Lincoln Heritage only sells final expense insurance, a type of life insurance that covers funeral expenses and other end-of-life costs. Their “Funeral Advantage” program combines a life insurance policy with funeral planning assistance. However, the meager funeral planning benefits they include don’t justify their extremely high prices.
Price is the biggest problem with Funeral Advantage. On average, Lincoln Heritage’s life insurance costs 20-300% more than most of its competitors. Additionally, many of their policyholders have a two-year waiting period due to pre-existing conditions that are common among seniors.
Overall, their insurance is seldom a good buy. Nearly every person needing burial insurance can get substantially lower prices elsewhere (and likely get coverage with no waiting period).
- No medical exam to qualify- just health questions.
- History of quick death benefit payouts once a claim is approved.
- Strong financial ratings.
- Extremely high prices relative to other providers.
- Mandatory phone interview with an underwriter if you want more than $20,000 in coverage.
- The funeral planning benefits are regularly misrepresented by their sales agents.
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).
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.
How Does Lincoln Heritage Life Insurance Work?
Lincoln Heritage only sells one type of life insurance, which they call the “Funeral Advantage” program. It’s a whole life policy primarily intended to cover funeral bills and other end-of-life expenses. However, your loved ones can use the money for any purpose.
There is no medical exam required to qualify, but you must answer health-related 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 provides life insurance for a child, stepchild, grandchild, or great-grandchild until they reach the age of 25.
To apply for the Lincoln Heritage Funeral Advantage plan, you must speak to one of their licensed agents either in person or over the phone. You cannot buy online.
Lincoln Heritage Funeral Advantage Cost vs Other Companies
The interactive tool below outlines the cost of Lincoln Heritage Life insurance for a $10,000 policy compared to that of many other burial insurance companies.
Lincoln Heritage Final Expense Insurance Drawbacks Explained
Lincoln Heritage’s final expense life 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 what you could get elsewhere.
- Underwriting is not favorable for seniors. Many final expense insurance customers often have health issues, for which Lincoln Heritage offers a modified plan. It costs significantly more and comes with a 2-3 year waiting period.
- Most Lincoln Heritage agents cannot offer insurance from another company. Like Colonial Penn or Globe Life, most Lincoln Heritage agents are captive and cannot represent other insurers. If you’re not satisfied with what Lincoln Heritage offers, most of their agents cannot recommend an alternative insurance company that would be a better fit. In contrast, independent agencies like Opencare or Family First Life can compare offers from multiple providers on your behalf to find you the best deal.
When Is Lincoln Heritage Insurance A Good Buy?
While Lincoln Heritage insurance is not typically the best option for most people, there are certain cases where they are worth considering, such as:
- There is no height and weight chart, which is helpful for those who are severely overweight.
- Multiple sclerosis.
- Lupus.
- You need help with activities of daily living (bathing, dressing, toileting).
- Home health care.
- Young adults under 45 can obtain a policy (most insurers typically start offering plans at 45-50 years old).
- Individuals under 45 with pre-existing health conditions that are often uninsurable elsewhere (such as sickle cell anemia) can usually qualify for their modified plan. The modified plan is expensive and has a waiting period, but it’s better than no coverage at all.
- Seniors over 80 who use tobacco.
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 true or false?
The truth is that only approved claims are potentially paid within 24 hours. Lincoln Heritage life insurance policies do not contractually 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.
Now, they may pay out an approved claim within 24 hours, but there is no way to know, as they do not make this promise in writing in the actual policy. That said, consumers often report that claims are indeed paid out very fast once approved, so we believe that to be a mostly true statement.
But it begs the question- why doesn’t Lincoln Heritage guarantee this in writing if they actually do it?
Where Lincoln Heritage engages in deception is that they (especially their sales agents) know consumers will not notice or think deeply about the “approved” portion of their statements. They understand that most applicants will read a statement such as, “Cash benefits are paid within 24 hours, once a claim is approved,” and thus think their family will get a check within 24 hours if they die one day after the policy begins (which is not the case).
How long it takes for a life insurance claim to be approved and paid depends on how long you’ve had the policy. The following applies to all companies, including Lincoln Heritage.
- Death within the first 24 months: There is a 0% chance of a payout within 24 hours. It will honestly take many weeks or months. That’s because they will need copies of all the insured’s medical records. Then, they will review those records to ensure the applicant truthfully answered all the health questions when they originally applied. If the medical records confirm that the health questions were answered correctly, they will pay the claim in full. However, if the medical records confirm that any health questions were incorrectly answered, they will deny the claim and refund the premiums paid.
- Death after 24 months: The payout should be within a week. They will either need a death certificate or a funeral home that has the body will need to provide proof of the deceased. Since it’s been more than two years, they cannot investigate the claim. They just have to pay it in full.
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. It’s 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, the claim will be paid quickly, which may or may not be within 24 hours.
How Does The Funeral Planning Assistance Work?
When Lincoln Heritage states that it assists seniors with funeral planning, it is primarily 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 have completed and returned the form).
In our opinion, the minor funeral planning assistance that Lincoln Heritage policies include does not remotely warrant spending 20-300% more for their insurance. If you want a funeral planning form like the one they would send you, they are free online from dozens of companies.
Frequently Asked Questions
Lincoln Heritage is a legitimately licensed insurance company based in Phoenix, AZ. It is also accredited by the Better Business Bureau (BBB).
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.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
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.
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final expense insurance. https://choicemutual.com/final-expense-whole-life-insurance/
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A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?BL=0&ambnum=6694&AltNum=14706694&AltSrc=3
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BBB. https://www.bbb.org/us/az/phoenix/profile/insurance-companies/lincoln-heritage-funeral-advantage-1126-9661
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Trustpilot. https://www.trustpilot.com/review/lhlic.com
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Google. https://www.google.com/search?client=firefox-b-1-d&q=Lincoln+Heritage+#lrd=0x872b0cf0a18a7db7:0x929afeaead66d7d,1,,,,
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Yelp. https://www.yelp.com/biz/lincoln-heritage-life-insurance-company-phoenix
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NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=65927&REALM=PROD&COCODE=65927&REALM=PROD
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BBB Score & Accreditation. https://www.bbb.org/us/az/phoenix/profile/insurance-companies/lincoln-heritage-funeral-advantage-1126-9661
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contestability clause. https://www.investopedia.com/terms/i/incontestability-clause.asp
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Funeral Consumer Guardian Society. https://www.funeralconsumer.org/
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the FCGS website. https://funeralconsumer.org/about
