Preneed insurance is a small whole life insurance policy that you purchase through a funeral home to prepay your final expenses. Unlike a standard life insurance death benefit, which goes to your survivors when you die, a preneed insurance payout goes to the funeral home you’ve selected.
People often buy preneed insurance because they’re worried about burdening their loved ones with funeral costs. The median cost of a funeral with a viewing and burial was $8,300 in 2023, according to the National Funeral Directors Association
. Some typical expenses that preneed insurance covers include:
Funeral home costs.
Embalming, preparing and transporting the body.
Casket or urn.
Death certificate fees.
How much does preneed insurance cost?
Preneed insurance allows you to lock in today’s rates for a funeral and burial and pay for these expenses in monthly installments. Plus, it’s usually easier to qualify for than a standard life insurance policy. However, you’ll often pay higher premiums for less coverage than you would for life insurance. You could even wind up paying more in premiums than the funeral actually costs
Washington State Office of the Insurance Commissioner. Funeral Insurance. Accessed Apr 9, 2024.
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Not all prepaid funeral plans fall under the preneed insurance umbrella. Some funeral homes offer the option of paying expenses in an upfront lump sum. When funeral costs are paid with a single premium, the funds are deposited in a trust account rather than being used to buy a life insurance policy.
The cost of preneed insurance will vary based on your age, where you live and what type of final arrangements you want. Typically, premiums cost between $125 to $300 per month and are paid over three to 10 years.
If you’re considering preneed insurance, read the details of the contract carefully. Some services may be guaranteed, which means the funeral home will cover the expense regardless of how much it costs when you die. Other services are nonguaranteed, which means your loved ones may have to cover the difference between the cost of the service and what your plan covers.
Alternatives to preneed insurance
If you’re considering preneed insurance, there are a few alternatives you should be aware of. Final expense insurance, also known as burial insurance, is designed to cover your funeral and other end-of-life expenses, but nothing else. The death benefit is often higher than you’d get through a preneed policy, and it goes to your survivors instead of the funeral home.
If you have enough money to cover funeral expenses, you could also set up a savings account with a payable on death designation and make a loved one the beneficiary. The money will automatically transfer to the person you designate when you die, and they can use that money for your final expenses.
Learn more about life insurance for final expenses
Insurance is not the sexiest topic when it comes to, well, anything.
The truth is insurance is there to protect us from an event that our finances are not able to handle.
While planning for bad news is not something any of us enjoys, having proper policies in place is a necessary part of protecting our families and our finances.
Instead of being afraid to think about the future we need to empower ourselves by planning for worst case scenarios. To help you get the best information available I have put together guides for several types of insurance that are offered by top rated insurance companies.
Life
The sudden loss of a loved one can be devastating to a family. What can compound that loss is losing the income that person has been providing and having no plan in place to replace that income. With proper life insurance you can make sure that you and your loved ones are financially prepared for a worst case scenario.
A good life insurance policy is a key to any financial plan so learn more about your options and the importance of life insurance.
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Auto
Every state require you to purchase auto insurance. The problem people run into is that we don’t exactly know how much insurance is enough or what type of policy to get. With each state having different rules and a jumble terms like deductibles, premiums, uninsured drivers, collision, comprehensive, etc. it is difficult to know exactly what you need in a policy.
Get a better grasp on all the details of a car insurance policy and get detailed information about the coverage need for your specific state from our guide for auto insurance.
Homeowner’s
If you buy a house, you’ll likely want (need) homeowner’s insurance. Especially if you buy a home by using a mortgage, the lender will want you to have coverage to protect the investment.
As with several other types of insurance, you’ll need to understand exactly how much you’ll need, what type of policy you might require, and the different nuances with deductibles, maximums, and more.
Medicare
Seniors and those on disability have great difficulty in getting a health insurance policy. Because of this the government set up Medicare as a means of providing coverage to these individuals. What is frustrating is that Medicare is not complete coverage and the terminology is difficult to understand.
Between parts, plans, and advantage coverage most seniors get very frustrated with navigation the Medicare landscape. To help you with getting through the tough transition I put together a guide to Medicare.
Health
With the passage of the Affordable Care Act, health insurance has gotten even more difficult to understand. The good news is that the basic principles are still the same. The bad news is that how we pay for health insurance has gotten more complicated. Whether you have an employer plan or are purchasing your policy as an individual you can get a better grasp on your options for health insurance.
Disability
There was a time when I didn’t think disability was worth the cost, but the statistics for being out of work for an extended period of time are eye-opening and will quickly push you to get this type of coverage. As with all types of insurance you need to learn the terminology before you can make the best decision for your needs. See our detailed guide to disability insurance.
