He established two shell entities—Illinois Standard Life Insurance Company and Bankers Life—and merged these with the Hotel Men's Mutual Benefit Association into West Side Assessment Life Insurance Company, which was subsequently renamed Bankers Life and Casualty Company. This reorganization enabled the firm to adopt January 17, 1879—the founding date of Hotel Men’s Mutual Benefit Association—as its official establishment date, thereby enhancing its market reputation. As sole president and owner, MacArthur amplified marketing efforts through a $105,000 magazine advertising initiative. Although operations remained consistent, the company emphasized its heritage by branding itself as "Chicago’s First Insurance Company—Established 1879."
Expansion
From 1943 through 1946, the firm established new offices in Florida, Michigan, Missouri, and West Virginia, growing its presence to 14 states by 1951. This expansion was fueled by an increase in personnel, rising from 50 employees in 1940 to more than 2,000 by 1955, including roles such as sales representatives, claims examiners, and billing specialists. Bankers Life broadened its offerings by introducing health insurance products under the White Cross label, becoming one of the leading health and accident insurance providers in the United States by 1956. The introduction of Medicare in 1965 led the company to create Medicare supplement plans designed to cover expenses not included in the government program.
In 1970, facing health issues and concerns about estate taxes, founder John D. MacArthur formed the MacArthur Foundation to receive the bulk of his estate and support philanthropic efforts. This included his full ownership of Bankers Life; however, tax regulations required the foundation to eventually divest this ownership. MacArthur stepped down as president in October 1974, appointing Robert Ewing as his replacement.
By 1977, Bankers Life had become the nation's second largest insurer specializing in health and accident coverage, employing nearly 4,000 people across 47 states—excluding California, New Jersey, and New York—as well as Washington, D.C., and the Canadian provinces of Ontario and Quebec. The company posted a net profit of $22 million in 1976 and held assets valued at $1.04 billion by the close of 1977.
Post-MacArthur
After John D. MacArthur’s passing in 1978, his shares in Bankers Life—valued at over $415 million in 1976—were transferred to the MacArthur Foundation. On October 30, 1984, the foundation sold Bankers Life for $382 million to Great Southern Life Insurance Company, a subsidiary of I.C.H. Corporation based in Louisville, Kentucky. Subsequently, on November 9, 1992, I.C.H. sold Bankers Life for $600 million to Conseco (currently known as CNO Financial Group), an insurance holding company headquartered in Carmel, Indiana. In 1993, Bankers Life moved its corporate headquarters to Chicago’s Merchandise Mart. Then on January 1, 2000, Certified Life Insurance Company was merged into Bankers Life as part of Conseco’s consolidation efforts.
By 2012, Bankers Life had processed roughly 8.5 million claims and disbursed $1.3 billion in policy benefits. In 2015, the company managed assets totaling $19 billion.
Sponsorships
Since 2003, Bankers Life has served as a national partner of the Alzheimer's Association, spearheading annual fundraising initiatives that have generated over $7 million to support care services, educational programs, and research efforts.
In 2011, CNO Financial Group granted Bankers Life naming rights for the Indiana Pacers' home arena, which was renamed Bankers Life Fieldhouse. This sponsorship concluded on June 30, 2019; subsequently, on September 27, 2021, the venue adopted the name Gainbridge Fieldhouse following a new agreement with financial services platform Gainbridge.