When I talk to families about final expense insurance, Security Life Of America often comes up in our conversations. As an independent agent who works with multiple carriers, I’ve helped many clients understand what this company offers and whether it might be right for their situation.
For a complete overview, see our comprehensive final expense guide.
Security Life Of America has been around since 1918, giving them over a century of experience in the life insurance business. They’re not one of the massive household names, but they’ve built a solid reputation in certain niches—particularly in simplified issue and final expense coverage.
Let me walk you through what you need to know about Security Life Of America, including their strengths, potential drawbacks, and how they compare to other options in the final expense market.
Company Background and Financial Strength
Security Life Of America is based in Minneapolis, Minnesota, and operates as a mutual insurance company. This means policyholders are technically owners of the company, rather than shareholders—which can align the company’s interests more closely with their customers.
From a financial strength perspective, they carry an A- (Excellent) rating from A.M. Best, which is the third-highest rating on the scale. This indicates strong financial stability and ability to pay claims. While it’s not the absolute top rating (A++), it’s still considered a strong rating that suggests the company is financially sound.
The company has assets of approximately $2.5 billion and serves customers primarily in the Midwest and parts of the South. They’re not licensed in all 50 states, which is something to keep in mind if you’re considering them.
What Types of Coverage Does Security Life Of America Offer?
Security Life Of America focuses heavily on what we call “simplified issue” life insurance. This means:
- Limited health questions (typically 8-12 questions instead of extensive medical exams)
- No medical exam required in most cases
- Faster approval process (often same-day or within a few days)
- Lower face amounts (usually $5,000 to $50,000)
Their primary products include:
Final Expense Whole Life Insurance
This is their bread and butter. These policies are designed to cover funeral costs, medical bills, and other end-of-life expenses. The coverage is permanent (doesn’t expire) and builds modest cash value over time.
Term Life Insurance
They offer some term life options, though this isn’t their main focus. Their term products tend to be more limited compared to companies that specialize in term coverage.
Juvenile Life Insurance
Coverage for children, often purchased by grandparents as a way to provide a financial foundation for their grandchildren.
The Simplified Issue Process Explained
One of Security Life Of America’s main selling points is their simplified underwriting process. Instead of requiring a medical exam, blood work, and extensive health questionnaires, they ask a limited number of yes/no health questions.
Typical questions might include:
- Have you been hospitalized in the past two years?
- Are you currently using oxygen or a wheelchair?
- Have you been diagnosed with cancer, heart disease, or stroke in the past two years?
- Are you currently in a nursing home or receiving hospice care?
If you can answer “no” to all their health questions, you’re typically approved at their standard rates. This makes the process much faster and less invasive than fully underwritten coverage.
However, there’s a trade-off here that I always explain to my clients: simplified issue policies generally cost more per dollar of coverage than fully underwritten policies. You’re paying for the convenience and easier approval process.
Pros and Cons of Security Life Of America
Advantages
Fast Approval Process: If you qualify, you can often get approved the same day you apply. This is valuable if you need coverage quickly.
No Medical Exam: Many people appreciate avoiding the hassle of scheduling and completing a medical exam.
Stable Company: Over 100 years in business with solid financial ratings provides peace of mind.
Guaranteed Acceptance Options: They offer guaranteed issue policies for those who can’t qualify for simplified issue coverage.
Cash Value Growth: Their whole life policies build cash value that you can borrow against if needed.
Potential Drawbacks
Limited Availability: They’re not licensed in all states, so availability varies by location.
Higher Premiums: Simplified issue coverage typically costs more than fully underwritten policies from larger carriers.
Limited Coverage Amounts: Maximum coverage is usually much lower than what you’d get from major carriers.
Fewer Product Options: They don’t offer the variety of products that larger, more diversified companies provide.
Graded Death Benefit: Some of their policies have waiting periods where full benefits aren’t available in the first two years.
How Security Life Of America Compares to Competitors
In the final expense market, Security Life Of America competes with companies like:
- Mutual of Omaha: Generally offers more competitive rates and broader availability
- Transamerica: Larger company with more product options
- Globe Life: Similar simplified issue focus but with national availability
- Gerber Life: Comparable target market but different underwriting approach
When I’m helping clients compare options, I typically find that Security Life Of America might be competitive in specific situations, but they’re rarely the best option across the board. Their rates tend to be higher than some competitors, and their limited geographic availability can be a constraint.
Who Might Be a Good Fit for Security Life Of America?
