People buy life insurance for one reason and one reason alone: to pay for future expenses that they won’t be around to pay. When it comes to final expense insurance (also known as “burial insurance” or “funeral insurance”), the expenses you are looking to pay are your end-of-life expenses.
The main expense here is the cost of your final arrangements (i.e., your funeral and burial, cremation, etc.).
No matter which of these three names you call the product, we’ve got a list of the top companies that sell it.
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Liberty Bankers
Next on our list of the best burial insurance companies is Liberty Bankers.
Liberty Bankers Life Insurance Company was founded in 1892. It is headquartered in Omaha, Nebraska, with over 200,000 members. Liberty Bankers offers a variety of life insurance products, including term, whole, and universal policies.
It also offers annuities, mutual funds, and other investment products. Liberty Bankers members can also take advantage of discounts on home and auto insurance and pharmacy services.
94 Final Expense Insurance Companies (!)
It might surprise you just how many burial insurance companies there are.
Below is a list of 94 insurance carriers that we identified as sellers of final expense policies (don’t worry, we won’t cover all of them in detail):
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Final Expense Insurance: Types of Plans
There are three types of burial insurance plans: (1) level benefits, (2) graded benefits, and (3) guaranteed issue.
The difference between these policy types is the size of the payout during the first 2-3 years of the policy.
You can think of these as full benefits, partial benefits, and no benefits.
1. Level Benefits
A final expense insurance policy with level benefits pays out the full coverage immediately (from the first day you own the policy).
As its name suggests, the policy’s death benefit stays the same (“level”) throughout the policy’s life.
No matter when the insured individual dies, the beneficiary gets paid the full amount.
Because of the favorable terms of this policy, only those with very few health issues are approved.
2. Graded Death Benefits
A graded death benefit life insurance policy pays out a portion of the death benefit if the insured dies during the “waiting period.” After the waiting period, the policy pays the full death benefit, which lasts for the rest of the policy’s life.
For example, a graded death benefits policy has a two-year waiting period. Then, the payout schedule would look something like this:
- If death occurs in Year 1, the policy pays out 30% of the death benefit
- If death occurs in Year 2, the policy pays out 70% of the death benefit
- If death occurs after Year 2, the policy pays out 100% of the death benefit
3. Guaranteed Issue
Guaranteed issue life insurance is a type of whole life insurance policy that guarantees approval for all individuals that meet its eligibility criteria (typically just age).
There are no medical exams or health questions. Typically, you submit a short, one-page application with your contact information and beneficiary details, and you’re good to go.
The policies are intended for those with serious pre-existing medical conditions who cannot get approved for underwritten burial insurance.
How can carriers afford to sell guaranteed issue policies?
They include a “waiting period” before you can get paid out. For guaranteed acceptance policies, this period typically lasts two years (in rare cases, three years).
If death occurs during the waiting period, the beneficiary does not receive a death benefit payout. Instead, they receive a refund of their premiums (with interest of 5-10%).
Mutual of Omaha
First on our list of the best final expense insurance companies is Mutual of Omaha.
Mutual of Omaha is one of the largest mutual insurance companies in America and perhaps the most respected insurance brand among consumers. Founded nearly a century ago, it has grown to become an industry leader with over $12 billion in assets under management.
Mutual of Omaha offers two funeral insurance plans under the Living Promise brand name.
Mutual of Omaha Living Promise Whole Life Insurance
These policies use simplified underwriting, which involves a limited number of health questions and no medical exam.
This policy has two different coverage options:
Living Promise Level Benefit Plan
- Policy issue ages: 45 – 85
- Benefit amounts: $2,000 – $40,000
- Accelerated Death Benefit for Terminal Illness or
- Nursing Home Confinement
Living Promise Graded Benefit Plan
- Policy issue ages: 45 – 80
- Benefit amounts: $2,000 – $20,000
Mutual of Omaha Guaranteed Issue
Mutual of Omaha has two life insurance policies that count as burial insurance.
Mutual of Omaha‘s burial insurance product comes in multiple varieties, including simplified issue and guaranteed acceptance. You can apply online or by phone for this policy; coverage is guaranteed.
