You may have heard of Kemper Life Insurance or of other Kemper insurance products such as their automobile insurance or consumer protection coverage options.
Well, do they live up to their reputation? Are they worth your time? Money?
A relative newcomer to the insurance world, Kemper Life Insurance was founded in April 1990 under Unitrin, Inc. Kemper, or Unitrin, was founded in an attempt to replicate the success that was seen with Henry Singleton’s conglomerate Teledyne, as that company’s share appreciated 240% shortly preceding the development of Unitrin (Kemper Life Insurance).
Unitrin debuted on the NASDAQ at $31.25 a share shortly after going public.
From there, Unitrin would split its insurance services into 3 subgroups, with those being life, property, and consumer insurance, and continue to trend upward.
It wasn’t until 2010 that Unitrin would purchase the rights to “Kemper” and move forward under that alias as it still stands today.
Recently in 2020, Forbes featured Kemper Life Insurance in their list of the 100 fastest-growing companies, after they acquired AAC as well as other subsidiary companies.
Their headquarters is currently located in Chicago, IL.
Kemper Life Insurance currently owns $14 billion in assets, hosts over 6.2 million policies, and is backed by over 44,000 agents/employees.
1986: Kemper Life Insurance’s parent group was founded, called the Argo Group.
1990: Kemper Life Insurance was founded, under the name “Unitrin Inc.” in an attempt to replicate the Argo Group’s initial success.
2002: Unitrin renewed coverage rights for their line of homeowner and automobile insurance lines.
2010: Unitrin purchased the rights to the name, “Kemper”.
2011: Operations begin as the Kemper Corporation in august of 2011.
2015: The current chairman, Joseph P Lacher, Jr. was appointed President and Chief Executive Officer.
2018: The company unified and refreshed its brand.
2020: Kemper is included on Forbes’ list of fastest-growing companies.
2021: Kemper acquired the collective, “AAC” involving Newins Insurance Agency and its subsidiaries.
2020-2021: Cyber-attacks against Kemper Life Insurance occured in dec. 2020, as well as in march 25, 2021. There is still a class-action lawsuit in action.
Kemper Life Insurance offers a large number of policies outside of Life Insurance via their subsidiaries, such as property and casualty insurance, automobile, industrial, and even consumer insurance.
To avoid making you read a book, we’re going to touch only on their life insurance products.
Standard Coverage, or “pure” life insurance.
Generally, you’re provided with a term, such as 20 years for example, wherein you’re guaranteed payment as stated by the death benefit if the policyholder dies within the stated term.
If alive at the end of term, one may renew for an additional term, or convert the existing coverage to permanent coverage.
The perks of this coverage involve the introductory price point, which is generally the most budget-friendly option for the relative amount of coverage received.
Depending on if it’s simplified or guaranteed, This form of insurance usually requires a medical examination.
On the other side of the same coin, Whole Life insurance is generally what Term Life Insurance leads into, providing an entire lifetime of coverage at a fixed rate decided at the time of purchase as long as premiums continue to be paid.
Whole Life is a great middle-ground for a large amount of coverage as well as a fixed premium that isn’t too high.
This option usually does not require a medical exam/questionnaire.
Otherwise known as Kemper Life Insurance Final Expense Insurance, or Kemper Life Insurance Funeral Insurance, this form of insurance offers to cover beneficiaries’ funeral expenses.
This insurance type excels in providing plan holders with a large payout relative to the length of coverage, usually providing beneficiaries with a surplus after all expenses are accounted for.
Kemper Life Insurance Burial Insurance never requires a medical examination but may ask you general medical questions such as if you use tobacco, your age, weight, etc.
Guaranteed Issue Life Insurance is a type of whole life insurance policy where applicants are accepted regardless of their status.
Guaranteed issue Life Insurance also offers no medical examination, nor any background check – you are truly accepted regardless of your status.
Guaranteed Issue Life Insurance always involves the presence of a mandatory two year waiting period, and usually a relatively high premium compared to your maximum coverage amount.
This means that if death occurs prematurely, no benefit will be paid to beneficiaries, rather, they’ll receive all premium payments made before the unexpected circumstance.
