American Enterprise Life Insurance Review

Updated: October 30, 2024

Advertising & Editorial Disclosure

MoneyGeek’s Take: Is American Enterprise Right for You?

American Enterprise offers final expense insurance that is customizable with additional riders. These policies are ideal for middle-aged to elderly individuals who are planning for end-of-life expenses or are looking for a smaller coverage amount. American Enterprise caters both to healthy individuals and to those with pre-existing medical conditions. It also has policies that don’t require you to take a medical exam and provide guaranteed acceptance.

We recommend looking for another life insurance provider if you prefer to receive coverage over $40,000 since American Enterprise’s policies may have a cap at that amount. American Enterprise has very limited insurance options, so it might not be the best choice if you prefer to have a one-stop shop for all your insurance needs to take advantage of discounts. We’ve presented great options in our list of the best life insurance companies for you to consider.

We invite you to go over our review of American Enterprise Life Insurance to learn more about this company and its products and services. You’ll gather important information that can help you decide whether this provider can deliver on your needs.

At a Glance: American Enterprise Life Insurance

American Enterprise

pros

checkmark

Insures individuals with pre-existing conditions

checkmark

Has a life insurance plan that doesn’t require a health screening

checkmark

Offers other financial products, such as Medicare supplement, hospital indemnity and dental, vision and hearing insurance

cons

close

Limited life insurance policy options

close

Limited riders

close

Some plans aren’t available in every state

COMPANY HIGHLIGHTS

American Enterprise Life Insurance has been an insurance provider in the U.S. since 1929 when it was established as the American Republic Insurance Company. American Enterprise is a mutual insurance holding company that operates multiple insurance subsidiaries under the Great Western, American Republic and Medico brands, which hold licensing in up to 49 states and the District of Columbia. According to the National Association of Insurance Commissioners (NAIC), American Enterprise Life Insurance’s life insurance arm, Great Western, had a complaint index of 2.13 in 2022, which is over two times higher than the National Complaint Index of 1.0.

Below is a summary of the final expense insurance options offered by American Enterprise through Great Western:

  • Great Assurance Plan: Provides first-day coverage and immediate benefit to individuals between 50 and 85 years old, but you have to be in good health to qualify.
  • Graded Benefit Plan: Caters to individuals between 50 and 85 years of age who have health issues and can’t get standard life insurance.
  • Guaranteed Assurance Plan: Provides coverage to individuals between the ages of 40 and 80, capped at $25,000, without the need for a medical exam.

Although American Enterprise’s life insurance offerings are limited to final expense insurance and preneed funeral insurance, it has several health insurance products on offer, including Medicare supplement, hospital indemnity, cancer diagnosis and dental, vision and hearing insurance.

TABLE OF CONTENTS

Key Takeaways

blueCheck icon

American Enterprise offers three final expense insurance options.

blueCheck icon

Individuals who are 50 to 85 years old and in good health may purchase the Great Assurance plan to receive first-day coverage and immediate benefit.

blueCheck icon

Those with health conditions may choose either the Graded Benefit plan if they prefer to have more coverage or the Guaranteed Assurance plan if they only need a small amount.

American Enterprise Policy Options Explained

The 2022 Insurance Barometer Study by the Life Insurance Marketing and Research Association (LIMRA) showed that life insurance plays a key role in financial security. Among respondents who have dependents, 68% reported feeling more financially secure after purchasing life insurance, while 44% foresee experiencing significant hardship within six months if they don’t have life insurance. With American Enterprise’s life insurance offerings, you can unburden your loved ones by having final expense insurance and preneed funeral insurance. Learn more about each type of policy to understand how it may fit your family’s needs and situation.

Final Expense Insurance Options From American Enterprise

Final expense insurance is for seniors or those preparing for end-of-life expenses. It typically includes funeral and burial costs, but beneficiaries have the freedom to use the benefit for any purpose.

You can purchase American Enterprise Life Insurance’s final expense plan through Great Western. Below is a summary of the available policies.

    seniors icon

    Great Assurance Plan

    This plan provides first-day coverage and immediate benefit to individuals between 50 and 85 years old. You have to be in good health to qualify. Policyholders get the Accelerated Death Benefit rider at no extra cost and have the option to add an Accidental Death Benefit rider.

    seniors icon

    Graded Benefit Plan

    Most carriers deny coverage to people with medical conditions. But American Enterprise has designed its Graded Benefit plan to cater to individuals between 50 and 85 years of age who have been diagnosed with several health issues and aren’t approved for standard life insurance. This plan pays out the full benefit if the policyholder dies from an illness three or more years after purchasing the policy. Beneficiaries will only receive 30% of the face amount if the policyholder dies within the first year or 70% if the policyholder passes away in the second year. Beneficiaries receive the full face value if the policyholder dies in an accident within the first two policy years.

    seniors icon

    Guaranteed Assurance Plan

    Individuals between the ages of 40 and 80, regardless of health status, can purchase American Enterprise’s Guaranteed Assurance plan. This is ideal for individuals who wish to get relatively small coverage or are in poor health and don’t qualify for any other life insurance. With this benefit, you can receive up to $25,000 without going through any medical exam.

