Learning that your insurance company has discontinued coverage options feels like navigating uncharted territory – especially when you’re left wondering about your existing policy’s future or where to find comparable protection. Great Western Insurance Company’s recent withdrawal from the final expense market has left many policyholders and potential customers searching for clarity about what comes next.
What many don’t realize is that Great Western’s transformation from a respected final expense provider to a pre-need funeral insurance specialist reflects broader industry shifts that actually benefit consumers seeking coverage options. While Great Western no longer offers new life insurance policies, numerous superior alternatives exist that provide better coverage, competitive pricing, and enhanced benefits for individuals and families.
Our comprehensive analysis reveals the complete story behind Great Western’s market exit, what it means for existing policyholders, and the proven strategies to secure better coverage through companies that remain committed to the final expense insurance market.
Table of Contents
- What Happened to Great Western Insurance Company?
- What’s the Current Status of Existing Policies?
- What is Pre-Need Funeral Insurance and Should You Consider It?
- What Are the Better Alternatives to Great Western?
- How to Choose Replacement Coverage?
- How to Apply for Alternative Coverage?
- What Will Alternative Coverage Cost?
- What’s the Timeline for Making the Transition?
What Happened to Great Western Insurance Company?
Great Western Insurance Company made a strategic business decision to exit the final expense life insurance market entirely in August 2024. The company, which had been owned by Wellabe since 2018, discontinued all burial insurance and final expense options to focus on other insurance products.
Bottom Line
Great Western stopped offering new life insurance policies in 2024, but existing policyholders retain their coverage with continued customer service support.
The Company’s Evolution and Timeline
Founded in 1983 by cemetery owner John Lindquist in Ogden, Utah, Great Western originally focused on helping people cover final expenses through affordable burial insurance. The company built a reputation for personalized, reliable customer service despite being a smaller provider.
Key insight: The transformation accelerated after Wellabe’s acquisition in 2018. Wellabe moved from senior life insurance and annuity options to focus on health insurance and Medicare supplement products, ultimately choosing to discontinue Great Western’s final expense options.
“Given the ongoing performance and quality issues with Final Expense, we’ve decided to stop offering FE products as part of our product portfolio, effective August 31, 2024.”
– Wellabe Official Announcement
Financial Stability During the Transition
In April 2023, AM Best gave Wellabe’s six insurance company subsidiaries an “A” (Excellent) rating, indicating strong financial stability even during the market transition. This rating provides confidence for existing policyholders about the company’s ability to honor current obligations.
What’s the Current Status of Existing Policies?
Great Western still administers support on existing life insurance policies and annuity accounts. Current policyholders maintain their coverage and can continue accessing customer service for policy management, premium payments, and claims processing.
Key Takeaways for Existing Policyholders
- Your current policy remains active and enforceable
- Premium payments continue as scheduled
- Death benefits will be paid according to policy terms
- Customer service remains available for policy questions
- Cash value accumulation continues for applicable policies
Customer Service Contact Information
For existing policyholders needing assistance, Great Western customer service remains available at 800-733-5454. The company has maintained its commitment to servicing existing policies despite discontinuing new sales.
Most importantly, the discontinuation affects only new policy sales – existing coverage continues without interruption. This approach protects current policyholders while allowing Wellabe to focus resources on their strategic priorities.
What is Pre-Need Funeral Insurance and Should You Consider It?
Great Western now only offers one similar product: a pre-need funeral insurance policy. Understanding this option helps clarify why most families benefit from traditional life insurance alternatives instead.
How Pre-Need Funeral Insurance Works
Pre-need funeral agreements are a funeral service agreement between you and a funeral home of your choice, as long as they work with Great Western. This arrangement locks in funeral services at current prices but comes with significant limitations.
Bottom Line
Pre-need funeral insurance restricts your beneficiaries to specific funeral homes and services, while traditional life insurance provides cash that families can use however they choose.
Significant Drawbacks of Pre-Need Plans
These plans come at a high cost, around $10,000 to $25,000, and unlike burial insurance, which offers reliable, locked-in low monthly rates, you must pay most (or all) of that cost up-front.
Pre-Need vs. Traditional Life Insurance Comparison
| Feature | Pre-Need Plans | Traditional Life Insurance |
|---|---|---|
| Payment Structure | Large upfront payment | Affordable monthly premiums |
| Flexibility | Restricted to specific funeral homes | Beneficiaries choose how to use funds |
| Coverage Amount | Fixed to funeral costs only | Covers funeral plus additional expenses |
| Portability | Limited if you move locations | Works anywhere in the United States |
Traditional burial insurance provides superior value because it gives your beneficiaries cash they can use for funeral expenses, outstanding debts, or any other needs during a difficult time.
What Are the Better Alternatives to Great Western?
The final expense insurance market offers numerous companies with stronger financial ratings, more competitive pricing, and broader coverage options than Great Western provided. These alternatives serve the same purpose – helping families cover final expenses – while offering enhanced benefits.