Accident & health insurance is meant to prevent policy holders from being negatively affected by unexpected medical bills by providing treatment options or financial relief to those aforementioned.
These could include things like, covering your hospital stay, surgical necessity, or other medical costs associated with whatever treatment is required.
The usual proportional rate administered under accident and health insurance is up to 80% of medical costs.
If you’re looking for a policy with $10,000 in coverage that remains instated throughout the remainder of your life at the premium you locked in at, then we’d like to recommend a few names that may be of interest to you and your wallet.
Final expense insurance is the type of insurance that’s in place to cover the funeral costs after your passing.
While final expense coverage is generally used to cover funeral/burial costs, one may use the funds in any way desired.
Final expense coverage usually exists as a simplified issue plan, meaning that you are approved regardless of any previous medical conditions, 99% of the time.
The premiums are also generally low (depending on the condition of the applicant) and whole life, meaning that your rate does not change within the span of your lifetime.
Additionally, these plans can coexist with Medicaid, depending on your total assets.
If said assets are too high to qualify, one may withdraw and use these funds to purchase additional coverage or what have you, maximizing your beneficiaries’ payout.
Although not marketed as “Final Expense Insurance” or via other phrases you might expect to see when it comes to final expenses, Kemper Life Insurance does have a Guaranteed Life Insurance policy that essentially performs the same function.
The benefits of this policy include the guaranteed acceptance offered to those between the ages of 40 to 80, as well as the lack of a medical exam or questionnaire.
Your coverage caps out at $25,000 with this guaranteed life insurance policy.
This policy also builds cash value, which is somewhat different from most Final Expense policies. Your monthly premium will also never increase so long as you continue to pay your premiums and don’t request more coverage.
Yes, it is safe to say that Kemper Life Insurance is a legitimate life insurance company.
Their total assets being in the billions along with their large number of policy-holders implies that they are in fact, legitimate.
Now, are they worth your time is the real question.
According to Fitch, Kemper life insurance has been deteriorating, beginning in 2021.
The company’s reported calendar-year combined ratio jumped up to 111.1% from 93.3% in previous years.
Although they have reduced their AM best complaint index from 6+ in 2019, it’s still 3.62, implying almost four times the average number of complaints.
There’s also no shortage of customer complaints online – immediately demonstrating negative results when searching for said complaints via google.
They utilize a rating, similar to the letter ratings placed on restaurants, meant to help you discern their overall quality.
This letter ranking varies from A+ to F, similar to a scholastic grading system, and this organization is overseen by the chief insurance regulators regarding any US-affiliated territory.
The rating itself is determined by a variety of different factors, such as performance, management, financial flexibility, shareholder safety, etc.
Kemper Life Insurance was given an A rating by AM Best as of 2021, implying excellent, but not perfect financial health.
The NAIC, or The National Association of Insurance Commissioners, is a regulation standard support organization based in America meant to add credibility to insurance companies.
Essentially, the goal of this organization is to protect consumers and to mandate that insurers deliver on their promises made.
The rating used within the NAIC, involves a numerical value usually ranging from 1 – 10.
One implies average customer complaints, where anything above this is above average, and so on.
The rating given to Kemper Life Insurance as of 2021 was a 3.62, implying almost 4x the average customer complaints as other insurance companies.
Overall, there’s little to no redeeming qualities to Kemper Life Insurance.
Their products don’t necessarily excel in any particular aspect over another provider that offers similar coverage options.
The age range and maximum coverage options are also lukewarm comparatively.
We at Final Expense Benefits partner with over 20 carriers, with:
Being some of the ones that stand out among the crowd.
Reduce the stress involved with life insurance and let us do all of the heavy lifting for you.
You can reach us at 1 (866) 311-4338, and we’re open from 9-5, Monday through Friday.
We’d argue that you have plenty of other options,
regardless of your ability to complete underwriting.
We say this because there is no area where Kremper Life Insurance stands out particularly, the only reason to consider this provider if you have personal ties to the company or if you already have a policy with them due to your parents/loved ones.
Yes, they are.
Joseph P. Lacher, Jr. since 2015.
Their generic customer service line is, 1-800-777-8467