Security Life Of America might make sense for someone who:
- Lives in their service area and has limited other options
- Needs coverage quickly and wants to avoid medical exams
- Has health issues that might complicate traditional underwriting
- Only needs a small amount of coverage ($5,000-$25,000 range)
- Values working with a mutual company (policyholder-owned)
However, I always recommend comparing options. Even if you think you need simplified issue coverage, you might be surprised at what you can qualify for with other carriers.
Understanding the Costs
Final expense insurance premiums vary significantly based on your age, gender, health status, and coverage amount. Security Life Of America’s rates tend to be in the middle to higher end of the range for simplified issue coverage.
For example, a 65-year-old woman might pay anywhere from $35-60 per month for $10,000 of coverage, depending on the carrier and her health status. Security Life Of America would typically fall toward the higher end of that range.
It’s worth noting that with simplified issue coverage, your premiums are locked in and won’t increase over time. The coverage is also guaranteed to stay in force as long as you pay your premiums.
The Application Process
If you decide to explore Security Life Of America, here’s what the typical process looks like:
- Complete the application with basic personal and health information
- Answer the simplified health questions honestly
- Choose your coverage amount and beneficiaries
- Review and sign the application
- Make your first premium payment
- Receive approval (often same day)
The entire process can often be completed in a single phone call or meeting, which many people appreciate.
Important Considerations Before Applying
Read the Fine Print
Some Security Life Of America policies have graded death benefits, meaning if you pass away in the first two years, your beneficiaries might only receive the premiums paid plus interest rather than the full death benefit. Make sure you understand these terms.
Consider Your Alternatives
Before committing to any simplified issue policy, consider whether you might qualify for fully underwritten coverage elsewhere. Even with minor health issues, you might be surprised at your options with other carriers.
Work with an Independent Agent
This is where my role becomes valuable. As an independent agent, I can compare Security Life Of America’s offerings with multiple other carriers to help you find the best coverage at the best price.
My Professional Assessment
Security Life Of America is a legitimate, financially stable company that serves a specific niche in the life insurance market. They’re not a scam or a company I’d warn people away from. However, they’re also rarely the best option when I’m shopping coverage for my clients.
Their simplified issue focus makes them accessible to people who might struggle to get coverage elsewhere, but the trade-off is typically higher premiums and lower coverage limits compared to what you might get with other carriers.
In my experience, most people benefit from comparing multiple options rather than going with the first company they hear about. The final expense insurance market is competitive, and rates can vary significantly between carriers for the same coverage.
Questions to Ask Before Choosing Security Life Of America
Before making a decision, consider these questions:
- Is Security Life Of America available in your state?
- Do you really need simplified issue coverage, or might you qualify for better rates elsewhere?
- How do their rates compare to other carriers for your specific situation?
- Do you understand any waiting periods or limitations in the policy?
- Are you comfortable with their coverage limits and product options?
- Consider Security Life Of America if you need simplified final expense coverage without medical exams, as they offer streamlined approval with just 8-12 health questions and coverage amounts from $5,000 to $50,000.
- Verify availability in your state before applying, since Security Life Of America primarily serves the Midwest and parts of the South rather than operating nationwide.
- Evaluate their A- financial rating from A.M. Best, which indicates strong financial stability and claims-paying ability, though it’s not the highest possible rating.
- Compare multiple final expense carriers before deciding, as different companies offer varying benefits, rates, and qualification requirements that might better fit your specific situation.
- Bring any existing Security Life Of America quotes to an independent agent for review, as comparing options across multiple carriers can help you find the best coverage and rates for your needs.
The Bottom Line
Security Life Of America can be a reasonable choice for final expense coverage in specific situations, particularly if you need simplified issue coverage and live in their service area. However, I rarely recommend choosing any life insurance company without comparing your options.
The final expense insurance market is competitive, with dozens of carriers offering different products, rates, and underwriting approaches. What works best for your neighbor might not be the best choice for your situation.
That’s why I always recommend working with an independent agent who can compare multiple carriers and help you find the coverage that best fits your needs and budget. Even small differences in monthly premiums can add up to significant savings over the life of a policy.
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
- Affordable Final Expense Insurance: Your Complete Guide
- Understanding Final Expense Insurance
- Graded Benefit Whole Life Insurance: Your Complete Guide
- Burial Insurance for Seniors Over 80: Your Complete Guide
Let me do the shopping for you. I’ll compare quotes from multiple companies—including Security Life Of America if they’re competitive for your situation—and help you find coverage that fits your needs and budget.
