Liberty Bankers Burial Insurance Review [2018]

Liberty Bankers Life Review w/pic of the Liberty BellSenior Life Insurance From Liberty Bankers Life

Looking for our take on Liberty Bankers Burial Insurance?  Thank you for your vote of confidence!!  We’d like to think we know a thing or two about insurance for seniors, so it is appreciated.

In this article, we will be taking a look at a very respected insurance company in the senior insurance market.

It seems that more and more, people are going to the internet to do their due diligence and “checking out” who they may want to do business with.  Good for you.

Liberty Bankers Life is a company that has made our list of quality burial insurance offerings.  That is saying quite a bit right off the top.  We recently completed and released a MetLife Burial Insurance Review.  Great company and a well known, big boy on the block, but their burial insurance offering cannot compete with those of Liberty Bankers.

So… jump on the bandwagon and purchase a Liberty Bankers Burial policy?

Whoa there partner!  That does not mean that this is the company for you.  There may be better alternatives.

Burial insurance is quite personal and a reason we have business relationships with dozens of carriers.  We want to provide you with the best carrier and price for your personal situation.

The better your health, the more different carrier options you will have available.  This translates into real savings.  I don’t know too many people on a fixed income that have any objection to that.  Do you?

This review will be considering more than just the cost of a burial insurance policy.  We will also be considering the underwriting standards that L.B. uses to underwrite and approve or decline its applicants.  This way, you can see if it may be appropriate for you to consider more seriously.

One step at a time, right?

If Liberty Bankers burial insurance is right for your personal situation, we can recommend them without concern.

Let’s jump in though and get started.

Liberty Bankers Life – The Company

Liberty Bankers Life is actually based out of Dallas, Texas.  The company started out in 1958 and has amassed over $1.3 billion in assets under their management.  At this time of writing, A.M. Best ranks the company financially as a B++.  The company was upgraded from a B+ in 2017.  This is a further indicator the the company is financially “Good” or stable.  With that said, you can be confident Liberty Bankers has the resources to pay claims they incur.

Liberty Bankers Life offers senior insurance products beyond burial insurance (senior life insurance) such as annuities and Medicare Supplements.  The company itself built its quiet kept reputation on their annuity offerings.  Offering final expense insurance since 2006, they enjoy a good reputation for such products as well.

We are going to focus completely on their burial insurance and final expense products they offer to seniors from here on out to avoid confusion.

Liberty Bankers Burial Insurance and Final Expense Policies

Here are the key features to take note of.

  • Coverage is permanent.  It never expires.Liberty Bankers Life Logo
  • Benefits never go down
  • Your payment is fixed for life
  • Three different plans to choose from/qualify for  (caters well to those with very significant health problems)

Liberty Bankers coined these options as their “SIMPL” plan.  This of course is short for “Simplified Issue” which is also life insurance lingo for no medical exam, easy issue life insurance.  This is dependable, whole life insurance that will develop some very moderate cash value after the first couple of years.  Depending on the plan you may need, they offer choices to accommodate those in better health.

Simple Whole Life Burial Insurance

The Simple Burial Insurance offering is an immediate, full benefit insurance policy that offers a level premium cost and death benefit per the life of the insured.  There is no medical exam required for this coverage.  You cannot outlive the benefits in this policy as it is a permanent, whole life insurance policy.  There are two different rate classes you must qualify for based on health questions in the application.  Standard and Preferred.  Preferred offers the lowest premiums to those who qualify.  Benefits are identical otherwise for this policy.

Here are the highlights of coverage:

  • Issue ages: 18–80
  • Minimum face amount: $3,000
  • Maximum face amount: $30,000
  • Guaranteed level premiums for life
  • Guaranteed full death benefit upon acceptance
  • One time 20% premium discount for the first year only.  You must pay annually versus monthly.

