6 Final Expense Companies To Avoid At ALL Costs

Choosing the right final expense insurance provider is a crucial decision that can have a significant impact on your financial well-being and your family's future. Unfortunately, the market is saturated with companies that engage in deceptive practices, leaving seniors vulnerable and often financially disadvantaged. In this comprehensive article, we will examine the top 6 final expense insurance providers that you should steer clear of at all costs.

Navigating the final expense insurance landscape can be daunting, but it is essential to be an informed consumer. As we delve into the details of these problematic companies, our primary objective is to empower you with the knowledge and tools necessary to make an informed decision that aligns with your needs and protects your hard-earned savings.

First, Let's Discuss How to Identify the Best Final Expense Companies

Many people start their search for final expense life insurance with a simple Google search. While this can be a useful starting point, it's crucial to be discerning and cut through the clutter of paid advertisements and gimmicks to reach reputable websites.

Company names like AARP, Colonial Penn, Globe Life, and Lincoln Heritage are often prominently featured in paid advertisements. State Farm and a few others also fall into this category. These products are typically referred to as "hybrid" policies, and we'll explore them in greater detail as we proceed.

It's generally advisable to pay attention to the professionals who are frequently found beneath sponsored advertisements. However, be cautious, as the carriers we'll describe have started to conceal themselves beneath these paid ads in an attempt to lure unsuspecting consumers.

At BestBurialPolicy.com, we are a family-owned company that strives to provide a friendly and transparent experience. We have established relationships with over 30 A/A+ rated carriers, ensuring that we can offer our clients the best possible options.

Now, let's delve into the 6 final expense insurance providers that you should avoid at all costs.

Colonial Penn

Colonial Penn is a prime example of a company that has built its reputation on deceptive marketing tactics. Their late-night television commercials, featuring paid spokespersons like Alex Terek, promise a "Gimmick plan" for less than $10 per month that will never increase in price and provide coverage that won't ever stop.

Unfortunately, this assertion is entirely false. The reality is that as you age, your final expense coverage decreases, despite the fact that your monthly premiums remain the same.

Let's use a practical example to illustrate this point. Suppose you are 60 years old and purchase 10 units of coverage from Colonial Penn at $9.95 per unit. Your monthly payment would be $99.50, and you would receive $12,140 in coverage.

However, as you age, your coverage diminishes significantly:

• At age 65, your coverage would be reduced to $9,320, but you'd still be paying $99.50 per month.

• At age 70, your coverage would be further reduced to $7,170.

• At age 75, your coverage would drop to $5,600.

• At age 80, your coverage would be a mere $4,260.

• And finally, at age 85, your coverage would be a mere $4,180.

By the time you reach 85 years old, you would have paid a total of $29,850 in premiums for a mere $4,180 in coverage. In contrast, if you had purchased coverage from Mutual of Omaha at age 60 with a $99.50 budget, you would have had $32,462 in coverage.

This stark disparity highlights the deceptive nature of Colonial Penn's "Gimmick plan." The promises made in their late-night commercials are nothing more than a clever marketing tactic designed to lure unsuspecting seniors into a policy that ultimately fails to deliver on its promises.

We rate Colonial Penn a mere 1 out of 10, as their practices are truly abhorrent and have left countless seniors in dire financial situations.

Globe Life

Globe Life is another carrier that preys upon the vulnerability of elderly individuals. While they advertise the ability to purchase coverage up to $100,000, they heavily promote term insurance and imply that it is a whole life insurance policy.

This is a despicable tactic that unfairly disadvantages seniors. Time and time again, we hear from customers who were led to believe they were purchasing a whole life policy, only to discover that it was, in fact, a 5-year renewable term life insurance product.

Let's use the same example as before to illustrate the impact of Globe Life's practices. Suppose you are 60 years old and have a budget of $99.50 per month. With Mutual of Omaha, you could have secured $32,462 in coverage. However, Globe Life would offer you $30,000 in coverage for $43.49 per month.

At first glance, this may seem like a decent deal. However, the costs associated with this policy increase dramatically as you age:

• At age 66, your monthly premium would rise to $76.99.

• At age 71, it would increase to $104.99.

• And by the time you reach age 76, you'd be paying a staggering $152.99 per month.

Furthermore, the coverage would expire entirely when you turn 80 years old. If you were to purchase that same $30,000 policy at age 80, the monthly premium would be a whopping $288.89.

This kind of bait-and-switch tactic severely harms seniors, especially those in good health with a long life expectancy. It's worth noting that Globe Life has a customer review rating of only 1 out of 5 stars on various platforms, despite maintaining an A+ rating with AM Best.

The old adage "You get what you pay for" and "If you chase cheap, you get cheap" certainly apply in this case. We rate Globe Life a 2 out of 10, as their practices are truly detrimental to the well-being of senior citizens.

AARP

AARP, while often perceived as a trustworthy organization, is essentially the marketing department of New York Life. While they do offer discounts on various products and services for their members, their life insurance offerings are a different story.

