Motorists Life Final Expense Insurance Review

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Motorists is made up of several different companies including Motorists Life Insurance Company which was founded in 1965 and has earned an A- with A.M. Best. This is the division of Motorist that offers burial or sometimes call final expense insurance.  In addition to the simplified issue whole life, they also offer term, par and non-par fully underwritten whole life with disability riders available.

The home office for Motorists Insurance Group is located in downtown Columbus Ohio and offers coverage in Ohio, Michigan, Minnesota, Nebraska, Florida, Pennsylvania, Illinois, Indiana, Iowa, Georgia, Virginia, Wisconsin, South Carolina, West Virginia, Kentucky and Tennessee.

They also offers a Final Expense, burial life insurance specifically for children from birth through age 18.  This whole life policy can be continued into adulthood, and increased up to $105,000 at six different times during the life of the policy without having a new health history assessment.  This policy is called the Youth Life Protector Plan and the premiums are modestly low.  It can be purchased through the age of 18 for a $15,000 initial death benefit.

You may not have heard the term “Par” or Non Par” in recent years or ever.  This is referring to dividends.  If the policy is a Par policy, it means that the policy owner participates in receiving dividends.  The policy can increase in cash value and potentially increase the death benefit.

There is no guarantee that the dividends to grow, but it does have a great potential and policy holders have a several choices on how they want the dividend proceeds to be used. They can either reduce the next premium due, accumulate them in an interest earning account, purchase paid up additions of whole life, purchase one year term insurance, or just take the dividends in cash.


Motorists Life Final Expense Insurance

Motorist Life Simplified Issue plan, part of their Protection Series,  has a very competitive and attainable final expense plan, making it one of the best final expense or burial insurance plans available in the states listed above.

There are two different levels of coverage offered: Immediate level death benefit and the graded death benefit.  The immediate level is offered at two different rates: preferred and standard. The Preferred rate is only available to non-tobacco/nicotine users, those who can pass additional questions, and fit within the  Preferred weight guidelines.

Level 1 – Immediate level death benefit:

  • Preferred rates available for ages 45 to 75 non tobacco users only
  • Standard rates 0 to 80 tobacco and not-tobacco rates
  • $5,000 to $25,000

Level 2 – Graded death benefit 

  • Available for ages 50 to 80
  • $2,000 to $15,000
  • Year one benefit is equal to 35% of the total death benefit
  • Year two benefit is equal to 70% of the total death benefit
  • Year three 100%

Features of the policy include  guaranteed level premiums for the life of the policy.  As long as you pay your premiums, it will not increase no matter what happens to your health.   It will never end and can never be cancelled and guaranteed.

The policy will grow in cash value.  As you pay the premiums, cash value will accumulate over time.  You can take a portion of the the cash value at any time by taking out a loan on the policy.  The amount of money loaned to you will be deducted from the death benefit paid to your beneficiary.  If you truly intended to pay the money back, then the policy will be replenished.  The best way to pay the small amount of interest on the loan is to add the amount of interest to your monthly premium payment.

If you are diagnosed with some type of terminal illness and expected to die in the next twelve months, Motorists will allow you to take up to fifty five percent of your initial death while you are still living.  This can help with current medical bills or anything else.  There is no stipulation on what you can use the money for.  It’s completely up to the policy owner.

Remember, it is the Motorist Life policy owner who has the right to the cash value, or proceeds during the life of the insured, not the insured which many times are different.  Very often,  children will purchase the final expense life insurance for the parent, so they are the “owner” and have the rights to take loans, or make changes to the policy.

For those of you who have have children or grandchildren you would like to insure for a small amount, adding the child rider to the Motorist Life simplified issue whole life is a great way to purchase term insurance on children or grandchildren from ages 15 days through 17 years old.  The rider is for $5,000 for only $1.00 per child.  The rider is good until the child is 25 years old and at that time it can be converted into a permanent whole life policy at increase the coverage to $25,000 no matter what the child’s health is at that time.

Children are not eligible for the coverage if they have; cancer, leukemia, kidney disease, heart or circulatory disorder, diabetes, liver disease, MS, seizures, MD, sickle cell anemia, or cystic fibrosis.  They also will not be accepted if they have used illegal substances, been in drug or alcohol abuse, convicted of a felony, on probation or incarcerated in the last two years.

Most final expense and burial insurance plans do not allow for policy increases after the initial policy has been in place for more than 30 days.  Motorist Life will allow you to add more death benefit to your existing policy for the rates at the age of original issue.  You will however have to pass the underwriting guidelines just like you did when you first applied.

When the policy is increased, it’s still the same policy, so you would avoid an additional policy fee. Most life insurance policies include an annual policy fee somewhere from $25 to $60 per year.  This is a non-negotiable fee that helps pay administrative costs associated with the policy.


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