Did you get an offer for Physicians Mutual burial insurance? Maybe it was through the mail or online. They market this policy through many channels.
Here’s the bottom line
- Do you want to know what they are offering you?
- Do you want to know if it’s good?
If that’s what you are looking for, sit back and relax because that’s exactly what we have.
In this article, we will detail exactly what they are offering you, how it works, show you all their prices, and give you our honest opinion.
We even throw in some expert tips to help you save money.
Article Quick Guide
- The 411 On Physicians Mutual Final Expense Insurance Plan
- How Their Prices Stack Up To Competitors
- Getting The Right Policy At The Best Price
Physicians Mutual burial insurance is very straightforward. They are selling you what’s called guaranteed issue life insurance.
They actually call it “Modified Whole Life Insurance”. It’s just an alternate way of saying guaranteed acceptance.
This is a policy that has no medical underwriting of any kind. They don’t ask any health questions, and they don’t check your medical history in any way.
If you meet their age requirements and have the mental capacity to enter into a legal contract, they will issue you a policy.
Straightforward Whole Life Policy
This policy is whole life insurance. For that reason the following is true:
- The policy will never expire due to age
- The monthly payment cannot increase
- The death benefit cannot decrease
Standard Waiting Period
As is the case with all no health question policies, there is a standard two-year waiting period.
If you die within the first two years of the policy, they will not pay out the death benefit. Instead, they will refund all your premiums plus 10% interest. However, if you die during the first two years and the cause of death is from an accident, they will pay the full death benefit (all no health question policies do this).
Below you can see an actual screenshot depicting this waiting period.
That is all standard operating procedure for any company that sells guaranteed acceptance final expense life insurance.
Age And State Requirements
This policy is available to anyone between the age of 50 and 80. If you’re looking for life insurance for elderly parents over 80, Physicans Mutual cannot help you.
It’s sold in every state except the following:
Physicians Mutual burial insurance program allows you to choose from any of the following death benefits:
In addition, you can purchase accidental death coverage for a few extra dollars each month. The accidental death rider would provide an additional death benefit if the cause of death was specifically from an accident. The face amount options for the accidental death rider are identical to the options for the natural death benefit.
Just so you know, you don’t have to select an amount that is equal to your natural death benefit. For example, you can purchase $4,000 in natural coverage and $9,000 in accidental death coverage. You can pick and choose the amounts however you see fit.
The key thing to understand about any guaranteed issue life insurance policy is this:
All guaranteed issue policies are the same. The only difference is the price.
So how does Physicians Mutual burial insurance cost stack up to their competition?
Below you can see their rates for final expense coverage and those for two other companies that offer guaranteed issue life insurance. Remember, all of these plans with each company are identical. The only difference is the monthly rate.
$10,000 Female Rates
Age Physician's Mutual Gerber Life AIG
50 $30.50 $28.14 $35.83
51 $32.00 $29.43 $36.68
52 $33.00 $30.80 $37.65
53 $34.50 $32.27 $38.27
54 $36.00 $33.92 $38.98
55 $38.00 $35.84 $39.86
56 $39.50 $37.68 $40.77
57 $41.50 $39.69 $41.81
58 $43.50 $41.80 $42.75
59 $45.00 $44.09 $43.82
60 $47.00 $46.48 $45.14
61 $48.50 $48.22 $46.52
62 $51.00 $50.05 $48.09
63 $52.50 $51.79 $49.91
64 $54.00 $53.63 $51.97
65 $55.50 $55.46 $54.51
66 $58.00 $57.57 $57.18
67 $60.50 $60.04 $60.21
68 $65.00 $62.70 $63.09
69 $68.50 $65.63 $66.37
70 $72.00 $68.75 $70.41
71 $77.50 $72.42 $74.66
72 $83.50 $76.27 $79.48
73 $89.00 $80.39 $84.10
74 $93.00 $85.07 $89.35
75 $99.00 $90.29 $95.82
76 $104.50 $100.65 $102.61
77 $114.00 $112.38 $110.31
78 $119.50 $125.03 $117.34
79 $126.50 $138.23 $125.29
80 $133.00 $152.17 $135.12
