Lincoln heritage Insurance Review
As an independent insurance agent with Blake Insurance Group, I’ve seen my fair share of insurance providers come and go. However, Lincoln Heritage consistently stands out when it comes to final expense insurance.
Now, I know what you’re thinking – another insurance company review? But hear me out. If you’re reading this, chances are you’re considering how to protect your loved ones from the financial burden of your final expenses. It’s not the most cheerful topic, but it’s an important one.
Lincoln Heritage has been around since 1963, and it’s made quite a name for itself in the final expense insurance market. It’s not trying to be all things to all people—it’s found its niche and sticks to it.
In this review, we’ll examine Lincoln Heritage’s offerings in depth, particularly for residents of Arizona, Alabama, Florida, Georgia, New Mexico, New York, North Carolina, Oklahoma, Ohio, Texas, and Virginia. We’ll examine their signature Funeral Advantage program, discuss its pros and cons, and help you determine whether it is the right fit for your needs.
So, grab a cup of coffee (or tea, if that’s more your speed), and let’s get into it. By the time we’re done, you’ll have a clear picture of what Lincoln Heritage brings to the table and whether it aligns with your final expense insurance needs.
Lincoln Heritage Insurance Review
Disclaimer: We are not in any way affiliated with Lincoln Heritage. In fact, we are Independent Insurance agents that offer top-rate final expense insurance companies. This article is our personal review of their funeral advantage program along with our opinions on the matter. If you are looking to contact Lincoln Heritage directly, use the following info:
Customer Service: (800) 438-7180
Policy Payments: (800) 930-7459
Monday– Friday: 6:30 am to 5:00 pm MST
Saturday: 6:00 am to 2:00 pm MST
Lincoln Heritage Life Insurance Company
4343 E Camelback Road
Suite 400
Phoenix, AZ 85018
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Customer Reviews
Final Expense Insurance Focus
Final expense insurance is a specialized type of whole-life insurance designed to cover end-of-life costs, such as funeral expenses, medical bills, and other outstanding debts. It’s particularly popular among seniors who want to ensure their loved ones aren’t burdened with these costs after they’re gone.
What sets final expense insurance apart is its accessibility and simplicity. Unlike traditional life insurance policies, final expense insurance typically doesn’t require a medical exam, making it easier to qualify for, especially for older adults or those with health issues. The coverage amounts are usually smaller, ranging from $2,000 to $35,000, making premiums more affordable.
Now, you might be wondering how final expense insurance compares to other types of life insurance. Here’s the scoop:
Term life insurance covers a specific period, usually 10-30 years. It’s often cheaper initially but doesn’t build cash value and expires if you outlive the term. On the other hand, whole life insurance covers you for your entire life and builds cash value over time, but it can be more expensive.
Final expense insurance is a type of whole life insurance, but with some key differences:
Smaller death benefits: Final expense policies typically offer lower coverage amounts compared to traditional whole life policies.
Easier qualification: The application process is usually more straightforward, with fewer health questions.
Focused purpose: While the beneficiaries can use the payout for any purpose, these policies are explicitly marketed for end-of-life expenses.
The importance of final expense insurance can’t be overstated. With funeral costs averaging between $7,000 and $12,000, many families find themselves unprepared for these expenses. Final expense insurance provides a financial safety net, ensuring that your loved ones can focus on celebrating your life rather than worrying about how to pay for your final arrangements.
Funeral Advantage Program
The Lincoln Heritage Funeral Advantage program is a comprehensive final expense insurance solution designed to assist seniors and their families in managing funeral costs and other end-of-life expenses. Here are some key aspects of the program:
**Coverage and Benefits**
– **Coverage Amounts**: The Funeral Advantage program offers whole life insurance policies with coverage up to $20,000, which can be used to pay for funeral expenses and other final costs. The policy also builds cash value over time, allowing policyholders to borrow against it for emergencies or to cover premiums.