Top-Rated Final Expense Insurance Companies
Key insight: Several insurers specialize in final expense coverage and maintain A+ or higher financial strength ratings while offering more generous underwriting guidelines than Great Western’s three-question application process.
“When choosing a Great Western alternative, prioritize companies that offer immediate coverage, simplified underwriting, and the flexibility to adjust coverage amounts as your needs change.”
– Insurance Brokers USA Strategy
Leading alternatives include established companies like Mutual of Omaha, Gerber Life, and Colonial Penn, each offering distinct advantages for different health profiles and coverage needs.
Companies with Superior Coverage Options
Unlike Great Western’s limited product lineup, current market leaders provide multiple policy types including guaranteed issue, simplified issue, and fully underwritten options. This variety ensures families can find coverage regardless of health status.
Key Takeaways About Alternative Companies
- Higher coverage limits available (up to $50,000 vs. Great Western’s $40,000)
- More lenient health questions for many conditions
- Faster approval processes with some offering instant decisions
- Additional riders like accidental death benefits
- Better customer service ratings and claims payment records
Specialized Options for Different Health Conditions
Many families turned to Great Western because of health conditions that made traditional life insurance challenging. Today’s market offers specialized underwriting for pre-existing medical conditions that provide better coverage than Great Western’s basic offerings.
Most importantly, these alternatives remain committed to the final expense market, providing confidence that your coverage will remain available and properly serviced throughout the policy term.
How to Choose Replacement Coverage?
Selecting the right alternative to Great Western requires evaluating your specific circumstances, health status, and coverage objectives. The decision framework differs significantly from choosing traditional life insurance due to the unique characteristics of final expense coverage.
Coverage Amount Considerations
Great Western offered coverage up to $40,000, but today’s funeral costs and related expenses often require different amounts. Average funeral costs in the U.S. are around $10,000, but families should consider additional expenses like outstanding medical bills, credit card debt, or temporary income replacement.
Bottom Line
Calculate your total final expense needs, including funeral costs, outstanding debts, and family financial support, rather than focusing solely on burial expenses.
Health Status and Underwriting Options
Great Western’s three-question application appealed to individuals with health concerns, but current alternatives offer even more accessible options. Companies now provide guaranteed issue policies that accept all applicants aged 45-85 without any health questions.
The traditional approach includes reviewing your health conditions and matching them to the most favorable underwriting guidelines available in today’s market.
Our recommended strategy involves: comparing guaranteed issue, simplified issue, and traditional underwriting options to find the best combination of coverage amount, premium cost, and waiting period restrictions.
Financial Strength and Company Stability
Great Western’s market exit highlights the importance of choosing financially stable companies committed to the final expense market long-term. Focus on insurers with A+ or higher AM Best ratings and decades of experience in final expense coverage.
“Choose companies that view final expense insurance as a core business segment, not a secondary product line that might be discontinued during strategic shifts.”
– IBUSA Management Team
How to Apply for Alternative Coverage?
The application process for Great Western alternatives varies by company and policy type, but most offer streamlined procedures designed for seniors and individuals seeking final expense coverage.
Simplified Application Procedures
Most final expense insurers have adopted application processes similar to or easier than Great Western’s approach. No-exam life insurance options eliminate medical exams, blood draws, and lengthy health questionnaires.
Typical Application Timeline
| Application Type | Health Questions | Approval Time | Coverage Start |
|---|---|---|---|
| Guaranteed Issue | None | Same day | 2-year waiting period |
| Simplified Issue | 3-5 questions | 1-3 days | Immediate |
| Traditional Underwriting | Full application | 2-4 weeks | Immediate |
Required Documentation and Information
Key insight: Most applications require basic personal information, beneficiary details, and payment information. Unlike traditional life insurance, final expense policies rarely require financial documentation or income verification.
Prepare the following information before applying:The traditional approach includes gathering Social Security numbers for yourself and beneficiaries, current medication lists, and recent doctor visit dates. Our recommended strategy involves: having multiple beneficiary options ready and considering contingent beneficiaries to ensure smooth claims processing.
Professional Application Assistance
Working with experienced agents familiar with final expense underwriting can significantly improve your approval odds and ensure you receive the most competitive rates available. Licensed professionals can compare multiple companies simultaneously and identify the best match for your specific situation.
For personalized assistance with Great Western alternatives, call 888-211-6171 to speak with licensed final expense specialists who can guide you through the application process and ensure you secure appropriate coverage.
What Will Alternative Coverage Cost?
Understanding the cost implications of switching from Great Western to alternative providers requires examining both premium differences and value propositions across different policy types and coverage amounts.
Premium Comparison Analysis
Wellabe’s rates were generally competitive, especially for guaranteed issue life insurance; however, they weren’t always the lowest. Current market alternatives often provide better value through competitive pricing and enhanced benefits.
Bottom Line
Many Great Western alternatives offer lower premiums for the same coverage amount, plus additional benefits like accidental death coverage at no extra cost.
Factors Affecting Premium Costs
Age, health status, coverage amount, and policy type significantly impact premium calculations. Unlike Great Western’s limited options, current alternatives provide multiple underwriting tiers that can reduce costs for healthier applicants while maintaining accessibility for those with health concerns.
