Iowa Funeral Insurance: 11 Legitimate Questions Answered

Iowa Funeral Insurance
Iowa Funeral Insurance: 11 Legitimate Questions Answered

The Hawkeye State is the backbone of this country and has much to offer. From the Maquoketa Caves State Park up to Okoboji and Big Spirit Lake, there are many fun things to see while you kick back and relax.

The item that might not be on the top of mind for Iowans is the cost associated with the end of one’s life.

This typically comes as a major financial shock to loved ones who are grieving and not always ready for the monetary ramifications this can cause.

Funeral costs can range over a wide variety of price points depending on several factors.

The average traditional burial service in Iowa is $8,296

The average traditional cremation service in IA is $6,898

Location

Burial

Cremation

Ames$8,907$7,615
Cedar Rapids$8,688$7,122
Davenport$8,430$6,950
Council Bluffs$6,970$5,800
Des Monies$7,502$6,222
Dubuque$8,271$6,806
Iowa City$9,055$7,485
Lake Mills$9,755$8,355
Sioux City$6,778$5,443
Waterloo$8,600$7,180
State Average$8,296$6,898

Not included in the price estimates:

  • Cost of Headstone, Monument, or Marker
  • Cemetery Property, Plot of Land, Columbarium, etc.

Fortunately, Funeral Insurance can help with easing this financial burden.

 

Iowa button

Iowa Funeral Insurance

The average age upon death in the state is 77.2 for males and 81.6 for females.

This is above the national average lifespan.

National Average:

  • Males 76.1
  • Females 81.1

Listed below are the top 10 leading causes of death in the state.

  1. Heart Disease
  2. Cancer
  3. Chronic Lower Respiratory Disease
  4. Alzheimer’s Disease
  5. Accidents
  6. Stroke
  7. Diabetes
  8. Flu/Pneumonia
  9. Suicide
  10. Hypertension

Life is unpredictable and no one knows when their health will fail them, the best thing one can do is create a plan for the inevitable. This starts by understanding your options and determining what the right plan of action is for you.

country road and fence

11 Legitimate Questions

1. What is Funeral Insurance?

This product is a type of Whole Life coverage that comes with three key benefits to each plan.

Price Lock: This means your monthly payment will never increase. As so my seniors on a fixed income understand, price hikes are just not in the budget.

With this plan, you are guaranteed to know what the price will be moving forward.

Coverage Lock: This feature will assure that your coverage will be there when your family needs it.

There are other products on the market that actually expire once you reach a specific age. Fortunately, with this product you get the peace of mind knowing your price and coverage are locked in for life.

white and green lock inside shield

Cash Value: For each monthly payment that you make a portion will go towards the cash value.

Over time this will accumulate and you can borrow against your policy.

The biggest difference between this plan and a traditional Whole Life policy is the coverage amount. A traditional Whole Life plan is meant to supplement one’s income or be used as a financial investment tool, in contrast, this product has a smaller face amount which is meant to pay for your end-of-life expenses.

2. What can the financial distribution be used for?

There are no rules that say what the payout needs to be used for. However, there is a list of typical items that the beneficiary will use the distribution for.

  • Cremation
  • Memorial/Celebration of Life
  • Credit Cards
  • Leaving an Inheritance
  • Legal Expenses
  • Medical Bills
  • Charity Donations
  • Remaining Balance on a Mortgage
  • Post-Mortem Expenses
  • Remaining Car Loan Balances
  • Other End-of-Life Expenses

3. Should I use a Captive or Independent Agent?

You are able to receive coverage from either of these types of agents however that is where the similarities start to splinter.

Captive: This agent type is only allowed to represent one carrier. To understand why this matters looking to the underwriting process is a good place to start.

Every company has unique underwriting standards, this means if you are confined to a wheelchair one carrier may deny you coverage, and then the next carrier will award coverage to you.

As you can imagine if you work with a captive agent and only have access to one company then you may not qualify or even worse be placed in a higher-priced plan than is not necessary.

Independent: This agent type is not shackled to only one company’s products and can represent as many carriers as they wish. Working with an agent that has many tools in their toolbox will effectively raise the chances of you receiving the best plan and lowest price.

Captive vs independent agent

4. How do I know what I qualify for?

The most reliable way to receive the best plan for your specific health history is by contacting an independent agent that specializes in this product niche. Prior to contacting the agent, it is best to understand the available plan options.