    In addition to final expense insurance, American Enterprise offers Preneed Funeral insurance. You can choose from among three plan types: Voyage, Course and Destination. With these plans, you’ll never have to worry about a subsequent increase in premium, and you won’t be denied due to poor health. However, your health status will determine which plan is available to you.

    seniors icon

    Voyage

    This plan allows you to grow the face amount of your policy or receive the total premiums paid as a death benefit — whichever is higher. You have the option to pay the full premium in one go or in one-year, three-year, five-year or ten-year installments. To qualify for first-day coverage, you only need to answer two health questions, and a graded death benefit is available.

    seniors icon

    Course

    The Course plan is designed as a cheaper alternative to the Voyage plan. As with the Voyage product, you could pay the premium in full or in one-year, three-year, five-year or ten-year installments, and you’ll qualify for first-day coverage by providing satisfactory answers to two health questions, and you can qualify for a graded death benefit plan.

    seniors icon

    Destination

    This plan caters to individuals who are at the end-of-life stage and are looking for coverage to take care of funeral expenses that are only days or weeks away. With this plan, you won’t be required to answer health questions, but you’ll have to pay the total premium upfront. The death benefit is equivalent to either the premium paid or the cash surrender value — whichever is higher.

Final expense insurance helps pay for funeral and other end-of-life expenses, such as medical and legal fees. It’s best suited for seniors who already have financially independent children and only need life insurance benefits to cover these costs.

American Enterprise’s Life Insurance Riders

You can customize your life insurance by purchasing one or more riders on top of your policy. American Enterprise offers the following options:

Rider
Description

Accelerated Death Benefit

Allows policyholders to use a portion of their death benefit if they are diagnosed with a
terminal illness, but note that this reduces the total amount of the death benefit. This
rider is included at no extra cost in every Great Assurance plan.

Accidental Death Benefit

An additional benefit paid to beneficiaries in the event of a policyholder’s accidental death,
such as through drowning or a car crash. This optional rider is only available for Great
Assurance policyholders.

Child/Grandchild Protection Rider

Costing only $1 per month, this rider lets you receive a one-time benefit of $2,500 following
the death of a dependent child or grandchild. This can be added to any of the three final
expense plans.

How to Get American Enterprise Life Insurance

Let us walk you through the basic steps in purchasing life insurance from American Enterprise and what to do if you’re denied coverage.

How to Buy Life Insurance From American Enterprise

  1. 1
    Do Your Research

    The first step is to study the policies that are available to you and suit your needs. American Enterprise Life Insurance has online resources that can help you review your options with a representative in your area. You can also send a request online to connect with an agent who can map out a free personalized quote for you.

  2. 2
    Compare Quotes

    Make it a habit to compare quotes. Different life insurance carriers may offer plans that are a better match for your age, gender, medical history, smoking status, lifestyle and overall health. Knowing your options could help you get the coverage you need at the best possible rate.

  3. 3
    Health Check

    Most life insurance policies require a health check. This typically involves a phone or in-person interview and a medical exam. The information that you’ll provide will be used by an underwriter to give you a thorough risk assessment.

  4. 4
    Approval

    You’ll receive a copy of the proposed policy once American Enterprise approves your application. We recommend reaching out to your agent to go through the details of your policy before finalizing your insurance purchase.

What to Do if American Enterprise Insurance Denies You Coverage

  1. 1
    Contact Your Broker

    Find out first-hand from your broker why you were denied coverage. Learning about the specifics will help you get a clear picture of the weak spots in your application.

  2. 2
    Lifestyle Changes

    Consider making some lifestyle modifications to improve your overall health. This leads to immense benefits. You’ll not only improve your odds of getting your application approved, but you may also qualify for a better rate.

  3. 3
    Explore Other Options

    There are other insurance products that you could easily qualify for and don't require a medical exam, such as a guaranteed issue life insurance policy. The downside is that these types of policies usually offer limited coverage or charge high premiums.

Frequently Asked Questions About American Enterprise Life Insurance

Here are our answers to the most common questions that buyers have when considering American Enterprise as their life insurance provider.

Can you borrow from your American Enterprise life insurance policy?
What’s the maximum amount of life insurance coverage available from American Enterprise?
Do life insurance policies from American Enterprise pay dividends?
Can you get life insurance from American Enterprise if you have cancer?
Do life insurance policies from American Enterprise cover death by drug overdose?
Do life insurance policies from American Enterprise cover death by suicide?

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

Read Full Bio »
sources
Insurance
Mortgage
Credit Cards
Loans
About MoneyGeekPressPrivacy PolicySitemap
Copyright © 2024 MoneyGeek.com. All Rights Reserved Terms of Use