We believe in educating the consumer. Insurance does not have to be a mystery to anyone, and we are willing to take a moment to explain terms and general definitions within insurance. A consumer may see words such as final expense insurance or burial insurance. That can get confusing and we are going to explain a few basics. In this article, we will review Prosperity Life Insurance Group.
It does not matter if it is called burial insurance or final expense insurance. It is a life insurance product. It means that a tax-free cash benefit is paid out on an accepted claim provided by your beneficiaries. The policy may have specific other definitions, but it is a life insurance policy.
Having said this, we would now like to discuss the final expense insurance product that is sold on the market by Prosperity Life Insurance Group.
The Fundamentals of Prosperity Life Insurance Group
Prosperity Life Insurance Group is a collection of insurance companies that are underneath the Prosperity umbrella. These include S.USA Life Insurance Company, Inc., Shenandoah Life Insurance Company, and SBLI USA Life Insurance Company, Inc. S.USA Life Insurance Company sells its final expense policy. Please keep that name in mind because it is what you will see on your policy. The parent company has over 300,000 existing policies, and there is more than $15 billion in life insurance currently in force. The Prosperity Life Insurance Group has an A- rating from A.M. Best. It is a financially stable life insurance company.
This is the name that Prosperity gives its final expense insurance product. It is a simplified issue whole life insurance policy. What does that mean?
A simplified issue policy is one where the buyer is required to answer questions about medical history during the application process instead of having to take a medical examination.
A Whole Life Policy Has Some Features that Should Catch the Attention of Anyone Looking for a Final Expense Insurance Policy:
- The policy does not expire because of your age. That’s important because many term life insurance policies expire when a person reaches a stated age.
- The death benefit will not decrease.
- Premiums are fixed for the life of the policy and will not increase.
- A medical exam is not required.
- The policy will only be canceled if the insured stops making premium payments.
The face amount options for the New Vista policy is $1500-$35,000. You must be between the ages of 50 and 80 to buy the New Vista product. There is no waiting period, subject to underwriting approval. The policy is available for purchase from independent insurance agencies everywhere except Connecticut, Delaware, Washington DC, Hawaii, Montana, North Dakota, and South Dakota.
Prosperity will use three separate health ratings for the final expense insurance. The health of the buyer will decide which of three Prosperity insurance plans a person may buy.
A Word About Health Qualifiers
Prosperity uses the following to determine which of their plans a person qualifies for:
- Build Chart
- Prescription Check
- The Health Questionnaire
- MIB File Check
Health is important because the healthier a person is, the less of a risk that person poses. It means that the individual will be paying a premium for a more extended period than someone who is severely ill. It only makes sense to sell a final expense product to someone who is going to be living for a long time to come.
Prosperity Life Insurance Group assumes that people will be honest on the health questionnaire, but they do need some corroboration. The prescription history helps validate health status and let’s Prosperity know of any health issues an applicant might have. The MIB file is interesting. This contains information an applicant has shared with other insurance companies. It is a way of determining if the applicant has been less than honest on an insurance application.
The build chart is a basic height to weight ratio. It is a final means of determining which plan is best suited for the buyer.
The Prosperity New Vista Plans
1. Modified Benefit Plan
It can be considered the high-risk product. It is the most expensive and has a 24-month waiting period.
According to Prosperity’s underwriting guidelines, for an individual who passes away in the first 12 months of coverage due to natural causes, 110% of all premiums paid are returned to the estate. If natural death occurs in the second year, Prosperity returns 231% of the premium paid. The full death benefit is paid after a two-year waiting period has elapsed.
What’s interesting is that if a person dies from an accident in the two-year waiting period, the full death benefit is paid out.
2. Graded Death Benefit
The initial two years is essential. If an insured dies in the first year, Prosperity pays 30% of the death benefit. A death that occurs in the second-year merits a 70% payout. The full death benefit occurs after two years have elapsed.
The above assumes that a person died of natural causes. Death, by accident, merits a full amount of payout.
3. Level Benefit Plan
We are saving the best for last. This Prosperity plan has no waiting period and the insured is fully protected from the first day the policy is in force. The Level Benefit Plan also charges the cheapest premium. One can easily assume that a healthy person has an excellent chance of qualifying for this one.
The Prosperity Rider
Prosperity has an Accelerated Death Benefit rider, which is included at no cost, although in California, this rider is not offered.
A person who is diagnosed with a terminal illness is allowed access to 25% to 50% of the death benefit while they are living. The accelerated amount counts as a loan against the policy that is subject to interest payment and is deducted from the total death benefit when the insured dies.
The New Vista product line is very competitive with the rest of the insurance market. Prosperity’s underwriting is not harsh and minor health issues a senior citizen encounters are accepted.
