Cigna Life Insurance Company Review 2018

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Cigna is a known entity in the health and Medicare insurance arena. However, did you know that they also offer life insurance? If you were looking for a Cigna life insurance review, this post is just for you. Cigna provides a group life insurance for business. However, in this review, I will only discuss the individual life insurance plans Cigna offers through its subsidiary, Loyal American Life Insurance Company. Let’s get to it!

Related: Final expense companies review

Cigna Life Insurance History

Cigna was established in 1982 by the merger of Connecticut General Life Insurance Company (CG) and INA Corporation. Cigna is an American health organization based in Bloomfield, Connecticut and Philadelphia, Pennsylvania, and it offers health, dental, Medicare, disability, life, and accident insurance through its subsidiaries.

Who Is Loyal American Life Insurance Company?

Loyal American operates as a subsidiary of Cigna, and it offers life insurance products and Medicare products. It was founded in 1955 and is located in Austin, Texas. Loyal American has an A (Excellent) rating from A.M. Best.

Products Offered by American Life Insurance

If you are looking for term life insurance from Cigna, you are out of luck because they only offer term life through an employer or group plan. When it comes to life insurance, they only provide final expense policies for those who are between the ages of 50 and 85. If you are looking for burial policies, read on as I go over the plans and pricing. American Life offers two plans: Level and modified death benefit.

Level Benefit Plan

The level benefit plan is also called immediate death benefit because there is no waiting period before the full death benefit kicks in. In other words, whether the insured dies three days or three years after buying the policy, the beneficiaries will collect the full purchased death benefit, not just a portion.

These policies are whole life with fixed premiums for as long as the insured is alive. Also, there is no exam needed as part of the underwriting process, only simple health questions you need to answer. Whole life builds cash value which you can access in the future as a loan or when you surrender your policy. Don’t let this be your only reason for selecting whole life or not.

The amount in the policy is relatively small and taking a loan, later on, will only make sure that your beneficiaries will have nothing left. The accelerated death benefit rider is automatically added to the level benefit plan at no additional cost. If you were diagnosed with a terminal illness, you could withdraw a lump sum amount up to 50% of the face value while you are still alive. This can help with medical bills or ease the financial burden of other personal matters.

  • Issue ages: 50–85
  • Death benefit: $2,000–$25,000
  • 5% spousal premium discount

Modified Benefit Plan

A modified benefit plan is for those who can’t qualify for a traditional policy due to major health issues or pre-existing conditions. So, instead of offering a level benefit plan, the insurance company offers an adjustment of the death benefit for the first two years. Hence, if you die within two years of buying the policy, American Life will pay your paid premium plus 10% in interest.

If the death is due to an accident, your beneficiaries will collect the full death benefit amount. The graded benefit plan allows the insurer to hedge the risk by offering the unhealthy one life insurance, but with some limits. If you are not in the best of health, you may want to check guaranteed issue life insurance before agreeing to the modified plan.

The reason is simple: with a modified plan, you still need to answer health questions and go through underwriting while guaranteed issue asks no health questions and has the same two-year graded option.

Knockout Questions

The applicant is not required to undergo an exam, so how does the carrier decide which plan the applicant can qualify for? The underwriter will conduct a phone interview and run a prescription database search which will aid in finding conditions you didn’t disclose on the application. It goes without saying that you must be truthful when filling out an application for life insurance or you risk insurance fraud or the carrier canceling your policy and not paying the death claim. Below is a screenshot with the health questions. Here is what you can expect based on your answers:

  • If you answered Yes to questions 1–7, you are not eligible for coverage.
  • If you answered Yes to questions 8–11, you are eligible for the modified benefit plan.
  • If you answered No to all the questions, you are eligible for the level benefit plan.
loyal american life knockout questions

Accidental Death Benefit to Age 100 Rider

This is an optional rider or a provision that pays an extra death benefit in addition to the basic one if the insured dies as a result of an accident. The death benefit amounts range from $10,000 to $50,000. Many companies provide an accidental death benefit option up to the age of 65 in most cases. This one offers it up to the age of 100.

Loyal American Life vs. Other Carriers’ Sample Monthly Rates

 Loyal American Life 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
 Phoenix$30.15 $43.27 $72.74 $146.92
 American-Amicable $30.80 $45.76 $76.57 $151.36
 Loyal American Life $31.20 $47.97 $78.94 $139.00
 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
 Loyal American Life $22.46 $35.65 $60.95 $108.39
 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
 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
 Loyal American Life $62.41 $95.94 $157.88 $278.00
 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
 Loyal American Life $44.92 $71.30 $121.91 $216.77
 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
  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

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

Bottom Line

As mentioned in the beginning, if you need a traditional term or universal life insurance, Cigna isn’t for you as they don’t offer individual life insurance products. If you are in the market for final expense policies with a death benefit up to $25,000, you should get a quote from Cigna. If you are a healthy female at the age of 50, they are competitively priced.

They aren’t as competitive for males. A better way to accomplish this would be to get quotes from more than one company so that you can compare the quotes and the benefits. Don’t get trapped into dealing with one company. Here at Effortless Insurance, we work with more than 50 companies from which to choose.

Since all companies have different criteria which they use to underwrite an individual, we promise to place you with the best-priced company that has the highest chance to approve your policy. Give us a call today at 866-326-3053; you’ll be glad you did. If you like to see the quotes first, go ahead and enter your information on the form on the right-hand side, and you will see instant quotes.

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2018-11-04T08:17:58+00:00October 5th, 2018|Categories: Company Reviews|0 Comments

About the Author:

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

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