Final expense insurance, also known as burial insurance, is the most cost-efficient way to cover burial expenses and other costs.
It provides you a sense of relief, knowing that your loved ones won’t have to worry about funeral expenses after you’re gone. With burial insurance, you will be able to make arrangements for them in your lifetime.
If you are searching for the best funeral and ultimate expense insurance policies, you are among the few people who have made the prudent decision to take charge of their lives and protect their loved ones.
If you opt for the most acceptable burial insurance options, your family members will not have to worry about the expensive cost of preparing your funeral and burial.
However, you’ll need to search for the top insurance companies on the market to ensure that the insurance plan you choose provides the most benefits to your loved ones.
With so many insurance companies promising to offer the most outstanding burial insurance policies and just a few top-tier insurance plans, finding the best firms can be difficult, which is why we’ve put together this thorough review.
We have created a comprehensive review of the American Amicable Insurance Company, which is a mutual insurance company based in the United States.
It will allow you to learn the nitty-gritty of the company’s offerings and the burial life insurance plans available for you.
Table of Contents
History and Overview
American Amicable is one of the oldest insurance firms in the United States, originally founded in 1910 in Waco, Texas. It is the leading supplier of funeral insurance.
The company was incorporated on February 2, 1909, and commenced operations in Texas on April 2, 1910. American Amicable has been selling life insurance coverage since then.
Through the centuries, the company grew significantly. In 1965, it renamed itself the American Amicable Life Insurance Company.
The company provides term insurance, global life insurance, and extended insurance plans in addition to the ultimate expense insurance policies.
The firm, however, is not independent; it is part of the American Amicable Group of insurance Firms.
The American-Amicable Life Insurance Company of Texas, IA American Life Insurance Company, Occidental Life Insurance Company of North Carolina, Pioneer American Insurance Company, and Pioneer Security Life Insurance Company are among the other firms in this category.
All these firms have been able to assist over 4 million families by working collectively. The firm employs over 5,000 people and manages over $109 million in assets. It now has around $6.7 billion in insurance coverage.
Products Offered By the Company
American Amicable is a Texas-based, highly rated, and financially solid insurance firm. You can count on them to be dependable and steady for decades to come.
They feature a reasonable final expense insurance option that many people find to be quite beneficial. They offer three separate plans in all.
The Return of the Premium Plan
The Return of Premium plan is first on the list. It’s a program with a waiting time of two to three years, based on your age.
This plan has a ten percent interest rate for the first 2-3 years for applicants who are 65 or younger at the time of application.
For applicants who are older than 65 at the time of application, there is a 2-year graded term option. In New Hampshire, New Jersey, and Illinois, the marked 2-year plan is also excellent for students of all ages.
This plan is also known as the modified plan since it includes a 3-year waiting period for subscribers between the age of 50 and 64. The amount of money paid in the first three years is 10%, and the entire death benefits are given after the third year.
The insurer will pay 100 percent death benefits just after the graded time has ended. However, in case of unnatural death, either in the first or second year after application, the same 100% death payments are given.
Graded Death Benefits
The Graded plan from American Amicable is another option. This comes with some built-in security. As appealing as that may sound, there’s no rationale you should ever use this Graded plan.
It’s the same as the Premium Return plan. If your health requires you to participate in this plan, you can certainly do better somewhere else.
This plan’s death benefit payout model is delayed, so you won’t get paid 100 percent of the death benefit on day one. Conversely, if the policyholder dies within the first year of obtaining the policy, American Amicable will pay 30% of the survivor benefits.
If death occurs in the second year, they will only pay 70% of the entire death benefits. Hundred percent payments are only received if the policyholder dies in the third year or after that. However, if they die because of an accident, entire funeral costs will be given.
Immediate Death Benefits
Another option available at American Amicable is the Immediate Benefit Plan. Above everything, this plan’s tobacco rates are just excellent.
To be honest, this policy has some of the most affordable tobacco user prices in the industry. It provides great value, so if you’re eligible, it’s worth considering.
Immediate Benefit insurance provides 100 percent death benefits that are paid promptly if death happens — in other words, total death benefits are not conditional on unnatural death, and the whole face value is paid immediately.
The Golden Solution Series – Final Expense Plan
The Final Expense Plan is American Amicable’s most prominent and significant insurance product. As the name implies, the insurance policy is suitable for older adults looking for coverage that would handle funeral fees, additional burial charges, and possibly hospital expenses and debts.
Most individuals believe that American Amicable’s rates are significantly higher than those of other firms. However, they continue to provide excellent solutions, which itself is why they are a top-rated organization.
