Overall Score

Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:

Factor Score Value
Price of Coverage
40%
No-Waiting-Period CoverageNo Waiting Period
20%
Financial Strength
20%
NAIC Complaint Index
20%
Overall Maximum
100%

Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.

2.5 out of 5
2.0
Price of Coverage
Price of Coverage
40% of overall score

Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:

  • 50-5% more expensive
  • 46-10% more expensive
  • 311-20% more expensive
  • 221-30% more expensive
  • 1≥ 40% more expensive
2.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score

This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.

  • 5Most applicants qualify
  • 4Fairly easy qualification
  • 3Somewhat difficult qualification
  • 2Very difficult qualification
  • 1No-waiting-period coverage unavailable
4.0
Financial Strength
Financial Strength
20% of overall score

Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:

  • 5Superior (A+ or A++)
  • 4Excellent (A- to A)
  • 3Fair/Good (B- to B++)
  • 2Weak/Marginal (C- to C++)
  • 1Poor (D or Not Rated)
5.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score

The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:

  • 50.0 - 1.0 (avg or below avg complaints)
  • 41.1 - 1.5 (slightly above avg complaints)
  • 31.6 - 2.0 (up to 2x avg complaints)
  • 22.1 - 3.0 (up to 3x avg complaints)
  • 1≥ 3.1 (more than 3x avg complaints)
Lincoln Heritage only sells “final expense insurance,” a type of life insurance that covers funeral and burial expenses. Their Funeral Advantage program combines a life insurance policy with funeral planning assistance. Yet, the meager funeral planning benefits they include don’t justify their extremely high prices.
Pros

  • No medical exam and simple application.
  • History of quick claim payouts.
  • Financially strong insurer.

Cons

  • Extremely high prices relative to other providers.
  • Unfavorable underwriting that results in many applicants being subjected to a 2-year waiting period along with outrageously high prices.
  • The funeral planning benefits are regularly misrepresented by their sales agents.

A-
Excellent
Moody's
NR
Not Rated
S&P Global
NR
Not Rated

AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.

Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).

S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).

Customer Review Ratings
BBB
4.51/5
233 reviews
3.6/5
2 reviews
4.2/5
923 reviews
2.6/5
17 reviews
---
4 reviews
Consumer Protection Organization Scores

The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.

The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.

Policy Type
Whole Life
New Applicant Age Range
0-85
Death Benefit Options
$15 Monthly - $35,000 (varies by age)
States Where Available
All except NY & WA
Builds Cash Available
Yes
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Terminall Illness Rider
No
Optional Riders
Accidential Death
Policy Type
Whole Life
New Applicant Age Range
0-85
Death Benefit Options
$15 Monthly - $15,000
States Where Available
All except NY & WA
Builds Cash Available
Yes
Has Health Questions
Yes
2-Year Waiting Period
Yes
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Jack Londen started Lincoln Heritage in 1963. To this day, they are still a family-owned, privately held corporation. Their headquarters are in Phoenix, AZ, but they offer insurance in all states except New York and Washington. Presently, final expense insurance is the only type of life insurance they sell.
Founding Year
1963
Official Website
www.lhlic.com
Headquarters
4343 E Camelback Rd #400, Phoenix, AZ 85018
Phone Number
800-433-8181
PDF Downloads

 

How Does Lincoln Heritage Life Insurance Work?

The Lincoln Heritage Funeral Advantage program is a whole life insurance policy that is primarily meant to pay for funeral costs, but your loved ones can spend the payout money on anything.

They accept applicants 85 and younger, and there’s no medical exam. To qualify, you must speak with one of their licensed agents, who will ask you health questions.

Depending on your health history, you may be approved, declined, or offered modified coverage. The immediate plan has no waiting period, but the modified plan has a 2-3 year waiting period and a significantly higher premium.

For an additional cost, you can add on an accidental death and dismemberment rider that would pay out extra money if you die from an accident or lose a limb. There’s also a child rider that would provide life insurance for a child, stepchild, grandchild, or great-grandchild until age 25.

 

How Much Does Lincoln Heritage Funeral Advantage Cost?

At a minimum, Lincoln Heritage requires you to buy enough coverage that costs at least $15 per month. Beyond that, prices are determined based on your age, gender, tobacco usage, health, and how much coverage you buy.

Below is a whole life rate table showcasing sample final expense rates for the Funeral Advantage Program.

