Lincoln Heritage Life Insurance Review

Offering final expense policies to cover burial costs

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Lincoln Heritage Life Insurance

 Lincoln Heritage Life Insurance

overall rating
3.6

Our Take

Lincoln Heritage Life Insurance Company was founded in 1963. Owned by Londen Insurance Group, the company serves about one million customers. Lincoln Heritage only sells one type of insurance: final expense policies. These relatively small plans are designed to cover your burial expenses, and you can get coverage without undergoing a medical exam. If you want a simple policy to ensure your family doesn’t have to struggle to pay for your funeral costs, Lincoln Heritage may be for you. 

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • No medical exams required

  • $100,000 accidental death benefit available

  • Policies include a membership to the Funeral Consumer Guardian Society

Cons
  • Only one type of insurance available

  • Low coverage amounts

  • Agents have a financial incentive to sell you a policy

Key Takeaways
  • Lincoln Heritage is part of the Londen Insurance Group.
  • Founded in 1963, the company is based in Phoenix, Arizona.
  • Lincoln Heritage has over one million policyholders.
  • The company only sells final expense policies.
  • Lincoln Heritage is not licensed to sell policies in New York.
Company Overview

Lincoln Heritage is based in Phoenix, Arizona. 

While other companies offer a range of life insurance products, such as term or universal life policies, Lincoln Heritage only sells final expense policies. Rather than selling through its website, Lincoln Heritage sells policies through independent contractors who sell directly to consumers. 

Lincoln Heritage policies are available to residents of all states except for New York. 

  • Year Founded 1963
  • Kinds of Plans Final expense
  • Number of Plans 1
  • Payment Plan Options Monthly
  • Customer Service Phone, agent
  • Phone 800-438-7180
  • Official Website www.LHLIC.com

Lincoln Heritage is not one of our top-rated life insurance companies. You can review our list of the best life insurance companies for what we think are better options.

Pros Explained

  • No medical exams required: Lincoln Heritage policies use simplified underwriting, meaning you don’t have to undergo a medical exam to qualify for a policy. 
  • $100,000 accidental death benefit available: For an added cost, you can get $100,000 in accidental death coverage. If you die as a result of an accident, your beneficiaries can receive an additional death benefit
  • Policies include a membership to the Funeral Consumer Guardian Society: Your policy includes membership to the Funeral Consumer Guardian Society. The organization can help your beneficiaries navigate through the funeral planning process and help you price shop funeral costs. 

Cons Explained

  • Only one type of insurance available: Other companies offer multiple life insurance plans and riders. By contrast, Lincoln Heritage only sells final expense policies. 
  • Low coverage amounts: With other companies, you can get term or whole life policies that are large enough to provide for your family long after you’re gone. However, Lincoln Heritage policies are smaller and are meant to cover only your final expenses. The maximum coverage amount available is $20,000. 
  • Agents have a financial incentive to sell you a policy: Lincoln Heritage agents are independent contractors that work on commission. They only make money when they sell policies, so they have an incentive to encourage you to apply. 
What You Need to Know

In 2019, Lincoln Heritage paid over $198 million in claims.

Available Plans

Lincoln Heritage only offers one life insurance plan. All customers can submit their information online, but you have to wait for an agent to get back to you to get a quote. Its policies do not require medical exams; instead, you answer a one-page health questionnaire. 

Final Expense

The only type of life coverage Lincoln Heritage sells is final expense insurance. The coverage maximum is $20,000, and the policies are designed to cover your funeral and burial costs. Final expense policies are a type of whole life insurance, so the coverage lasts for your entire lifetime. 

Lincoln Heritage reported that it typically sends the money to your beneficiaries quickly. According to the company, most claims are paid within 24 hours of claim approval.

Available Riders

Most insurance companies allow you to add multiple riders, also known as insurance endorsements, to your policy for an additional cost to customize your coverage. However, Lincoln Heritage only has one rider. 

Accidental Death

You can add up to $100,000 in accidental death coverage to your policy with an additional premium. With this rider, your family can receive an additional death benefit if you pass away due to a covered accident. 

Customer Service

Lincoln Heritage sells its policies through independent contractors who work on commission. To get a quote, you must go through one of the company’s agents. 

You can reach customer service by calling 800-438-7180. Its hours of operation are Monday through Friday from 6 a.m. until 5 p.m. MST. On Saturdays, it’s available from 6 a.m. until 2 p.m. MST. 

If you’re a policyholder, you can manage your account online via the Lincoln Heritage portal. You can view policy details and download the forms you need to make changes. 

