State-Regulated Life Insurance Hoax?


Is state-regulated life insurance a hoax? Many people from different states have reported receiving offers in the mail saying they may qualify for a state-regulated life insurance program to pay for their final expenses.

The mail goes on to promise that this life insurance benefit will pay for 100% of all funeral expenses up to $25,000 (TAX-FREE) even if if you have been turned down in the past.

If you have received mail like this, keep reading.

In this article, we will examine if the state-regulated life insurance you receive in the mail is a hoax.



All life insurance companies are regulated at the state level. Every insurance company that wants to offer any insurance products in your state must get a license to sell from your state’s department of insurance.

To get a license, the insurance company must provide financial information about the product and the company. The department of insurance will give permission to sell once all the requirements are met.

In truth, all insurance companies are regulated by the state. Therefore, “state-regulated life insurance” is nothing new or special.


Technically, state-regulated life insurance mailer is not a hoax. It’s a lead generation strategy that is misleading — making people think that there is state-sponsored life insurance that will take care of their final expenses.

The mailer uses the phrase “state-regulated” to make it sound more official. Like it is like notifying you about a new government benefit program. 

This mail often looks like it’s coming from one of many government agencies. They use headlines like “New Government Benefit Update,” “Medicare Open Enrollment Qualification Request Card,” or “Important Letter of Notification.”

Does the state sponsor these plans?

If you look closer, you will find at the bottom of the card this statement: “Not affiliated with or endorsed by any government agency.”

No state benefit pays for someone’s funeral. The only money you can possibly get for the end of life expenses is $255 from Social Security (but only if you qualify).

This lead generation strategy wants you to give your personal information before you have the time to think about if it’s a hoax or not. They will ask you to fill in your name, address, age, phone number, spouse name, and spouse age, and return the card within five days. They want you to act quickly so that they get your personal information fast!

Beware of this state-regulated life insurance offer. If you send your information, be prepared to receive massive numbers of mail solicitations and phone calls from insurance agents trying to sell life insurance.

The company that sends these mailings will often sell your personal information to insurance companies in your state. They will use it to try to sell you life insurance, burial insurance, or supplemental Medicare insurance.


If you received these mailers and you think you need the benefits mentioned in the mail, contact a trusted insurance agency like Funeral Funds first.

Don’t provide your personal information to anyone you can’t verify as a trusted source for this insurance. 

Throw away any unsolicited mail. You don’t need to give your personal information to find out what your insurance options are.

Make sure and check your existing burial insurance coverage first. These lead generators will try to scare you into thinking that your insurance coverage is not enough to pay for your funeral and other final expenses. They will also let you feel that Medicare won’t pay your medical bills.

If you want to know more about your benefits, here’s a link to the government website to learn about free government benefits in your state.

So now that we have these scams exposed, here is some information on how to get burial, cremation, or final expense life insurance safetly.


Burial insurance is also called funeral or final expense insurance. It is a whole life insurance policy that lasts until age 121 years old. This plan is designed to cover the cost of a funeral, burial, and other final expenses.

Once you pass away, the senior life insurance company will pay a tax-free check to your beneficiary. This plan is not assigned to a funeral home, and your beneficiary can use the benefit payout; however, they see fit.


  1. Burial insurance is often much cheaper than a pre-paid funeral plan.
  2. It is easy to qualify for burial insurance. A medical exam is not necessary, and you will only need to answer some health questions.
  3. Most people will qualify for burial insurance coverage regardless of their medical conditions because it does not require medical exams for approval. You will only need to answer some basic health questions.
  4. Burial insurance has a fixed premium which will never increase due to advancing years or health conditions.
  5. The death benefit amount is also fixed and guaranteed to never decrease for any reason.
  6. The insurance coverage will not cancel when you reach 80 years old. The policy remains in force as long as you keep paying the premiums on time.
  7. Burial insurance is a whole life insurance policy that accumulates cash value. The cash value can be used to pay premiums, or you can borrow against it if you have a family emergency.
  8. Death benefit payout can help pay for the funeral, burial, and final expenses, any leftover money can be used by your beneficiary for any purpose.
  9. Burial insurance is portable. You can use the death benefit payout at any location because it is not assigned to any particular funeral home. It is particularly useful if you’ve moved to a new place and you’ve changed your mind about the funeral arrangements.
  10. Burial insurance benefit is tax-free. Your beneficiary will receive your death benefit without paying any taxes.



Getting a quote has never been easier. Using your mobile phone or computer, look for an independent life insurance agency website (we offer a free quoter on this page). We can provide you a quote or price estimate from many different insurance providers.

Working with an independent life insurance agency like Funeral Funds will save you the hassle of getting a quote from each insurance company individually.

Use our instant online quote form to check out the rates and companies available in your state.

If you have any health issues, your agent will be able to pre-screen these conditions and recommend providers that are friendly with your health issues.


Choose what type of burial insurance you need. Most senior citizens, like you, are most likely looking for a simple burial insurance policy. That will cover the cost of final expenses so that you won’t leave your family with a financial burden.

Types of Burial Insurance

Simplified Issue – this type of insurance policy is a simplified version of regular life insurance. It does not require a medical exam or health check, but you will be asked to answer some basic health questions on the application.

Your application will be easily approved if you answer “NO” to the health questions. The background check is a part of the underwriting process. They will check your prescription medication, Medical Information Bureau, and Department of Motor Vehicle records.

Guaranteed Issue– is a type of insurance policy that guarantees approval regardless of your current medical condition. A medical exam is not required; you don’t need to answer health questions either. As long as GI policy is available in your state, and you are 50 to 85 years old, and you can enter into a legal contract, the company is guaranteed to offer you coverage.

If you have any health issues that make it impossible to qualify for a traditional term or whole life insurance, you should consider a guaranteed issue policy.

Features of Burial Insurance:

  • Available for seniors ages 50 to 85
  • No medical exam required
  • Coverage last your entire life
  • Level premium – premiums are fixed and will never increase
  • Death benefits will never decrease for any reason
  • Minimal face amount from $2,000 up to $25,000 available
  • The policy accumulates cash value

Once you decided which type of policy suits your needs and received the pricing from the online quoter, the next step is deciding on which insurance company to apply.

You need to consider the insurance company with the best price.

Another thing you may need to consider is the financial stability of the company. Funeral Funds only works with “A” rated or better insurance companies.

It is important to make sure that the insurance company is stable and can pay its policyholders on time.


After finding the insurance company that’s the perfect fit for your needs, it’s time to apply. Completing an application will be the next step after you have secured an independent agent and knew the type of policy that best fits your budget. Your application will be approved over the phone if you use Funeral Funds to help you with this.

The application process will generally take 10 to 20 minutes. There will be a series of questions to answer from your personal information to medical history to the type of lifestyle you live.

During the application, we will ask you to provide your beneficiary or the person who will receive your death benefit payout when you pass away. It is also advisable to give contingent beneficiaries in case something happens to you and your primary beneficiary at the same time.


Trying to find burial insurance policy if you receive offers from the mail needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.

If you have any health issues, let us help you; we will work with you side by side to find a plan that fits your needs.

We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.

We will shop your case to different insurance carriers and get you the best price.

We work with many A+ rated insurance carriers that specialized in covering high-risk clients like you.  We will search all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.

We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for state-regulated funeral insurance, or state-regulated burial insurance, or state-regulated life insurance. Fill out our quote form on this page or call us at 888) 862-9456 and we can give you an accurate quote.

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