Motorists Final Expense Insurance Review 2018

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If you are looking for a Motorists final expense insurance review, you’ve landed on the right page.

Choosing the best final expense company for your unique situation may be cumbersome. Reading a company review is a vital first step in learning about the products and services they offer.

We at Effortless Insurance proudly represent Motorists Life Insurance Group and wanted to share our review of their final expense products, underwriting process, and rates to see if they might be a good fit for you. Let’s get to it.

Related: Life insurance companies review

Motorists Life Insurance History

Motorists was born in 1928 in Columbus Ohio and was funded by CEO Carl Crispin. He saw a need for simple, low-cost automobile insurance that can provide a fair service to the community.

The company was funded with a $15,000 initial investment and one primary goal in mind: put the policyholders first. Motorists is a mutual company, which means the policyholders own them and not Wall Street. They only work with independent agents, because independent agents have freedom and choice when presenting coverage options to potential buyers. Other agents might push clients to the company they represent whether it is a good or bad option for them.

Motorists Life Financial Ratings

According to A.M. Best, a benchmark in life insurance ratings, Motorists Life has a rating of A− (Excellent).

Motorists Life Is Available In…

Currently, Motorists is available in the following states: FL, GA, IL, IN, KY, ME, MN, NE, OH, PA, SC, TN, VA WV, WI.

Motorist Final Expense Products Review

Final expense insurance is a type of coverage designed to address charges or affairs specifically related to your death. The costs of funeral services, burial, and medical expenses are a few of the reasons clients seek this type of protection.

The death benefit is anywhere from $5,000 to $50,000; however, for most, the sweet spot is $25,000.

Final expense policies are simplified issue policies, which means they do not require an applicant to go through an exam as part of the underwriting process. Instead, there are a few “yes or no” health questions to answer.  Approval is based on the answers on the application, a phone interview, and the prescription database and medical information bureau.

Final expense is also a permanent policy that carries a cash value component. Your death benefit and premium payments are guaranteed to remain the same. Upon your passing away, your beneficiaries will collect the death benefit tax-free and can use it as they see fit.

Motorists Life offers two final expense products, simplified issue and graded benefit whole life. Let’s find out some of the key benefits.

Motorists Simplified Issue Whole Life (SIWL)

Motorists SIWL offers guaranteed level premium and death benefit. Your premiums are guaranteed never to increase and the death benefit never to decrease. There is also no waiting period for the death benefit to kick in. If you pass away, your beneficiaries will collect the purchased face amount tax-free and can use it accordingly.

This plan comes in two flavors: preferred and standard. The rate class you qualify for will depend on your overall health. The only difference between preferred and standard are the rates you will be paying.

Plan Highlights

  • Issue ages: 0–64 for standard
  • Issue ages: 45–75 for preferred
  • Maximum face amount: $25,000
  • Preferred risk no tobacco for 36 months, within height/weight charts and four-question supplemental app

Motorists Graded Benefit Whole Life

Motorists Life’s graded benefit plans are tailored for those with less-than-perfect health. If the insured dies within two years after obtaining the policy, the beneficiaries will collect a limited amount and not the full death benefit: 35% in year one, 70% in year two; in year three and after, the full death benefit is available. (If death is due to an accident, 100% is paid.)

This approach helps the insurer offset some of the risks they are taking by insuring people who are not in the best of health. Note that you still need to qualify for this plan, and you may want to opt for guaranteed issue life insurance, which has no health questions and a 2-year graded benefit.

Plan Highlights

  • Issue ages: 50–80
  • Maximum face amount: $15,000
  • Graded benefit 35% year 1, 70% year 2, 100% year 3 and on

Optional Riders

Life insurance riders are an add-on to enhance or supplement your coverage. Most riders cost extra. However, Motorists offers a few at no additional cost.

  • The Accelerated death benefit rider is available at no additional cost. If the insured becomes terminally ill and has less than 12 months to live, he or she can tap into 55% of the death benefit while still alive. The remaining death benefit will be paid to heirs after the insured has passed away.
  • The Children’s term rider offers term life coverage for children between the ages of 15 days and 17 years. The policy is fully convertible to whole life at any time up to the child’s age of 25. $5,000 in coverage starts at $1 per month.
  • The Accidental death benefit rider offers extra benefit in addition to the base policy death benefit if the insured dies as a result of an accident.
  • The SIWL rider is offered at no additional cost and lets the insured increase his or her death benefit by completing a new application from $1,000 to $20,000. The policy cannot exceed $25,000.

Motorists Final Expense Pros

 pros
  • If you are overweight, you could still qualify for the standard plan, because there are no height and weight requirements. For a preferred rate, you still need to be within the ranges.
  • You get an instant underwriting decision following the phone interview in most cases, which means you could get your policy in a few days rather than weeks.
  • An accelerated death benefit is offered at no additional cost.
  • Many of the knockout questions refer to health conditions in the past 12 to 24 months while other companies may ask about the past 4 to 5 years.

Motorists Final Expense Cons

 cons
  • To qualify for preferred rates, you must be smoke-free for 36 months. Most other companies only require 12 months.
  • It is only available in a few states.
  • It doesn’t have an online application process like most other carriers; instead, a paper application is required.
  • They only offer graded benefit plans up to $15,000. You may be better off applying for guaranteed issue without any health questions with a maximum benefit up to $25,000.

Motorists vs. Other Carriers’ Sample Monthly Rates

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
 Motorists Life $31.68 $44.94 $77.40 $158.24
 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
 Motorists Life $26.20 $36.11 $56.70 $116.10
 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
 Motorists Life $60.27 $86.77 $151.70 $313.38
 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
 Motorists Life $49.31 $69.13 $110.30 $229.10
 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

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

Last Word

Motorists Life’s final expense products are very competitive price-wise and are usually in the top five companies. But buying life insurance should never be based on price alone.

With so many stipulations and health conditions to pay attention to, you will be hard pressed to choose the right company for yourself. This is where a broker can help.

We represent over 50 carriers and, after a short interview, can suggest which company is most likely to approve your policy at the best possible price.

You can go ahead and run the rates on this page to see how Motorists stacks up against the others, or give us a call at 866-326-3053 for an unbiased, personalized quote for your unique circumstances.

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2018-09-01T16:21:38+00:00June 26th, 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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