Is Aetna Final Expense Insurance a Good Choice?

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Are you looking for final expense life insurance from Aetna? If yes, you owe it to yourself to read our Aetna Life Insurance review. No one likes to think about their mortality, but planning for it now may give you peace of mind knowing that your loved ones are taken care of, so they won’t have to suffer financially.

American Continental Insurance Company, an Aetna company, is on our top 20 final expense companies. Let’s find out if Aetna’s final expense policies offer the benefits and pricing you would expect.

Who Is American Continental Insurance Company?

American Continental Insurance Company is an Aetna company who is the underwriter for the final expense products. In 1983, Continental Life Insurance Company (CLI) was Aetna’s support team for the senior supplemental insurance. In 2005, American Continental Insurance Company (ACI) was established, and in 2011, they became a member of the Aetna family of companies. CLI and ACI are rated A (Excellent) by A.M. Best.

Which Final Expense Products Aetna Offers

Final expense policies are for individuals who only have one goal in mind: To cover the expenses associated with the charges and affairs related to their death. Unlike term life insurance, which lasts for a specified period, final expense policies offer permanent coverage without the need for the applicant to undergo an exam.

They have a level premium payment throughout the insured’s lifetime. The face value isn’t high, with benefits ranging from $3,000 to $35,000. Aetna offers three types of final expense policies: Level, graded, and modified benefit plans. Your current health and age will have the most significant bearing on which plan you will be eligible for and the amount. Let’s take a look at each plan.

Level Benefit Plan

A level death benefit plan pays 100% of the purchased face value when the insured dies, whether days after buying the policy or years later. To be eligible for a level benefit plan, you must answer “no” to all the health questions on the application and must not have any significant health conditions in the past 24 months such as heart attack, internal cancer, or COPD among a few others. (Look at the application copy below.)

  • Full death benefit
  • Issue ages:
    • 45–65 death benefit: $3,000–$35,000
    • 66–80 death benefit: $3,000–$25,000
    • 81–85 death benefit: $3,000–$15,000
    • 86–89 death benefit: $3,000–$10,000

Graded Benefit Plan

A graded benefit plan is suitable for those who are not in the best of health or have been diagnosed or treated for health conditions such as cancer, ulcerative colitis, and Crohn’s disease among others. As with other types of life insurance coverage, the healthier you are when first buying the policy, the less you would pay and vice versa.

Expect to pay more for this plan. Also, because the insurer is taking an increased risk by insuring you, your beneficiaries will only collect 40% of benefit amount for the first year, 75% for the second year, and only in year three and beyond will they be able to receive 100% of the purchased benefit amount.

Keep in mind it still may be a good option for you to buy this plan, but you may want to check other companies as they all have different questions on the application that are translated into various plans. When one will issue you graded, another will issue you level benefit.

  • 40% of death benefit year 1
  • 75% of death benefit year 2
  • 100% of death benefit year 3
  • Issue ages:
    • 45–65 death benefit: $3,000–$35,000
    • 66–80 death benefit: $3,000–$25,000

Modified Benefit Plan

A modified benefit plan is for those who can’t qualify for the graded benefit plan and are more challenged health wise. For instance, they were diagnosed for having diabetes before the age of 40 or had a heart attack in the past 12 months. At this point, the carrier is taking even more risk by offering coverage, so they hedge their odds by modifying the death benefit entirely.

If you die within two years of buying the policy, they will only pay your heirs the premium amount plus 10% in interest. Only in year three and after will they be entitled to the full death benefit amount. In other words, you can’t die for the first two years. You may want to opt for guaranteed issue life insurance instead of buying this plan. It may cost less and you wouldn’t need to answer any health questions.

Note: Any death result from an accident will pay 100% of the death benefit on both graded and modified benefit plan.

  • 110% of pain premium years 1 and 2
  • 100% of death benefit year 3
  • Issue ages:
    • 45–65 death benefit: $3,000–$35,000
    • 66–80 death benefit: $3,000–$25,000

Knockout Questions

aetna knockout questions

Cash Value Flexibility

As mentioned above, whole life policies accumulate cash value, which you can use for a loan later in life or when you surrender the policy. Aetna offers a unique benefit called non-forfeiture option. Its purpose is to reduce the risk of your coverage lapsing by mistake, leaving you without any protection.

