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Aetna – 2023 Burial Insurance Review

Jun 22, 2023 | Reviews

Aetna – 2023 Burial Insurance Review

Aetna, one of the largest insurance companies in the United States, has a rich history dating back to 1853. With a strong presence in the healthcare industry, Aetna has consistently upheld its financial stability and fulfilled its commitments. It’s important to note that Aetna offers a cost-effective option specifically tailored to seniors, addressing funeral and burial expenses. Rest assured that when the time comes, Aetna will honor your claim.

To provide further clarity, Aetna collaborates with two affiliated companies for their burial policies: Continental Life Insurance Company and American Continental Insurance Company.

Continental Life Insurance Company (CLI) was established in 1983 and has served as a support team for Aetna’s senior supplemental coverage. American Continental Insurance Company (ACI), joining the Aetna family of companies in 2011, originated in 2005. Both CLI and ACI have received an excellent rating of A from A.M. Best.

Why Burial Insurance?

Burial insurance, also known as final expense insurance or funeral insurance, serves the same purpose. Here are a few reasons why seniors may consider purchasing burial insurance:

By now, you may have heard that the average funeral costs $10,000 or more. Social Security currently offers a death benefit of only $255 to eligible dependents. Additionally, healthcare expenses often escalate during the final stage of life, particularly when individuals are coping with chronic illnesses that eventually prove fatal. The associated costs of treatments can become overwhelming.

Fortunately, there is a solution. Aetna burial insurance can alleviate the emotional and financial burden on your family during their grieving process. As a whole life insurance policy, it accumulates cash value over time. The accumulated funds, known as the death benefit payout, can be utilized by your chosen beneficiary to address any immediate needs.

Why Choose Aetna?

Among the various options available for burial insurance, what sets Aetna apart? Aetna is committed to its policyholders and offers a combination of financial stability, competitive rates, and accommodating underwriting guidelines. Notably, Aetna’s affiliate, American Continental, is one of the few providers that offer life insurance to applicants aged 86 to 89.

Catering to Seniors

Many burial insurance companies enforce a minimum age requirement of 50 for applicants, which can be challenging for seniors. However, Aetna’s program offers a more inclusive approach, allowing individuals as young as 45 to qualify. By applying between the ages of 40 and 50, seniors can expect significantly lower premiums, making it more affordable.

Limited Additional Coverage

Regrettably, American Continental Insurance Company does not provide any additional coverage options through riders. Fortunately, most other final expense companies offer various rider options that cater to seniors’ specific needs. These may include options such as the Terminal illness/Accelerated Benefit Rider, Accidental Death Rider, Nursing Home Rider, Child Rider, and Grandchild Rider.

What Burial Insurance Offers Seniors

Burial insurance provides seniors with essential benefits, ensuring peace of mind during challenging times. It offers funds when they are needed the most and provides affordable and permanent coverage. Seniors can choose from level, graded, or modified death benefit plans based on their preferences. Additionally, the telephone-based approval process eliminates the need for a medical examination, making it more convenient.

The Best Part

The coverage offered by Aetna is particularly noteworthy because it comes from a company with proven financial strength and a genuine commitment to the senior market. Seniors can feel confident knowing they are supported by a reliable provider.

Please note that plan options may vary by state, and this product is available in all states except Alaska, California, Connecticut, District of Columbia, Hawaii, Massachusetts, Maryland, Maine, New York, Vermont, and Washington.

The Aetna burial insurance rates vary based on the policyholder’s age and gender. For seniors, it is important to note that as one gets older, the rates tend to increase regardless of whether they identify as male or female. Additionally, on average, females generally have lower rates compared to males.

Average Monthly Aetna Burial Insurance Rates

Policyholder Age 60:

  • $5,000 Male: $28
  • $5,000 Female: $23
  • $20,000 Male: $100
  • $20,000 Female: $82
  • $35,000 Male: $173
  • $35,000 Female: $140

Policyholder Age 65:

  • $5,000 Male: $33
  • $5,000 Female: $28
  • $20,000 Male: $123
  • $20,000 Female: $100
  • $35,000 Male: $210
  • $35,000 Female: $173

Policyholder Age 70:

  • $5,000 Male: $43
  • $5,000 Female: $35
  • $20,000 Male: $160
  • $20,000 Female: $127
  • $35,000 Male: $278
  • $35,000 Female: $220

Policyholder Age 75:

  • $5,000 Male: $56
  • $5,000 Female: $45
  • $20,000 Male: $212
  • $20,000 Female: $169
  • $35,000 Male: $371
  • $35,000 Female: $290

Policyholder Age 80:

  • $5,000 Male: $75
  • $5,000 Female: $60
  • $20,000 Male: $290
  • $20,000 Female: $234
  • $35,000 Male: $502
  • $35,000 Female: $409

Policyholder Age 85:

  • $5,000 Male: $101
  • $5,000 Female: $83
  • $20,000 Male: $396
  • $20,000 Female: $320
  • $35,000 Male: $670
  • $35,000 Female: $558

How Aetna Determines Eligibility for Seniors

Aetna takes into account the health profile of seniors to assess their eligibility for burial insurance. They kindly request formal health information and perform a prescription history check as part of the evaluation process. These details are all that Aetna requires to determine eligibility.