Liberty Bankers Modified Whole Life (MWL)

Not everyone will be eligible for the Simple Whole Life offering based on their health.  Sometimes there are some high risk health conditions that they cannot insure under their Simple policy.  To make qualification easier, Liberty Bankers offers a Modified Whole Life Product.  This plan is designed for those seniors who may be in questionable health.  You must still answer a few basic health question to qualify, but it is a very liberal application.

A key point to understand here, a modified policy does not have full, immediate benefits like the Simple Whole Life policy.  Modified policies are known as “graded policies” because of the limitations for natural death coverage in the first few years.  This particular policy has limited or graded death benefits for the first 3 years for natural death, after which it will pay the full face amount (death benefit) to your beneficiary.  It is also the most expensive offering they provide.

Highlights of the Modified Whole Life Product

  • Issue ages: 40–80
  • Minimum face amount: $1,000
  • Maximum face amount: $20,000
  • Graded/Limited Death benefit 3-year

The Underwriting Practice of Liberty Bankers Coverage and Application Information

Since there are three different rate classes among the 2 different types of coverage,  health questions on the application contain about 3 definite “knockout questions” to weed out those who they cannot insure at all.  Liberty Bankers does not offer guaranteed issue life insurance that will accept you regardless of your health.

You must be between ages 18-80 to apply for burial insurance with L. Bankers.

The cheapest plan in that Simple Preferred Whole Life.  It is also the most challenging of  the 3 to qualify for.  That is why it is less costly.  Next, they have Simple Standard Whole Life.  Last is their Modified Whole Life policy.

Here are the knockout questions to start off.  If you cannot honestly answer no for all 3, then Liberty Bankers will not be able to insure you.  Don’t lose heart if that is the case.  All life insurance companies have different questions and there is always guaranteed acceptance life insurance in the worst case scenario.  We’ll cross that bridge if necessary.

Here are the knockout questions for starters:

  1. Have you ever had, or been diagnosed with:
    • Congestive heart failure (CHF), cardiomyopathy, memory loss, Alzheimer’s, senile dementia, dementia, heart defibrillator implant, two or more instances of internal cancer(s) or terminal illness?
    • Organ transplant (other than corneal), untreated Hepatitis C, kidney failure or dialysis, amputation due to diabetic complications, multiple sclerosis, muscular dystrophy, mental retardation, amyotrophic lateral sclerosis (ALS) or Lou Gehrig’s disease, Downs’s syndrome, cystic fibrosis or Huntington’s disease?
    • Diabetes at age 9 or younger?
    • AIDS, AIDS Related Complex, tested positive for HIV virus or any other disorder of the immune system?
  2. Within last 2 years have you had, or been diagnosed with, or received or been advised to receive treatment or medication for:
    • Uncontrolled diabetes or uncontrolled high blood pressure?
  3. Within the last year have you:
    • Been confined to a hospital, been advised to have surgery or hospitalization, used oxygen due to a medical condition, been unable to care for yourself or been bedridden at home or in a nursing home, hospice, long-term care or assisted living facility? Definition of assisted living: requires help in at least one area of skills considered necessary for living and caring for oneself (feeding, dressing or bathing)

If you were a “no” on all 3 questions, your ready to move on to see if you qualify for coverage.  If not, don’t worry at all.  We work with all the top burial insurance companies.  Plenty of other companies to take a look at.  Unless you have a terminal condition, we likely have a willing company that will offer you full coverage at a competitive cost.  Regardless, if necessary, a pivot to Gerber Life will guarantee coverage.  However, there will be a two year waiting period for full coverage and higher premiums because you will not be evaluated based on your health result in higher premiums.  This is the reason we avoid liberal underwriting standards as much as possible.