There are four plan types that one can qualify for:

  • Level: Great Health
  • Graded: Average Health
  • Modified: Past Health Concerns
  • Guaranteed Issue: Major Medical Issues

details of plan types chart

5. How old can someone be and still qualify for coverage?

The majority of carriers will award initial coverage until the age of 85. However, there are a few companies that will proved coverage up until the age of 90.

90 green circle

Two of those providers are Aetna and Guarantee Trust Life.

6. What is the best plan for me?

Every company has different underwriting standards which means the right plan for you does not mean that will be the best plan for your spouse.

These carriers all have different risk tolerances and rules on underwriting. With that said there are three components to the way providers approve coverage and determine the price.

Health: Carriers will look back on your medical and prescription history for up to five years. So being open and honest with your agent will allow them to find the very best plan that will cover your specific conditions.

Age: Each provider has different age ranges that they are willing to cover, also specific carriers are more or less expensive depending on your age.

Gender: Your gender matters because males will have higher premiums than females. This is the case for a few reasons but the simplest is on average men live four years less than women.

 7. What is a Waiting Period?

This is the time restriction that the carrier places on higher risk cases. Meaning that if the insured was to pass away prior to the end of the waiting period the beneficiary would receive only a partial payout.

If the insured passes away after the waiting period has ended, the beneficiary would receive the entire coverage amount.

Each carrier determines the time restriction, but waiting periods are typically two years.

8. Immediate coverage: What is the best way to get it?

The easiest way to receive first-day coverage is by contacting an independent agent that has access to multiple carriers. This will give you the best chance of finding a plan that is tailored to your health history.

9. Three Different names: Which is correct?

You may have heard this product referred to by three different names, the carriers do this to market the product.

Three names for this plan type

There is no difference between these three names.

10. Can I purchase a policy for my family member?

Yes, you can, however, you are not allowed to take out a policy without their permission.

There is a couple of things needed to be able to purchase a plan for a loved one. The first is that the family member will need to sign their name on the contract. Second, they will need to be in a healthy enough state of mind to understand what they are agreeing to.

11. How do I secure a quote?

The best way to secure your quote is by using the online quote tool on this page, once you fill in your information a list of carriers and prices will generate.

To understand exactly which company you are able to qualify for call Willamette Life at 844-576-0019.

6 Impactful Plans

6 Impactful Plans

#1 Mutual Of Omaha – Living Promise (Level)Mutual Of Omaha Logo

Mutual of Omaha’s Living Promise plan offers immediate coverage and rock bottom low prices.

Additionally, you are able to add benefits to the plan like accidental death coverage.

This plan hits all the marks and receives the number one spot in the state.

Quick Plan Facts

  • Available ages: 45-85
  • Coverage: $2,000-$40,000
  • Immediate coverage

Visit the blog section under the main menu to read a full review of this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$27$39$51
50$31$44$58
55$36$52$69
60$44$64$84
65$56$83$110
70$75$110$146
75$100$148$197
80$140$208$276
85$193$288$382
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$23$32$42
50$24$35$45
55$28$40$52
60$33$48$63
65$41$60$79
70$53$78$103
75$72$107$142
80$98$146$194
85$136$202$269

#2 Foresters Financial – PlanRight (Preferred)Foresters Financial Logo black and white

Foresters Finacial offers a wonderful option for individuals in good health. Included in the plan are both immediate coverage and low monthly premiums.

A major benefit of securing a plan with Foresters is that it is a Fraternal Benefits Organization.

Part of its mission is to give back to members and one of the ways they do this is by offering discounts on products other than life coverage including discounts on dental, vision, and hearing.

Quick Plan Facts

  • Available ages: 50-85
  • Coverage: $5,000-$35,000
  • Immediate coverage

Visit the blog section under the main menu to read further about this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$32$46$61
55$37$54$71
60$45$66$87
65$55$81$106
70$71$104$138
75$103$152$202
80$147$219$290
85$201$300NA
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$26$38$49
55$31$45$59
60$35$52$68
65$41$60$79
70$52$76$101
75$75$111$147
80$111$165$219
85$166$242NA

#3 Royal Neighbors of America – SIWL (Level)Royal Neighbors Logo black and white

This plan offers coverage on day-one and affordable premiums.

Royal Neighbors is a great plan option for those who have had past minor surgeries, medical conditions, or a mental health diagnosis like schizophrenia.

Quick plan facts

  • Available ages: 50-75
  • Coverage: $7,000-$30,000
  • Immediate coverage

Visit the blog section under the main menu to read more about this plan.

