Choice Mutual's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
They will dangle various “funeral planning benefits” to justify their high premiums.
Don’t buy into their sales pitch.
If you look at the fine print, you will quickly realize that what they’re offering is quite misleading and not worth it.
In this Lincoln Heritage Funeral Advantage review, you’ll learn how their coverage works, including the hidden clauses.
We’ll also compare their prices to other final expense insurance companies and clarify if they actually pay claims in less than 24 hours.
Topics Covered in this article
How Does Funeral Advantage Final Expense Insurance Work?
The Lincoln Heritage Funeral Advantage program is a simplified issue whole life insurance policy primarily meant to pay for funeral costs.
Lincoln Heritage often calls their Funeral Advantage plan burial insurance, funeral insurance, or final expense insurance.
Ultimately, it’s life insurance. The payout will be a cash benefit paid to your beneficiaries or funeral home.
Your loved ones can spend the money with no restrictions.
The application process does not require a medical exam. However, you must answer health questions, and Lincoln Heritage will analyze your past medications to determine your eligibility.
Lincoln Heritage does not offer guaranteed acceptance life insurance.
They have two final expense plan benefits that you can qualify for.
- Level benefit: To qualify for the level death benefit, you must be able to say no to all the health questions in the application. Also, you cannot have any medications meant to treat those health issues. If approved, this plan has no waiting period.
- Modified benefit: The modified benefit will be offered if you say yes to any of the “significant health conditions” questions. On average, this plan typically costs 300% more compared to other final expense life insurance providers. Additionally, this plan has a waiting period of three years for applicants aged 0-49. The waiting period is only two years for applicants 50-85. Lincoln Heritage will only refund 110% of premiums if the policyholder dies during the waiting period.
Lincoln Heritage offers up to $35,000 in coverage.
If you buy $20,000 or less, you only need to speak with one of the Lincoln Heritage insurance agents, who will ask you the health questions.
However, if you buy more than $20,000, they will require you to complete a telephone interview with an underwriter and speak with an agent.
| Coverage Details | Level Benefit | Modified Benefit |
|---|---|---|
| Policy Type | Whole Life Insurance | |
| Policy Duration | Lifetime | |
| Fixed Premiums | Yes | |
| Ages of Availability For New Applicants | 0-85 | |
| Minimum Coverage Amount | $15 Monthly | |
| Maximum Coverage Amount | Age 0-80: $35,000 Age 81-85: $15,000 | $15,000 |
| Available States | All except for New York & Washington | |
| Builds Cash Value | Yes | |
| Medical Exam | No | |
| Can Be Denied For Pre-Exisiting Conditions | Yes | |
| Health Questions | Yes | |
| Prescription History Check | Yes | |
| Waiting Period | No | Age 0-49: 3 Years Age 50-85: 2 Years |
| Subject To The Contestability Clause | Yes | No |
| Optional Riders At Additional Cost | Accidental Death & Dismemberment (AD&D) and Child Life Insurance | |
| Sample Application | Lincoln Heritage Application | |
How Much Does Lincoln Heritage Life Insurance Cost?
At a minimum, you must buy enough coverage that costs at least $15 per month.
Beyond that, your price is determined based on age, gender, tobacco usage, health, and how much coverage you buy.
The primary downfall of a Lincoln Heritage final expense policy is the cost.
Funeral Advantage life insurance coverage is, on average, 20-25% more expensive than other insurance companies.
Furthermore, Lincoln Heritage underwriting is unfavorable to seniors looking for final expense insurance.
If you’re not in the best of health, there’s a high chance that they will offer you their modified plan.
Their modified whole life policy has a 2-3 year waiting period. Also, it’s nearly 300% more expensive than what other carriers would offer you.
The table below compares the lowest monthly price that Lincoln Heritage offers compared to one of its main competitors, Mutual of Omaha.
| Age | Lincoln Heritage Female Non Tobacco $25,000 | Mutual of Omaha Female Non Tobacco $25,000 | Lincoln Heritage Male Non Tobacco $25,000 | Mutual of Omaha Male Non Tobacco $25,000 |
|---|---|---|---|---|
| 45 | $68.00 | $51.71 | $82.50 | $62.97 |
| 50 | $80.25 | $55.96 | $98.25 | $71.89 |
| 55 | $91.75 | $64.46 | $116.25 | $85.06 |
| 60 | $107.50 | $77.36 | $143.50 | $104.60 |
| 65 | $139.00 | $97.72 | $165.50 | $136.39 |
| 70 | $183.75 | $128.29 | $211.50 | $181.72 |
| 75 | $248.25 | $176.22 | $304.25 | $245.13 |
| 80 | $358.00 | $241.28 | $453.50 | $344.52 |
Use this quoting tool to instantly compare Lincoln Heritage’s final expense prices to all other insurance companies in your state.
Is Lincoln Heritage Insurance The Best Burial Insurance?
You should pass on Lincoln Heritage if you need life insurance to cover funeral expenses or any other reason.
The funeral advantage program has three main problems:
- They are unnecessarily expensive. If you’re in great health, expect to pay 20-25% more than other burial insurance companies. If you aren’t healthy, you could spend about 300% more than other companies would charge you.
- Underwriting is not favorable for seniors. Many final expense insurance customers often have health issues where Lincoln Heritage would offer their modified plan. That plan costs significantly more and comes with a 2-3 year waiting period.
- Most Lincoln Heritage agents cannot offer another insurance company. Like Colonial Penn or AARP life insurance, most Lincoln Heritage agents are captive to the company. That means that they do not represent any other life insurance companies. So if you don’t like what Lincoln Heritage offers, most of their agents cannot connect you with any other companies. Independent agencies like Opencare, Family First Life, National Family, and Choice Mutual can all compare offers from multiple providers on your behalf.
