United Home Life Review

October 31, 2019
Jonathan Fritz &
John Holloway
united home life logo
AM Best Rating
A-
Our Rating
Phone

800-428-3001

Founded

1948

Products sold

Term, Permanent, Accident

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United Home Life is an Indianapolis, Indiana based insurance company which offers term life, whole life, and accidental death insurance products. The company has been in business for over 70 years and is known for its simplified issue life insurance products. While United Home Life did not make our life of best life insurance companies, they do have a niche where they are more competitive than just about any rival.

In this review, we take a look at United Home Life’s product range and discuss the upsides and downsides of choosing the company as your life insurance company.

Our Take

If you cannot qualify for regular policies due to your health condition or other factors, United Home Life is a good choice for you. If you are in decent health, you can buy life insurance at much cheaper rates from other companies.

History and Background

United Farm Family Life, which is the parent company of United Home Life, was established in 1937, when the country was recovering from the effects of the Great Depression.

Despite the extremely unfavorable market conditions during the time period, the company managed to grow at a steady rate, thanks to its conservative approach towards investing.

In 1948, United Home Life was established as a subsidiary of United Farm Family Life. The company was founded with the mission of simplifying the process of buying life insurance.

This is why, right from the beginning, the company has employed a simplified underwriting process, which makes it easier for people to qualify for life insurance policies.

United Home Life Financial Ratings

United Home Life has an A– rating from A.M. Best, which is very impressive. It is the fourth highest rating offered by the agency, out of a total of 16 ratings. Its parent company – United Farm Family Life – has an A rating from A.M. Best, which is even better, as it is the third highest rating offered by the agency.

So, both the parent company as well as the subsidiary are among the group of elite insurance companies which have been given an ‘A’ rating or above by A.M. Best.

United Home Life has assets worth over $2 billion and has issued life insurance policies worth $20 billion. These are very impressive numbers, considering the fact that United Home Life only caters to the needs of a niche customer base.

Despite not having a huge market share or a large customer base, United Home Life has successfully managed to solidify its position in the industry and looks poised for greater success in the coming years.

Now, let us take a look at the company’s product range.

Policies Offered by United Home Life

Term Life Insurance

United Home Life offers four simplified issue term life insurance policies – Simple Term 20, Simple Term 30, Simple Term 20 DLX, and Simple Term 20 ROP.

The key features include:

Extended Coverage

All four policies are designed to provide you with life insurance coverage for a specific period of time – 20 or 30 years, depending on the policy you choose. During this term period, the premium and the death benefit remains unchanged.

Unlike regular term life policies, United Home Life’s policies do not expire at the end of the initial term period. You can choose to extend the coverage up to the age of 95. The premium, however, is set to increase on a yearly basis.

Return of Premium

United Home Life’s Simple Term 20 ROP is a return of premium policy with unique features. It is designed like a permanent life policy with a built-in cash value component.

It is designed to protect you for 20 years, during which period it steadily builds cash value. At the end of the term, the total amount of premiums you paid is returned to you from the accumulated cash value.

You can access the built-up cash value in your policy by getting a loan. If you do not repay it in full, the company will deduct the outstanding amount from the cash value and pay you the remaining amount.

Riders

United Home Life offers four different riders, all of which are optional, to enhance the protection offered by its term life policies.

Accelerated Death Benefit Rider – If you become terminally ill during the coverage period, the company will pay you a portion of the death benefit, using which you can pay for your treatment and care.

Accidental Death Benefit Rider – If you die as a result of a vehicular accident, your beneficiary will be paid a sum of money in addition to the standard death benefit.

Child Rider – It is designed to protect the children of the policyholder. If your child passes away while your policy is in effect, you will be paid a death benefit.

Waiver of Premium Rider – If you suffer total and permanent disability as a result of an illness or injury, as specified in your life insurance policy, the company will waive all the premium payments. You can continue to enjoy the insurance coverage without paying any premium.

Out of these four riders, the accelerated death benefit rider is offered free of cost with all the policies. The other riders are available at an additional cost.

Whole Life Insurance

United Home Life offers three whole life policies.

Express Issue Whole Life – It is a graded death benefit whole life policy. If you happen to pass away due to natural causes in the first two years, your beneficiary will only be paid the total amount of premiums you paid along with an interest. From the third year, your beneficiary becomes eligible to receive the death benefit in full.

It should be noted that the graded death benefit rule does not apply to accidental deaths. So, if you die in an accident at any point during the coverage period, the entire death benefit will be paid out to your beneficiary.

Express Issue Premier and Deluxe – It is an immediate death benefit whole life policy. Right from the first day of the coverage period, your beneficiary is eligible to receive the entire death benefit amount if you pass away due to natural causes or in an accident.

