When I speak with people about life insurance, one company that comes up frequently in conversation is Philadelphia American. I understand why—they’ve been around for decades and have marketed heavily in certain areas. But I want to give you the complete picture of what Philadelphia American health insurance really offers, especially when it comes to final expense coverage.
For a complete overview, see our comprehensive final expense guide.
Let me walk you through everything you need to know about this company, their products, and most importantly, how they compare to other options in today’s market.
What Is Philadelphia American Health Insurance?
Philadelphia American Life Insurance Company has been in business since 1947, making them one of the older players in the life insurance industry. They’re based in Texas and focus primarily on final expense and small whole life insurance policies marketed to seniors and families looking for affordable burial insurance.
The company operates through a network of agents and direct mail campaigns, targeting people who may not qualify for traditional life insurance due to age or health conditions. Their primary focus is on simplified issue policies, which means you can often get coverage without a medical exam.
Philadelphia American’s Final Expense Products
Guaranteed Issue Life Insurance
This is Philadelphia American’s main product for people who have been declined elsewhere or have serious health conditions. Here’s what you need to know:
Coverage amounts: Typically $2,000 to $25,000 Ages: Usually 45-85 Health questions: None - truly guaranteed acceptance Waiting period: 2-3 years for natural death coverage
During the waiting period, if you pass away from natural causes, the policy only returns premiums paid plus interest. After the waiting period, full death benefits are paid regardless of cause of death.
Modified Guaranteed Issue
Some Philadelphia American products fall into this category, where they ask a few basic health questions but are still quite lenient. These policies may offer immediate coverage without a waiting period if you qualify.
Traditional Whole Life
For healthier applicants, Philadelphia American offers traditional whole life policies with cash value accumulation, though these represent a smaller portion of their business.
Philadelphia American Financial Strength
When I evaluate any insurance company for my clients, financial stability is crucial. Here’s where Philadelphia American stands:
A.M. Best Rating: B+ (Good) Assets: Approximately $500 million Market position: Regional player, not among the largest carriers
While a B+ rating isn’t bad, it’s worth noting that many of the carriers I work with have A or A+ ratings. Financial strength matters because you want to be confident your beneficiaries will receive their benefits decades from now.
Pros and Cons of Philadelphia American
What They Do Well
Accessible coverage: They’ll insure people that other companies won’t touch Simple application process: Minimal paperwork and quick approvals Established company: Nearly 80 years in business shows staying power Predictable premiums: Level premiums that won’t increase with age
Areas of Concern
Limited coverage amounts: Maximum benefits are typically quite low Higher cost per dollar of coverage: Guaranteed issue products are expensive Waiting periods: Natural death isn’t covered immediately Limited product variety: Fewer options compared to larger carriers
How Philadelphia American Compares to Other Options
In my experience helping families with final expense insurance, Philadelphia American fills a specific niche, but they’re rarely the best option for most people. Here’s why:
Better Options for Healthy Seniors
If you’re in reasonably good health, carriers like Mutual of Omaha, Gerber Life, or Colonial Penn often offer better value. These companies provide:
- Higher coverage limits
- Better financial ratings
- More competitive pricing
- Immediate coverage without waiting periods
Better Options for Simplified Issue
Even for simplified issue coverage, I often find better deals with companies like:
- Transamerica: Strong financial rating and competitive rates
- AIG: Excellent financial strength with flexible underwriting
- Foresters: Good rates and unique member benefits
When Philadelphia American Might Make Sense
There are limited situations where Philadelphia American could be appropriate:
- You’ve been declined by multiple other carriers
- You need coverage immediately and can’t wait for underwriting
- You’re only looking for a very small policy ($5,000-$10,000)
- You’ve already been approved and the policy is in force
Understanding Final Expense Insurance Costs
Let me give you some perspective on what final expense insurance actually costs. For a 65-year-old looking for $10,000 in coverage:
Guaranteed issue policies: Often $40-80 per month
Simplified issue policies: Typically $25-45 per month
Fully underwritten policies: Sometimes as low as $15-25 per month
The difference in cost over time can be substantial. A guaranteed issue policy costing $60 per month versus a simplified issue policy at $30 per month represents $360 per year—or $3,600 over ten years.
Questions to Ask Before Choosing Philadelphia American
Before you commit to any final expense policy, ask yourself:
- Have I compared multiple carriers? Don’t settle for the first quote you receive
- Do I really need guaranteed issue? You might qualify for better coverage than you think
- Is the coverage amount sufficient? Funeral costs continue to rise
- Am I comfortable with the waiting period? Two years is a long time to have limited coverage
- Does this company have the financial strength I want? Your policy could be in force for decades
The Reality About Final Expense Insurance Shopping
Here’s what I’ve learned after years in this business: most people don’t shop around enough. They get one quote, think it sounds reasonable, and move forward. But final expense insurance premiums can vary dramatically between carriers—sometimes by 50% or more for the same coverage.
I’ve seen situations where someone was paying $75 per month for a $10,000 policy with one company, and we found them identical coverage for $35 per month with a higher-rated carrier. That’s $480 per year in savings, or $4,800 over ten years.
My Honest Assessment of Philadelphia American
Philadelphia American serves a purpose in the insurance marketplace, but they’re rarely my first recommendation. Their guaranteed issue products are expensive, and their financial ratings are adequate but not exceptional.
Most of my clients can qualify for better coverage with stronger companies at lower costs. Even people with health conditions often qualify for simplified issue policies that offer immediate coverage without waiting periods.
The key is working with someone who has access to multiple carriers and can find the best fit for your specific situation.
What I Recommend Instead
Rather than starting with Philadelphia American, I suggest this approach:
- Start with simplified issue applications with highly-rated carriers
- Compare multiple quotes from different companies
- Consider slightly higher coverage amounts since costs don’t increase proportionally
- Look at the total picture - financial strength, customer service, and claims-paying history
Making the Right Choice for Your Family
Final expense insurance is about protecting your family from financial burden during an already difficult time. While Philadelphia American health insurance can provide coverage, I want to make sure you’re getting the best value and strongest financial backing available.
The good news is that most people have more options than they realize. Even if you have health conditions, even if you’re older, even if you’ve been declined before—there are usually multiple paths to get the coverage you need.
Finding the right life insurance doesn’t have to be complicated. As an independent agent, I work with multiple top-rated carriers and can help you compare options to find the best coverage at the best price.
Related Reading
- Understanding Final Expense Insurance
- Burial Insurance for Seniors Over 80: Your Complete Guide
- Burial Insurance for Seniors Over 70: Your Complete Guide
- Guaranteed Issue Final Expense Insurance: Your Complete Guide
Let me do the shopping for you. I’ll compare quotes from multiple companies, including Philadelphia American if appropriate, and help you find coverage that fits your needs and budget while providing the strongest financial protection for your family.
Get Your Free Quote Comparison
- Philadelphia American offers guaranteed issue life insurance for seniors aged 45-85 who may not qualify elsewhere, but comes with a 2-3 year waiting period where only premiums are returned if death occurs from natural causes.
- The company holds a B+ financial rating from A.M. Best, which is decent but lower than many competitors who achieve A or A+ ratings for stronger financial stability.
- Coverage amounts are limited to typically $2,000-$25,000, making this suitable primarily for final expenses rather than comprehensive life insurance needs.
- Compare multiple options before deciding since many competitors offer stronger financial ratings and potentially better terms for similar guaranteed issue coverage.
- Bring any existing Philadelphia American quotes to an independent agent for review to ensure you’re getting the best available rates and terms for your specific situation.
