Prosperity Life Group is made up of member companies Shenandoah Life Insurance Company, SBLI USA Life Insurance Company, Inc., and S.USA Life Insurance Company, Inc. For simplicity’s sake, we will refer to Prosperity and any of its member companies in this article as “Prosperity.”
Prosperity is a leading provider of protection, supplemental and asset accumulation products distributed through banks, independent marketing organizations, and worksite and affinity channels. Prosperity’s insurance operating subsidiaries have an A- (Excellent) financial strength rating by A.M. Best.
Prosperity’s member companies have been around for a very long time, the oldest being founded in the early 1900’s. What does all of that mean? You should feel safe knowing that Prosperity has been around, in different forms, for a very long time, and that Prosperity has Excellent financial strength ratings, according to one of the most well-known financial strength rating companies.
So, how do these policies work? Prosperity’s final expense policies pay out to the policyowner’s beneficiary(ies). These plans are meant to cover final expenses such as funeral service, burial, etc. However, any money that is left over after the beneficiary has covered final expenses is kept by the beneficiary. Who would you rather keep any leftover moneys – your loved ones, or a funeral company?
Prosperity’s final expense policies have three basic features – 1) premiums that are guaranteed to stay level and NEVER to increase, 2) coverage that is guaranteed NEVER to decrease, and 3) coverage that is guaranteed NEVER to expire (so long as the premiums are paid, of course). These three features are the foundation of any solid final expense plan.
Prosperity has three different types of final expense plans – 1) Level, 2) Graded, and 3) Modified.
Prosperity’s LEVEL plans provide immediate, first day coverage once the policy is issued and in force. This means that if the insured passes away any time after the policy is in force, the beneficary will receive the full face amount. There is no waiting period on the Level plan. These plans also have the lowest premiums. So, for folks who can qualify for Prosperity’s Level coverage, this is the best option of the three different plans. If you qualify for Prosperity’s Level plan, you should be smiling…
Prosperity’s GRADED plan provides some first day coverage, but not full. If the insured passes within the first 12 months, the beneficiary would receive 30% of the death benefit. Within months twelve through 24, the beneficiary would receive 70% of the death benefit. Anything after the first two years would be the full benefit. Also, accidental death is covered 100% from day one, so it is only if the insured passes from natural causes within the first two years that the beneficiary would only receive a partial benefit.
Prosperity’s MODIFIED plan contains a full two year waiting period. I will spare the details on Prosperity’s Modified plan, because there are much more cost friendly options than Prosperity with other companies for plans with a two year waiting period. Therefore, we will just focus on Prosperity’s Level and Graded plan, since both are competitive in terms of cost, coverage options, and underwriting.
Wondering which policy you may qualify for, and how you find out? The process is really quite simple. You are not required to complete a health exam. Your qualification is based on how you (truthfully) answer certain health questions, that must be answered yes or no.
In addition, Prosperity can look at your prescription history and your MIB report (MIB stands for Medical Information Bureau, which is a nonprofit based in the US and Canada since 1902, which is used to assess an individual’s risk and eligibility during the underwriting of life, health, disability income, critical illness, and long-term care insurance policies).
The biggest determining factor whether you qualify for Level coverage is the health questionnaire. The health questionnaire is comprised of three parts – Part A, Part B, and Part C. In order to qualify for Level coverage, your answer must be “No” to all questions in Parts A, B, and C. If you answer “Yes” to any question in Part A, you cannot qualify for any coverage with Prosperity. If you answer “No” to all questions in Part A, but “Yes” to a question in Part B, you qualify for the Modified product – the un-competitive product we discussed earlier. If you answer “No” to all questions in Parts A and B, but “Yes” to a question in Part C, you may be eligible for the Graded plan.
By the way, working with an experienced, independent agent is the simplest way to find out the best coverage you can qualify for. Understanding the underwriting of different companies is the single biggest factor in finding the best rates and coverage options for you.
Now, what exactly are the health questions that determine your eligibility? Below I have listed the questions directly from a Prosperity application.
Part A – if any question is answered “Yes”, the Proposed Insured is not eligible for coverage
1. Is the Proposed Insured currently or in the last 30 days been: hospitalized, committed to a psychiatric facility, confined to a nursing facility, receiving hospice or home health care, confined to a wheelchair due to a disease, or waiting for an organ transplant?
2. Does the Proposed Insured currently require human assistance or supervision with eating, dressing, toileting, transferring from bed to chair, walking, maintaining continence or bathing?
3. Within the past 12 months has the Proposed Insured:
a. been advised by a member of the medical profession to have a diagnostic test (other than an HIV test), surgery, home health care or hospitalization which has not yet started, been completed or for which results are not known?
b. used or been advised by a member of the medical profession to use oxygen equipment for assistance in breathing (excluding CPAP or nebulizer)?
c. had or been advised by a member of the medical profession to have Kidney Dialysis?
4. Has the Proposed Insured ever been diagnosed or treated for Acquired Immune Deficiency Syndrome (AIDS) and/or Human Immunodeficiency Virus (HIV) infection by a licensed member of the medical profession?
5. Has the Proposed Insured ever been diagnosed or received treatment by a member of the medical profession for Alzheimer’s disease, dementia, Lou Gehrig’s/Amyotrophic Lateral Sclerosis (ALS), Cirrhosis of the Liver (Stage C)?
6. Has the Proposed Insured ever been diagnosed by a member of the medical profession with more than one occurrence of the same or different type of cancer or is the Proposed Insured currently receiving treatment (including taking medication) for any form of cancer (excluding basal cell skin cancer)?
Part B – if any question is answered “Yes”, the Proposed Insured may be eligible for the Modified Death Benefit Individual Whole Life Policy
1. In the past 2 years, has the Proposed Insured been diagnosed or received treatment from a member of the medical profession, or other practitioner, or been hospitalized for any of the following:
a. the use of alcohol or drugs; or been advised by a physician, practitioner, health facility or counselor to restrict the use of alcohol or drugs?
b. complications of diabetes such as diabetic coma or insulin shock or had an amputation due to complications of any disease?
c. heart attack, angina (chest pain), congestive heart failure, cardiomyopathy stroke, transient ischemic attack (TIA), or aneurysm or had heart or circulatory surgery?
2. In the past 3 years, has the Proposed Insured been diagnosed, treated, or prescribed medication by a member of the medical profession for: internal cancer, including but not limited to, malignant brain tumor, malignant melanoma (but excluding basal/squamous cell skin cancer), leukemia, or multiple myeloma?
3. In the past 2 years, has the Proposed Insured had more than 1 conviction for reckless driving or for driving under the influence of alcohol or drugs (DUI or DWI)?
Part C – if any question is answered “Yes”, the Proposed Insured may be eligible for the Graded Death Benefit Individual Whole Life Policy
1. Has the Proposed Insured ever been diagnosed, treated, or prescribed medication by a member of the medical profession for:
a. Parkinson’s disease, Systemic Lupus (SLE) or sickle cell disease?
b. Cirrhosis (Stage A or Stage B) of the liver, chronic hepatitis or other liver disorder, kidney failure or other chronic kidney disease?
c. Chronic Obstructive Pulmonary Disease (COPD), which includes emphysema, black lung disease or tuberculosis?
d. Bipolar Disorder or Schizophrenia or been hospitalized in the past 2 years for any mental or nervous disorder?
If all questions in Parts A, B and C are answered “No”, the Proposed Insured may be eligible for the Level Death Benefit Individual Whole Life Policy