This plan’s issuance age ranges from 0 to 85 years, with a maximal or last premium-paying period of 110 years. The minimum dollar amount of this plan is $2,500.
The largest face value offered, particularly for instant death benefit plans, is diverse. As a result, candidates between the ages of 50 and 75 are eligible for a total death benefit of $35,000, while those between 76 and 85 are eligible for a potential death benefit of $20,000.
The maximal death benefits for the grading plan and the Return of Premium plans are also variable. Both plans have a total death benefit of $20,000 and are available to candidates between the ages of 50 and 85.
The Final Expense Plan is available to candidates in the United States, Guam, and Puerto Rico. It is a lifetime permanent insurance product that provides the most comprehensive coverage for final expenses.
The plan will never end, the retirement benefits will not decrease, and the monthly payments will remain intact throughout the entire life insurance program.
Riders Provided by American Amicable
Let’s take a glance at some of the perks and riders you’ll get when you choose to partner with American Amicable before we look at the costs of the insurance products available.
On most programs, American Amicable includes two free riders. It’s one of a kind in this vicinity. There aren’t many final expense companies that offer riders for free.
Terminal Illness Accelerated Death Benefits Rider
You can receive an additional 100% of the death benefit with this perk. You must be certified as terminally sick with a 12-month or fewer mortality rate. Some states have a 24-month waiting period. This rider is offered with every policy at no additional cost.
Accelerated Death Benefits for Confined Care
If you are restricted to a nursing facility for at least 30 days after the insurance is issued, this rider will kick in. You may be eligible for a periodic benefit of up to 5% of the full value.
This rider is only available on policies with an instantaneous death benefit. In other states, though, this rider isn’t available.
You have the option of purchasing these extra riders. Unfortunately, these riders aren’t accessible on all of the plans offered by the company.
Accidental Death Riders
If the policyholder dies because of an accident, this rider provides an added death benefit. It is only offered to people between the ages of 50 and 80.
The least amount of insurance you can buy is $2,500. The maximum number of ADB coverage is limited to the plan’s face amount. The Return of Premium Plan does not include this rider.
To attach this rider to your insurance, you must be between the ages of 50 and 80. Each unit insures each grandchild under the age of 21 for $5,000.
A maximum of two units can be purchased. A single unit covers an individual grandchild or great-grandchild. Make sure you buy enough units to defend everyone you want to protect.
This rider also promises that the insured grandchildren or great-grandchildren will be covered in the future. Individual plans of up to $25,000 (per unit) are available under guarantee.
Irrespective of their health, your insured children can upgrade to individual coverage. Make certain they change before they reach the age of 21.
The rider coverage gets fully paid up if the policyholder suddenly dies while it is in place. The Return of Premium Plan, meanwhile, is exempt from this rule.
This generally means that if you die with the rider attached to the insurance, your insured grandkids will continue to be covered. Their policy will be in place indefinitely. They’ll never have to repay for it, either.
Children’s Insurance Agreement
This rider is also available for purchase by the unit. Every unit insures children for $3,000 in short-term insurance. You can only buy a total of two units.
To be qualified for it, the policyholder must be between the age of 50 and 60. The covered children must be at least 15 days young and under the age of 18.
The children’s insurance will last until the child reaches the age of 25 or the primary policyholder reaches the age of 65, whichever comes first.
The protection of children can be turned into a long-term plan. They have the option of increasing their policy to five times the base amount given by the child rider.
Nursing Home Waiver
Only the immediate death compensation package is eligible for this rider. During your stay in an approved nursing home, it will forgo the installment of your policy premiums that are due.
Before this rider takes effect, there is a 90-day waiting time. Before you can qualify for assistance, you must be restricted for a total of 90 days. During the 90-day waiting period, you must keep on making premium payments.
The waiver rider for nursing homes is particularly distinctive and beneficial. It may be the only way for you to preserve your funeral insurance if you are ever confined to a nursing facility.
It is costly to stay in a nursing home. This rider, which relieves you of premium payments, can be extremely beneficial financially.
The cost of final expense insurance varies depending on age and the insurance coverage amount you desire.
The non-smoking prices are for the $10,000 Immediate Death Benefits Plan. 50-year-old ladies and men will pay a monthly charge of $27 and $32 for the $10,000 plan. Men and women aged 85 will pay $166 and $221 in premium costs, respectively, for the $10,000 plan.
The monthly premiums for insurance coverage of $10,000 under the Graded Death Benefits Plan are a bit high. Women and men aged 50 pay $30 and $38, respectively, and women and men aged 85 pay $221 and $278.
