it seemed natural to transition into Senior Benefits Consulting. I am honored to have the opportunity to help seniors understand benefits that provide affordable peace of mind.
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American Amicable Final Expense and Burial Insurance
Since so many life insurance companies are competing in the Final Expense Life Insurance marketplace, shopping for this product can easily seem like a chore.
Certainly, competition is a good thing because the more companies competing in the marketplace, the more seniors can benefit from lower insurance rates.
Most seniors we speak with have a sincere concern that their surviving loved ones are not burdened with the cost of final expenses like funeral and burial costs.
For this reason, we’d like to make the shopping process easier by providing information and rates from each insurer we represent.
Keep reading to learn more about final expense and burial insurance from American Amicable Life Insurance Company.
About the American Amicable Life Insurance Company of Texas
With roots that were established a hundred and ten years ago, American Amicable has established a solid reputation in the final expense and burial insurance marketplace.
The company consistently continues to grow its customer base and maintain a solid financial outlook.
American Amicable Life Insurance Company of Texas is an integral part of American Amicable group which became an important part of Industrial Alliance Insurance and Financial Services in 2010.
The company has anchored itself via financial integrity, forward-thinking and responsible management, and a solid commitment to all of the company’s policyholders.
Financial Ratings of American Amicable Life Insurance Company
It’s essential that insurance shoppers pay close attention to an insurers financial stability and make certain the company they select demonstrates the ability to pay claims now and decades in the future.
Certainly, affordable life insurance rates are a priority, but since a life insurance policy is simply a promise to pay a benefit in exchange for a premium, that promise must hold fast for decades after a policy is purchased.
American Amicable demonstrates its ability to pay claims while earning an “A” (Excellent) rating from A.M. Best one of the leading national rating services.
The “A” rating is the third-highest rating out of 15 categories and signals that the company’s leadership can deliver not only on financial strength but also on operating performance and the ability to meet its financial obligations to policyholders.
Final Expense and Burial Insurance from American Amicable
American Amicable offers whole life insurance that is specifically intended to pay the inevitable final expenses that every senior leaves behind when they pass away.
These expenses typically include funeral and burial costs, unpaid medical bills, and nursing home and long-term care expenses that health insurance doesn’t 100% cover.
The cost of funeral and burial services, like other essential services, continues to increase. Currently, the average cost of a funeral and burial service starts at about $8,000 and can go up dramatically if the arrangements include more than the basic services.
Most seniors prefer to use whole life insurance for final expense coverage because the coverage lasts for a lifetime and delivers three very important guarantees in every policy:
- The policy cannot be canceled by the insurance company for any reason other than non-payment.
- Once issued, the policy premiums can never be increased by the company; even if the insured becomes terminally ill and forced to live in a nursing home or long-term care facility.
- The policy builds cash value over time that earns tax-deferred interest and can be accessed via policy loans or withdrawals for any reason.
Easy Underwriting for Seniors
Probably the top reason while many seniors choose American Amicable for final expense insurance (besides their competitive rates) is the simple underwriting process which eliminates the need for a medical exam.
- Health questions on the application
- Review your RX (prescription drug) history via a national database
- Will compare height versus weight according to standards
- Check with the Medical Information Bureau for data from other insurance companies
Since American Amicable’s final expense product is targeted at seniors, it makes sense that the underwriting process is simple and that the guidelines are fairly liberal.
Finally, the underwriting process is simplified via a telephone interview with your agent and underwriter which speeds up the process of getting a policy issued in a matter of days rather than weeks.
Final Expense and Burial Insurance Plans from American Amicable
American Amicable, like other insurers that offer final expense plans, provides three different plans so that even seniors with certain health conditions can qualify for affordable final expense life insurance:
Immediate Benefit
The Immediate Benefit plan is for seniors in good health and will answer no to the “knockout” questions on the insurance application.
This plan offers coverage amounts starting at $2,500 up to a maximum limit of $30,000.
The coverage begins the moment the policy is issued and there is no waiting period.
Additionally, the underwriting guidelines are pretty liberal, which is evidenced by the company accepting many health conditions that most seniors live with every day:
- High Blood pressure
- Mental health issues
- Cholesterol Issues
- Diabetes
- Arthritis
- Blood Thinners
The Immediate Benefit plan offers the lowest rates of the three plans offered.
Graded Benefit Plan
The Graded Benefit Plan was designed to provide coverage for those seniors who would not medically qualify for the Immediate Benefit Plan.
Since the insurance company is accepting higher medical risk, the provides a limited payout of benefits during the first two years.
If death occurs during the first year, the company will payout 30% of the full death benefit to the beneficiary or beneficiaries listed in the policy.
If death occurs during the second year, the company will out 70%. After the two-year waiting period has expired, the company would then pay the full death benefit.
Return of Premium Plan
The Return of Premium Plan (ROP) was designed for applicants who cannot medically qualify for the Graded or Immediate plans.
This plan is similar to “guaranteed issue” plans offered by other insurance companies.
With the ROP plan, if the insured, who is less than 65 years old dies from natural causes during the first three years, the company would pay a death benefit equal to 110% of the premiums paid to the company.
If you are 65 or older when you purchase the policy, the ROP of 110% is limited to the first two years of the policy.
However, if the insured’s death is the result of an accident, the full death benefit would be paid from the first day of coverage.
American Amicable Final Expense Insurance Rates
To determine how competitive American Amicable is with other insurers that offer final expense insurance, please see the chart below.
These are actual rates for a $15,000 final expense policy for a healthy male and female non-smoker.
Age of Applicant Male Non-Smoker Female Non-Smoker
50 $55.57 $44.35
55 $58.73 $49.21
60 $69.26 $56.07
65 $88.29 $69.26
70 $116.86 $89.25
75 $160.70 $121.27
80 $232.41 $169.20
85 $330.65 $247.71
The Bottom Line
Although American Amicable is not always the cheapest final expense policy out there, the company ratings are impressive and the claims and customer service are in the top five of the insurance companies we represent.