Burial
Burial or final expense insurance is designed specifically to take care of the expenses of your funeral and any expenses that may pop-up as a result of your untimely death. Because it can be purchased in various different ways it is slightly different than Life Insurance. Get a better grasp in our guide for burial insurance.
Business
If you own a business, you know you have a lot at stake, especially if you’re the owner and/or key operator. If something were to happen where your business would be dropped into a legal battle, would you be prepared financially?
This is why business insurance is so important; mistakes can happen, but a business insurance policy can help you alleviate the worries of having to close your business down because of an at-fault hazard, or otherwise. It’s a safe investment for your business, and your future income.
Other Types
Surprisingly, all of those kinds of insurance above aren’t all! There are even more.
Some of these policies might be new to you. You might be surprised to see you’re missing some coverage.
Travel
If you’ve got the travel bug, you might consider putting some cash into travel insurance. Travel insurance can cover A LOT of unexpected costs, like medical bills while you’re traveling, lost luggage, delayed luggage, travel delay costs, and much more.
If you want to see the world, you should see a travel insurance agent first.
Compare Travel Insurance Quotes
Pet
Pets are a part of our family, why shouldn’t they be insured like one of them? Think of pet insurance as a health insurance policy for your furry friend (don’t worry, they aren’t expensive as a health insurance plan).
LTC
Around 70 percent of people over the age of 65 are going to need some long-term care. That specialized assistance can be expensive. This is where long-term care insurance policies bring value. If you or someone you love needs in-home assistance or has to go to a nursing home, you won’t be responsible for paying all those bills yourself.
Renters
Renters insurance is an affordable way to protect all of your belongings from theft or natural disasters. Because renters insurance doesn’t have to cover the physical building itself, it’s much more affordable than homeowners insurance. That’s another benefit of renting instead of owning.
Umbrella
No, this policy doesn’t give you insurance ON your umbrella. Umbrella insurance is designed to fill in the gaps and give additional coverage beyond your standard policies. These plans protect you against major lawsuits and give you additional liability.
Boat
Just imagine hitting the water on your boat. Wind running through your hair and enjoying the sun. What happens if something happens to your boat and you’re stuck on shore? Don’t get sunk paying for those repair bills yourself.
RV
There are few things better than hitting the open road. More and more people are selling their homes and packing everything into an RV. If you’re one of them (or you just like to see the country in your RV), you need to get the same protection you give your home. Your RV is your home on wheels.
Motorcycle
Just because motorcycles have two fewer wheels doesn’t mean they need any less coverage. Motorcycles give you freedom and adrenaline you won’t get with a minivan. If you’re in an accident, don’t get stuck riding around on four wheels. Motorcycle insurance can get you back on that bike.
Transamerica is considered to be one of the world’s leading insurance and financial services companies. The firm offers insurance and investments to more than 19 million customers worldwide.
As Transamerica’s slogan suggests, the company – and its customers – are “Tomorrow Makers.” This is because the company strives to make its customers’ tomorrows everything that they plan for.
Who is Transamerica?
Table of Contents
Transamerica is a financial services company that provides insurance, investment, and retirement products and services.
It was founded in 1904 and is headquartered in Baltimore, Maryland. Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company based in The Hague, Netherlands.
The History of Transamerica
The company has been in the business of providing insurance and financial advice for more than 100 years and it began its operation in 1904 when Amadeo Giannini started the Bank of Italy in a converted saloon in San Francisco, California.
He strived to make financial services available to everyone of all financial classes, not just the wealthy. His business really ramped up following the 1906 San Francisco earthquake when he was able to provide loans to residents for rebuilding their properties.
Several years later, in 1928, the company merged with Bank of America, and two years after that, it acquired Occidental Life Insurance via Transamerica Corporation. In 1956, the banking and life insurance companies were separated, with the insurance component maintaining the Transamerica name. Today, customers of Transamerica have access to a wide variety of insurance and financial products and services.
The firm is licensed to provide insurance in all U.S. states, and the District of Columbia, and it has approximately $223 billion of premiums in force. Transamerica has a roughly $29.5 billion in assets under management.
Products Offered By Transamerica
Transamerica offers a variety of products to both consumers and businesses.
On the insurance side, the company provides numerous options, including the following types of coverage:
Term Life
Term life insurance offers pure death benefit protection for a specific period of time.
This is typically 10 years, 15 years, 20 years, or 30 years. Should the insured pass away during the time that a term life policy is in force, the named beneficiary will receive the stated amount of death benefit.
Because term policies do not offer any type of cash value or savings component, the premiums for this type of coverage are typically more affordable than other, “permanent,” forms of coverage.
