What is the Funeral Advantage Program?
The Funeral Advantage program is a final expense whole life insurance policy offered by Lincoln Heritage Life Insurance Company. It is specifically marketed to seniors to cover end-of-life costs, such as funeral expenses, cremation costs, and outstanding medical bills. The program is built on two primary components: a cash life insurance benefit and free access to the Funeral Consumer Guardian Society (FCGS).
Unlike traditional life insurance that may require a medical examination, the Funeral Advantage policy uses a health questionnaire to determine eligibility. The premiums are fixed for life, and the policy accumulates cash value over time. This simplifies the application process for many seniors, especially those with pre-existing health conditions who might face higher hurdles with other insurance products.
How the Program Components Work
The Cash Benefit
The life insurance policy component of Funeral Advantage offers a maximum death benefit of up to $20,000, though some advertisements mention a higher figure. For qualifying policyholders, Lincoln Heritage is known for its fast claims process, with benefits sometimes paid within 24 hours of approval. This quick payout can be crucial for families who need immediate funds to cover funeral costs. The cash benefit is paid directly to the beneficiary, who can then use it for any purpose, not just funeral expenses.
The Funeral Consumer Guardian Society (FCGS) Membership
Every Funeral Advantage policyholder receives a complimentary membership to the Funeral Consumer Guardian Society, an independent consumer advocate organization. This membership includes a range of services designed to help surviving loved ones during a difficult time.
FCGS services include:
- Final Wishes Planning: Policyholders can pre-plan their funeral wishes, which are then securely stored by the FCGS. This minimizes guesswork and potential family disputes during a time of mourning.
- Price Shopping: When a policyholder passes away, the FCGS provides a 24-hour toll-free number for the family to call. A representative will then compare prices from multiple local funeral homes to ensure the family gets the best value and avoids overspending.
- Expert Guidance: The FCGS offers experienced and compassionate assistance to help families navigate the complex details of arranging a funeral.
- Contract Review: They review funeral service contracts to help protect family members from predatory pricing.
Underwriting and Eligibility for Seniors
To qualify for the Funeral Advantage program, applicants must answer health-related questions. Depending on the answers, an applicant may be offered one of two main policy types:
- Standard Level Benefit Plan: For healthier seniors, this plan offers immediate coverage without a waiting period.
- Modified Benefit Plan: If an applicant has certain pre-existing conditions, they may only qualify for a modified plan. This policy typically involves a two-year waiting period. If the policyholder dies during this period from natural causes, the beneficiary only receives the premiums paid plus a small amount of interest, not the full death benefit. Common conditions that can trigger the modified plan include heart disease, cancer, and diabetes complications.
Comparison: Funeral Advantage vs. Other Options
| Feature | Funeral Advantage | Standard Final Expense | Guaranteed Issue Final Expense |
|---|---|---|---|
| Underwriter | Lincoln Heritage | Many different companies | Specialized providers |
| Medical Exam | No exam required, but health questions asked. | No exam, health questions asked. | No exam, no health questions. |
| Waiting Period | Possible 2-year waiting period with modified plan. | Some offer immediate coverage; some have waiting periods depending on health. | Typically a 2-year waiting period. |
| Coverage Amount | Up to $20,000. | Varies by provider, often higher max benefits. | Lower coverage limits, generally $5,000-$25,000. |
| Pricing | Can be more expensive than comparable policies from competitors. | Varies by provider; can be more competitive. | Often the most expensive per thousand dollars of coverage. |
| Extra Benefits | Includes free FCGS membership and planning services. | Often includes no additional services. | Some may offer minor riders or benefits. |
| Best For | Seniors who value the bundled FCGS planning services and need a quick payout. | Healthy seniors seeking a competitive price and immediate coverage. | Seniors with significant health issues who cannot qualify for other policies. |
Conclusion: Weighing Your Options
For seniors considering the Funeral Advantage program, it is important to weigh the distinct benefits against potential drawbacks. The program's standout features are the simplified application process without a medical exam and the bundled funeral planning services from the FCGS, which offers valuable guidance and price-shopping assistance during a stressful time. However, it is essential to be aware of the program's potentially higher cost compared to other final expense policies on the market. The possibility of being placed on a modified plan with a waiting period due to pre-existing conditions is another factor to consider carefully. Before committing, seniors should explore quotes from independent insurance brokers who can compare various final expense options to find the most suitable and cost-effective plan for their specific health status and budget. While Funeral Advantage is a legitimate product with a fast claims process, comparative shopping is key to ensuring you get the best value for your needs. You can learn more about final expense insurance on the Funeral Advantage Program Details page.
