2025 State Regulated Life Insurance Program – HOAX?

If you are age 50 or older, and you have not received a postcard in the mail, it resembles an official government notice in writing. Or maybe you saw a TV commercial that said “New State Regulated Life Insurance Program,” and in big letters it boasted of being able to cover funeral costs for “pennies a day” or “$1 a day”.

These letters often say something like “that there’s a state-regulated life insurance benefit that will pay for 100% of your funeral expenses up to $30,000 (TAX-FREE)…even if you have been turned down in the past.”

At face value, it sounds like the government is finally stepping in to help subsidize burial and cremation costs for state residents…after all, it says “state regulated”…it must be true!?

But, it’s all a marketing and advertising HOAX.

In this article, I’ll show you the right way to invest in this type of insurance. You can also call me, the Final Expense Guy, at (888) 862-9456 for information and the lowest rates.

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WHAT IS “STATE-REGULATED” LIFE INSURANCE?

All life insurance companies and products are “regulated” at the state level.

State insurance regulators monitor every insurance company to make sure the companies have enough funds to pay claims and that insurance companies maintain a reasonable amount of financial reserves to pay all future claims.

But the way the phrase “state-regulated” is used in advertising is certainly deceptive.

Here’s a quick analogy: Every carton of milk sold in the grocery store is inspected and “state-regulated” for safety and public distribution. That doesn’t mean the state of milk is paying for your milk, or there is a “state milk program” that is giving away free dairy. It simply means milk is safe to drink.

“State-regulated” means an insurance company has to follow the rules the state has set for that particular product.

But “state-regulated” DOES NOT mean you get to sign up for a new FREE government grant or program. There is no state programs to pay for your premiums or give you a free burial insurance policy.

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IS STATE-REGULATED LIFE INSURANCE A HOAX?

“State-regulated life insurance” that is advertised deceptively is a HOAX.

This junk mail often attempts to appear as if it’s coming from a government-regulated agency. They use headlines like “New Government Benefit Update,” “Medicare Open Enrollment Qualification Request Card,” or “Important Letter of Notification.”

It’s a deceptive lead generation strategy that misleads people into thinking there is a state-sponsored citizens’ life insurance plan that will cover their future final expenses. These state-regulated life insurance advertisements are intended to get your personal information, which will then be sold to desperate life insurance agents.

You’ll then likely start to receive hundreds of phone calls the moment they have your personal information.

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HOW DID THIS MISLEADING ADVERTISING BECOME SO POPULAR?

Marketers figured out a long time ago that official-looking forms with government-style wording really grab people’s attention. Seniors, in particular, are likely to respond, as they grew up in a world where mail from the state meant something of value.

Many of these advertisements do include disclaimers in TINY FINE PRINT, like “Not affiliated with or endorsed by any government agency.” But the headlines still try to deceive by saying “State Regulated,” “Benefit Information,” or “2025 Program Update.”

It’s easy to see why people are confused.

Once these companies get your personal information, your phone will likely start ringing in what is the first of 100s of future calls…day and night!

You may also hear from strange businesses you have never heard of before because your information will often be sold to different salespeople in different industries.

State Departments of Insurance in Minnesota, Texas, and Florida have all issued consumer alerts regarding misleading burial insurance marketing. They caution seniors to be careful, read the fine print, and understand that no government program will be providing free life insurance.

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DOES THE STATE SPONSOR THESE PLANS?

Beware of these state-regulated life insurance offers! 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.

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

There is no state benefit or program that pays for state residents’ funeral expenses. The only money you can 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 whether it’s a hoax or not.

They want your name, address, age, phone number, spouse’s name, and age. They want you to return the card within five days. They want you to act quickly, because they want to get your personal information quickly!

You will typically see Direct Mail Processing LLC that goes directly to Direct Processing Center PO Box 4453 Boise, ID 83711. This Direct Processing Center in Boise, Idaho, will use it to try to sell you life insurance, burial insurance, or supplemental Medicare insurance.