Does Lincoln Heritage Really Pay Claims Within 24 Hours?
Virtually all Lincoln Heritage agents and their advertisements proudly proclaim that claims are paid within 24 hours.
The truth they don’t want you to be aware of is that only approved claims are potentially paid within 24 hours.
So, what does it take for a claim to be approved?
Well, it depends upon when you die.
Here’s what Lincoln Heritage will need to approve a death claim:
- Death within the first 24 months: They will need a death certificate and copies of the insured medical records. Then they will review those medical records to ensure the insured truthfully answered all the health questions in the application when they originally applied. If they find evidence of a health condition (at the time of application) that would have caused them never to issue the policy, they will not pay the claim. Instead, they would only refund your premiums. You should expect these claims to take many weeks or months before they’re paid. If they confirm that the applicant accurately answered the health questions when they applied, then they will pay the entire claim. You should expect this process to take many weeks or months to complete.
- Death after the first 24 months: They will either need a death certificate or a funeral home that has the body will need to provide proof of the deceased. This process could take less than a week or a couple of weeks, depending on how long it takes for a death certificate to be issued.
If you haven’t figured it out yet, a Funeral Advantage burial insurance policy will never payout within 24 hours of death if it occurs within the first two years.
It would be impossible due to the contestability clause that gives them the right to order medical records before approving or denying the claim.
If you die after 24 months, you might see an approved claim paid within 24 hours.
But the truth is that nobody knows how long it takes for them to pay because Lincoln Heritage will not contractually stipulate that claims are paid in one day.
How Does The FCGS Work?
When Lincoln Heritage says that the Funeral Advantage Program assists seniors, the Funeral Consumer Guardian Society (FCGS) is what they mean by that.
Unless you opt-out, all Lincoln Heritage final expense policies include a membership to the FCGS.
Per their website, they are an independent senior advocate organization. They have no affiliation with any religion, funeral home, cemetery, or funeral approach.
The member benefits section of the FCGS website outlines the value they provide:
- Funeral Planning Assistance: Lincoln Heritage will provide you with a funeral planning form for you to fill out. It allows you to document how you want your final wishes carried out. You don’t need to overspend on Lincoln Heritage life insurance for this benefit. Many funeral planning companies like Ever Loved will do this for free. Or you can download a free planning guide like this one from Metlife.
- Funeral Funding Information: FCGS will notify Lincoln Heritage that the insured died. It’s a stretch even to call this a benefit. Whether a beneficiary calls the FCGS or Lincoln Heritage directly is irrelevant. It’s the same result and process either way.
- Funeral Plan Security Service: The FCGS will store your funeral planning documents if you filled them out and sent them back in. It’s not terrible to rely on a third party to store your funeral preferences. However, keeping them yourself with your life insurance policies and other important documents is far more ideal.
- Funeral Plan Activation Help: The FCGS will provide your loved ones with family support services. It’s broken up into two parts. First, FCGS will notify Lincoln Heritage of the insured’s death and will pass along their funeral preferences (if the insured completed the documents and sent them back in). The second part of this benefit is the one that Lincoln Heritage agents love to boast about. They claim (not contractually, of course) that the FCGS will compare prices of funeral services to save money on funeral expenses. Per Lincoln Heritage, they claim they, on average, save $1,800 for traditional funerals and $600 for cremation costs. Saving money is excellent, but does that make their overpriced insurance worth it? When you consider that their insurance is 20-300% more expensive, you realize that the math doesn’t add up. You’d be far better off having a guaranteed higher death benefit payout (with another company) by 50-200% more rather than potentially saving $600-$1,800.
The Funeral Consumer Guardian Society is a complete gimmick and in no way justifies Lincoln Hertiage’s overpriced final expense life insurance.
Lincoln Heritage Complaints, Rating & Company Background
Jack Londen started Lincoln Heritage in 1963. Their headquarters are located in Phoenix, AZ.
They claim to be the largest provider of final expense insurance nationwide. There’s no doubt that Lincoln Heritage is a massive company in the final expense market.
However, there is no way they can prove they are number one which is why they don’t provide any evidence of that claim.
Below are the ratings and reviews for Lincoln Heritage as of 11/10/2022:
- M. Best rating: A- (Excellent)
- NAIC: 1.75 complaint index in 2021 for individual life products (average is 1.0), which means they get more complaints than most carriers
- Better Business Bureau: Accredited with an A+ rating and 59 complaints within the last 36 months
- Google: 4.2/5 stars with 694 reviews
- Yelp: 2/5 stars with 11 reviews
Lincoln Heritage Life Insurance Company earned 1.0 star out of 5 for overall performance. Choice Mutual’s ratings are determined by our editorial team. The scoring formula considers consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.
Learn about our rating methodology.
Frequently Asked Questions
Lincoln Heritage is a legitimately licensed insurance company based in Phoenix, AZ. Also, they are accredited with the BBB and have an A+ rating. Their final expense insurance is very expensive relative to other providers, but that does not detract from the fact that they are a legitimate insurance company.
Lincoln Heritage only offers whole life final expense insurance. They do not offer term or universal life. However, you can add accidental death coverage to their whole life insurance for additional benefits.
How long it takes for a Lincoln Heritage death claim to payout depends entirely on how long you have the policy when you die. If you die in the first 24 months, expect the payout process to take many weeks or months. However, if you die after the policy has been active for more than two years, the payout will likely be less than a week.
Funeral Advantage is a legitimate whole life insurance policy underwritten by Lincoln Heritage Life Insurance Company. Lincoln Heritage will absolutely abide by the terms of the policy.
You can cancel a Lincoln Heritage life insurance policy by calling them at 1-800-433-8181. You can also contact them via their website, which is www.lhlic.com/contact-us.