For example, you can get a $1 million term policy for less than 20% of a permanent policy with the same face value. Term life is sometimes referred to as “temporary” life insurance coverage as it is often used for covering temporary needs such as the balance of a mortgage.
Whole Life
Whole life insurance offers death benefit protection as well as cash value build up.
The funds that are inside of the cash value grow on a tax-deferred basis, meaning that no tax is due until the time of withdrawal. The cash grows at a guaranteed rate over time.
Whole life is considered permanent coverage because as long as the premium is paid, coverage remains in force – oftentimes for the “whole” of a person’s life.
Universal Life
Universal offers a death benefit protection as well as a cash value build up. However, it provides more flexibility than whole life in that the policyholder can choose to pay higher or lower premium amounts as their financial needs change over time.
The policy value may simply increase or decrease accordingly. Like with whole policies, the cash value is allowed to grow on a tax-deferred basis.
Variable Universal Life
Variable life, provides death benefit protection and cash value.
With variable universal life, however, the cash value’s return is based on underlying investments in market-related “subaccounts.” These can allow the funds in the account to grow a great deal – provided that the market moves upward. These accounts can also be riskier in a downward moving market.
Accidental Death
This can help to ensure that their loved ones will be taken care of should the unthinkable occur. (It is important to note that this benefit will not typically pay out in the event of death that is caused by sickness or other natural causes).
Final Expense
Final expense coverage focuses on paying for a person’s funeral and related expenses.
Today, the cost of a funeral – including the burial plot, headstone, and other related expenses – can exceed $10,000. Unfortunately, many families are not able to pay these costs immediately upon the death of a loved one.
Having final expense insurance allows for a way to do that – eliminating stress on loved ones, in an already stressful and emotional time.
Key Man Life
What is key man life insurance you ask?
Key person insurance is a form of business insurance that people can overlook, but one that can make all the difference in keeping a business or firm successful in the face of losing an owner, or important team member.
In addition to life insurance, Transamerica also offers a number of other financial products, including long-term care insurance, annuities, and retirement/investment savings options for those who are planning for retirement, as well as those who are already there.
Financial Strength Ratings of Transamerica
Transamerica has been given very good ratings by the insurer rating agencies.
These ratings include the following:
A.M. Best
Moody’s Investor Services
Fitch
Standard & Poor’s
A+
A1
AA-
AA-
Is Transamerica a Legit Company?
Yes, Transamerica is a legitimate company. It is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company. Aegon is rated highly by financial rating agencies such as Standard & Poor’s, Moody’s, and Fitch Ratings.
Transamerica has been providing insurance, investment, and retirement products and services since 1904 and is regulated by state and federal government agencies.
Biggest Risks Choosing Transamerica for a Life Insurance Policy?
Choosing a life insurance policy, including one from Transamerica, comes with certain risks. Some of the biggest risks to consider include policy lapse, which occurs when you fail to pay the premium on time and could result in losing coverage.
Another risk is market risk, which refers to the performance of any investments within the policy, such as a cash value component, that can be subject to market fluctuations and result in losses.
Misrepresentation is another risk to consider, as providing incorrect information on your life insurance application could result in your policy being denied or not paying out as expected in the event of a claim.
Lastly, it’s important to make sure the life insurance policy you choose is appropriate for your needs and financial situation, as Transamerica offers a range of policies.
Advantages and Considerations
When seeking life insurance, it is important that the insurer is able to offer choice and flexibility – especially such that it meets with your specific needs. Many have the misconception that they cannot find a policy for them because of their lifestyle choices, such as one looking for life insurance for a smoker, there are options out there for you and I can help with finding the best for your needs.
Transamerica provides an extremely flexible and diverse product line up, including:
Term
Whole
Universal
Variable
Final Expense
Accidental Death
This, coupled with the company’s excellent customer support team can make for a nice mix – especially for customers who may need assistance in figuring out the details in terms of how much to purchase and what type of coverage may be best for their specific needs.
In addition, Transamerica’s policies also come with a nice assortment of riders – which can make their plans even more customizable. For example, the firm offers an estate protection rider that can help in protecting loved ones from estate tax obligations that may arise from the payment of the policy’s own death benefit.
The company’s website provides additional information on both policies and policy riders so that interested potential applicants can obtain more information on how these may work in their specific scenario.
Yet, even with all of the good, there are some considerations that should be taken into account when searching for coverage – especially when doing so through just one single insurer. This is especially the case if you have certain health issues, such as searching for best life insurance rates for smokers and/or you possess other factors that may deem you as being a higher risk applicant. This may lead you to need to look into a company that offers no medical exam life insurance policies.