Moving on with L. Bankers Health Qualification Questionaire

4. Within the past 2 years have you been diagnosed , treated, tested positive for, or been given medical advice by a member of the medical profession for:

  • Angina (chest pain), any type of heart or circulatory surgery, heart attack, or received a pacemaker or stent?
  • Stroke, Transient Ischemic Attack (TIA/mini-stroke) or paralysis?
  • Cancer or received or been advised to receive chemotherapy or radiation for cancer (the term “cancer” includes melanoma, but excludes basal cell skin cancer)?
  • Aneurysm, brain tumor or sickle cell anemia?
  • Complications of diabetes such as nephropathy (kidney), neuropathy (nerve, circulatory), retinopathy (eye) diabetic coma or insulin shock?
  • Alcohol or drug abuse, have you used illegal drugs or been convicted of felony or on parole?
  • Used a walker, wheelchair or electric scooter due to chronic illness or disease?

If you answered “yes” to any one of these health conditions, you just qualified for Liberty Modified Whole Life Insurance.  That is the best you can do with Liberty Bankers.  Do not continue the health questions.

If all answers are “no” proceed on.

Continuing on for better rates, review the following:

5.  Have you ever been diagnosed, treated, tested positive for, or been given medical advice by a member of the medical profession for:

  • Chronic Obstructive Pulmonary Disease (COPD), chronic bronchitis, emphysema, peripheral vascular disease or peripheral artery disease?
  • Chronic hepatitis, Hepatitis C, cirrhosis of the liver, chronic pancreatitis, liver disease or kidney disease?
  • Insulin use before age 25?
  • Irregular heartbeat, atrial fibrillation, Systemic Lupus (SLE), epileptic seizures, Parkinson’s disease?

If you answered “yes” to one of the previous questions in #5 stop there.  You just qualified for SIMPL “Standard” Whole Life Insurance.

Now, if you were able to answer “no” to all the previous questions, you can apply for SIMPL “Preferred” Whole Life.  Congratulations, this is their most affordable option!!

The Take Home From This Review…

Liberty Bankers Life has 3 clear burial or final expense insurance offerings here.  Their “Preferred” Whole Life burial policy is the best offering they have.  It can be an excellent solution for those who cannot qualify for companies such as Mutual of Omaha or Assurity Life who do have better rates.  Again, burial insurance is very personal.  You may qualify for one companies lowest rates while another puts you in a higher rate class.

While most folks will qualify for the Liberty Simple Whole life policy, they may or may not qualify for the “Preferred” rate.  Standard rates are significantly higher and you will likely have other options to consider before you should reach a decision point.

I would strongly suggest avoiding the Modified Whole Life policy.  It has a 3 year, limited benefit clause.  The death benefit to your beneficiary for natural death during that time would be a return of paid premiums plus compounded interest.  That will not get the job done very well will it?

Frankly, it is not a competitive product.

There are even guaranteed issue products with no health questions at all that will make you a much better offer IF you need this kind of coverage.  Guaranteed Acceptance Products from Gerber Life and AIG are lower in cost, have only a 2 year wait and have no health questions for qualification.

The Gerber life policy makes the Liberty Bankers Modified product expensive and of low value.  As a company, they probably need to go back to the drawing board on that one.

Keep in mind, Guaranteed Issue coverage should only be used when all else has failed.  Only about 10% of the cases we see require limitations in benefits like this.  It is more expensive and may not really help your family if death occurs in the first 2 years.

If you cannot qualify for full benefits immediately, you should be looking at other companies with the help of a reputable senior benefits advisor.  All life insurance companies ask different questions and therefore view you different than another.

While I give a thumbs up to Liberty Bankers Burial Insurance, my advice is to compare the rates of numerous carriers before purchasing.

It is important you understand any limitations of a final expense insurance policy.  Your beneficiary(s) will be affected if the wrong policy is purchased while it may cost you an arm and a leg unnecessarily.

There are plenty of insurance companies offering “burial insurance” or “final expense” coverage that are not so good once you know the full details of the policy.

Take the time and get some guidance from an expert so you get the best coverage for your family without overpaying.  We can be reached at 800-598-6445.   We’re here to help you sort things out.

Feel free to leave a comment below on what might be helpful for you as well.

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