– **No Medical Exam**: Applicants do not need a medical exam. Instead, they answer health-related questions on a simple one-page application. This makes qualifying easier for most people, even with existing health issues.
– **Quick Claims Payment**: Approved claims are paid within 24 hours, ensuring families can access funds when needed.
**Additional Features**
– **Funeral Consumer Guardian Society (FCGS)**: Every Funeral Advantage policy includes a membership to the FCGS, which helps families plan and price-shop for funeral services. This service can save families an average of $1,800 on traditional funerals and up to $600 on cremation costs.
– **Final Wishes Planning**: The program allows policyholders to document their final wishes, which can help reduce the emotional strain on loved ones during a difficult time.
**Eligibility and Restrictions**
– **Eligibility**: While the program is accessible to many, some restrictions exist. Individuals with certain conditions, such as testing positive for HIV or being diagnosed with a terminal illness, may not qualify.
– **State Restrictions**: The Funeral Advantage program is available in every state except New York. In certain states, policyholders cannot name a funeral home as their beneficiary.
Overall, the Lincoln Heritage Funeral Advantage program is popular for those seeking a straightforward and supportive final expense insurance option. It combines financial coverage with valuable services to help families manage funeral arrangements effectively. However, potential clients should be aware of the aggressive sales tactics sometimes associated with Lincoln Heritage agents and consider bringing a friend or relative to consultations for additional perspective.
Let me break down how Lincoln Heritage’s Funeral Advantage Program stacks up against similar offerings from other companies:
Coverage and Benefits:
Lincoln Heritage’s Funeral Advantage Program offers up to $20,000 in coverage. This is standard in the industry, with most final expense policies ranging from $5,000 to $25,000. However, some competitors like Mutual of Omaha or Foresters Financial may offer slightly higher maximum coverage amounts.
Application Process:
The Funeral Advantage Program boasts a simplified, one-page application with no medical exam required. This is a common feature among final expense policies, but Lincoln Heritage seems to emphasize the simplicity of its process more than some competitors.
Approval Rate:
Lincoln Heritage claims a 98% approval rate for applicants. While this is impressive, it’s worth noting that many final expense insurers have high approval rates due to the nature of these policies.
Additional Services:
A unique aspect of the Funeral Advantage Program is the inclusion of a Funeral Consumer Guardian Society (FCGS) membership. This service, which helps families plan and price-shop for funeral services, is not typically offered by competitors and could potentially save families an average of $1,800 on funeral costs.
Payout Speed:
Lincoln Heritage promises to pay approved claims within 24 hours. This is faster than many competitors, who often take several days or even weeks to process claims.
Waiting Periods:
Like many final expense policies, Lincoln Heritage has a waiting period for certain health conditions. However, their modified plan with a 2-3 year waiting period is relatively standard in the industry.
Price:
While Lincoln Heritage claims to offer affordable rates, it’s important to note that their prices may not always be the lowest. As an independent agent, I’ve often found that shopping around can yield better rates with similar coverage from other reputable insurers.
Customer Service:
Lincoln Heritage emphasizes customer service, particularly its claims process and family support services. While this is commendable, it’s worth noting that some customers have reported aggressive sales tactics from its agents.
Comparison of Final Expense Insurance Products
| Feature | Lincoln Heritage | Mutual of Omaha | Foresters Financial | Colonial Penn |
|---|---|---|---|---|
| Max Coverage | $20,000 | $40,000 | $35,000 | $50,000 |
| Min Coverage | $3,000 | $2,000 | $5,000 | $2,000 |
| Age Range | 40-85 | 45-85 | 50-85 | 50-85 |
| No Medical Exam | Yes | Yes | Yes | Yes |
| Waiting Period | 2-3 years | 2 years | 2 years | 2 years |
| Cash Value Build-up | Yes | Yes | Yes | Yes |
| Additional Services | FCGS Membership | None | Orphan Benefit | None |
| Claim Payout Speed | 24 hours | 24-48 hours | 10 days | 30-60 days |
| Riders Available | Accidental Death | Accidental Death | Accidental Death, Terminal Illness | Accidental Death |
Now, keep in mind that this table gives you a general overview, but it doesn’t tell the whole story. For instance, pricing can vary significantly based on age, health, and location. Also, the quality of customer service and ease of doing business can make a big difference in your experience.