Age & Gender$10,000$15,000
Female age 40$25.80$37.20
Male age 40$31.10$45.15
Female age 45$29.00$42.00
Male age 45$34.80$50.70
Female age 50$33.90$49.35
Male age 50$41.10$60.15
Female age 55$38.50$56.25
Male age 55$48.30$70.95
Female age 60$44.80$65.70
Male age 60$59.20$87.30
Female age 65$57.40$84.60
Male age 65$68.00$100.50
Female age 70$75.30$111.45
Male age 70$86.40$128.10
Female age 75$101.10$150.15
Male age 75$123.50$183.75
Female age 80$145.00$216.00
Male age 80$183.20$273.30
Female age 85$171.50$255.75
Male age 85$200.90$299.85
Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024.

 

Should You Buy Lincoln Heritage Final Expense Insurance?

Lincoln Heritage is typically not the best option if you need insurance to cover your burial. In short, if you need final expense insurance, multiple other companies offer better policies at often much lower rates.

Lincoln Heritage burial insurance has three main problems:

  • They are unnecessarily expensive. Even if you’re in excellent 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 charge.
  • Underwriting is not favorable for seniors. Many final expense insurance customers often have health issues where Lincoln Heritage will offer their modified plan. It 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 Globe Life, most Lincoln Heritage agents are captive and cannot represent other insurers. If you don’t like what Lincoln Heritage offers, most of their agents cannot offer you another insurance company that would be better. Independent agencies like Opencare, Family First Life, and Choice Mutual can all compare offers from multiple providers on your behalf to find you the best deal.

 

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. But is that fact or fiction?

The truth is that only approved claims are potentially paid within 24 hours.

Lincoln Heritage life insurance policies have no contractual guarantee that approved claims will be paid within 24 hours. It’s just a marketing assertion they aren’t willing to back up in the policy.

How long it takes for a claim to be approved depends on how long you’ve had the policy.

  • 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 applicant truthfully answered all the health questions when they originally applied. Suppose they find evidence of a health condition(s) that existed before applying that would have caused them to decline the application. In that case, they will not pay the claim. Instead, Lincoln Heritage would only refund your premiums. However, they will pay the entire claim if they confirm that the applicant accurately answered the health questions when they applied. You should expect death claims in the first two years to take many weeks or months to conclude, which is standard with all life insurance companies.
  • 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. Depending on how long it takes for a death certificate to be issued, this process could take less than a week or more.

In summary, a Lincoln Heritage burial insurance policy will never pay out the death benefit within 24 hours if you die within the first two years. This is impossible due to the contestability clause, which gives the insurer 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 a Funeral Advantage policy to pay out because Lincoln Heritage will not contractually define the timeframe.

 

How Does The Funeral Planning Help Work?

When Lincoln Heritage says they assist seniors with funeral planning, they are mainly referring to the Funeral Consumer Guardian Society (FCGS). According to the FCGS website, they are an independent senior advocate organization that helps guide families through the funeral process.

Lincoln Heritage will send you a funeral planning form they created when you sign up for a Funeral Advantage policy. When you die, the FCGS will contact various funeral homes to compare prices and inform them of your funeral preferences (if you filled out the form).

 

Frequently Asked Questions

Lincoln Heritage is a legitimately licensed insurance company based in Phoenix, AZ. It is also accredited by the BBB. Even though its final expense insurance is very expensive relative to other providers, that does not detract from its legitimacy.

How long Lincoln Heritage takes to pay a death claim depends entirely on how long you had 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 over two years, the payout will likely be less than a week.

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.

Lincoln Heritage does not offer guaranteed acceptance life insurance. To qualify for the Funeral Advantage final expense policy, you must answer health questions and subsequently be approved.

The Funeral Advantage plan is a whole life final expense insurance policy from Lincoln Heritage Life Insurance Company. It pays a tax-free cash benefit to your loved ones so they can cover your funeral expenses. It’s available up to $35,000 in all states except for New York and Washington.

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.

Lincoln Heritage only sells whole life insurance, a type of permanent coverage that lasts your entire life. They do not offer term or universal life insurance.

Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.

  1. contestability clause. https://www.investopedia.com/terms/i/incontestability-clause.asp
  2. Funeral Consumer Guardian Society. https://www.funeralconsumer.org/
  3. their website. https://funeralconsumer.org/about
  4. Jack Londen. https://www.bloomberg.com/profile/person/17905350#xj4y7vzkg