In these cases – or in any case – it is always good to do some comparison shopping. Otherwise, you are essentially “locked in” to whatever price the insurer presents you with. This can be somewhat similar to only going to one car dealer or one computer dealer when shopping for these items, and never even checking prices elsewhere before moving forward with your ultimate purchase. With this in mind, regardless of how good the product, it always makes good sense to shop around first.
How and Where to Get the Best Life Insurance Coverage for Your Needs
When you’re in the process of searching for the best life insurance coverage – regardless of your current health condition or status – it is important that you compare the type of policies that are available to you, as well as the premium cost from different carriers.
This is because there could be a significant variation between one insurer and another – even for the very same type and amount of coverage.
Transamerica is a financial services company that provides insurance, investment, and retirement products and services. It has a long history, having been established in 1904, and is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company.
One of the strengths of Transamerica is its broad range of products and services, which includes life insurance, annuities, mutual funds, and retirement plans. This allows customers to choose from a variety of options to meet their financial goals and needs. The company has a strong online presence, offering convenient access to account information and resources, as well as easy policy management and premium payment options.
Cost and Fees
Customer Service
User Experience
Overall
3.8
Pros
Wide range of life insurance products: Transamerica offers a variety of life insurance products, including term life, whole life, and universal life insurance, which allows customers to choose the policy that best suits their financial goals and needs.
Strong financial stability: Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company, which has a strong financial position as indicated by its highly rated financial standing from credit rating agencies.
Convenient online services: Transamerica provides a convenient online platform for policy management, which includes access to account information, policy details, and premium payment options.
Professional support: Transamerica has a team of trained professionals who can help you understand the policy options and select the one that best suits your needs.
Cons
Potential policy lapse risk: If you fail to pay the premium on time, your life insurance policy may lapse, which can result in the loss of coverage and any accumulated cash value.
Market risk: Depending on the type of policy, there may be investment components within the policy that are subject to market risk, meaning that the policy’s value can decrease in value.
Complexity: Some of Transamerica’s life insurance products, such as universal life, can be complex and may require a higher level of understanding and management to ensure that you are making the most of your coverage.
Premium costs: The premium costs of Transamerica’s life insurance policies may be higher compared to other insurance companies, and it’s important to consider your budget when choosing a policy.
The purchase of life insurance coverage is an important part of one’s overall financial planning process. Without it, loved ones, business partners, and / or other survivors can suffer some consequences. Because of that, you need to ensure that you not only have the right amount of life insurance protection, but also the right type.
Also, another key consideration is knowing that you have purchased your life insurance policy from a life insurance company that is strong and stable from a financial standpoint. This means that the insurer is in good financial standing and that it also has a positive reputation for paying its claims to policyholders. One such company that has a long such history is Aetna.
History of Aetna Life Insurance Company
Aetna has been in the business of offering wealth building and insurance protection products to its customers since the mid-1800s. This company began as Aetna Insurance Company as an annuity fund, with the purpose of selling life insurance back in 1850. It’s name was inspired by a large volcano – which is the most active in all of Europe.
Throughout the years, Aetna continued to grow and prosper – even during times of economic downturn. For example, at the time of the U.S. Civil War, there was a surge in the purchases of life insurance protection.
By the year 1865, the company’s annual income topped $1 million, and by 1864, Aetna had increased its business by 600% over its levels in 1861. Over time, the company moved into some new products – including mortgages, health insurance, disability coverage, and liability insurance coverage. It was also one of the very first insurance carriers to offer group insurance for businesses.
During World War l, Aetna also helped to fund the U.S. war effort by buying and selling millions of dollars of Liberty Bonds. The company has also participated in many “firsts,” such as being the first insurance company to advertise on television – which eventually morphed into its “Aetna, I’m Glad I Met Ya! Advertising campaign. The company also was the first to sell an employer group long-term care insurance plan, as well as the first full-service health insurer to announce a health savings account (HSA) option.
Throughout the years, the company continued its level of expansion, not just in the U.S., but also worldwide. In 1993, Aetna opened its first offices in China. It also expanded into financial services, combining its business units into Aetna Retirement Services in 1996.
Today, approximately 46 million people rely on Aetna for decisions on their health care and their health care spending. The company also continues to provide life insurance, health care insurance, and a broad range of other insurance and related financial products. Aetna is considered to be the fifth largest insurance company in the U.S., and it is headquartered in Hartford, Connecticut.
Reviewing Aetna Life Insurance Company
Aetna has been recognized for many years as an admired company in the life and health insurance industry. It has also been recognized as one of America’s most community-minded companies. The company currently employs roughly 49,500 people across the globe. In 2015, Aetna’s revenue was approximately $60.3 billion overall.
The company is known for its values, and it strives to promote this through its employees and its community involvement. Aetna promotes Integrity, Excellence, Caring, and Inspiration by listening to its customers, and acting with insight and compassion.