In essence, they use your cash value funds to pay your policy if your premium remains unpaid at the end of the grace period. This will save you from buying a new policy and go through underwriting again. You will need to pay back the amount they used, including added interest. If you don’t they will deduct it from the total benefit they will pay your heirs.

This is a good option, in my opinion. You will be surprised to find out how many people forget to pay their policy, or change a bank account number and forget to update it with the carrier, only to find out a month later when they get a cancelation letter from the insurer.

Aetna vs. Other Carriers’ Sample Monthly Rates

aetna final expense sample rates

Male $10,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $28.82 $41.65 $73.05 $155.57
 Mutual of Omaha $29.16 $42.76 $73.70 $132.65
 Americo $32.06 $43.68 $72.93 $145.65
 Liberty Bankers Life $30.51 $45.80 $73.31 $146.80
 Aetna$35.83 $45.83 $70.83 $131.67
 American-Amicable $30.80 $45.76 $76.57 $151.36
 United Home Life $31.02 $44.69 $74.63 $138.60
 Settlers $31.45 $45.31 $72.85 $153.80
 Transamerica $30.73 $43.85 $74.66 $140.22
 Foresters $32.00 $45.19 $72.91 $216.09

Female $10,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $25.48 $34.74 $56.41 $113.89
 Mutual of Omaha $24.67 $32.87 $53.24 $98.43
 Americo $24.56 $33.93 $53.43 $112.77
 Liberty Bankers Life $25.57 $34.67 $54.79 $109.16
 Aetna$32.50 $39.17 $55.83 $105.83
 American-Amicable $25.96 $37.22 $58.70 $110.44
 United Home Life $26.06 $35.42 $73.28 $141.58
 Settlers $26.01 $36.38 $55.76 $113.48
 Transamerica $25.32 $33.72 $71.59 $104.11
 Foresters $26.05 $35.41 $83.41 $111.08

Male $20,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $55.44 $81.10 $143.90 $308.93
 Mutual of Omaha $55.11 $82.31 $144.20 $262.11
 Americo $60.33 $83.56 $142.06 $287.51
 Liberty Bankers Life $56.39 $86.97 $141.99 $288.97
 Aetna$68.33 $88.33 $138.33 $260.00
 American-Amicable $58.96 $88.88 $150.50 $300.08
 United Home Life $57.68 $85.03 $144.91 $272.05
 Settlers $62.90 $90.61 $145.69 $291.13
 Transamerica $57.89 $84.05 $145.74 $276.88
 Foresters $60.85 $87.22 $142.66 $290.33

Female $20,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $48.77 $67.28 $110.62 $225.58
 Mutual of Omaha $46.14 $62.53 $103.28 $193.66
 Americo $45.32 $64.07 $103.06 $221.75
 Liberty Bankers Life $46.51 $64.71 $104.95 $213.69
 Phoenix$49.12 $68.78 $106.37 $216.34
 American-Amicable $49.28 $71.81 $114.75 $218.24
 United Home Life $47.76 $66.49 $100.59 $204.87
  Settlers $52.02 $72.76 $111.52 $226.95
 Transamerica $47.07 $63.87 $104.41 $204.65
 Aetna $61.66 $75.00 $108.33 $208.33

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of July 2018 and are subject to underwriting approval.*

Is Aetna Final Expense a Good Choice?

Aetna final expense is one of a few companies that offer coverage for 89-year-old individuals. They are competitive, price-wise, but you still want to compare based on your current age and the plan you are qualified to see if you can do better with other companies.

They also don’t have height and weight restrictions, so if you are overweight, you may want to look into these plans. Avoid the modified death benefit plan. You can do better with AIG or Gerber life guaranteed issue plans. At the end of the day, it is solely your responsibility to compare plans and rates and choose the one that is best for you.

Using a broker can free you from doing that. We get paid by the carrier, and it costs you nothing to use our advice and expertise. Give us a call today at 866-326-3053 or run the quotes yourself on this page to see if Aetna can beat the other companies we represent.

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2018-09-01T16:38:33+00:00July 20th, 2018|Categories: Company Reviews, Seniors Life Insurance|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, heavy squats, critical thinking, and reading.

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