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Liberty Bankers Life Final Expense Review

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Liberty Bankers Life has traditionally focused on annuity product sales for many decades, however, over the past several years, they have offered traditional life insurance products and Medicare supplemental insurance.

In this review, I will specifically go over the final expense products they offer and compare them against the best in the industry. Liberty Bankers may not be a name you hear often, and this may be a good reason for you to keep reading.

Related: Top 20 final expense companies

Liberty Bankers Life History

Liberty Bankers Life (LBL) was originally established in 1958, as Royal Oak Life Insurance Company. They grew very slowly and moderately offering products in 40 states. In 1992, the company was sold to American Hilton, a South Carolina insurance holding company.

In 1998 Liberty Bankers held only $5 million in insurance reserve to pay benefits (extremely low), by 1999, they started offering annuity products that were welcomed very well in the market. As a result, they experience rapid growth. By 2004, the company had $200 million in assets and was purchased by Heritage Guaranty Holdings, Inc.

In 2006, Liberty Bankers started to sell traditional life insurance products, such as whole, term. pre-need funeral, and critical illness insurance. Today they have over 10,000 agents selling their products, and assets exceeding $1.75 billion.

Liberty Bankers Life Financial Ratings

According to A.M. Best, a leader in ratings in the insurance industry, Liberty Bankers has a B++ (Good) rating.

Liberty Bankers Whole Life Insurance Review

Liberty Bankers offers two basic whole life products. Simple (preferred & standard) and modified whole life. Both policies are simplified issue (a few health questions) with no exam needed. You will have a phone interview with the underwriter and the decision is usually instantly.

They will also check MIB (medical information bureau) and the prescription database. Liberty reserves the right to obtain an attending physician statement (APS), but those are rarely used as long as the application is completed.

Whole life policies will never expire as long as the premiums are paid, and will build a cash value that you can use in the future via a loan, or if you surrender your policy. Let’s take a look at the differences between both products.

Simple Final Expense

The simple final expense offers a guaranteed premium with an immediate full death benefit. This means there is no waiting period for the policy to kick in, and the premiums will stay leveled (the same) for the life of the policy. This policy has two flavors: preferred and standard. If you qualify for the preferred rating class, you will pay less. Nonetheless, both policies offer the same benefits.

Simple Final Expense Highlights

  • Issue ages: 18–80
  • Minimum face amount: $3,000
  • Maximum face amount: $30,000
  • Guaranteed death benefit day one
  • Guaranteed level premium
  • There is a 20% premium discount for the first year only if you elect to pay annually

Modified Whole Life (MWL)

For some individuals who can’t qualify for the simple final expense because of complex health issues, Liberty Bankers has a second alternative called modified whole life, or MWL for short. This policy will still require you to answer health questions as part of the underwriting process.

Note that this policy is a graded benefit policy – although premiums will stay the same, you won’t get the death benefits if you die in the first 3 years after purchasing the policy, unless it’s accident-related.

If you die from natural causes, your beneficiaries will only collect the premiums paid plus 10%, instead of the purchased death amount you bought. At year 4, the death benefit will equal 100%, year 5 105%, and year 6 equals 110%.

At this point, a guaranteed issue policy with Gerber or AIG will be a better choice for you, since they only have a 2-year graded benefit and no health questions on the application.

Modified Whole Life highlights

  • Issue ages: 40–80
  • Minimum face amount: $1,000
  • Maximum face amount: $20,000
  • Graded benefit 3-year

Available Policy Riders

Policy riders are an add-on benefit to enhance or supplement your life insurance policy. Liberty Bankers allows riders to be added to some policies. It’s worth mentioning that this isn’t available in all states.