$10,000 Male Rates
Age Physicians Mutual Gerber Life AIG
50 $42.00 $38.41 $51.92
51 $43.00 $39.51 $52.73
52 $45.00 $40.88 $53.63
53 $47.00 $42.63 $54.44
54 $48.00 $44.37 $55.36
55 $49.50 $46.11 $56.50
56 $50.00 $47.76 $57.69
57 $52.00 $49.59 $59.03
58 $53.00 $51.88 $60.21
59 $55.00 $54.27 $61.53
60 $57.00 $56.65 $63.17
61 $60.00 $58.67 $64.89
62 $62.00 $60.78 $66.83
63 $64.00 $62.98 $68.60
64 $66.00 $65.54 $70.61
65 $68.50 $68.29 $73.09
66 $72.00 $70.77 $75.69
67 $77.00 $74.25 $78.65
68 $82.00 $78.65 $82.75
69 $87.50 $83.42 $87.40
70 $92.00 $87.91 $93.14
71 $97.00 $93.50 $99.16
72 $102.00 $99.92 $105.99
73 $109.00 $107.25 $111.23
74 $117.00 $115.50 $117.16
75 $127.00 $124.67 $124.49
76 $137.50 $138.42 $132.17
77 $151.50 $154.92 $140.90
78 $163.50 $175.08 $150.59
79 $177.00 $197.08 $161.57
80 $187.50 $220.92 $175.15
As you can no doubt see for yourself, Physicians mutual is more expensive at every single age with one exception. If you are an 80 year old female, you would save $2 by going with Physicians mutual. Other than that, you would save money by going with either Gerber Life or AIG. Because you can get the same thing cheaper with other companies, we didn’t include them among our list of best final expense insurance companies.
When it comes to burial insurance for seniors, there is one principal truth that most companies will not reveal to you.
The overwhelming majority of applicants should not be purchasing a guaranteed acceptance burial policy. Most people can easily qualify for a final expense plan that has underwriting. This results in immediate coverage and much lower rates.
In most cases, you can qualify for a policy that has underwriting. The only question is, which insurance company will approve you?
To find that out, you need to compare plans from multiple providers in your state. This can be a very time consuming process. Not to mention, there are dozens upon dozens of funeral insurance companies that don’t advertise on TV, so you don’t know who they are.
These companies are still very trustworthy and financially secure. Moreover, they have very aggressive underwriting and great pricing since they don’t have to spend millions on advertising.
The only way you will access them is through an independent agency. An agency that is independent will represent lots of insurance companies. Their goal is nothing more than to choose whichever company is best for you.
This is where a company like Choice Mutual comes into the picture. A broker company like us will assess your health and determine which companies have the underwriting that will accept you. Then it’s just a matter of choosing which company has the best deal for you.
Want to know the best part?
Working with an independent agency is completely free, and you would be surprised at well it works.
Over 90% of our clients are approved for a plan that has underwriting. This means they pay a lot less each month compared to a guaranteed issue policy. Not to mention, they are protected in full from day one versus having to wait two years.
When Guaranteed Issue Is Right
This probably comes as no surprise, but there are some health conditions where a guaranteed issue policy is indeed appropriate. Thankfully, these situations are exceedingly rare.
Remember, most applicants can secure a plan that has underwriting which means instant coverage and lower premiums. However, some health issues are so high risk that a guaranteed issue may be the only way a person can secure new coverage.
If any of the below conditions apply to you, then a no health question policy is either A) your cheapest option or B) your only option. Pay attention to the time references. Time is a huge factor when it comes to this matter.
- Full blown stroke within the last 12 months (a mini stroke/ TIA attack does not count)
- Hiv or AIDS
- Cancer within the last 24 months (basal cell is ok)
- Congestive heart failure
- Wheelchair usage because of chronic illness or disease
- Currently in a nursing home
- A heart or circulatory surgery within the last 12 months
- Heart attack within the last 12 months
- Angina (chest pains) within the last 12 months
- Organ or tissue transplant
- Oxygen use (except for sleep apnea)
Again, if none of that applies to you, there is a 98% chance you shouldn’t be purchasing a guaranteed issue policy!