Here are some highlights:
- Available for customers ages 45-85 (in NY, ages 50-75)
- Guaranteed coverage — no medical exam or health questions
- Benefit amounts: $2,000 – $25,000
- Benefits are never reduced because of age or health
- Rates never increase
- 85% of claims are paid within 24 hours
Is There A Waiting Period?
Mutual of Omaha’s Guaranteed Whole Life policies have a waiting period (graded death benefit).
If the insured dies from natural (not accidental) causes during the policy’s first two years, the beneficiary will receive all premiums paid plus 10%.
Only after this two-year period ends is the beneficiary eligible for the policy’s total death benefit.
In all cases (i.e., even during the first two years), the beneficiary will receive the full death benefit if the insured dies from an accidental injury.
Prosperity Life Group
Prosperity Life is next on our list of the best final expense insurance companies.
Prosperity is one of the larger final expense insurance companies and owns well-known brands such as SBLI USA.
New Vista and Golden Promise are a series of whole-life products particularly suited to the senior market. These simplified-issue products feature a three-tier classification. Based on health history, customers can qualify for the Level, Graded, or Modified plans.
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American Amicable
American Amicable is next on our list of the best final expense life insurance companies.
American-Amicable Life Insurance Company of Texas was founded in 1910. The Company offers life insurance and annuity products that target individuals’ wealth protection and creation needs.
Currently, the American Amicable Group of companies includes:
- American-Amicable Life Insurance Company of Texas
- IA American Life Insurance Company
- Pioneer American Insurance Company
- Pioneer Security Life Insurance Company
- Occidental Life Insurance of NC
For a further breakdown of American Amicable’s offerings, see the table below and our full American Amicable life insurance review.
Foresters Financial
Foresters Financial is next on our list of the best final expense insurance companies.
Foresters Financial is a fraternal benefit society. This means that it:
- Operates on a not-for-profit basis
- Has a Board of Directors elected by its members
- Provides life insurance and annuity benefits as part of their purpose
If you want a lifetime of protection, whole life insurance may be your choice.
As the name suggests, it is insurance designed for your whole life. Unlike term insurance, whole life insurance products build cash value you can borrow to pay for home renovations or children’s college education.
Great Western Insurance Company
Great Western Mutual Insurance Company is next on our list of the best final expense insurance companies.
Great Western was founded in 1891 and is headquartered in Des Moines, Iowa. It has more than 1.5 million members. Great Western offers a variety of life insurance products, including term, whole, and universal policies.
It also provides annuities, mutual funds, and other investment products. Great Western members can also take advantage of home and auto insurance discounts and pharmacy services.
AIG Life
AIG Life Insurance is the last on our list of the best final expense insurance companies.
AIG Life Insurance is a subsidiary of American International Group, Inc. (AIG), one of the world’s leading insurance and financial services organizations. It provides life insurance products and services to individuals, families, and businesses in the United States.
AIG Life Insurance offers a variety of life insurance products, including term life insurance, whole life insurance, universal life insurance, and variable universal life insurance.
Conclusion & Key Takeaways
We hope you enjoyed this guide to the best final expenses insurance companies.
Please Avoid These Carriers At All Costs
Despite their persistent advertising, final expense insurance companies like Globe Life and Colonial Penn burial insurance are some of the worst burial insurance policies.
And it’s not complicated to understand why. Their prices are significantly higher than their competitors.
Competitors like Prosperity Life Group or Liberty Bankers may not have the same name recognition. Still, their financial strength rating (claims-paying ability, as measured by A.M. Best) is just as strong, if not stronger. These companies sell permanent life insurance coverage at competitive rates if you can answer a few health questions.
If you have any questions on the topics covered here, please don’t hesitate to comment, and we’ll get back to you within 24 hours.
Warm Regards,
The GetSure Team
Article Sources
- Mutual Of Omaha. Whole Life Insurance
- Foresters Financial. Whole Life Insurance Solutions
- AAA Life. Whole Life Insurance
- Gerber Life Insurance. Guaranteed Life Insurance Plan
- Colonial Penn. Guaranteed Acceptance Life Insurance
