Security National is one of the top final expense insurance companies available for those who meet its somewhat stringent underwriting criteria.
Security National Official Ratings
When choosing a company, it is important to know how financial sound that company is.
Choosing a highly rated insurance company provides peace of mind knowing the company’s financial stability is solid.
Further, it is important to understand what other customers think about a particular insurance company.
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To gauge both of these criteria, there are numerous techniques and reliable sources but we like to stick with A.M. Best and the BBB because they are credible and you can compare directly between companies.
A.M. Best Rating A- (Excellent)
BBB Rating B-
Whereas A.M. Best assesses the financial strength of a business, the Better Business Bureau (BBB) looks into how well they interact with customers. Security National Life has been awarded a ‘B-’ rating which means that it falls a little short. With this in mind, they look after their customers, are available to listen to requests, and on hand to resolve any problems that might occur.
Security National Life Insurance Policies
Before we look deeper into the pros and cons of choosing Security National Life, we should take a look at the products on offer, such as guaranteed issue or simplified issue life insurance.
Security National specializes in funeral insurance, i.e. burial insurance policies.
Overall, it is easy to see that the company likes to focus on final expense products so they will suit you if you are over the age of 40. If you are perhaps a little or a lot younger than this, you might want to look elsewhere for your coverage.
First, we should note that Security National Life is one of the rare companies that allows completely new policies right up to the age of 90.
Normally, you will find that it finishes at 80 and perhaps 85 at a push but very rarely does it reach 90 so this is beneficial for the older generations.
With this in mind, there are three main final expense policies from which you can choose. Which one you go for will depend on your needs, the prices, and whether you have any medical conditions.
If you can qualify for the preferred plan, you will be in a great position moving forward because it is the cheapest of the lot and offers a fair price when compared with other funeral insurance companies in the marketplace.
The policy is life insurance without a medical exam. Rather, they will assess any medication you take, how long you have been taking it, and then use this information to reach an underwriting decision.
If you have used or currently used blood thinners or heart prescriptions, Security National Life is actually one of the best choices for final expense life insurance around.
In truth, this plan isn’t so good and you may be forced into this plan if you currently take insulin.
If you are a diabetic taking insulin on a daily basis, you will find much better deals elsewhere so don’t be forced into this decision if you can help it.
Finally, this is the most expensive of the lot but the prices are extremely competitive and you aren’t likely to find too many deals that are better.
As the name suggests, there is a waiting time involved with this policy but this is to be expected considering the cases they accept (with little information to go on).
Regardless of which option you choose, the benefit will remain the same throughout the duration of the policy and the same can be said for the premiums as long as you pay them when due.
Furthermore, two of them will have your death benefit available from the very first day – the graded plan has a waiting period as discussed previously.\
Finally, the coverage will not expire like some other final expense policies we have seen in the past.
Security National Life Additional Information
So we have the basics for the three products but let’s take a look at some extra information as well as the benefits and drawbacks to choosing Security National Life.
Unfortunately, this isn’t the company for you if you were planning on adding a couple of riders to your policy for added protection. Whether it is the Waiver of Premium or the Accelerated Death Benefit, you will not find them with Security National Life.
No Medical Examination
On the plus side, there isn’t a medical examination involved during the application process. However, it is important to note that the application process with Security National Life is very different.
Normally, there will be a point of sale (POS) interview whenever the medical exam isn’t required.
Whenever this is the case, you will be in a call with the insurance company and your agent where health questions will be asked.
After assessing your answers, a decision will then be given. Seeing as though Security National Life doesn’t do these interviews, you will have to wait for approval. This being said, most people hear back within one day.
Ultimately, life insurance companies use health questions to gather as much information about you as possible without the need for a medical exam. As morbid as it sounds, they are trying to secure their investment by ensuring you won’t die within weeks of the policy starting.
Therefore, they will ask whether you have tested positive for HIV, diagnosed with AIDS, cancer, Alzheimer’s, and other medical conditions. Furthermore, they may also ask whether you have been treated in a hospital, health care facility, or nursing home within the last month.
If you answer negatively to any of these problems, there is no need to panic just yet because they do accept some health conditions. If not, there will be options for you elsewhere and you will see this with some of the other reviews we have done.
If you were to choose or be forced into the ‘Graded Plan’, there will be a waiting period before the death benefit becomes active. Across the US, this period is two years (except for Arkansas and Nevada).
If you pass away before the two-year mark is reached, your beneficiary will receive 100% of the premiums you have already paid plus an extra 10%. As soon as you pass two years, the full death benefit will be active.
So far, we haven’t yet mentioned the entry requirements for the policies from Security National Life but this is important. In terms of age, you should be between the ages of 40 and 85 but some policies go right up to 90.
Normally, coverage will start at just $2,500 and it will be your age that decides the maximum amount. Rather than choosing an upper limit, this is a more personalized method of setting the boundaries of coverage and one that has proved quite popular.
As part of the medical check, Security National Life will ask you medical questions but they will also check your prescription history.
Essentially, this is to gather some basic information regarding the medication you might be using. When you have been using a certain medication for over two years, these are considered ‘maintenance’ drugs.
Compared to companies that do not perform this check, you are likely to see lower premiums because they will be getting more information about you and your health.
About Security National Life
With a history that dates back to 1965, Security National Life has grown over time and now has three divisions from their base in Salt Lake City, Utah. If you compare the company to the life insurance industry as a whole, opening in the 1960s can be considered ‘young’ because others have a history spanning back 100 years and more.
Despite this, Security National Life has still earned the respect of others especially when it comes to final expense insurance policies. With many in the US still lacking active insurance policies, they are on a mission to have as many people insured as possible and this starts with you.
Overall, Security National Life has some very good options for burial insurance.
If you manage to get onto the preferred plan, you should definitely consider the policy because the pricing is competitive and will remain the same until the death benefit is required.
After this, the graded plan is also good if you have more serious health conditions but still want respectable coverage.
If you only qualify for the standard plan, as is the case for people with diabetes, we would suggest that you look elsewhere because there are better prices and deals to be found.