Planning for your final expenses can be daunting. It’s also uncomfortable having to discuss it with the family. No one ever wants to imagine that they or a loved one will one day no longer be around.
As a result, we fail to discuss the important matter of making preparations in advance, in case we experience such loss. Not talking about it is why families are left facing a financial crisis when they lose a loved one.
That is why they say the best decision you can make is to take up final expense insurance. At least then your family will get the funds they need when they need it the most.
Finding the right insurance company is also an important decision. Today, many insurance companies are offering the kind o help you need. So, you may be asking yourself which company is right for you.
When looking for the right insurance company, there are a few considerations you should think about. The first one is what are the lowest premiums you can get with the best benefits.
You also need to consider the company’s track record in terms of financial stability. That way you can be assured that they will pay out the claim when the time comes.
Aside from that, you also need to consider whether the policy being offered has an initial waiting period. This particular post will focus on Oxford Life Insurance Company and put it to the test to see whether or not it is worth considering.
Overview Oxford Life Insurance Company
The Oxford Life Insurance company was founded in Arizona in 1965. It has been running for 50+ years since then. It operates under its parent organization AMERCO, a publicly-traded financial holding network.
Today, it owns over $2.5 billion in assets and has two other subsidiaries operating under it. The subsidiaries are North American Insurance Company and Christian Fidelity Life Insurance Company.
The company is dedicated to supporting senior citizens by offering life insurance specially designed to cover applicants above the age of 50 years.
Their mission is to ensure the seniors live through their retirement with dignity and financial security. It has a solid line of products and reliable when it comes to paying out.
As mentioned, Oxford Life Insurance offers solid products. The A.M. Best a long-respected agency in the financial market rates Oxford with an A-. This means the company is conservative with its investments and has enough reserves to ensure its financial stability and operating performance. It is a sign that the company has a good standing economically and can pay out its claims.
You can therefore be assured that your beneficiaries will receive the deserved benefits after your death.
When it comes to the quality of service, Oxford has a complaint index of 0.08, based on the National Association of Insurance Commission (NAIC). While any index below one is a positive sign the 0.08 cuts a little too close.
Another rating indicating Oxford’s customer service is the B- rating given by the Best Business Bureau. This is not the worst nor the best rating a company can get from BBB. The rating is a result of the company failing to respond to four out of the five total complaints placed by customers in the last three years.
The main concern here, therefore, is Oxford’s ability to get back to the customers in time and not that there are many complaints against it. Overall, it seems that the majority of those who do use Oxford are satisfied.
Oxford Life Final Expense Insurance Products
The great thing about Oxford is that with its policies, you are guaranteed to pay fixed rates that will never increase. Additionally, tax-free benefits will be paid directly to the beneficiaries at the right time. You also never have to worry about your cover expiring unless you stop paying your premiums.
The products that Oxford Life offers include burial insurance policies along with Medicare supplements and annuities. Here we are mainly going to focus on the final expense products, all of which are permanent types of life insurance products.
What are the three primary insurance policies?
The following is a description of the three main insurance policies when it comes to Oxford’s final expense profits:
Prosperity Select Single-Premium Policy.
This is a type of whole life insurance that Oxford has designed to be a one-time-only transaction. It’s ideal for when you’re flush with cash but aren’t sure how financially stable you will be later on in the future.
It has the highest insurable benefits out of the three. The benefits received are not just a death benefit but also a life insurance benefit you can leave for your survivors or heir.
The policy is available for those aged between 55-80 years. There are no medical examinations needed to qualify. You only have to pay a single premium when issuing the policy. After that, you are guaranteed a cash value that matures and benefits and coverage that will not reduce.
You can insure with any amount between, $30,000-$500,000. If you do choose to cancel the policy at any point, you have a 100% guarantee that your premium will be returned to you.
With this policy, you can be assured that your loved ones will receive the money they need as soon as possible after your death. They also get to enjoy some tax benefits and riders included in the policy.
Assurance Final Expense Life Insurance.
This type of permanent whole life insurance offered by Oxford is considered the healthiest final expense insurance for seniors. It is specially designed to cover final expenses. The policy has additional benefits and no waiting period.
The policy is available for applicants between the ages of 50-85 years. The is no need for a medical examination, however, you will be asked various health questions.
It can cover between $5,000-$30,000 that starts immediately with no waiting period. You will also receive a cash value that matures and is guaranteed that the cover is permanent and will not expire as long as you pay your monthly premiums.
Unlike the Prosperity policy, Assurance is a monthly paid premium that you have to continuously pay until death.
The cover has different rates for both smokers and non-smokers with the smokers having a higher rate. It’s ideal if you don’t have the money to pay a lump sum. The policy has of date been made available to 45 different states.
Assurance One Single Premium Final Expense Insurance.
This whole life insurance policy is designed for catering to final expenses but the payment plan is similar to the Prosperity Select Single-Premium policy.
With this policy, you do not have to bother with the burden of monthly payments.
Those eligible for this cover are of the ages between 55-85 years. Like the Assurance policy, you do not need to conduct a medical examination, answering health questions will be sufficient enough. You also do not have to go through an initial waiting period to get the cover.
You simply need to pay between $5,000-$30,000 and are guaranteed a permanent cover that will not expire over time. It also gets a cash value that is guaranteed to mature over time. Like Assurance, Assurance One also has separate rates for smokers and non-smokers. Oxford offers this policy in 44 states currently.
Additional Benefits Available
Oxford’s Final Expense products come with additional riders and benefits. All three benefits and riders are, however, not offered in California and two of them are also not offered in Florida. They are as follows:
Chronic Illness Benefit
This rider is meant to benefit applicants who have been diagnosed with a chronic illness. The rider entails that the applicant gets an additional monthly benefit of 1% or less than $2,000 of the face amount. This benefit is not available in Florida and California.