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$40$58$77
55$46$68$90
60$50$74$98
65$59$87$115
70$75$111$147
75$110$164$218
80NANANA
85NANANA
Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45NANANA
50$34$49$65
55$38$55$72
60$38$56$74
65$45$66$87
70$56$82$109
75$80$118$157
80NANANA
85NANANA

#4 Sentinel Security Life – New Vantage II (Graded)Sentinel Security Life logo black and white

The New Vantage II plan has a 2-year waiting period, however, it is a favorable payout structure during this time. This plan is best for those with multiple health conditions that may cause concern for providers and cannot qualify for a Level plan.

Waiting period payout structure

  • Death Benefit in year 1 – 30% of the face amount
  • Death Benefit in year 2 – 70% of the face amount
  • Death Benefit in year 3 and beyond – 100% of the face amount

Quick Plan Facts

  • Age eligibility: 45-85
  • Coverage amount: $1,000-$20,000 (depending on age)
  • 2-year waiting period

Quotes

Male

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$31$45$60
50$38$56$73
55$50$74$97
60$65$96$127
65$84$124$165
70$110$163$216
75$165$245$326
80$235$351$467
85$326$488NA
Female

Monthly Premiums

Non-Smoking Rates

Age$10,000$15,000$20,000
45$26$37$49
50$32$46$61
55$38$55$73
60$48$70$93
65$61$90$119
70$80$119$157
75$121$180$238
80$173$258$343
85$268$401NA

#5 Guarantee Trust Life – Heritage (Graded)Black and white GTL logo

The Heritage plan is a great option for those with a complex medical history, asking only 5 simple health questions and respectable monthly premiums.

Due to the leniency of underwriting this plan comes with a two-year waiting period and an extremely favorable 2nd-year payout option.

Waiting period details:

  • Death Benefit in year 1 – paid premiums plus 5%
  • Death Benefit in year 2 – 50% of the face amount
  • Death Benefit in year 3 and beyond – 100% of the face amount

Quick Plan Facts

  • Available ages: 40-90
  • Coverage: $2,500-$25,000
  • 2-year waiting period

Visit the blog section to read further about this great plan.

Quotes

Male

Monthly Premiums

Age$10,000$15,000$20,000
45$47$68$89
50$51$74$97
55$55$80$106
60$67$99$131
65$80$118$156
70$102$150$199
75$139$206$274
80$232$346$461
85$300$449$597
Female

Monthly Premiums

Age$10,000$15,000$20,000
45$34$49$64
50$36$52$67
55$42$62$81
60$51$74$97
65$60$88$116
70$73$108$142
75$102$151$201
80$165$245$326
85$191$284$377

#6 AIG (Guaranteed Issue)

This is a Guaranteed Issue plan which means that there are no medical questions asked and each applicant is approved automatically. This plan is reserved for those with conditions that the carrier will not otherwise insure.Black and white AIG logo

If you do need to use this plan type we recommend AIG.

2-Year Waiting Period Payout Details

  • Months 0-24: All premiums paid +10% are given to the beneficiary
  • Months 24+: 100% of the face amount will be paid out of the beneficiary

Is this Guaranteed Issue plan from AIG right for me?

Apply for this plan if you have one of the following health conditions.

  • AIDS, ARC, HIV
  • On Hospice
  • Diagnosed with a terminal illness
  • Bedridden
  • Confined to hospital, nursing home, mental care, or long term care facility
  • Currently have or receiving treatment for invasive cancer
  • In the past 24 months diagnosed with: Alzheimer’s, Dementia or Memory Loss, receiving Kidney Dialysis, 24-hour Continuous Oxygen use, Implanted Difibulator, or Organ Transplant

Quotes

Male

Monthly Premiums

Age$10,000$15,000$20,000
50$53$79$104
55$58$80$128
60$65$96$142
65$86$128$189
70$101$150$221
75$142$212$331
80$206$309$416
85NANANA
Female

Monthly Premiums

Age$10,000$15,000$20,000
50$37$54$76
55$44$65$98
60$51$76$113
65$63$94$139
70$76$113$168
75$110$164$241
80$180$269$393
85NANANA

Final Thoughts

a. Iowa Funeral Insurance is both affordable and accessible in this great state. You have many plan options to choose from, if you are in top-notch health then we recommend using the Mutual of Omaha or Foresters Financial plan options.

b. Always use an independent agent who has access to many different plan options, this will assure you the best plan at the lowest price.

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