When you’re researching life insurance options, you’ve probably come across Freedom Life Insurance Company of America. I help families navigate the life insurance landscape every day, and I get questions about Freedom Life regularly. Let me give you a complete picture of this carrier so you can make an informed decision about whether they’re right for your family.
For a complete overview, see understanding term life insurance.
Freedom Life Insurance Company of America has been providing life insurance coverage for decades, but like any carrier, they have their strengths and limitations. Understanding these can help you determine if they align with your needs and budget.
About Freedom Life Insurance Company of America
Freedom Life Insurance Company of America is a life insurance carrier that focuses primarily on simplified issue and guaranteed acceptance life insurance products. They’ve carved out a niche in the final expense and burial insurance market, serving customers who may have difficulty qualifying for traditional fully underwritten coverage.
The company operates as a direct-to-consumer insurer, meaning they typically market their products through direct mail, television advertising, and online channels rather than through independent agents. This business model allows them to reach customers who might not otherwise shop for life insurance.
Company Background and Financial Strength
When evaluating any life insurance company, I always look at their financial stability first. Freedom Life Insurance Company of America carries ratings from major rating agencies, though these ratings tend to be in the moderate range rather than the highest tiers you’ll see with companies like Northwestern Mutual or New York Life.
Their financial strength ratings reflect their ability to pay claims and honor policy commitments. While they maintain adequate reserves and regulatory compliance, they don’t have the same financial fortress that some of the larger, more established mutual companies have built over 150+ years.
Types of Coverage Offered
Freedom Life Insurance Company of America specializes in several specific types of life insurance products:
Guaranteed Acceptance Life Insurance
This is their primary product offering. Guaranteed acceptance policies are exactly what they sound like - if you meet the basic eligibility requirements (usually age-related), you’re guaranteed to be accepted regardless of your health condition.
Key Features:
- No medical exam required
- No health questions asked
- Coverage typically ranges from $5,000 to $25,000
- Graded death benefit (usually 2-3 years)
- Higher premiums compared to traditional life insurance
The trade-off here is significant. While anyone can qualify, the premiums are substantially higher than what a healthy person would pay for traditional coverage, and there’s typically a waiting period before full benefits are payable.
Simplified Issue Life Insurance
Freedom Life also offers simplified issue policies, which require answering basic health questions but don’t require a medical exam. These products can offer better rates than guaranteed acceptance for people in decent health, but the underwriting is still quite restrictive.
Common knockout questions include:
- Current use of oxygen
- Diagnosis of cancer within the past two years
- Heart attack or stroke within recent years
- Current dialysis treatment
- Residence in a nursing home
If you can answer “no” to all the health questions, you may qualify for their simplified issue rates, which are typically better than guaranteed acceptance but still higher than fully underwritten coverage.
Coverage Amounts and Age Limits
Freedom Life Insurance Company of America typically offers coverage in smaller amounts, which aligns with their focus on final expense insurance. Most policies range from $5,000 to $25,000, though some products may go slightly higher.
Age eligibility usually runs from about 50 to 85 years old, depending on the specific product. This age range reflects their target market of older adults who are planning for final expenses or leaving a modest inheritance.
The relatively low coverage amounts make sense for their market - many of their customers are looking to cover funeral costs, pay off small debts, or leave something for their children or grandchildren rather than replace decades of income.
Premiums and Cost Considerations
Here’s where I need to be very direct with you: Freedom Life Insurance Company of America’s premiums are typically quite high compared to what you’d pay with a traditional life insurance company if you can qualify for their coverage.
This is the nature of guaranteed acceptance and simplified issue insurance. The insurance company is taking on higher risk by not doing full medical underwriting, so they price their products accordingly. They’re also accounting for the fact that their customer base tends to have more health issues than the general population.
Premium Structure
Most Freedom Life policies use level premiums, meaning your payment stays the same throughout the life of the policy. However, some policies may have premium increases at certain ages or under specific circumstances.
It’s crucial to understand exactly what you’re paying and for how long. Some policies require premiums to be paid for life, while others may become “paid up” after a certain number of years or at a certain age.
The Graded Death Benefit
This is a critical feature to understand with most Freedom Life Insurance Company of America policies. A graded death benefit means that if the insured dies within the first two to three years of the policy, the beneficiaries don’t receive the full death benefit.
Typical Structure:
- Years 1-2: Return of premiums paid plus interest (often 10-15%)
- Year 3 and beyond: Full death benefit
This waiting period protects the insurance company from adverse selection - people who know they’re very sick taking out policies right before they die. However, it means your family won’t receive the full benefit if death occurs early in the policy term.
If death occurs due to an accident during the graded period, many policies will pay the full death benefit immediately. The graded benefit typically only applies to natural causes of death.
Pros and Cons of Freedom Life Insurance Company of America
Let me break down the advantages and disadvantages I see with this carrier:
Advantages
Guaranteed Acceptance: If you have serious health issues that make you uninsurable elsewhere, Freedom Life may be one of your only options.
No Medical Exam: The application process is simple and quick, with no need for medical exams, blood work, or lengthy medical records reviews.
Quick Approval: Because there’s minimal underwriting, you can often get approved and coverage in force very quickly.
Level Premiums: Your premium typically won’t increase over time (though you need to verify this for your specific policy).
Disadvantages
High Cost: The premiums are significantly higher than what healthy individuals would pay for traditional coverage.
Low Coverage Amounts: Maximum coverage is typically much lower than what you could get with traditional life insurance.
Graded Death Benefit: The waiting period before full benefits are payable can be a significant limitation.
Limited Options: Product variety is limited compared to full-service life insurance companies.
No Cash Value: Most policies are term-type products with no cash value accumulation.