Terminal Illness Benefit
This benefit is reserved for policyholders who have been diagnosed with a terminal illness and have less than 12 months to live. It’s included in the policy at no extra cost. The benefit allows the insured to withdraw a portion of their death benefits early, while still alive. The amount allowed is not more than $100,000 or at most 75% of the death benefits. The benefit is not offered in California.
Nursing Home Benefit
This particular benefit is given to policyholders who are confined to a nursing home and expected to stay there forever. Those eligible are offered a monthly benefit that is dependent on how long the policy was in effect before the claim was made. The benefit is not available in both California and Florida.
Oxford Life Underwriting Guide: Final Expense Insurance
Oxford is said to have competitive underwriting compared to other companies when it comes to its final expense products.
Although the setting rates are low the underwriting restrictions are not as many as would be expected. It is still easy to get the final expense approved. The main restriction is that Oxford requires you to be of a particular weight and height.
The application process is very straightforward. No medical examinations are required, you simply need to fill out a medical questionnaire along with the application.
Once the application is submitted, a telephone interview is conducted for you to verify the information. Alternatively, you can give Oxford the permission to conduct a Medical Information Bureau (MIB) review and background check. Once everything clears up, you’re eligible for cover and the policy can be issued.
What Are the Knockout Questions?
Knockout questions are the questions asked in the application form Oxford offers for its policies. The questions are meant to assess your eligibility for attaining the cover of a particular policy.
They are found under section G of the application form and divided into two parts. If any question in part one is answered by a yes, or the heigh and weight does not meet the requirement, then the applicant is automatically disqualified.
If any question in the second part is answered with a yes, it may not affect the approval of the application.
The questions revolve around issues of health, lifestyle, and medical history. The following are examples of the knockout questions that Oxford uses, for the full form check here:
- What is the proposed insured’s height and weight?
- Within the last 5 years have you been treated for, been advised by a medical professional to have treatment for, or excessively used, alcohol or any drugs of abuse, or have you been convicted of operating a vehicle while impaired or under the influence of alcohol or any drugs, or had your driver’s license suspended or revoked, or attempted suicide?
- Within the past 10 years, have you been convicted of a felony, or are you currently on parole or on probation?
- Are you currently: hospitalized, confined to a bed or nursing facility, using oxygen equipment to assist in breathing, or receiving Hospice Care?
- Have you been declined or postponed for life or health insurance in the past two years?
- Within the past 24 months have you been diagnosed or treated by a member of the medical profession for Internal cancer or melanoma, leukemia, lymphoma, stroke, transient ischemic attack (TIA), or have you had an amputation caused by any disease?
- Do you currently require human assistance or supervision in performing normal activities of daily living such as dressing, eating, bathing, incontinence, toileting, taking medications, or moving without any type of physical assistance?
Rates and Quick Quotes
The rates offered for Oxford Life’s Final Expense products are dependent on age, gender, and health. The rates are divided based on males and females as well as smokers and non-smokers.
Females pay less rates compared to men. Similarly, non-smokers also enjoy slightly cheaper rates than smokers. The age of the applicant also affects the rate in that, the older you are the more you would have to pay.
Additionally, the more the face amount you select the more the rates will be for it. That is, a face amount of $10,000 has a rate of $25.65-$275.90 depending on other factors; while a face amount of $45.45-$382.31.
The following table demonstrates the rates offered for different ages of men and women who are either smokers or non-smokers, for the face amount of $10,000:
Oxford Life Insurance Final Expense Coverage
The Oxford Life Insurance Final Expense Coverage has competitive rates in the industry with a quick and painless application process. They are completely committed to offering the senior market solid burial insurance products.
The cover of the policies is permanent and guaranteed not to reduce over time. The accumulation of the cash value is also guaranteed and the premiums are fixed. The Assurance policy is a monthly paid premium that has the lowest rate. It also has the most vigorous underwriting.
The Assurance One policy is an ideal choice if you have a lump sum of money that you want to invest somewhere. The Propriety Select policy is a better option if you’re not just looking for funds to cater for final expenses.
It’s however unfortunate that the policies are limited to seniors and not youngsters. Still, it is among the best policies that help seniors have peace of mind by offering them financial security without the excessive scrutiny they would have received in some companies.
Oxford Life Comparison with other companies
The rates offered by Oxford are competitive when compared to other companies like Mutual of Omaha and Assurity. For example, if you compare the rates between Oxford and Assurity for non-smokers, Oxford has more affordable rates.
For both, however, there’s a similar difference in rates for both men and women. In terms of ages, Assurity has a larger rate difference between ages compared to Oxford, however, has increasing rates with an increase in age.
Both of them also have increased rates with the increase in rates, but the difference of the increase is greater for men in Oxford and Women in Assurity.
As for the comparison between Oxford and Mutual Omaha, both of them have rising rates with age. Mutual Omaha, however, has a cheaper rate for senior applicants aged 80 years and above.
Although, it is only a slight difference. Otherwise, Oxford offers cheaper rates for both men and women below 80 years. The table below is a summary of the comparison between the two companies:
The Oxford Life Insurance company is a great and solid company to take up an insurance policy with. Although it is not accessible to a younger audience, it has the best policies specially designed for the senior market. Its rates are also competitive and the underwriting process is lenient.
It is the only company that offers a single-premium payment for a final expense policy. You can also rest assured that the company will pay the claim promptly.
This company is worth considering when looking for a final expense policy for your parents, elderly relatives, or yourself if you’re above 50 years old.