As your agent, I’d recommend looking at a few key factors:
The coverage amount you need
Your budget for premiums
Any additional services that might be valuable to you
The financial strength of the company
Remember, the “best” policy is the one that fits your specific needs and circumstances. That’s why it’s so important to work with an independent agent who can help you navigate these options and find the right fit for you.
Customer Reviews and Testimonials
Customer reviews and testimonials for Lincoln Heritage Insurance provide a mixed but informative perspective on the company’s offerings, particularly its Funeral Advantage program. Here’s a summary of the feedback from various sources:
**Overall Ratings**
** NerdWallet **: Lincoln Heritage received a rating of ** 2.5 out of 5 stars **. This score reflects customer experience, complaint data, and financial strength, indicating a moderate level of satisfaction among policyholders.
– **Bankrate**: The review suggests Lincoln Heritage may be a good choice for those specifically looking for final expense insurance. However, it lacks online tools and local agents, which could impact customer satisfaction.
– **Better Business Bureau (BBB)**: Lincoln Heritage holds an **A+ rating** with the BBB, which indicates a strong commitment to resolving customer complaints and maintaining good business practices.
**Positive Feedback**
– **Customer Service**: Many reviews highlight the company’s customer service, noting that agents are helpful and responsive. Customers appreciate the support they receive, especially during the claims process, which is reported to be quick and efficient, with claims paid out within **24 hours** of approval.
– **Claims Experience**: Numerous testimonials emphasize the ease of filing claims and the prompt payment of benefits. Clients have reported satisfaction with the speed at which their claims were processed, alleviating financial stress during difficult times.
– **Funeral Consumer Guardian Society**: The inclusion of the Funeral Consumer Guardian Society (FCGS) is frequently mentioned as a valuable resource that helps families plan and manage funeral expenses effectively, adding to the overall appeal of the policy.
**Negative Feedback**
– **Complaint Volume**: Despite positive reviews, Lincoln Heritage has received more than the expected number of complaints relative to its size, according to the National Association of Insurance Commissioners (NAIC). This suggests that while many customers are satisfied, others raise notable concerns.
– **Sales Tactics**: Some reviews indicate that the company’s agents may employ aggressive sales tactics. This has led to mixed feelings among potential clients who may feel pressured during sales.
Limited Product Offerings: A common critique is that Lincoln Heritage only offers final expense insurance, which may not meet the needs of clients looking for more comprehensive life insurance options. This limitation can be a disadvantage for those seeking additional types of coverage.
Financial Strength and Ratings
Lincoln Heritage Life Insurance Company has received several ratings and assessments regarding its financial strength and performance. Here’s a detailed overview:
**AM Best Ratings**
– **Financial Strength Rating**: AM Best has assigned Lincoln Heritage an A- (Excellent) rating. This rating reflects the company’s very strong balance sheet and adequate operating performance.
– **Outlook**: The outlook for Lincoln Heritage has been revised to positive from stable by AM Best. This change is attributed to the company’s improved underwriting performance and increased net investment income, which have bolstered its capitalization on both a risk-adjusted and absolute basis.
**Performance Highlights**
– **Operating Performance**: Lincoln Heritage has shown favorable operating performance trends over the past few years. The company transitioned from a net underwriting loss in 2021 to a net underwriting gain in 2022, with continued improvement through 2023. This improvement was driven by normalized claims experience post-COVID and a 25% increase in net investment income due to higher invested assets and market yields.
