If you are considering a Lincoln Heritage Funeral Advantage final expense insurance policy, this review will provide detailed answers to all your questions. Before purchasing any form of insurance, it’s best to do your research by looking into what a policy offers you, how it works, and how much it costs.
Final expense policies are meant to cover the costs of burial or cremation.
While this may not seem like something a person would need insurance for, the rising costs of funerals are not something you want to leave behind for your loved ones.
Is Lincoln Heritage a Good Company?
A.M. Best gives Lincoln Heritage a rating of A-. Don’t let the minus sign mislead you, however, because this rating is actually very high. The company also has an A+ rating with the BBB.
Founded in 1963, Lincoln Heritage is now, thanks to aggressive television advertising, the country’s leading final expense insurance company.
Lincoln Heritage Funeral Advantage
Funeral Advantage is the only life insurance policy that Lincoln Heritage offers.
Essentially, the program is a whole life insurance policy that caters to a limited set of funeral costs.
The policy offers coverage of up to $20,000 and has a cash value that increases over time.
During emergencies, you have the option of borrowing against this value. You can also do so to cover your premium payments.
Included Funeral Consumer Guardian Society Membership
It also comes with a membership to the FCGS (Funeral Consumer Guardian Society) who will gather all your funeral preferences and assist your family with funeral arrangements following your death.
Though the FCGS membership is not part of the company’s life insurance coverage, each Funeral Advantage policy comes with it.
However, you still have the option of making your funeral arrangements yourself.
Communicate your wishes early and finalize all the necessary arrangements with a funeral home in your local area.
Policy Riders
Lincoln Heritage also offers you several life insurance riders and add-ons meant to provide you with additional benefits both before and after your death.
These riders will, naturally, increase the premiums you pay.
Some of the add-ons include:
- Medical bill reduction plans
- Auto expense protection
- Child rider, which provides your children with insurance coverage
- Health care system assistance
- Vision, pharmacy, and dental discount plans
- Identity theft protection
- Dismemberment and accidental death coverage
One of the company’s most promoted add-ons is the dismemberment and accidental death coverage, which offers your beneficiaries additional death benefits of up to $100,000.
You can purchase this extra coverage per unit, with each unit costing you less than $15 every month. You can only buy a maximum of five units.
The additional benefits are only paid out if your death is determined to have been caused by accident.
On top of that, the rider’s payouts vary depending on the nature of your accidental death.
For instance, if you died from an auto accident, the payout would be $10,000 per unit.
If your accidental death was a result of terrorism or war, then the payout would be $20,000 per unit.
How Lincoln Heritage compares with other insurers
Although we mentioned earlier that a life insurance company’s financial stability is most important, for those of you who are curious about how Lincoln Heritage compares to other insurance companies who offer final expense insurance, we have listed actual life insurance rates below.
$10,000 Life insurance quotes for a Male Non-Smoker in average health:
| Age of Applicant | Lincoln Heritage | Mutual of Omaha |
|---|---|---|
| 50 | $41.10 | $29.16 |
| 55 | $48.30 | $35.09 |
| 60 | $59.20 | $42.76 |
| 65 | $68.00 | $55.76 |
| 70 | $86.40 | $73.70 |
| 75 | $123.50 | $99.53 |
| 80 | $183.20 | $132.65 |
| 85 | $200.90 | $183.15 |
As you can see from the chart above, Mutual of Omaha rates are quite a bit lower than Lincoln Heritage across all ages. The question to consider is whether you want to fork over about $155 each year for the rest of your life to get assistance from the Funeral Consumer Guardian Society.
$10,000 Life insurance rates for a Female Non-Smoker in average health:
| Age of Applicant | Lincoln Heritage | Americo Life |
|---|---|---|
| 50 | $33.00 | $24.56 |
| 55 | $38.50 | $27.73 |
| 60 | $44.80 | $33.93 |
| 65 | $57.40 | $42.80 |
| 70 | $75.30 | $53.43 |
| 75 | 101.1 | $72.93 |
| 80 | $145.00 | $112.77 |
| 85 | $171.50 | $166.32 |
Once again, the comparison between Americo Life and Lincoln Heritage shows that the Funeral Advantage is not the bargain most people are looking for. And remember, many seniors are on fixed incomes so saving $5 or $10 a month on life insurance can be a big deal, especially if you consider the savings over 10 or 15 years.
Lincoln Heritage Funeral Advantage Pros & Cons
Lincoln Heritage Funeral Advantage comes with several benefits and a few disadvantages.
Pros:
- No medical exam—you only have to answer a few health-related questions
- Fast and easy application process
- Death benefits are paid within 24 hours of the company’s approval
- Substantial accidental death coverage of up to $100,000
- Excellent guidance on professional funeral costs and price savings
- Provides professional emotional support for your loved ones
- Strong focus on customer service
Cons:
- Very expensive if you have health issues (up to 300% more than other options as shown above)
- Agents are quite aggressive, especially during the in-person consultations
- Lincoln Heritage may not offer the best possible rates for your final expense insurance policy
- Inferior underwriting compared to some of the other insurance companies
- Should you pass away within the first 24 months of your policy, the company will not pay a death benefit
Very expensive if you have health issues (up to 300% more than other options as shown above) Agents are quite aggressive, especially during the in-person consultations Lincoln Heritage may not offer the best possible rates for your final expense insurance policy Inferior underwriting compared to some of the other insurance companies Should you pass away within the first 24 months of your policy, the company will not pay a death benefit
Eligibility and Application Process
Lincoln Heritage Funeral Advantage is an excellent option for those aged between 40 and 85 years.
It is also a great policy if you are healthy and can qualify for immediate coverage.
Additionally, the company has generous qualifications that make it easy for most people to get the insurance coverage they desire.
Lincoln Heritage accepts even applicants with various conditions, making it an option for senior citizens who cannot qualify for coverage from other life insurance companies.
The Funeral Advantage application process is somewhat simple and does not need you to take a medical exam.
All you have to do is answer some questions regarding your health. The answers you provide, however, must be accurate.
Otherwise, the company could easily deny your beneficiaries a payout.
Depending on the answers you give, you could qualify for either the immediate coverage or the company’s modified plan.
Lincoln Heritage Funeral Advantage Modified Plan
You would be eligible for Lincoln Heritage’s modified plan if, in the past two years, you have been diagnosed with or undergone treatment for:
- Cancer
- Liver, lung, kidney, or heart disease
- Complications related to diabetes such as blindness or amputation
- Coronary artery disease
- ALS, dementia, or Alzheimer’s disease
- Hepatitis A, B, or C
- Stroke or heart attack
- Emphysema
- Cirrhosis
- Cystic fibrosis
- Heart surgery
Like many other final expense insurance policies with limited underwriting, the Funeral Advantage also has a waiting period.
This is because insurance companies want to reduce the risk of someone who is ill purchasing coverage then passing away shortly after.
The waiting period immediately starts after you purchase the company’s policy.
For policyholders who are younger than 50, the waiting period is two years.
For those aged 50 years and above, the waiting period is three years.
Should you pass away before the waiting period is over, your beneficiaries will get a limited payout, which will be equal to the premiums you’ve paid plus 10% to 30% interest.
Is a Lincoln Heritage Funeral Advantage Plan For You?
When we review Lincoln Heritage life insurance products they appear to check all the right boxes until you drill down into their pricing compared with other national final expense life insurance carriers. Even though each policyholder gets assistance from Funeral Consumer Guardian Society, in our opinion their rates simply won’t justify the additional cost of this service when you consider how much money you can save over time using another highly-rated final expense insurance company.