Aetna’s Ratings and Better Business Bureau Grade
Aetna is considered to be a strong and stable insurer from a financial standpoint. This is shown through the ratings that it has been given by the insurer ratings agencies. These include an A from A.M. Best and an AA- from Standard & Poor’s.
Although Aetna is not an accredited company through the Better Business Bureau (BBB), the company does have a grade of A (on an overall grade scale of A to F) from this entity. Also, over the past three years, Aetna has closed 567 total complaints through the Better Business Bureau.
Of these 567 total complaints, 340 of them have focused on problems with the company’s products and / or services, 191 have centered on issues with billing and / or collections, 18 had to do with advertising and / or sales issues, 15 centered on delivery issues, and 3 focused on guarantee / warranty issues.
Life Insurance Products Offered Through Aetna
Life insurance coverage through Aetna is available via employer-sponsored plans, and it is not available for individual sale. However, supplemental life insurance may be able to be purchased. This can help to boost the benefits that are available to loved ones and survivors in case of the unexpected. These plans include both basic life insurance coverage and supplemental life insurance.
Plan options include:
Accelerated Death Benefit – If, while covered under a program of life insurance, a person becomes terminally ill, they may request this plan so that additional benefits are paid out to loved ones.
Accidental Death and Personal Loss – This type of coverage offers benefits if an insured is injured in an accident or if they die due to injuries that are sustained. The amount of the benefit is determined by some criteria, which include the coverage amount, as well as the type of injury that is suffered.
Plans may include some or all of the following provisions:
Conversion – When an insured stops working and / or is no longer in an eligible insured class, or they are retired, then there may be an option to convert over to an individual plan from a group life insurance plan.
Premium Waiver – If a plan has a premium waiver, then coverage may be able to continue without the insured having to make any more premium payments.
Portability – This feature allows an individual to take their coverage with them when they leave their employer.
Child Care Benefit – This benefit will help in covering the cost that is associated with child care in a state licensed child care center in the event of the parent’s death.
Educational Benefit – This benefit can help to provide a dependent child with payment for higher education when an insured parent’s income has been lost. For spouses, this benefit can help to provide the opportunity for employment training in order to obtain income.
Repatriation of Remains Benefit – If an insured dies while he or she is more than 200 miles away from home, then this benefit will help to pay for the return of the deceased’s body to a mortuary.
Passenger Restraint and Airbag Benefit – If an insured is properly using a restraint device or if an airbag has been activated – but neither helps to save the person’s life – then this benefit will supplement the accidental death benefit amount.
Coma Benefit – If the insured or a dependent remains in a coma for more than 30 days after an accident has occurred, then they may be paid a percentage of their AD&PL benefit each month. This can occur for a pre-determined number of months.
Other Coverage Offered Through Aetna Insurance Company
Aetna offers a number of products in addition to life insurance. Just some of these include the following:
Where to Find the Best Life Insurance Premium Quotes
If you are looking to find the best life insurance premium quotes for a policy or trying to find a final expense insurance policy, then it is a good idea to work with either an agency or a company that has access to more than just one single life insurance carrier. This way, you will be better able to compare policies, benefits, and premiums – and from there, you will be able to determine which of the plans will be the best for you and your specific needs. Working with an agency who offers many quotes is not only a great idea for your purchase of life insurance but for other forms of insurance as well such as auto insurance coverage and health!
When you are ready to move forward with comparing life insurance policies and quotes, we can help. We work with many of the top life insurers in the marketplace, and we can assist you with getting the best quotes. To proceed, fill out the form on the side of this page.
We know that the purchase of life insurance can sometimes seem confusing. There are a lot of different types of policies out there to choose from – and many insurance carriers in the industry. You want to be sure that you are getting the right type and amount of coverage for your needs so that the people you love and care about can move on. Working with an expert can help you to ensure that this can happen. So, contact us today – we’re here to help.
In life, you and your marriage partner may find yourselves facing many troubles and situations. While many of these are easier when together, that is not always going to be the case.
There are times when life is taken from a person quickly, leaving the partner without them. You never know what’s going to happen tomorrow.
You can’t predict the future, but you can prepare for the worst. Nobody wants to think about losing their spouse, but it’s a conversation that you should have
To soften the blow of this, insurance is often used to offer financial stability when the cost of the funeral, hospital stay, and bills are too much to handle alone. The cost of a funeral alone can easily add up to $10,000 or more. This can be a heavy bill to leave behind for your family to pay.
When the surviving partner dies, though, that same insurance might not be enough. For many, a survivorship life insurance policy is the go-to for coverage, security, and stability when it comes to dealing with everything left behind.