We need to be candid and tell you that there are health questions that an answer of “yes” would disqualify person from getting a Prosperity final expense policy. Kidney dialysis, AIDS, HIV, Alzheimer’s disease, Lou Gehrig’s disease, and cirrhosis of the liver in stage C are some of the health conditions that would disqualify a person. However, we do want to point out that every insurance company that we know about will disqualify a person based on specific health conditions.
Prosperity is lenient with conditions that other companies would ordinarily not cover. A person who is a nicotine user or non-cigarette tobacco user will get the non-tobacco rates for premium. Diabetes is a condition for which Prosperity shows a rather enlightened tolerance. A person can qualify for the level benefit plan even if:
- They have insulin injections for diabetes
- They have been diagnosed as having Type 1 or 2 diabetes
- And, a person who has had a diabetic amputation, coma or insulin shock two or more years earlier can still get a policy with Prosperity
Some Other Conditions that Prosperity Will Not Hesitate to Provide Coverage For:
- Depression that is not bipolar
- Multiple Sclerosis
- Sleep Apnea
- Blood clots
- The need for blood thinners
These are all health conditions that senior citizens might have. Prosperity appears to be more willing to accept risks so that a person can get insurance coverage.
We wish to point out that Prosperity does compare well with other insurance companies when it comes to price. The $35,000 maximum is better than that of other major insurance companies, whose maximum may peak at $20,000 or less. A Prosperity policy can cover more final expenses.
Doing the Shopping
An older person should not be seduced by the advertising some companies use. It is incredible how well-known insurers will rely on celebrity endorsements or fast-paced advertising to attract customers.
Anyone who takes a careful look at some of these policies will discover quickly that either the maximum is low, or the premium is high. We strongly recommend that anyone who wants final expense insurance should ignore the television ads and do some cost-conscious shopping.
Insurance is one of the last pure markets. You can buy a policy from one of the hundreds of insurance companies incorporated in the United States, but you get what you pay for, like it or not.
A Company’s Underwriting Guidelines Define Coverage.
Policies are expensive because of the risk of being covered. Securing an affordable policy requires knowing about the underwriting and that is not easy. Most consumers know very little, if anything, about underwriting.
We believe it is important to purchase a policy through an insurance agent. Guaranteed issue policies bought directly from the company charge high premiums. It is more cost-effective to work with an insurance agent. A consumer must understand there are different agent categories.
Some Insurance Agents Are Captive.
They work for only one company such as State Farm and will only sell the parent company’s product. We think it is more sensible to buy from an independent agent.
Independent agents like Insurance for Final Expense represent a pool of companies, including Prosperity Life Insurance Group. Professionals are not dependent on one company for their income and representing several insurance companies allows for better comparison-shopping. Many times, a person is pleasantly surprised at the savings generated by dealing with independent agents.
You can anticipate that an independent agent is a well-versed professional. They are required to take refresher insurance courses on a routine basis, and they stay current with developments within the industry. Independent agents can field any question that a customer has about final expense insurance. That person can also receive a very valuable education in the nuances of insurance from an independent agent.
An independent insurance agent will work for the buyer. This professional will not push one company or use pressure tactics. It is what the client wants that matters the most.
We Are an Independent Insurance Agency
We represent several insurance companies and we are familiar with the products. Final expense insurance is a critical part of financial planning for seniors. We take finding the best policy seriously.
An insurance policy must provide the right coverage. We want the client to tell us what he or she needs. We encourage productive conversations and face-to-face meetings. We might ask questions about a person’s health, but that helps us in selecting the best insurance policies for client inspection. Information is always kept in strict confidence.
We Do the Research
The average consumer has a hard time understanding the underwriting guidelines of insurance companies. Those guidelines are the first things we checked. If an insurance company disqualifies an applicant for the medical condition our client has, we rule that policy out. This saves considerable time and effort.
We also pay attention to the premium rates. Great coverage does not always mean high premiums. We look for a good deal at a decent price. We concentrate on those companies that will cover a client who has a medical issue(.e.g. diabetes, etc.).
We do not want insurance to be a mystery to anyone. We are ready to explain all the various phrases and practices of the insurance industry. Our clients end up knowing a lot more about coverage than they did before meeting with us. It allows these people to make even better decisions when it comes to any type of insurance.
Please don’t hesitate to ask others about us and the type of service we provide. Be assured, you can also check with the Better Business Bureau and within the insurance industry itself. We want you to feel comfortable working with us and we believe you will discover that we are known for our integrity and efficiency. We do want to sit down with prospective clients and explain our services to them. It is a chance for you to ask all the questions you would like and find out how we can make selecting a policy much more relaxed.
We Suggest That You Contact Insurance for Final Expense at Your Earliest Convenience.
At Insurance for Final Expense, we are more than happy to set up a meeting with you to discuss final expense insurance and how we can assist you. It is our pleasure to take all the time necessary to explain ourselves and respond to your inquiries. We are confident you will conclude that we are the kind of independent insurance agency you wish to do business with on a long-term basis.