There are some companies selling their insurance policies direct, but I’m not sure that’s the best route to take (especially since the price you pay is the same, no matter where you purchase the policy). It’s usually best to use an independent agent who will present several options to you.
How to Get the Best Rates on Final Expense Insurance
Most consumers understand that if you want the best price possible on any product or service, you need to shop with as many businesses that offer what you’re looking for. Not that long ago, this meant grabbing the yellow pages and start dialing for dollars. Not anymore! With today’s technology, we can shop with all of the major insurance companies in one place and at one time.
Now, we don’t have to speak with an agent from every company to shop our business. Now, we can go online to one insurance broker who represents all the top highly-rated insurance companies and fill out one form and get a quote from every company on the list. Don’t you just love technology? You can answer just a few questions and instantly receive a quote back from dozens of insurance companies and, the quotes will be listed from lowest to highest!
How Do I know which Company is the Best?
When you are shopping for a product as important as life insurance, it makes darn good sense not to just look at the lowest price. Your decisions should also be about company stability, customer service, and especially claims service. Yes, the price is very important because you want the monthly payment to fit in your budget, but stability, customer service, and claim service should be very important as well.
There is good news! You can check out a company’s stability by looking at their financial ratings. You can also check out their customer service and claims service by looking at their reviews. You can get all the information online if you’ll spend just a few minutes after you see their pricing.
Last but certainly not least, you can have an independent agent advocate for you and walk you through the shopping, purchasing, and underwriting process for your final expense insurance policy. An independent insurance broker will typically represent all of the highly-rated insurance carriers and they will have the information available for you to check out each company they recommend. And, this is the best part, they do not charge you a dime to help you make an informed decision because they are paid by the insurance company. They are self-employed which means they work for you first, and the companies second.
Top 5 Final Expense Insurance Companies for 2018
We have chosen the following five companies because they meet all the criteria we listed above.
- 1. Lowest rates for final expense insurance
- 2. Highly-rated by A.M Best and other rating services
- 3. Very good reviews for customer service and claim services
These final expense insurance companies are listed in no particular order.
MUTUAL OF OMAHA
Mutual of Omaha has been one of our go-to carriers for the last ten years. The company has been in the business since 1909 and they are currently a Fortune 500 insurer. Their financial ratings continue to be among the best in the industry with an A+ rating from A.M. Best Rating Services.
Mutual of Omaha offers final expense insurance for applicants between 45 and 85. They are one of the few companies that offer final expense policies with a $40,000 death benefit and all their final expense policies are Whole Life Insurance policies. This means that policyholders will get all the guarantees and benefits that you would find in a traditional whole life insurance policy but never have to be concerned about a medical exam.
There are two options for their Living Promise Plan:
- Level Benefit – pays 100% of the benefit upon the death of the insured.
- Graded Benefit – for death due to natural causes (any cause other than accidental, during the first two years, the beneficiary will receive all premiums paid plus 10%. After the two years, the full benefit is paid for death due to all causes.
Foresters, which is a fraternal benefit insurer, is one of the oldest final expense insurers operating today. Established in 1834, Foresters has been offering life insurance to help its members deal with final expenses for a very long time.
The Foresters PlanRight Whole Life Insurance offers three different plans for their applicants:
- Level Benefit – the death benefit is 100% of the amount and provides first-day coverage.
- Graded Benefit: there is a limited death benefit during the first two policy years. You will receive 30% of the face amount in effect for the first year and 70% in the second year. After the two-year graded benefit period, the policy will pay 100% of its face amount.
- Modified: the modified policy will pay the beneficiary a limited death benefit for the first two years which equals 110% of the premiums paid. After which, the policy will pay 100% of the death benefit.
With its iconic office building on the San Francisco skyline, Transamerica is a well-known insurance company throughout the country. The company enjoys very high ratings from all the rating services and has a Comdex Score of 90.
Purchasing final expense life insurance policy from Transamerica is simple and straightforward and your health and age will determine whether you get a preferred or standard rating. Transamerica offers three types of final expense products which can be used in combination with another life insurance policy, or it can be a stand-alone solution for seniors with preexisting medical conditions that make getting coverage difficult.
AIG is one of the main companies that insurance brokers will use for “guaranteed issue” final expense insurance. The guaranteed issue policy is typically offered when an applicant has multiple health issues that disqualify them from purchasing a level benefit (traditional) final expense policy.
The company offers face amounts from $5,000 to $25,000 and eligible applicants are 50 to 85-years old. There are no medical exams and applicants will not be declined due to health issues. AIG issues policies very quickly because most applications are processed within an hour or less.
Another insurer that’s been in business for well over 100 years, Phoenix life offers final expense insurance with no medical exam requirement and issues policies on a “simplified” basis.
Phoenix Life offers a variety of riders (optional coverage) that allows the applicant to broaden their coverage and receive living benefits when needed. Their Remembrance Life product is the perfect solution to final expense and burial insurance.
The Bottom Line
When searching for the best final expense insurance companies, all of these companies will easily meet the criteria you should require when purchasing life insurance that you will depend on for a lifetime:
- Super Competitive Pricing.
- Financially Stable Insurance Company.
- Outstanding Customer Service and Claims Service
CEO - Licensed Agent
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client. I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure. Please feel free to contact me at your convenience.