Common Use for Survivorship Life Insurance Policies
Most insurance policies work by providing money to a specific person after the one who was insured passes. This helps to ease the financial burden left behind by a death, which includes several expenses and more stressful bills that are without that extra paycheck.
With survivorship life insurance, though, two people are covered to pay for the costs associated with an estate. Unlike your ordinary life insurance, this only pays out when both parties have passed, as the name would suggest. It is mostly to cover the taxes and expenses with an estate so that the heir does not have to pay.
An estate comes with costs that could otherwise ruin its value, or at least drop it dramatically. When passing this to an heir, those costs could cause them to receive far less than promised.
Depending on the situation for which this person is receiving the estate that can be damaging. Not only that, but you would also not be giving the person as much as you had hoped. There is a reason they were chosen to receive your estate, obviously, and not giving them the full amount was probably never your plan. With this, you can ensure that they receive as much of the full amount as possible.
There are thousands of families members that find themselves with drastically less heritage than they assumed they would receive because of unpaid expenses, taxes, fees, and much more. If you want to leave your legacy with your children or loved ones, a survivorship insurance policy will protect your savings and allow your inheritance to reach its full potential.
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Estate Planning with Life Insurance
Having any type of final expense insurance is not difficult.
In fact, it is often easier than your average life insurance because it can be issued as a no medical exam life insurance policy. These policies are exactly what they sound like, you’ll be able to get the insurance coverage that you need, regardless of your health or any pre-existing medical conditions.
This can help you to insure your estate without issue so that whoever is receiving it is not stuck with massive bills that chip away at the overall amount. The ease of getting it also makes it easier on you, obviously. While other types of life insurance have stresses and because you to go through several steps to finally be insured, this makes it easier. When going for this type of insurance, it is possible to get it and get out without becoming stressed, worried, or bothered by what must be done.
With the importance of your estate, it is necessary to ensure it goes to your chosen heir in a complete amount. Having survivorship life insurance is the option to keep your estate at full value and help your heir get it without spending large sums of money.
It’s always best to meet with a trusted estate planning attorney to see if you are in need of a survivorship life insurance policy. There are a lot of different factors that you have to consider when deciding if you need a survivorship life insurance policy or a traditional plan. An estate planning attorney can help walk you through the process and make the best decision for you and your family.
Advantages and Disadvantages of Survivorship Life Insurance
Because there are so many different life insurance options, it’s important to understand the pros and cons of each option. Life insurance is one of the most vital purchases that you can make for you and your family, you should make well informed and educated decisions.
Not having the right type of policy, or not having a policy at all, is one of the worst mistakes that you can make. It could leave your loved ones with a mountain of debt and no way to pay for it. That’s not the inheritance that most people want to leave behind after they pass away.
One of the advantages to these survivorship life insurance policies is the standards that most companies used to issue them. If you go with a plan that uses medical underwriting, it’s going to be very different from a traditional term life insurance policy, because it’s based on the health of two people instead of just one.
This means that even if one person doesn’t have perfect health, you’ll still be able to get coverage as long as the other person is in good health. For anyone with any serious health complications or any pre-existing conditions, this can be extremely beneficial.
Another major advantage to these policies is the monthly premiums. In most cases, a survivorship life insurance policy is going to be cheaper than buying two separate policies for each person. These plans will give you life insurance coverage for less expensive monthly payments.
Just like other life insurance plans, there are disadvantages to these policies. The biggest disadvantage is obvious, you won’t receive any payment for the loss of your spouse.
When the first person dies, the surviving spouse will be left with all of the funeral expenses, medical bills, unpaid debts, and much more, but they won’t receive any funds from the life insurance policy. For a grieving spouse, it can be difficult to pay for all of these expenses.
This is where a traditional policy is an excellent tool. One alternative to the survivorship life insurance is purchasing a traditional term life insurance policy for both you and your spouse. These policies only cover one party instead of two.
In most cases, a term policy is much less expensive than most applicants think. Aside from how affordable they are, it’s also much more beneficial when your spouse dies, it will leave you with the money you need to pay off any debts or pay for any funeral expenses.
Just like with most other policies, you can always go with a no medical exam term life insurance plan. They are easy to apply for, and you can get insurance coverage quickly. In some cases, it can be as quick as a couple of days.
Getting Life Insurance
It’s easy to see why everyone should have a quality life insurance policy, but getting an affordable plan can be a long and stressful process. There are hundreds of companies that offer dozens of different insurance products.
Shopping for life insurance is not the way that you want to spend an evening. I know that nobody wants to sit around and think about his or her death, but you can’t avoid it. Not planning for your passing is one of the worst things that you can do for your loved ones.