Most importantly, the competitive final expense market means companies actively price their products to attract customers, often resulting in better value than Great Western’s historical pricing structure.
Long-Term Value Considerations
While premium cost matters, evaluate the total value proposition, including company stability, customer service quality, and additional benefits. Great Western’s discontinuation of final expense coverage demonstrates the importance of choosing companies committed to this market segment.
Key Takeaways About Alternative Pricing
- Competitive market conditions favor consumers with lower premiums
- Multiple underwriting options provide pricing flexibility
- Additional benefits are often included at no extra cost
- Level premiums guaranteed for life with most policies
- Cash value accumulation is available with whole life options
What’s the Timeline for Making the Transition?
For those seeking coverage similar to what Great Western offered, the transition timeline depends on your current situation and the type of alternative coverage you choose.
Immediate Action Items
If you were considering Great Western coverage before their market exit, begin exploring alternatives immediately. The final expense insurance market remains robust, and waiting may limit your options if health conditions change.
The traditional approach includes contacting multiple insurers individually to compare their offerings and underwriting requirements.
Our recommended strategy involves working with independent agents who represent multiple final expense companies to streamline the comparison and application process.
“The sooner you secure alternative coverage, the more options you’ll have available and the better rates you can lock in for life.”
– IBUSA Management Team
Existing Policyholder Considerations
Current Great Western policyholders don’t need to take immediate action since their existing coverage continues. However, reviewing your coverage amount and beneficiary information ensures your policy still meets your family’s needs.
Key insight: If your financial situation has changed significantly since purchasing your Great Western policy, consider whether supplemental coverage through alternative providers might benefit your family.
Optimal Timing for Applications
Final expense insurance applications process quickly, often within days for simplified issue policies. This allows you to secure coverage promptly while taking time to thoroughly evaluate your options.
Most importantly, don’t let Great Western’s market exit create urgency that leads to poor decisions. The final expense market offers excellent alternatives, and taking time to find the right fit serves your long-term interests.
Frequently Asked Questions
Is Great Western Insurance Company still in business?
Yes, Great Western remains in business but only for pre-need funeral insurance and servicing existing policies. They discontinued all burial insurance and final expense life insurance options in 2024.
What happens to my existing Great Western life insurance policy?
Your existing policy remains fully active with continued customer service support. Great Western still administers support on existing life insurance policies and annuity accounts, so your coverage continues without interruption.
Can I still buy life insurance from Great Western Insurance Company?
No, Great Western no longer offers new life insurance policies. On August 31, 2024, Great Western stopped issuing new final expense policies. Their only remaining option is pre-need funeral insurance through funeral home partnerships.
Who owns Great Western Insurance Company now?
Wellabe owns Great Western Insurance Company since acquiring it in 2018. Wellabe has since moved from senior life insurance and annuity options to focus on health insurance and Medicare supplement products.
What are the best alternatives to Great Western Insurance?
Multiple excellent alternatives exist with stronger financial ratings and better coverage options. Leading companies like Mutual of Omaha, Gerber Life, and Colonial Penn offer immediate coverage, competitive pricing, and more flexible underwriting guidelines than Great Western provided.
Is Great Western’s pre-need funeral insurance worth buying?
Pre-need funeral insurance has significant limitations compared to traditional life insurance. These plans cost $10,000-$25,000 upfront, restrict you to specific funeral homes, and provide less flexibility than burial insurance that gives beneficiaries cash to use as needed.
How do I contact Great Western for my existing policy?
Call 800-733-5454 for existing policy customer service. Great Western maintains customer service for current policyholders and continues processing premium payments, policy changes, and claims for existing coverage.
What was Great Western’s AM Best rating?
In April 2023, AM Best gave Wellabe’s six insurance company subsidiaries an “A” (Excellent) rating. This rating indicates strong financial stability and ability to meet policy obligations for existing policyholders.
How quickly can I get alternative coverage to replace Great Western?
Most final expense alternatives offer approval within 1-3 days for simplified issue policies. Guaranteed issue policies provide same-day approval, while traditional underwriting may take 2-4 weeks depending on health review requirements.
Ready to Find Your Great Western Alternative?
Don’t let Great Western’s market exit leave you without the coverage your family needs. Our licensed final expense specialists have helped hundreds of families transition to better coverage options with competitive rates and enhanced benefits.
Call 888-211-6171 today for a free consultation and personalized comparison of the best Great Western alternatives for your specific situation.
Licensed agents available Monday through Friday to help you secure the protection your family deserves.
Disclaimer: This article provides general information about Great Western Insurance Company and alternative coverage options. Insurance recommendations should be based on individual circumstances and needs. Consult with licensed insurance professionals for personalized advice. Policy terms, conditions, and availability vary by state and insurance company.
What do I need to do for cash valued on my policy?
Sherry,
You would need to reach out to Great Western Insurance Company directly. There they would have the information about your policy that you are requesting.
Thanks,
InsuranceBrokersUSA