Complaint Index

The National Association of Insurance Commissioners (NAIC) compiles complaints about insurance companies. To help consumers put the number of complaints into perspective, the NAIC issues complaint ratios that reflect the number of complaints a company receives relative to its share of the insurance market. 

The standard complaint ratio is 1.0. A ratio over 1.0 is worse than average, while a ratio below 1.0 means a company received fewer complaints than expected. 

In 2020, Lincoln Heritage’s complaint ratio for individual life insurance was 1.40, slightly worse than typical for a company of its size. 

What You Need to Know

In two of the past three years, Lincoln Heritage’s complaint ratios have been worse than average.

Third-Party Ratings

As a smaller insurer, Lincoln Heritage is not included in the J.D. Power 2020 U.S. Individual Life Insurance Study. The study evaluated 24 insurance companies and ranked them based on their policies, pricing, and customer service. 

In terms of its financial stability, Lincoln Heritage has a strong rating. AM Best, the credit rating agency focused on the insurance industry, issued Lincoln Heritage an A- (Excellent) rating. AM Best’s ratings reflect its opinions on whether a company is financially sound and can meet its policy obligations. 

Cancellation Policy

Like other insurance companies, Lincoln Heritage offers a 10-day free look period. During this time, you can decide to cancel your policy and get a full refund of all premiums paid. 

After that, you can cancel your policy at any time, and you may receive the surrender cash value of your account. However, Lincoln Heritage may charge you a cancellation fee, so review your contracts carefully before signing. 

To cancel your policy, call 800-438-7180. 

Price

The company requires you to submit your personal information and wait to be contacted by an agent to get a quote. 

When it comes to price, Lincoln Heritage’s policies are higher than average. Other companies selling final expense policies may offer lower premiums, especially if you’re in good health. 

Below are sample monthly rates for adults in good health. 

$5,000 in Coverage
Age at Application Woman Man
50 $14 $16
55 $16 $19
60 $18 $23
65 $22 $29
70 $28 $38
75 $38 $51
80 $48 $65
$10,000 in Coverage
Age at Application Woman Man
50 $25 $30
55 $28 $35
60 $33 $43
65 $41 $56
70 $53 $74
75 $72 $100
80 $93 $126

As with most life insurance companies, Lincoln Heritage requires you to choose either “male” or “female” when applying for an insurance policy. Being nonbinary won’t prohibit you from qualifying for life insurance. However, you should be aware that most insurers haven’t yet updated their underwriting processes to reflect an awareness of gender issues, and their application processes may be outdated and restrictive. 

Competition

Because Lincoln Heritage only sells final expense policies and it may be more expensive than competitors—especially for healthy individuals—we compared it to State Farm, one of our picks for the best life insurance companies. 

Like Lincoln Heritage, State Farm sells final expense policies. However, it also sells term and universal life policies, offering more options. It also has much higher coverage maximums, allowing you to get millions in protection for your family. 

State Farm also has the edge over Lincoln Heritage when it comes to customer service. In the J.D. Power 2020 U.S. Individual Life Insurance Study, State Farm was ranked as the top insurance provider out of 24 insurance companies. 

  Lincoln Heritage State Farm
Market Share Not applicable Largest in the U.S., 9.1%
Number of Plans 1 10
Dividends for 2020 Not applicable $600 million
Wellness Program Discounts/Quit Smoking Incentives Not applicable Not applicable
Service Method Agents Agents
AM Best Rating A- (Excellent) A++ (Superior)
Price Rank Worse than Average Better than Average
Complaints Trend 1.40 0.19
Verdict

If you are looking for a basic life insurance policy to cover only your funeral and burial expenses and don’t want to go through a medical exam, Lincoln heritage may be a good fit for you. You can get up to $20,000 in whole life protection by answering a simple questionnaire. 

However, Lincoln Heritage only has one policy option and very limited coverage amounts. If you need more substantial protection, you’ll need to get insurance through another insurance company with more plans and higher coverage maximums.

How We Review Life Insurance Companies

Our reviews of life insurance companies are based on a quantitative approach that analyzes each insurer on their stability and reliability, customer service, claims experience, diversity of product lines, and cost. We compare the terms of each type of policy offered—including available coverage amounts, optional riders, and premium payment options—with those of other major life insurance companies. Lastly, we look at how the company is rated by third-party organizations to determine its reliability and overall reputation. 

Article Sources

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  1. NAIC. "Lincoln Heritage Life Insurance Company - Complaint Index." Accessed July 17, 2021.

  2. AM Best. “Lincoln Heritage Life Insurance Company.” Accessed July 17, 2021. 

  3. J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed July 17, 2021.