Provider – It is a level premium, level death benefit whole life policy. It is available at discounted rates for qualified applicants.

The key features of their whole life policies include:

Cash Value

United Home Life’s whole life policies accumulate cash value at a steady rate for the entirety of the coverage period. The insurance company decides the rate of interest at the start of your coverage period.

Once your policy builds adequate cash value, you can access it by getting a low-interest policy loan. If it is not repaid in full, the insurance provider will deduct it from the death benefit.

Riders

United Home Life offers a number of riders, which are designed to enhance the protection offered by its policies, at no additional cost.

The riders include:
  • Terminal illness accelerated death benefit rider
  • Total and permanent disability waiver of premium rider
  • Hospital stay waiver of premium rider
  • Identity theft waiver of premium rider
  • Accidental death benefit rider
  • Life-threatening cancer accelerated death benefit rider
  • Guaranteed insurability rider
  • Child rider

Guaranteed Issue Whole Life Insurance

It is a level premium whole life policy which is meant to cover you until the age of 100. It is a guaranteed issue policy, which means you can qualify for it regardless of your health condition.

It is a graded death benefit policy. If you die at any point during the first three years, your beneficiary will receive the total amount of premiums you paid along with an interest. From the fourth year, the death benefit will be paid out to your beneficiary in full.

Like all graded death benefit policies, this one too has an accidental death exemption. If you die in an accident, your beneficiary is guaranteed to receive the entire death benefit, regardless of how far you are into the coverage period.

Accidental Death Insurance

It is a rider which comes attached to a small whole life policy. It is a 20-year rider, during which time the premium remains unchanged and the death benefit is guaranteed to double. In other words, a $50,000 rider becomes a $100,000 rider at the end of 20 years without any increase in the premium.

At the end of the 20th year, you have two options.

  1. You can extend the coverage, in which case the death benefit will remain the same, but the premium will increase on a yearly basis.
  2. You can opt for the return of premium option, in which case you will receive the total amount of premium you paid over 20 years. Once you receive the money, the policy is terminated.

Now, let us take a look at the upsides and downsides of choosing United Home Life as your insurance provider.

Pros and Cons of United Home Life

Pros

No Medical Exams

This is, without a doubt, the biggest upside of choosing United Home Life as your insurance provider. The company offers simplified issue policies, which means you do not have to undergo any medical exam and there is no blood work involved. You do not even have to get a physician’s statement.

All you need to do is fill out an application form, which contains simple ‘yes’ or ‘no’ questions. This is followed by a telephone interview, in which you will be asked a few questions by the underwriter.

The whole process only lasts about 15 minutes. Based on your responses, the underwriter will determine your eligibility and insurability and decide to approve your application.

United Home Life’s simplified underwriting process can be particularly beneficial for those with pre-existing conditions and those who are genetically predisposed to developing various diseases and disorders.

Even if you have been turned down by other insurance companies, you can apply for United Home Life and get approved.

Extended Coverage with Term Policies

United Home Life’s term life policies are uniquely structured and can protect you until the age of 95. After the initial level-premium period, you can choose to extend the coverage for as long as you want. Every 12 months, there will be a slight increase in the premium.

Free Riders

Almost all of the top insurance companies offer riders with their policies. What makes United Home Life different is that the company offers a wide range of riders at no additional cost whatsoever.

From accelerated death benefit rider to accidental death benefit rider, waiver of premium rider, guaranteed insurability rider, and child rider, you have a variety of riders to choose from – all of which are available free of cost with selected policies.

Cons

Costly Policies

One of the downsides of simplified and guaranteed issue policies is that the rates tend to be more expensive than fully underwritten policies. Moreover, if you are young and in good health, there is no reason why you should apply for a simplified issue policy. You can compare other companies that offer no exam life insurance here.

If you apply for a fully underwritten policy and undergo a medical exam, you can easily qualify for ‘Preferred’ or ‘Preferred Best’ risk classes and save a lot of money. So, United Home Life’s policies are only an astute choice for people who are not likely to qualify for regular life insurance policies.

Lack of Universal Life Policies

United Home Life only offers term and whole life policies. If you need a traditional, indexed, or variable universal life policy, you should look elsewhere.

Final Thoughts on United Home Life

United Home Life is financially stable for a company of its size. It has managed to maintain its position in the industry for over 70 years despite only having a niche customer base.

The company offers a number of term life and whole life policies with unique features like extended coverage, return of premium, and free-of-cost riders. Above all, there are no exams or tests involved in the application process. So, you can qualify for the policies irrespective of your insurability.

John Holloway
John Holloway is a licensed life insurance agent and co-founder at NoExam.com
Disclaimer: We make every attempt to make sure our information is up to date, but since things change often it is best to double check the data. This review is an opinion. Clicking on links may result in NoExam.com being compensated.