When I talk to families about life insurance, one name that comes up frequently is Security Plan Life Insurance Company. People want to know if it’s a legitimate company, what kind of coverage they offer, and whether they’re a good choice for their family’s protection needs.
For a complete overview, see our complete guide to term life insurance.
I’ve worked with dozens of different insurance carriers over the years, and I understand how overwhelming it can be to research all the options. That’s why I put together this complete guide to help you understand exactly what Security Plan Life Insurance Company offers and whether they might be right for your situation.
What Is Security Plan Life Insurance Company?
Security Plan Life Insurance Company is a smaller life insurance carrier that focuses primarily on final expense and simplified issue life insurance products. Founded in Louisiana, the company has been serving families for several decades, though they maintain a relatively low profile compared to major carriers like Prudential or AIG.
The company specializes in what we call “simplified underwriting” - meaning they offer coverage with minimal health questions and no medical exams. This makes them particularly attractive to older adults or people with health conditions who might struggle to qualify for traditional life insurance.
Security Plan’s Product Offerings
Final Expense Life Insurance
Security Plan’s bread and butter is final expense insurance. These are smaller policies, typically ranging from $5,000 to $25,000, designed to cover funeral costs, medical bills, and other end-of-life expenses.
Key features of their final expense coverage:
- Simplified underwriting (usually 8-15 health questions)
- No medical exam required
- Coverage available up to age 85
- Premiums that never increase
- Benefits that never decrease
Simplified Issue Term Life
The company also offers some term life insurance products, though these aren’t their main focus. Their term policies tend to have more restrictive underwriting guidelines compared to major carriers, but they can be an option for people who need coverage quickly.
Security Plan’s Underwriting Guidelines
From my experience working with Security Plan policies, their underwriting is fairly straightforward but also quite conservative. Here’s what I typically see:
Common Qualifying Conditions
- Controlled high blood pressure
- High cholesterol on medication
- Type 2 diabetes (well-controlled)
- Mild heart conditions (depending on specifics)
- Previous cancer (depending on type and time since treatment)
Automatic Decline Conditions
Like most simplified issue carriers, Security Plan has several conditions that result in automatic declines:
- Current oxygen use
- Dialysis treatment
- Recent cancer diagnosis (usually within 2 years)
- Recent heart attack or stroke (usually within 2 years)
- Nursing home residence
- Terminal illness diagnosis
Financial Strength and Ratings
This is where things get a bit concerning with Security Plan Life Insurance Company. The company doesn’t carry ratings from the major rating agencies like A.M. Best, Moody’s, or Standard & Poor’s. This lack of independent financial ratings is something I always point out to my clients.
What this means for you:
- Less transparency about the company’s financial stability
- Potentially higher risk compared to highly-rated carriers
- Limited information available about their claims-paying ability
In contrast, companies like Mutual of Omaha (A+ rating), AIG (A rating), or Prudential (A+ rating) have strong financial ratings that give you more confidence in their ability to pay claims decades from now.
Pros and Cons of Security Plan Life Insurance
Advantages
Simplified Application Process: The biggest advantage is how easy it is to apply. Most people can get approved based on answering just a few health questions, with no medical exam required.
Quick Approval: Because there’s no medical underwriting, approvals often happen within days rather than weeks.
Coverage for Older Adults: Security Plan accepts applicants up to age 85, which can be helpful for seniors who waited too long to get coverage elsewhere.
Guaranteed Acceptance Options: For those who can’t qualify for simplified issue, they may offer guaranteed acceptance policies (though with waiting periods).
Disadvantages
Higher Premiums: Simplified issue policies are always more expensive than fully underwritten coverage. If you’re healthy enough to qualify for traditional life insurance, you’ll likely pay significantly less elsewhere.
Limited Coverage Amounts: Maximum coverage is typically $25,000 or less, which may not be enough for families with larger financial obligations.
No Financial Ratings: The lack of independent ratings makes it difficult to assess the company’s long-term stability.
Restrictive Health Questions: While there are fewer questions, they can be quite broad and may disqualify people who could get coverage elsewhere.
How Security Plan Compares to Other Options
When I’m helping families evaluate their options, I always encourage them to consider multiple carriers. Here’s how Security Plan typically stacks up:
Vs. Major Carriers (Prudential, AIG, Mutual of Omaha)
- Cost: Security Plan is generally more expensive
- Financial Strength: Major carriers have superior ratings
- Coverage Options: Major carriers offer much more variety
- Underwriting: Major carriers can offer better rates for healthy applicants
Vs. Other Simplified Issue Carriers
- Foresters: Similar products but with A rating from A.M. Best
- Globe Life: More aggressive marketing but similar coverage
- Colonial Penn: Guaranteed acceptance focus with graded benefits
Who Should Consider Security Plan Life Insurance?
