Last Updated on January 26, 2018 by lifepolicyshopper
Burial Insurance for Seniors from private insurers many have never heard of...
I think you’ll agree with me when I tell you the top companies that offer final expense and burial insurance for seniors; most people have never heard of them. These companies are used by independent agents as a basket of offerings to ensure a medical condition they run across in a given day can be covered with at least one of them based on how the application is worded. Some of these companies get used often, others are used for only specialty situations.
When the agent arrives at the company that accepts the medical and medication risk discussed with a prospective insured, in most cases, they have never heard of the company. Typically what’s heard next is, “I’ve never heard of this company. Are they good? Do they pay their claims?”
These private insurers come in three types of insurance organizations determined by the way they are organized with the departments of insurance in the states they are licensed in:
- Stock Companies
- Mutual Companies
- Fraternal Benefit Societies
Private Insurers
Private insurers offer Burial Insurance For Seniors through the individual market. In most cases, private insurance is sold on a voluntary basis; however, some forms of insurance offered through private insurers are compulsory.
Included in the private insurers are two groups of commercial insurers:
- Stock insurers
- Mutual insurers.
There are various types of private insurers that we will discuss in this article, including stock insurers (commercial), mutual insurers (commercial). The third group discussed is the fraternal benefit society.
Stock Insurers
Stock insurers policyholders don’t participate in the profits or receive dividends.
Stock insurers, also referred to as capital stock insurers, are incorporated commercial companies owned by their stockholders. Stock insurers have a capital fund, surplus and reserves that are financially supported by their stockholders. Each stockholder owns a portion of the company and is a source of capital for the insurer. Stockholders assume the risk of the individuals insured by the stock insurer. Because stockholders are essentially co-owners of the stock insurer, they take part in the profits and losses that the insurer experiences. Stock insurers' shares are traded on stock exchanges.
A board of directors chosen by the stockholders manages stock insurers. When stock insurers experience profits, the board of directors will pay out earnings to stockholders in the form of dividends. Traditionally, stock insurers have been called nonparticipating insurers because policyholders do not participate in the profits of the insurer, and thus do not receive dividends.
Mutual Insurers
Mutual insurers are commercial companies owned by their policyholders. There are no stockholders. Mutual insurers are distinct from stock insurers in two primary ways:
- They lack capital stock, and
- Profits are distributed among their members – the policyholders.
Mutual insurers are referred to as participating insurers.
Because mutual insurers do not have capital stock, the funds required to start the company must be obtained from an individual or group of people. It is fairly common for mutual insurers to start out as stock insurers to gain the necessary funds before becoming mutual insurers. Transformation of a stock insurer into a mutual insurer is termed mutualization, and the reverse is termed demutualization. One thing that mutual insurers share in common with stock insurers is a board of directors. Policyholders vote on who will serve on the board of directors.
After all operating expenses and claims have been paid any profits are distributed to the policyholders in the form of dividends. Dividends paid out by mutual insurers are considered a non-taxable return of overcharged premium, whereas dividends paid out by stock insurers are simply the profits experienced by the company. Since mutual insurers issue dividends to their policyholders, they are referred to as participating insurers. Dividends are paid to policyholders.
Fraternal Benefit Societies
Fraternals provide Burial Insurance For Seniors solely to their members.
Fraternal benefit societies, also known as fraternal insurers or simply fraternals, are special types of mutual insurers/nonprofit religious, ethnic or charitable organizations that provide insurance exclusively to their members. People who are members of a fraternal benefit society tend to be the members of a fraternal organization or lodge. The lodge system has a representative form of government. Fraternal benefit societies are exempt from federal income tax and state premium tax because they are categorized as charitable organizations. Fraternal benefit societies are mostly involved in life and health insurance. An example of a fraternal benefit society is Royal Neighbors of America. We have written more on fraternal benefit societies here.
Fraternal Benefit Societies are exempt from taxes.
Here are the 7 companies that we use to provide Burial Insurance For Seniors that most of our clients have not heard of before we present them as a company that will get them the most benefits they qualify for. Here we’ll share a little information about these insurers and a link to their website for additional information on burial insurance for seniors.
KSKJ (Fraternal Benefit Society)
Established: 1894
Headquarters: KSKJ Life Home Office 2439 Glenwood Ave., Joliet, IL 60435
Cincinnati Equitable (Stock Company)
Established: 1963
Headquarters: Cincinnati Equitable Life Insurance, Cincinnati, OH 45201
LifeShield National Insurance Company (Stock Company)
Established: 1982
Headquarters: 815 West Ash Duncan, OK 73533
Family Benefit Life Insurance Company (Stock Company)
Established: 1964
Headquarters: 7633 East 63rd Place Ste 230 Tulsa, OK 741..
Independent Order of Foresters (Fraternal Benefit Society)
Established: 1874
Headquarters: Raritan Plaza 1, 8th Floor, Edison, NJ 08837
Security National Life Insurance Company (Stock Company)
Established: 1965
Headquarters: 5300 S. 360 West Salt Lake City, UT 84123
Settlers Life Insurance Company (Stock Company)
Established: 1984
Headquarters: 1969 Lee Hwy PO Box 8600 Bristol, VA 24203
A good service to compare ratings and financial strength of companies and fraternal benefit societies is the Standard Analytical Service, Inc. They have provided independent reporting on insurance companies since 1932. Their independent financial reports and comparisons are paid for by the companies, are based on statutory financial statements filed with the state insurance departments in the states they are licensed to sell life insurance.
These reports should not be interpreted as an analysis of the stock value of a capital stock company, nor is it intended to imply that the company featured will be as successful or is better than the companies making up the aggregate averages, nor is it a recommendation or analysis of the specific policy provisions, rates or claims practices of the organization featured. Its use for all companies, stock, mutual or fraternal, is intended to serve as a guide with respect to the current financial responsibility of the individual company featured herein, based upon the current financial statutory financial statements on file with the state insurance departments where they are available for public inspection.
These comparative reports discuss financial stability, solvency, liquid invested assets, and additional society strength.