  • Children’s Term Insurance – One unit equals $5,000, can purchase 4 maximum units. It’s a term coverage to age 25.  The child can convert the policy at age 25 or earlier (if married) to a whole life policy up to five times the purchased amount without evidence of insurability.
  • Grandchild Term Insurance – Available on the simple preferred and standard only, this rider provides a term coverage to a grandchild for $7,500 to age 25. Can convert it to whole life at age 25 or earlier (if married) up to 2 times the purchased amount.
  • Accidental Death and Dismemberment –  Provides extra death benefit should you die as a result of an accident.
  • Waiver of Premium – The insurance company will waive the premium and keep your policy in place should you become disabled.
  • Accelerated Living Benefit – Allows the policy owner to access some of the death benefits should they develop a terminal illness.

The Application Process

By now you should be aware that every life insurance company has its own way of underwriting and issuing a policy. There is no one universal application for all companies, they all have different risks and stipulations. Liberty Bankers has 3 parts to the application that you must answer “no” to, in order to qualify for the best rate.

I took the application and divided it into these 3 parts, you can click the image to enlarge.

Reference: Liberty Bankers Final Expense Application.

Part 1

If the applicant answers “yes” to any question in Part 1, DO NOT PROCEED with the application.

liberty bankers application part 1

Part 2

If all “no” answers in Part 1, complete Part 2.

If you can’t answer “no” to all the questions in part 2, you will qualify for the graded benefit policy. Make sure you pay attention to this part.liberty bankers application part 2

Part 3

If all ‘no” answers in Part 3, select Simple Preferred. Otherwise, select Simple Standard.

This is the part in which you could qualify for the preferred or standard rating.

liberty bankers application part 3

Liberty Bankers Life vs. Other Carriers’ Sample Monthly 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
 Phoenix$30.15 $43.27 $72.74 $146.92
 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
 Phoenix$26.63 $36.46 $55.26 $110.24
 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
 Phoenix$56.16 $82.40 $141.34 $289.69
 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
 Foresters $48.95 $67.67 $103.69 $219.01

Male $30,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $82.06 $120.55 $214.75 $462.30
 Mutual of Omaha $81.06 $121.86 $214.69 $391.56
 Americo $88.59 $123.44 $211.19 $429.36
 Liberty Bankers Life $82.27 $128.14 $210.67 $431.14
 Phoenix$82.17 $121.53 $209.94 $432.47
 American-Amicable $87.12 $132.00 $224.43 $448.80
 United Home Life $84.35 $125.38 $215.19 $407.10
 Settlers $94.35 $135.92$218.54 $461.81
 Transamerica $85.04 $124.29 $216.83 NA
 Foresters $89.70 $129.26 $212.42 $433.91

Female $30,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $72.05 $99.83 $164.82 $337.27
 Mutual of Omaha $67.60 $92.20 $153.31 $288.89
 Americo $66.07 $94.20 $152.68 $330.72
 Liberty Bankers Life $67.45 $94.76 $155.11 $318.23
 Phoenix$71.61 $101.10 $157.49 $322.43
 American-Amicable $72.60 $106.39 $170.81 $326.04
 United Home Life $69.47 $97.55 $148.71 $305.13
 Settlers $78.03 $109.14 $167.28 $340.43
 Transamerica $68.82 $94.02 $154.84NA
 Foresters $71.85 $99.93 $153.96 $326.94

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

Last Word

While Liberty’s prices may be attractive, they are not the most competitive when compared to Assurity Life or Mutual of Omaha, both of which will be a better choice since their financial ratings are much better.

Both will also offer more than $30,000 in benefit should you need it. Keep in mind that even if you qualify for the simple policy with an immediate death benefit, you may still get the standard rate and not the preferred which will cost more.

At this point, Liberty Bankers may not even be competitive enough to be worth it.

When it comes to the modified whole life policy, I see no reason to buy it since you can just as easily buy a guaranteed issue policy without any health questions and get a 2-year waiting period instead of 3.

My advice to you is to compare all companies before making a selection. Make sure you understand the product and see a need for it before signing your name. You can run the quotes yourself on this page.

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