Based on my experience, Security Plan might be appropriate for:
Older adults (65+) with health issues who can’t qualify for traditional coverage but can answer “no” to their simplified issue questions.
People who need coverage quickly and don’t want to go through medical underwriting.
Those with modest coverage needs who only need $10,000-$25,000 in coverage.
People who’ve been declined elsewhere but can meet Security Plan’s simplified issue requirements.
Who Should Look Elsewhere?
I typically recommend other options for:
Healthy individuals under 60 who can qualify for better rates with traditional underwriting.
Anyone needing more than $25,000 in coverage since Security Plan’s limits are quite low.
People who prioritize financial strength ratings since Security Plan lacks independent ratings.
Those with serious health conditions who might qualify for guaranteed issue products elsewhere.
The Application Process
Security Plan’s application process is relatively straightforward:
- Complete the application with basic personal and health information
- Answer health questions (typically 8-15 questions about major health conditions)
- Phone interview may be required to verify information
- Approval decision usually within 1-3 business days
- Policy delivery within 7-10 days
No medical exam, blood work, or medical records are required for most applications.
Important Considerations Before Applying
Read the Contestability Period Carefully
Like all life insurance policies, Security Plan policies have a two-year contestability period. During this time, the company can investigate claims and potentially deny benefits if they find undisclosed health information.
Understand Premium Increases
While Security Plan markets their policies as having “level premiums,” it’s important to read the fine print. Some policies may have premium increases built into the contract structure.
Consider the Waiting Period
Some Security Plan policies may have graded death benefits, meaning full benefits aren’t available immediately. Make sure you understand when full coverage begins.
Alternatives to Consider
If you’re considering Security Plan, I’d also recommend looking at these options:
Fully Underwritten Coverage
If you’re reasonably healthy, traditional life insurance from carriers like Mutual of Omaha, AIG, or Prudential will likely offer better value. Yes, you’ll need a medical exam, but the savings can be substantial.
Other Simplified Issue Carriers
Companies like Foresters, American Amicable, or even Gerber Life might offer similar products with better financial ratings or more competitive pricing.
Guaranteed Issue Options
If health is a major concern, guaranteed issue policies from carriers like Mutual of Omaha or Colonial Penn might be worth considering, even with their waiting periods.
My Professional Assessment
When I evaluate Security Plan Life Insurance Company for my clients, I see them as a niche player that serves a specific market segment. They’re not a bad company, but they’re also not typically my first recommendation.
Here’s my honest take: Security Plan can be a reasonable option for older adults with health issues who need modest amounts of coverage quickly. However, the lack of financial ratings and higher premiums mean I usually explore other options first.
For most of my clients, I can find better value with other carriers - either through fully underwritten policies for healthy applicants or simplified issue products from more established companies with stronger ratings.
Questions to Ask Before Choosing Security Plan
Before moving forward with Security Plan Life Insurance Company, consider these questions:
Have you compared rates from multiple carriers? You might be surprised how much rates can vary.
Do you qualify for fully underwritten coverage? If you’re healthy, traditional underwriting often provides much better value.
Is the coverage amount sufficient? Security Plan’s low maximum limits might not meet your family’s needs.
Are you comfortable with an unrated carrier? Consider whether the lack of financial ratings concerns you.
Do you understand all policy terms? Make sure you’re clear on waiting periods, premium structures, and benefit limitations.
- Security Plan Life Insurance Company specializes in final expense coverage ($5,000-$25,000) with simplified underwriting and no medical exams, making it accessible for older adults and those with health conditions.
- Compare multiple carriers before choosing Security Plan, as their conservative underwriting and lack of independent financial ratings may limit your options and financial security.
- Expect straightforward but restrictive underwriting that automatically declines conditions like current oxygen use, dialysis, recent cancer diagnoses, or nursing home residence.
- Understand that Security Plan lacks ratings from major agencies like A.M. Best, which means less transparency about their financial stability compared to highly-rated carriers.
- Bring any existing Security Plan quotes to an independent agent for review alongside other carriers to ensure you’re getting the best coverage and rates for your situation.
The Bottom Line
Security Plan Life Insurance Company serves a specific niche in the life insurance market. They provide accessible coverage for people who might struggle to get insurance elsewhere, and their simplified underwriting process can be valuable for the right applicant.
However, they’re not typically the best choice for healthy individuals or those seeking maximum coverage at competitive rates. The lack of independent financial ratings is also a consideration that shouldn’t be ignored.
In my experience, most families benefit from shopping around and comparing options from multiple carriers. What works best for one family might not be the right fit for another, and the life insurance market offers many alternatives worth considering.
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. I can show you what Security Plan offers compared to other carriers, so you can make the choice that’s best for your family’s unique situation.