AARP's final expense insurance policies are universal, meaning that seniors in good health are treated the same as those with serious illnesses. This results in significantly higher premiums compared to other guaranteed issue whole life insurance policies available on the market.

Despite AARP's excellent ratings from major agencies like AM Best, Fitch, Moody's, and Standard & Poors, they have a dismal track record when it comes to consumer complaints. With a 1.25 out of 5 star rating on the BBB, and numerous reports of fee increases, policy cancellations, and poor customer service, it's clear that AARP's life insurance offerings are not living up to their reputation.

The only AARP product that may be worth considering is their simplified issue whole life policy, which is superior to both their term (32% higher) and their standard whole life insurance policies (20% higher). However, this coverage is not recommended for individuals in good or average health, as they can find better options elsewhere.

We rate AARP a 2 out of 10, as their final expense insurance policies are severely overpriced and fail to provide adequate value for their customers.

Lincoln Heritage

There is no justification for using Lincoln Heritage as your final expense insurance provider. In fact, a recent comparison showed that Lincoln Heritage had the ninth-highest monthly premium for a 65-year-old healthy male seeking $10,000 in coverage, out of 9 carriers.

To justify their exorbitant rates, Lincoln Heritage offers a "FREE" Funeral Concierge program. However, this "free" service is anything but, as it is simply a ruse to charge customers 30% to 150% more than the competition.

If you were to add up all the additional fees and charges associated with this Funeral Concierge program, the cost of the final expense insurance would likely be completely covered. In essence, they have created this program as a way to deceive seniors into paying more for their coverage.

Lincoln Heritage does offer a decent Modified plan, but it is still not competitive with the rates and benefits provided by other insurers in the market.

We rate Lincoln Heritage a 2 out of 10, as their blatant attempts to exploit seniors through deceptive marketing tactics are truly unacceptable.

AAA Life

While AAA is known for its reliable roadside assistance services, their foray into the final expense insurance market is rather questionable.

AAA Life's final expense policy provides coverage for seniors aged 45 to 85, with a maximum coverage amount of $25,000. The policy is a standard death benefit, meaning that individuals in good health receive the same coverage as those with serious illnesses, such as cancer or dementia.

This is a clear disadvantage for healthy seniors, as they could obtain significantly better coverage elsewhere at a lower cost. For example, a healthy individual could secure coverage with Mutual of Omaha that is 30% less expensive than AAA Life's offering, while receiving the same level of protection from day one.

Despite holding an A rating with AM Best, AAA Life has a troubling history of consumer complaints, with a dismal 1 out of 5 star rating on the BBB. Customers have reported issues with billing and excessively lengthy processing times for death claims.

Given these concerns, it is advisable to consider alternative final expense insurance providers that can offer better value and customer service.

We rate AAA Life a 3 out of 10, as their final expense offerings are not competitive and their track record with consumers is less than satisfactory.

State Farm

State Farm is a household name known for its exceptional auto and homeowners insurance products. However, when it comes to their final expense life insurance offerings, the story is quite different.

State Farm only provides final expense coverage up to $10,000, which is significantly lower than the typical coverage amounts offered by other providers. If your goal is to secure a policy that can adequately cover your final expenses, you would be better off looking elsewhere.

While State Farm enjoys favorable ratings from agencies like S&P and AM Best, their customer reviews tell a different story. With a mere 1.23 out of 5 stars on various platforms, it's clear that their final expense insurance policies have not resonated well with consumers.

In the past 36 months, State Farm has received over 1,300 complaints, which is a bit more than 25% of the total complaints received. The most common criticisms revolve around poor customer service and billing issues.

If you're primarily in the market for home and auto insurance, State Farm may be a suitable choice. However, when it comes to final expense life insurance, you would be better off exploring other options that can provide you with more comprehensive coverage and better customer support.

We rate State Farm a 3 out of 10 for their final expense insurance offerings, as they fall short of the standards set by their competitors.

Conclusion

In conclusion, it's essential to be wary of late-night television advertisements, stacks of index cards in your mailbox, and other gimmicks designed to lure you into purchasing final expense insurance policies that ultimately fail to deliver on their promises.

The six insurance providers we've examined in this article – Colonial Penn, Globe Life, AARP, Lincoln Heritage, AAA Life, and State Farm – all engage in practices that are detrimental to the financial well-being of senior citizens. Their deceptive marketing tactics, inflated premiums, and poor customer service make them companies to avoid at all costs.

If you're in the market for final expense insurance, we strongly encourage you to speak with an independent insurance agent who can provide you with a transparent and straightforward approach. At BestBurialPolicy.com, we pride ourselves on our commitment to honesty, our extensive network of A/A+ rated carriers, and the rave reviews from our satisfied customers.

Don't let the predatory practices of these final expense insurance providers put your hard-earned savings at risk. Take the time to research your options, ask the right questions, and make an informed decision that will provide you and your family with the protection you deserve.