It’s worth noting that Aetna does not require a height-to-weight ratio analysis (build chart), a physical or medical examination, or a Medical Information Bureau (MIB) check as part of their underwriting process.

In the final expense industry, it is customary to conduct a “point of sale” interview. During this interview, seniors engage in a brief three-way phone call with their agent and the insurance company. The company seeks seniors’ authorization to access their medication history and asks them health-related questions. The health questionnaire is the primary step in the application process.

Listed below are the “knockout” questions used by American Continental Insurance Company:

Knockout Questions

If seniors answer “yes” to any of these questions, they are unfortunately ineligible for any of the burial insurance plans. The insurance company will also deny them if their medication history aligns with any of the mentioned conditions:

Do any of the following apply to you?

  • Are you currently hospitalized, in a nursing facility, confined to a bed, or receiving hospice care?
  • Do you require the use of oxygen for any lung or respiratory disorder?
  • Have you been diagnosed by a medical professional to have an aneurysm that hasn’t been surgically repaired?

Have you ever been diagnosed or treated by a medical professional or had surgery for any of the following?

  • Any condition requiring bone marrow, stem cell, or organ transplant?
  • Kidney disease requiring dialysis?
  • Alzheimer’s disease, dementia, or a mental incapacity?
  • Lou Gehrig’s disease (ALS)?
  • A life expectancy of 12 months or less?
  • AIDS, ARC, tested positive for HIV?

Seniors need not worry if they answer “yes” to any of the above questions. There are still alternative options available, including a guaranteed issue plan from Gerber Life.

Levels of Coverage

Aetna offers different levels of coverage for burial insurance, taking into account seniors’ age and health. The most suitable option for each individual depends on these factors. Generally, if seniors purchase the policy at a younger age and in good health, they will pay lower premiums.

Level One – The Immediate Death Benefit

Aetna’s “Level Benefit” final expense plan provides 100% immediate coverage to seniors who qualify. This means that their benefits are available in full from day one, with no waiting period.

To be eligible for this level of coverage, seniors must answer “no” to all the health questions and not have any significant health conditions within the past two years. This plan is commonly recommended for individuals aged 60 to 89, with coverage amounts ranging from $3,000 to $35,000, varying based on age. For example, a non-smoking female aged 65 can expect to pay around $45 per month for a $10,000 death benefit.

Aetna’s level plan is competitively priced and considers conditions such as hypertension, cholesterol, arthritis, mental health issues, and health events occurring two or more years ago. This plan is recommended for seniors who meet the eligibility criteria.

Level Two – The Graded Death Benefit

Aetna’s “Graded Benefit” Burial Insurance offers a slightly higher payout compared to most graded plans. It provides 40% of the benefit in the first year, 75% in the second year, and 100% from the third year onwards. The most common age range for this policy is 60 to 80, with coverage options ranging from $3,000 to $35,000.

To qualify for this level of coverage, seniors must not answer “yes” to any of the knockout or modified conditions and should not have a history of treatment.

Overall, this plan is reasonably priced considering the conditions it covers, making it a suitable choice for seniors in less than excellent health. Some health conditions covered by this graded plan include Crohn’s disease, cancer, and ulcerative colitis.

Level Three – The Modified Death Benefit

Aetna’s “Modified Benefit” pays seniors’ designated beneficiaries all the premiums they paid into the policy, along with 10% interest. This plan includes a standard waiting period that starts on the first day of the policy and ends precisely 24 months later. If seniors pass away during this period, Aetna will refund 110% of the premiums.

However, seniors may still receive their full death benefit during the waiting period if they pass away due to an accident, as the insurance company will pay out the benefit in its entirety.

To qualify for the modified plan, seniors must be 75 years old or younger and should not have or have been treated for any of the “knockout” conditions. It is important to note that even if seniors meet the health requirements, this plan is not recommended. They can find a better deal with AIG or Gerber Life guaranteed issue plans.

Aetna Summary & Next Steps for Seniors

In making a decision regarding burial insurance plans, it’s important for seniors to have the freedom to compare different options and rates to find the one that suits them best. Engaging the services of a broker can alleviate this responsibility entirely. By working with a broker, the seniors can rest assured that the carrier compensates them through a commission, while they themselves do not incur any costs for using the broker’s services.

For seniors, Aetna offers a comprehensive burial insurance program that takes into account their age and health condition to determine the level of coverage they qualify for and the corresponding premium amount. The application process is designed to be straightforward, and the point of sale interview is conducted efficiently. It is worth noting that Aetna does not impose any height and weight restrictions. In certain circumstances, Aetna’s Level One (Level) and Level Two (Graded) plans can prove to be valuable options for seniors. However, we strongly advise against considering Level Three (Modified) as it may not be the best choice for anyone.

Seniors are encouraged to maintain open and honest communication about their health concerns, enabling their agent to provide appropriate guidance. Although Aetna Life Insurance Company, along with its subsidiaries, may be a leading contender, it’s essential to explore other alternatives as well. Seniors can rely on the assistance of our dedicated team to thoroughly survey the market on their behalf, ensuring they secure the maximum coverage available at the most competitive price, regardless of the insurance company. To begin the process, seniors can reach out to us by calling (800) 398-9821 or filling out our form.

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