UPDATED: Nov 30, 2018
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About Old American
Old American Insurance Company was founded in 1939, and they have always been focused mainly on providing life insurance to seniors seeking final expense coverage. They are a member of the Kansas City Life Group of Companies since being acquired in 1991, and not surprisingly have their headquarters in Kansas City, MO. The family-run company is on its fourth generation of the founding family at the executive level.
Old American serves more than 200,000 policyholders in 47 states and the District of Columbia, and it has more than $1 billion of life insurance in force. Their products are sold through independent agents across their service area.
Old American Products
Old American writes only life insurance policies, their focus since the beginning. Although final expense insurance for seniors is their main product, they also offer a policy for the opposite end of the spectrum – juvenile life.
Final Expense Life
Old American’s final expense products is a whole life insurance policy that is designed to pay funeral costs and other final expenses. The maximum death benefit offered on the policy is $25,000.
Premiums are guaranteed and the policy is guaranteed to remain in force for as long as they are being paid.
Although the plan does require that the applicant answer some health questions and is rated accordingly, there is no requirement for a medical exam in order to get coverage. The amount of the death benefit that is offered is based on the applicant’s health. They offer a graded policy as well, with limited benefits in the first two years and 100% of the death benefit offered thereafter.
Juvenile polices can be issued between the ages of two weeks and 15 years old. These plans offer a ten-year payment plan after which the policy is considered to be paid up in full, and no further premiums are charged although the policy remains in force for life. It can also be pre-paid in a single premium or shortened to eight years.
This is a whole life policy that has a cash accumulation account; that account can be accessed later in life if needed.
Old American does not offer online quoting. This is pretty standard and not surprising for a company of this sort – with a long history of agent-focused sales.
Final expense life insurance is usually fairly affordable due to the low death benefit amount, but how this company will compare to other similar companies is difficult to say.
Old American’s website is quite limited and basic and does not offer information with regards to claims. The contact page offers a toll-free customer service number, as well as a contact form that can be filled out for a reply. This form can be used to inquire about claims, but they cannot be filed this way.
Ratings and Consumer Reviews
Old American has an A- rating with the Better Business Bureau (BBB), and nine complaints on file in the past three years. The BBB seems to find this volume high enough to dock the company’s rating, but with only three closed in the past 12 months, we would not think it is a matter for concern at all.
Google has 16 reviews with a 2.8-star overall rating. There are several positive reviews – notably, at least one is from an agent that works with them and not a customer, and several negative reviews citing denial of claims and poor customer service.
We did not find any major red flags with Old American, and the complaint volume is not high for the size of the company.
The Bottom Line
Old American is a very focused company with very limited policy options. Without rate information, it is difficult to compare them to other companies, but they might be worth considering if presented as an option by an insurance agent with rates provided.
For a list of companies that we recommend, visit our Best Insurance Companies page.