The insurance premiums for the Return of Premium Death Benefit are reasonable. Monthly premiums for 50-year-old ladies and males are $36 and $44, respectively, while premiums for 85-year-olds are $263 and $338, respectively.
Some Benefits of Purchasing Final Expense Coverage
You should be aware that this insurance plan is a perpetual life insurance scheme, in addition to the fixed monthly payments and the unchangeable amount of the insurance.
This means that it gains some financial value over time, with the money’s growth allowed and compounded tax-free. To put it another way, the policy’s cash value rise isn’t taxed until the cash is redeemed.
Furthermore, the cash value may be withdrawn or loaned for any reason.
No Medical Exams
The acceptance of the last expense insurance plan is not susceptible to any clinical examination, and you do not need to have your blood or urine checked to qualify for the plan.
This policy’s permitting process is far speedier than any other assessed life insurance product. In most circumstances, the clearance procedure takes only a few days or a week to complete.
How to Qualify for Burial Insurance at American Amicable?
There are three plans to choose from, as previously indicated. Your health profile is used to determine if you qualify for a plan. To determine your candidacy, American Amicable will look at four different factors.
They will ask you health-related questions, review your prescription history, assess your height-to-weight ratio, and examine your MIB file.
A three-way phone call will be made between you, your agent, and the corporation. They will ask you questions about your health throughout the conversation.
They will obtain your consent to examine your MIB information and medication history. By the end of the conversation, they will be able to provide you with the final decision.
Does American Amicable Offer First Day Coverage?
Indeed, American Amicable offers a first-day comprehensive burial insurance plan. Their Lighthouse Legacy Immediate Death Benefit Plan provides immediate first-day insurance if you pass away.
Right from the very first moment, you’ll be completely protected, and when you die, your successor will receive your entire death benefit.
How Are Claims Handled?
Claims can be submitted via toll-free phone, mail, or fax. The website does not say that whether the claims hotline is open 24 hours a day, but given that the business exclusively sells life insurance, this seems doubtful.
Business hours are indicated as 8:00 a.m. to 4:45 p.m. Monday to Friday under Policy Owner Services. The claims forms can be downloaded from the American Amicable website and completed before submitting the necessary paperwork.
Pros of American Amicable
A.M. Best, one of the four main rating agencies, has given American Amicable an “A” rating. The grade indicates that the company is financially sound and can meet its commitments to policyholders.
By looking into American Amicable’s parent business, Industrial Alliance, we may learn even more about the company’s financial situation.
The financial services company, which provides health and life insurance, has a market capitalization of nearly $210.5 billion, showing financial stability and prosperity.
The BBB has given American Amicable an “A+” rating, indicating outstanding consumer satisfaction, company integrity, and a dedication to resolving client complaints.
No exam Coverage
American Amicable does not provide exam coverage, so no medical exams or blood work is needed during the application procedure.
The company may examine your MIB, MVR, and prescription information instead of a medical assessment to validate your application responses and assess your condition.
American Amicable insures people as old as 85, which is significantly less severe than the age limitations of other companies.
There are several free riders and additional benefits provided by American Amicable, such as the Nursing Home Waiver and the Grandchild Rider, which is a significant plus point of this insurance and final expense company.
Cons of American Amicable
One of American Amicable’s flaws is its website. The site is outdated, has limited capabilities, and only provides little data about the business and its policies.
To discover more about policy possibilities, you must apply and wait for a representative to reach you.
Policyholders have access to an online gateway and a collection of downloadable changes in policy and complaint forms.
Customers can’t find the application process for American Amicable available on the internet. An agent should call you when you enter your contact info online to begin the registration process.
The title “American Amicable” isn’t one of the most well-known in the life insurance sector. While the organization sells a variety of products, last expense insurance is one of its main specialties. As a result, the company’s marketing is predominantly targeted at seniors.
American Amicable does not seem to have profiles on the most significant social media networks, even though its parent firm does. It also doesn’t provide any information regarding its community activities on the internet.
Even though American Amicable is one of the best-rated insurance companies, it isn’t the greatest or first choice for everyone. They have excellent programs for smokers and fantastic rider options; however, the pricing maybe a touch too much for some.
The distinction between this insurer and what other firms have to offer may be minor, and in the end, you’ll have to choose what’s ideal for both you and your family members.
Therefore, it is best to look for different options and plans. Compare the insurance products available in the market and look for the best rates and most convenient options that provide the best benefits to you and your loved ones.