When you start looking for the perfect life insurance plan, you can easily feel like you’re drowning in all of the options. There are hundreds of companies that you can choose from and several different types of life insurance policies.
Every insurance company is different. You’ll get different rates, benefits, and policy options depending on the company, and you could spend weeks trying to find the best policy. Luckily, I’ve done some of the dirty work for you. I’ve reviewed dozens of companies and outlined all of the advantages and disadvantages of the companies and the plans that they offer.
This post is going to look at Conseco.com and help you decide if they are the best fit for you and your life insurance needs.
The History of Conseco.com Life Insurance Company
CNO Financial Group was initially incorporated in 1979, and the company started its operations just a few years later in 1982. In 1985, the company went public and changed its name to Conseco, and then, in 2010, the company again changed its name to CNO Financial Group, Inc.
Since its initial inception, Conseco / CNO has grown and expanded considerably, and the company has several insurance and financial related subsidiaries that develop, market, and administer health insurance, life insurance, annuities, and other insurance products. These subsidiaries include the following:
Bankers Life and Casualty Company
Colonial Penn Life Insurance Company
Washington National Insurance Company
Today the company serves more than 4 million customers, who are primarily considered to be in “middle income working America.” The headquarters of CNO / Conseco is in Carmel, Indiana.
CNO Financial is ranked as one of the ten largest public companies in the state of Indiana. It currently possesses a market capitalization of approximately $3.5 billion. As of year-end 2016, CNO had roughly $4 billion in revenue and $263 million in operating income.
Over the past four years, CNO has had a total shareholder return of more than 115% – which makes it incredibly strong financially. Given its strong capital position, CNO Financial can withstand both up and down markets.
Conseco / CNO Financial, as well as its subsidiary companies, have earned numerous awards and accolades over the years, such as:
Ranking second in the 2016 Healthiest 100 Workplaces in America due to its vision, leadership, and comprehensive wellness policies
Received Well-Being Top Honors for its ongoing commitment to promoting a healthy work environment and encouraging its workers to live more healthy lives
Received the highest level of recognition by the American Heart Association for being a Fit-Friendly Company
Bankers Life named as one of the U.S. top 50 performing life-health insurance companies in the 2013 Ward’s 50 – an honor that is typically bestowed to only 50 of the 800 life-health insurers that are analyzed.
Colonial Penn won the Pega 2012 Customer Experience Award
Insurer Ratings and Better Business Bureau Grade
Because of its strong and stable financial foundation, Conseco / CNO Financial and its subsidiaries have earned very high ratings from the insurer rating agencies. These include the following:
Subsidiary Claims-Paying / Financial Strength
A.M. Best
Standard & Poor’s
Fitch
Moody’s
Bankers Conseco Life Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Bankers Life and Casualty Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Colonial Penn Life Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Washington National Insurance Company
A- (Stable)
BBB+ (Stable)
BBB+ (Stable)
Baa1 (Stable)
Also, the subsidiaries of CNO Financial / Conseco also have been given top grades from the Better Business Bureau (BBB). For example, Bankers Life has been an accredited company through the Better Business Bureau since August 1, 2013, and the BBB has provided this company with a grade of A+ (which is on an overall grade scale of A+ to F).
Over the past three years, Bankers Life has closed out a total of 112 customer complaints (of which 39 have been closed within the previous 12 months). Of the 112 total, 73 were regarding problems with the company’s product and service. 15 had to do with delivery issues, 12 were concerning billing and collection issues, 11 were related to advertising and sales issues, and one had to do with the company’s guarantee issues.
Colonial Penn Life Insurance Company has an A- rating from the Better Business Bureau. Within the past 36 months, this CNO Financial subsidiary has closed out a total of five customer complaints. Four of these complaints dealt with problems with the products and services, and the other one was regarding billing/collection issues.
The subsidiaries of CNO Financial (Conseco) offer a wide variety of life insurance coverage. For example, Bankers Life Insurance Company offers both term and permanent life insurance products. With term life, insureds can choose a pre-determined number of years of coverage, such as 5, 10, or 20. The premiums on these policies will remain level throughout the life of the policy.
Bankers Life also offers both whole life and universal life insurance coverage in its permanent life coverage category. With whole life, the premiums will stay level and will never go up (if they are paid on time). The universal life insurance coverage that is offered by Bankers provides more flexibility regarding premium payment and amount. Both policy categories offer guaranteed cash value in the policies. And, this money may be borrowed or withdrawn by the policy holder for any need that he or she sees fit.
Colonial Penn Life Insurance Company has been offering life insurance coverage for more than 50 years. This Conseco / CNO subsidiary provides both term and permanent protection, too. And, with the company’s guaranteed acceptance life insurance, an applicant is guaranteed to be approved for coverage – and there are no medical exams or health questions required for approval. With these permanent life insurance policies, the premium rate will be locked in, and the plan will start to build up cash value after the first year.