– **Market Position**: Lincoln Heritage is a leading mono-line final expense writer, holding an estimated 22% of new final expense business in 2023. The company is licensed in 49 states and the District of Columbia, focusing on the senior market with a special emphasis on the Hispanic market.
**Considerations**
While Lincoln Heritage has a strong market position and positive financial indicators, it is important to note the company’s product and geographic concentration. These factors and its competitive market environment are areas to consider when evaluating its overall financial strength and stability.
**Claims Process**
**Initiating the Claim**: The first step in filing a claim with Lincoln Heritage is to contact them to notify them of the policyholder’s death. You must provide essential details such as the policy number, date of death, and the name of the beneficiary initiating the claim. A knowledgeable representative will guide you through the process with sensitivity and professionalism.
**Filling Out the Claim Form**: Once the claim process is initiated, Lincoln Heritage will provide you with a claim form. It’s crucial to fill out this form accurately, including information like the policyholder’s name, date of birth, social security number, and cause of death. Ensuring all required information is correct helps avoid delays.
**Submitting the Claim Form and Documents**: After completing the claim form, submit it along with necessary documents such as the original policy document, death certificate, and any additional forms specified by Lincoln Heritage. The submission can be done via mail, fax, or email, following the instructions provided by the company.
**Review and Approval**: Once Lincoln Heritage receives the claim form and documents, their claims department will review everything to ensure all necessary information is provided. If additional information or documents are needed, they will promptly contact you.
**Communication and Support**: Throughout the claims process, Lincoln Heritage is committed to keeping you informed about the status of your claim. They strive to provide timely updates and answer any questions you may have.
**Average Time for Claims to be Processed and Paid**
– **Payment Timeline**: Approved claims are paid within 24 hours of approval. This quick turnaround ensures families have immediate access to funds needed for funeral expenses.
The prompt payment and supportive claims process are key features of Lincoln Heritage’s Funeral Advantage program, which provides beneficiaries with financial relief and guidance during challenging times.
Lincoln Heritage Funeral Advantage FAQ
What is the Lincoln Heritage Funeral Advantage Program?
The Funeral Advantage Program is a whole life insurance policy designed to cover final expenses, such as funeral costs. It offers up to $20,000 in coverage and includes a membership to the Funeral Consumer Guardian Society (FCGS), which assists families in planning and managing funeral arrangements.
How does the Funeral Advantage Program assist seniors?
The program helps seniors by providing financial coverage for funeral expenses and offering planning assistance through the FCGS. This service helps families with price-shopping for funeral services, potentially saving them significant amounts on funeral and cremation costs.
Is a medical exam required to qualify for the Funeral Advantage Program?
No, a medical exam is not required. Applicants need to answer a series of health-related questions on a simple application form. Based on their responses, they may qualify for immediate coverage or a modified plan with a waiting period.
What is the claims process for the Funeral Advantage Program?
Approved claims are paid within 24 hours, ensuring that families have quick access to funds needed for funeral expenses.
Are there any waiting periods for coverage?
Yes, there is a waiting period for certain health conditions. Policyholders younger than 50 have a two-year waiting period, which increases to three years for those 50 and older. During this period, the beneficiary receives a limited payout if the policyholder passes away.
How does the cost of the Funeral Advantage Program compare to other insurers?
The Funeral Advantage Program tends to be more expensive than similar products from other insurers. For example, premiums for a $10,000 policy can be about 35% higher compared to top-rated carriers.
What are the restrictions of the Funeral Advantage Program?
Certain conditions, such as testing positive for HIV or being diagnosed with a terminal illness, can disqualify applicants. Additionally, in some states, policyholders cannot name a funeral home as their beneficiary.
What additional services does the Funeral Advantage Program offer?
In addition to financial coverage, the program includes a membership to the FCGS, which helps families plan and manage funeral arrangements according to the policyholder's final wishes.
Blake Nwosu
Owner & Principal Agent