American Memorial Life Insurance Review – Can You Do Better?

american memorial life insurance reviews

This American Memorial life insurance review will give you all the details that you need if you are considering American Memorial final expense life insurance to plan for your burial.  We will cover American Memorial ’s credit rating, history, and life insurance products.

There are hundreds of life insurance companies operating in the United States, but is American Memorial the right one for you?  American Memorial did not make our top list for burial insurance policies so if you are considering American Memorial to cover your final expenses, do not move forward without reading this review.

Shall we begin?

American Memorial Insurance Company History

The Assurant Solutions American Memorial Life Insurance Company has been serving the public since 1959 with final expense solutions under the name Prairie States Life Insurance Company.  Over the years, American Memorial grew and evolved.  Today they are part of the Assurant Solutions network.  However, they still are specialized in final expense solutions.

Assurant used to be a big player in the health insurance space.  However recent legislative changes have spurred Assurant to restructure its business model.  Today Assurant specializes int he property and casualty market, but it has carved out a piece of the burial insurance and final expenses market through American Memorial.

The American Memorial Insurance Company Rating

The Assurant Solutions American Memorial Life Insurance Company is rated an “A-” (Excellent) by A.M. Best.  “A” is an investment grade rating.  American Memorial can be viewed as being in excellent financial health with the ability to meet its ongoing life insurance obligations.

The Assurant Solutions American Memorial Life Insurance Company is also an A+ accredited business with the Better Business Bureau since 2004, which is the BBB’s highest rating.  While no company can get it right 100% of the time, American Memorial has demonstrated that negative customer experiences are the exception rather than the rule.

A.M. Best BBB
A -
A +

American Memorial Insurance Solutions

American Memorial specializes solely in final expense whole life insurance. These senior life insurance policies are designed to ensure that there is money available when the time comes to cover burial costs and other final expenses.

Final expense policies are easier to qualify for.  These no-exam life insurance policies usually ask a few questions about your health on the application and run a prescription background check to verify your health.

There are two types of American Memorial funeral insurance plans, pre-need and final need. Both types of policies are designed to cover your final expenses, but each does so in a slightly different way.

American Memorial Pre-need Insurance

Pre-need insurance is designed to pay for funeral service costs, burial costs, and cremation.  These types of policies are usually bought and sold directly at the funeral home.

Usually, you will price out your burial cost, cemetery plot, casket, urn, etc. with the funeral parlor representative.  Once you agree on a total, you will purchase a pre-need policy to cover that amount with the funeral home as the beneficiary of the plan. This means that your family never receives the money the funeral home does.

The benefit of the pre-need setup is that it prearrange most if not all of your funeral for your family.  Your loved ones will not have to make decisions about what you wanted since it will be laid out clearly and paid for.

However, pre-need does have some limitations.  First, you are paying the funeral home the proceeds of the policy and not your family.  This leaves little flexibility in the future if plans change.

Also, be sure to read the pre-need plan carefully. Guaranteed services will be covered regardless of the cost in the future.  However, non-guaranteed services may increase beyond the death benefit that you paid for with a pre-need plan.  If that happens, your family may be responsible for any non-covered costs.

Also, pre-need is one of the more costlier ways to pay for a funeral since there is little medical underwriting and the cost of inflation needs to be factored into the price.  If you are in good health, other options may make more sense financially, such as a final expense policy.

We created a list of some good questions to ask the funeral parlor if you are considering a pre-need solution to your final expense:

  • What exactly is included in the cost? What is not included in the cost?
  • What are guaranteed expenses? What are non-guaranteed expenses?
  • Am I protected if the funeral home closes or goes out of business?
  • Can I cancel the pre-need policy and get a full or partial refund?
  • Can I transfer the policy if I move and switch mortuaries?
  • Are 100% of my funeral expenses covered from day 1?

American Memorial Final Expense Insurance

American Memorial also offers final expense or burial insurance in addition to pre-need insurance.  American Memorial final expense insurance still is designed to cover burial and other funeral expenses but differs from pre-need insurance slightly.

Final expense insurance is a simplified issue whole life insurance policy.  These no-exam whole life policies can be used for anything, but are marketed to cover final expenses and burial costs.  Unlike traditional life insurance, many final expense companies offer instant approvals as long as you meet the qualifications of the policy.

Burial insurance underwriting consists of a prescription background check and a handful of health questions most times.  That’s it. While a little more in-depth than pre-need coverage, far from a hassle.  The underwriting also helps keep costs low, and coverage can start from day 1.

One of the main advantages of final expense insurance over pre-need insurance is that the death benefit goes directly to your beneficiary, not the funeral parlor.  This way if any money is left over to after the funeral your heirs receive it.

Also, final expense insurance can be used for anything.  You can leave additional coverage after your burial is paid as an inheritance or to cover remaining debts. Another advantage is that final expense insurance is much more flexible.  If your funeral parlor goes out of business or you move, your policy is unaffected.

American Memorial Rates

American Memorial does not publicly display their rates on their website.  As a result, you would need to reach out to an American Memorial agent of participating funeral parlor to get a quote for their final expense insurance or pre-need insurance specific to you and your unique situation.

However, whenever we have compared American National final expense rates with the top burial insurance companies, they were significantly more expensive.  This is partly the reason we have not added them to our list of best senior life insurance companies.

Burial insurance is something you need to qualify for based on your health, lifestyle, and age. There are alternatives to American Memorial that may be more affordable for your family.  By consulting with a knowledgeable broker, it ensures you receive an accurate quote that fits your unique situation.

The Final Word on American Memorial Life

Thank you for reading our American Memorial life insurance review. American Memorial has a long company history of serving their policyholders  The American Memorial life insurance phone number is 1-800-533-2220, or you can visit them on the web.

Today, American Memorial offers pre-need burial insurance and final expense life insurance solutions to their policyholders.  Overall, American Memorial ’s life insurance is a solid option if you want to cover final expenses.

However, if you have a pre-existing medical condition or are looking for higher term life insurance amounts, there may be a better option out there for you. Give one of our veteran agents a call or request a free no-obligation quote today.

Our agency compares over 25 top-rated life insurance companies in order to find you the best deal. A simple phone call could potentially save you thousands of dollars on your life insurance.

Joseph Cirillo of Good Life Protection

Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs.  Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.