Best Final Expense Insurance Companies for 2020
What are the Best final expense insurance companies? Although LJM Life Insurance Agency represents many of the highly-rated final expense insurance companies. These companies not only have very competitive rates but they are also highly-rated, deliver outstanding customer service, and get claims paid as quickly as possible. You can compare rates on our quote tool or call us at 844-528-8688.
What is Burial Insurance?
Final expense insurance policies (also referred to as burial insurance or funeral insurance) are generally whole life policies because consumers prefer lower face amounts and very limited underwriting.
Although members of the insurance industry including the best final expense insurance companies refer to these policies as final expense, burial policies, or funeral insurance, these are just marketing names that designate the actual intent of the policy’s death benefit.Final expense insurance is what many seniors look for to make certain they do not leave the funeral, medical, or other expenses for their surviving loved ones to pay when they pass. Certainly, the last thing you want is for your surviving loved ones to scramble to pay your funeral expenses while they are mourning their loss.
Best Final Expense Insurance Companies
Below we have listed what we consider to be our top five best burial insurance policy companies (in no certain order).
Royal Neighbors of America
Royal Neighbors of America, formed as a fraternal benefit organization, is one of the few life insurers that focus not only on the policyholder but also on the family of the policyholder and the community they live in. Their rates are very competitive and the company offers Level Benefit and Graded Benefit Final Expense Insurance.
Prosperity Life Group
Prosperity Life Group has become another go-to life insurance provider because of their liberal underwriting guidelines.
Prosperity is one of the few final expense insurance providers who will accept applicants with typical health issues like diabetes in the level benefit coverage plan.
Prosperity offers Level Benefit, Graded Benefit, and Modified Benefit plans which allows them to accommodate all seniors who apply for coverage.
Mutual of Omaha
Mutual of Omaha Final Expense Insurance, one of the most recognized life insurers in America, typically ranks in the top five for insurance rates. Mutual offers level benefit Final Expense Insurance through their the Living Promise Level Benefit Plan and graded benefit Final Expense Insurance through their Living Promise Graded Benefit Plan.
Sentinel Security Life
Sentinel Security Life is another very competitive Final Expense Insurance provider. Since the company was originally founded by a group of funeral directors, their management team is intimately familiar with the final expense needs of seniors. Sentinel Security offers three types of Final Expense Insurance Plans:
- New Vantage I – Level benefit and first-day coverage.
- New Vantage II – Graded Benefit life insurance for applicants not medically qualified for New Vantage I.
- New Vantage III – Modified Benefit (guaranteed issue) for applicants not medically qualified for New Vantage I or New Vantage II.
AIG Guaranteed Issue Final Expense Insurance: AIG, one of the largest insurers globally, continues to be a go-to insurance company for applicants who need guaranteed issue life insurance because of severe or multiple health issues. They offer affordable rates, exceptional customer service, and the only company we represent that offers guaranteed issue final expense insurance to applicants up to 85 years old.
Family Benefit Life | Trinity Life
Family Benefit Life insurance company is one of the smaller life insurance companies in the burial insurance arena. They offer very competitive rates and whether you qualify for Family Benefit or Trinity Life depends on what state you reside in. See our full review of Family Benefit Life here.
Final Expense Insurance Basics
Final Expense Insurance which is typically provided using whole life insurance is a life insurance policy designed to pick up the costs of your funeral, unpaid medical expenses, or nursing home costs that were not covered under your individual health insurance or Medicare.
Although term life insurance is cheaper than whole life insurance, it’s not generally the best choice because term insurance policies eventually expire where whole life insurance policies do not. Using whole life insurance for your final expenses provides you with all the guarantees and benefits that come with traditional whole life insurance.
- Coverage for Your Entire Life – With whole life insurance, your insurance company cannot cancel or terminate your life insurance coverage for any reason other than non-payment.
- Level Payments – Once your final expense insurance has been issued by the company, the company cannot increase your premium for any reason. Even if you are diagnosed with a terminal illness of living in a nursing home, the company cannot increase your premium.
- Cash Accumulation – Like other life insurance policies that accrue cash value, your policy will build cash value over time that you can access for any reason via policy loans, withdrawals, or policy surrender.
Another benefit that makes final expense insurance so popular with seniors is the limited underwriting process. The Best Final Expense Insurance Companies do not require a medical exam or blood/urine tests. The insurance companies use a "simplified issue" process which generally allows them to issue a policy in days rather than weeks.It’s important to note that even though a medical exam is not required, the applicant must truthfully answer a fairly long list of health questions. If the applicant’s answers to these health questions indicate an unacceptable risk to the insurer, the application will be denied and in most situations, an alternative type of policy will be offered.
What kind of Burial Policy is Best?
As we discussed earlier, final expense insurance is a whole life insurance policy that is designated to provide your beneficiary with enough money to pay your final expenses when you pass away.
Since the Best Final Expense Insurance Companies that provide this product understand that most seniors are dealing with health issues, many of the insurers offer several types of final expense insurance products that should accommodate any person dealing with serious health issues or multiple health issues.
Level Benefit Final Expense Insurance
The level benefit policy is the most affordable policy and it will pay the full death benefit from the first day of coverage. Unlike many of the “guaranteed acceptance” final expense products you may have seen advertised on TV, a level benefit policy should be your first choice if you medically qualify.
Graded Benefit Final Expense Insurance
The graded benefit final expense policy was designed for applicants who do not medically qualify for a level benefit policy. Although the graded benefit policy provides a full death benefit for deaths resulting from an accident, these policies typically have a two or three-year waiting period before the company will pay the full death benefit for death due to natural causes. A typical graded death benefit would be paid as follows:
Gerald purchased a $10,000 graded benefit final expense insurance policy because he did not medically qualify for a level benefit policy. The insurance company that issued his policy offered a graded death benefit over three years.
If Gerald dies of natural causes in the first year, his beneficiary would receive 25% of the death benefit ($2,500). If he dies from natural causes in the second year, his beneficiary would receive 50% of the death benefit ($5,000).
If Gerald dies from natural causes in the third year, his beneficiary would receive 75% of the death benefit ($7,500). Beginning in the fourth year and afterward, Gerald’s insurance policy would pay the full death benefit of $10,000 to his beneficiary.
Guaranteed Issue (guaranteed acceptance) Final Expense Insurance
The guaranteed issue policy is available for applicants who do not medically qualify for a level benefit or graded benefit policy. With this policy, virtually any living person can get life insurance since no medical underwriting is considered by the insurance company.
Typically, guaranteed issue policies have a two or three-year waiting period that applies to death by natural causes. During this waiting period, if the insured dies from natural causes, the beneficiary will receive the total premiums paid into the policy plus interest of 5 to 10%.
Since the insurance company is accepting an unknown health risk, the rates for guaranteed issue (guaranteed acceptance) insurance are much higher than level benefit or graded benefit coverage.
For further details and to learn more about Final Expense Life Insurance, we encourage you to contact the insurance professionals at LJM Life Insurance at (844) 528-8688 during normal business hours or contact us through our website anytime to discuss what we feel are the Best Final Expense Insurance Companies.