Who Should Consider Freedom Life Insurance Company of America
Based on my experience helping families with life insurance, Freedom Life Insurance Company of America makes sense for a specific type of customer:
Good Candidates
- Seniors with serious health issues who can’t qualify for traditional coverage
- People who’ve been declined by other insurance companies
- Those seeking modest coverage for final expenses only
- Individuals who want guaranteed acceptance regardless of health
Poor Candidates
- Healthy individuals who could qualify for better rates elsewhere
- People needing large amounts of life insurance coverage
- Those seeking cash value or investment features
- Young families looking for income replacement
Alternatives to Consider
Before settling on Freedom Life Insurance Company of America, I always recommend exploring other options:
Traditional Life Insurance
If you have decent health, you should definitely explore fully underwritten term or permanent life insurance. The savings can be enormous. A healthy 60-year-old might pay 50-70% less with a traditional carrier compared to guaranteed acceptance coverage.
Other Guaranteed Acceptance Carriers
Companies like Mutual of Omaha, Gerber Life, and Colonial Penn also offer guaranteed acceptance products. Comparing rates and features across multiple carriers can save you money and get you better coverage terms.
Simplified Issue from Other Carriers
Many major insurance companies offer simplified issue products with more competitive rates than guaranteed acceptance policies. If you can answer the health questions favorably, this could be a much better option.
Group Life Insurance
If you’re still working or belong to an organization, group life insurance might be available at much better rates, even with health issues.
The Application Process
Applying for Freedom Life Insurance Company of America coverage is straightforward:
- Complete the application - Usually just basic information and age verification
- Answer health questions (for simplified issue products)
- Choose your coverage amount and beneficiaries
- Submit payment for your first premium
- Receive your policy - Often within days or weeks
There’s no medical exam, no blood work, and usually no phone interviews. The simplicity is both an advantage and a reason for the higher premiums.
Claims and Customer Service
When evaluating any insurance company, I look at how they handle claims and treat their customers. Freedom Life Insurance Company of America has a mixed record here.
Some customers report smooth claims processes, especially after the graded benefit period has ended. However, like many direct-to-consumer insurers, customer service can sometimes be inconsistent.
It’s worth noting that during the graded benefit period, claims scrutiny is often higher. The company will carefully review any death claims to ensure they comply with policy terms and state regulations.
Important Considerations Before You Buy
Read the Policy Carefully
Make sure you understand exactly what you’re buying. Pay special attention to:
- When full benefits become payable
- Whether premiums can increase
- What happens if you miss a payment
- Exclusions and limitations
Compare Multiple Options
Even if you think you need guaranteed acceptance coverage, get quotes from multiple companies. Rates and features can vary significantly.
Consider Your Actual Needs
A $15,000 guaranteed acceptance policy with high premiums might not make sense if a $10,000 policy from another carrier costs half as much and meets your actual needs.
Understand the True Cost
Calculate what you’ll pay in total premiums over the life of the policy. Sometimes the total premiums can exceed the death benefit, especially if you live many years after purchasing the policy.
My Professional Recommendation
As someone who works with families on life insurance decisions every day, here’s my honest take on Freedom Life Insurance Company of America: they serve a specific niche, but they’re not the right choice for most people.
If you’re in good health, you can almost certainly find better coverage at lower rates with a traditional insurance company. Even if you have some health issues, many conditions that seem serious are actually quite insurable with proper underwriting.
However, if you’ve been declined by multiple carriers or have serious health conditions that make you truly uninsurable elsewhere, Freedom Life might be a reasonable option for modest coverage needs.
The key is making sure you’re not leaving money on the table by not exploring all your options first. I’ve seen too many people pay two or three times more than they needed to because they assumed they couldn’t qualify for traditional coverage.
Working with an Independent Agent
Here’s something many people don’t realize: you don’t have to work directly with Freedom Life Insurance Company of America to get their coverage. Many independent agents can help you apply for their products while also showing you alternatives from other carriers.
This approach gives you the best of both worlds - access to guaranteed acceptance products if you need them, but also the opportunity to see if you can qualify for something better and more affordable.
An experienced agent can also help you navigate the application process and understand the fine print in your policy. This is especially valuable with guaranteed acceptance and simplified issue products, where the terms and conditions can significantly impact the value you receive.
Making Your Decision
Life insurance is one of those financial products where the wrong choice can be costly, both in terms of money spent and coverage gaps for your family. While Freedom Life Insurance Company of America has its place in the market, it’s important to make sure it’s truly the best option for your situation.
Before you apply, consider getting quotes from multiple carriers, including both traditional and simplified issue options. You might be surprised at what coverage you can qualify for and how much you could save.
Remember, the goal isn’t just to get life insurance - it’s to get the right life insurance at the right price for your specific needs and circumstances.
Life insurance is one of those things you want to get right the first time. I help families compare options from multiple top-rated carriers so they can make confident decisions about protecting their loved ones.
Want help finding the right coverage? Reach out for a free quote and let’s talk about your options.
- Compare guaranteed acceptance policies carefully since healthier applicants can often secure significantly better rates and coverage with traditional carriers that require medical underwriting.
- Understand that Freedom Life’s guaranteed acceptance coverage comes with substantially higher premiums and waiting periods of 2-3 years before full death benefits are payable.
- Recognize that Freedom Life specializes in final expense and burial insurance for people who struggle to qualify for traditional coverage, typically offering coverage amounts between $5,000 to $25,000.
- Evaluate the company’s moderate financial strength ratings, which are adequate but don’t match the highest-rated carriers with longer track records and stronger financial reserves.
- Bring any existing Freedom Life quotes to an independent agent for review, as they can help you compare multiple carriers and find better options if you qualify for traditional underwriting.