The life insurance plans that can be purchased through Colonial Penn offer coverage of up to $50,000 (for both term and whole life coverage). And, individuals may apply for either a term or a whole life policy up to age 75.
Likewise, Washington Mutual Insurance Company also provides an extensive list of life insurance coverage options to choose from. These also include both term and permanent coverage options.
The term policies from Washington Nation can provide coverage for just a few years, or for many years. The monthly premiums will remain level throughout the life of the policy.
Regarding permanent life insurance coverage, Washington Mutual offers both whole life and indexed universal life insurance plans. Whole life policies offer a choice of having a level benefit (where the policy pays out the face amount and any rider benefits to a named beneficiary upon the insured’s death), or a graded benefit (where the policy will pay out a reduced amount of benefit if the insured’s death occurs for reasons other than an accident within the first two policy years).
With an indexed universal life insurance policy through Washington Mutual, there is a death benefit, as well as a cash value component. The growth of the cash inside the policy will have a return that is based on the performance of an underlying market index (such as the S&P 500). If the index performs well, the policy holder can obtain an excellent return for that period. However, if the underlying index performs poorly in a given year, the return will just be credited as a 0% for that time – which essentially allows the protection of the policy holder’s principal).
The indexed universal life policies at Washington Mutual Insurance Company may also allow the insured to access “living benefits” in certain situations. This means that he or she could access the policy’s death benefit proceeds, while still alive, for expenses that are related to a terminal illness diagnosis and confinement in a nursing home.
Burial Insurance
Even if you have all your finances in order, there may still be one area that has been left out – and because of that, it could leave those you care about vulnerable to future financial hardship. That is the payment of final expenses.
Today, the average cost of a funeral is between $8,500 and $10,000. This is especially true when you factor in the price of a memorial services, flowers, and transportation, along with other items such as a burial plot and headstone.
Rather than having your loved ones dip into their savings, or worse, put these expenses on credit when the time comes, you could provide them with the financial gift of a burial insurance policy.
Burial insurance is a type of life insurance that is specifically designed for paying one’s final expenses. Also, often referred to as funeral insurance or final expense insurance, these plans will typically have a benefit amount of between $5,000 and $25,000.
In some cases, an insured will add an amount of coverage so that other unanticipated expenses may also be covered, such as hospice care and end of life hospitalization that is not included in a regular medical insurance policy.
When you are seeking the best burial insurance policy for your needs, several factors should be considered. These include the type and amount of coverage, as well as the insurance carrier that you plan to purchase the coverage through. In this case, you will ideally want the company to be secure and stable financially, and to have a good reputation for paying out its policy holders’ claims. One insurer that meets these criteria is Conseco.
Other Products and Services Offered
In addition to life insurance protection, the Conseco / CNO Financial subsidiary companies also offer additional financial and insurance related products. These include the following:
Bankers Life
Medicare Supplement Insurance (the company offers several of the ten Medicare Supplement insurance plans)
Retirement Annuities (these products can provide a way to save money in a tax deferred fashion, and they can also provide a guaranteed lifetime income stream in the future)
Long Term Care Insurance (most long-term care insurance policies will pay out benefits if the insured is receiving qualified care in a facility or their own home)
Washington National Insurance Company
Washington National Insurance Company also offers a variety of different products. These include:
Health Insurance
Workplace Benefits (including term and universal life insurance, hospitalization and ICU coverage, cancer and critical illness insurance, and accident and disability coverage
How to Get the Best Premium Rate on Life Insurance Coverage
If you are seeking the best premium rate on life insurance coverage through the subsidiary companies of Conseco / CNO Financial – or from any insurance carrier – it is recommended that you work with an independent life insurance agency or brokerage. That way, you will be more easily able to compare numerous policy options side-by-side in an unbiased manner. You will then be able to determine which of the policies – and the premium prices – work the best for you, and for your budget.
When you are ready to start comparing the best life insurance coverage for your needs, we can help. We are an independent life insurance broker, and we work with many of the top life insurance providers in the market place today. We can assist you with getting all of the information that you need for making a well-informed buying decision. And, you won’t have to meet in person with a life insurance agent. If you are ready to begin the process, then just simply fill out our short quote form.
We understand how overwhelming it may seem when you are looking for the right life insurance protection. There are many different variables to consider – and you want to make sure that you are choosing the right policy – and the right insurance company – for your specific needs.
But the good news is that you don’t have to go through this process alone. Working with an expert can put you back in control. So, contact us today – we’re here to help.
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