Lincoln Heritage Life Insurance: An Overview
Lincoln Heritage Life Insurance specializes in final expense insurance, also known as burial insurance. This type of policy is designed to cover funeral, burial, and end-of-life costs. The company’s Funeral Advantage policy offers a streamlined application process, often without requiring a medical exam. However, it’s essential to weigh the benefits against the potential drawbacks before making a decision.
Lincoln Heritage earned a NerdWallet rating of 2.5 out of 5 stars.
Pros and Cons
Pros:
- No medical exam required for coverage up to $35,000.
- Accidental death and dismemberment rider available.
- Offers assistance with funeral planning through the Funeral Consumer Guardian Society.
Cons:
- Only sells one type of policy: final expense insurance.
- Not available in New York or Washington.
- Receives a high volume of customer complaints compared to similar-sized companies.
About Lincoln Heritage Life Insurance
Founded in 1963, Lincoln Heritage focuses on offering a single product: the Funeral Advantage policy. This policy caters to individuals seeking to pre-arrange funding for their final expenses. The company’s strength lies in its ease of access, particularly the lack of a medical exam for certain coverage amounts. Additionally, the company provides access to the Funeral Consumer Guardian Society, which aids policyholders and their families in funeral planning and cost comparison.
However, the limited product selection and high volume of consumer complaints are points to consider. For those seeking a broader range of life insurance options, other insurers may be a better fit.
Policy Details
Lincoln Heritage offers one primary policy: Funeral Advantage.
- Coverage: Funeral Advantage is a permanent life insurance policy designed to help your family cover funeral, burial, and end-of-life costs.
- Eligibility: Available to individuals aged 85 or younger.
- Medical Exam: Coverage up to $35,000 is typically available without a medical exam.
- Premiums: Premiums remain level throughout the policy’s duration.
To apply, you will fill out an application and a health questionnaire. Higher coverage limits may involve a phone interview.
Possible Application Outcomes
There are three potential outcomes when applying for coverage:
- Approved: If you’re in relatively good health, your application should be approved.
- Modified Plan: Applicants with a history of serious health conditions, such as heart disease or cancer, might be offered a modified plan. This plan is more expensive and includes a 2- to 3-year waiting period. During this period, if the insured dies, the beneficiaries receive a refund of premiums paid instead of the full death benefit.
- Denied: The application might be rejected if the applicant has certain pre-existing conditions.
Lincoln Heritage Life Insurance Riders
Lincoln Heritage offers an Accidental Death and Dismemberment (AD&D) rider that can add up to $100,000 in additional coverage. This rider provides an extra payout if death occurs in an accident and a lump sum payment for serious accidental injuries.
Customer Reviews and Complaints
Lincoln Heritage’s customer service record is an important factor to consider. The company has received more complaints than expected by state regulators, as indicated by data analysis from the National Association of Insurance Commissioners (NAIC).
Reddit Reviews
User comments on Reddit forums often discuss working for the company, rather than customer experiences with Lincoln Heritage policies. Redditors highlight that the company is known for its burial insurance, and some suggest its products are overpriced, but these are not confirmations of individual experiences.
Frequently Asked Questions
Who Needs Final Expense Insurance?
Final expense insurance, also known as burial insurance, aims to ease the financial burden of funeral expenses. It can be an excellent choice for seniors who simply want to address their end-of-life costs or those with pre-existing conditions making it difficult to qualify for traditional life insurance.
How Much Does Final Expense Insurance Cost?
Because final expense insurance is often sold to older consumers and often doesn’t require a medical exam, it can be more expensive than other types of life insurance. For example, according to Choice Mutual data, a 50-year-old man could pay $40 per month for a $10,000 guaranteed issue policy, and a 50-year-old woman could pay $30 per month.
Applying for a Policy
The application process with Lincoln Heritage is straightforward. You can begin the quote process on the Lincoln Heritage homepage by providing basic information.
As shown in the provided image, the quote process starts with basic information such as name and address.
Once you fill out the form, you are told that a representative will reach out to provide further information, as well as a short “what’s next” video showing an agent visiting potential policyholders at home to go over coverage options.
Conclusion
Lincoln Heritage offers a specialized product in the final expense insurance market. While offering the convenience of no medical exam, potential customers should carefully consider the policy’s limitations, the company’s customer complaint history, and if this niche product fits their needs compared to other life insurance options.