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THE COMMON COMPLAINTS WE HEAR

The people we help often have the same concerns about “state-regulated programs”:

• Privacy Concerns – Personal information is sold, causing endless phone solicitation calls. to be made.
• Misleading Advertising – A commercial makes it sound like a government benefit, but it really is a small private policy with high premiums.
• Aggressive Salespeople – Elderly seniors receiving calls and adverse visits after they send in a card.
• High Costs – Paying $70-$80 a month for $10,000 of coverage is taxing on fixed incomes.
• Waiting Period – Many policies have a 2-year waiting period for full benefits, which often surprises families at the time of payout.
• Fine Print – A disclaimer of not being government-affiliated is in fine print at the bottom.

Better: Go with a licensed broker like the Final Expense Guy to get low pricing and 1st-day coverage.

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WHAT DO YOU NEED TO DO?

If you received one of these life insurance mailers, final expense insurance ads, life insurance postcards, or life insurance marketing flyers and you need the benefits mentioned in the mail, contact a trusted insurance agency like Final Expense Guy first.

NEVER provide your personal information to anyone you can’t verify as a trusted source for this insurance. 

Throw away all unsolicited final expenses mailers and state-regulated life insurance advertisements (shredding them is better!).

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FINAL EXPENSE INSURANCE vs “STATE-REGULATED” INSURANCE?

Final Expense Life Insurance covers burial, cremation, funeral, and other final expenses.

LEGIITIMATE FINAL EXPENSE BENEFITS INCLUDE:

• 1st-day coverage (offered through the Final Expense Guy).
• No medical exam is needed. You only need to answer some basic health questions.
• Fixed rate that will never increase.
• Death benefit amount is also fixed and will never increase.
• Policy remains in force if you keep paying the premiums on time.
• 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.
• Paid out tax-free. Your beneficiary will receive your death benefit without paying any taxes.

Follow these 3 easy steps to get the best life insurance for final expenses:

STEP 1: GET YOUR FREE QUOTE

Working with an independent life insurance agency like Final Expense Guy will save you the hassle of getting a quote from each insurance company.

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

If you have any health issues, I can pre-screen your health conditions and recommend providers who are accepting of your health issues.

STEP 2: CHOOSE WHICH INSURANCE POLICY IS THE MOST AFFORDABLE FOR YOU

Choose what type of burial insurance you need – Simplified Issue or Guaranteed Issue.

Most senior citizens are looking for a simple burial or cremation insurance policy that will cover the cost of final expenses so that they won’t leave their families with a financial burden.

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, the Medical Information Bureau, and the Department of Motor Vehicles records.

Guaranteed Issue – NOT RECOMMENDED! This is a type of insurance policy that guarantees approval regardless of your current medical condition, BUT comes with a 2-YEAR WAITING PERIOD! There are no health questions, and you will pay 30-60% more in premiums versus the better and less expensive 1st-day coverage plans.

STEP 3: COMPLETE AN ONLINE APPLICATION FORM WITH THE FINAL EXPENSE GUY

Your application can be completed and approved over the phone if you use Final Expense Guy to help you with this. The application process generally takes 10 to 20 minutes.

During the application, you will be asked to provide the 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 simultaneously.

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HOW CAN THE FINAL EXPENSE GUY HELP ME?

Working with an independent agency and broker like Final Expense Guy will make the process easier and quicker.

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

We work with many A+ rated insurance carriers that specialize 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 qualifying for the coverage you need at a rate you can afford.

If you are looking for state-regulated funeral insurance, state-regulated burial insurance, or state-regulated life insurance, fill out my quote form on this page or call us at (888) 862-9456, and I can give you an accurate quote.

Frequently Asked Questions

What does state regulated insurance mean? All life insurance plans are state regulated. State laws fully regulate them.

What is a state regulated program? Life insurance plans and employee health benefit plans are state-regulated because they can be impacted by state law.

Is life insurance highly regulated? Yes, the life insurance industry is highly regulated. They are regulated at the state level. Every state has an insurance department that oversees and verifies every life insurance company to ensure they have the resources to meet their financial obligations to policyholders.

Who is life insurance regulated by? State insurance commissioners regulate the life insurance industry. The National Association of Insurance Commissioners (NAIC) makes sure that the insurance industry will protect insurance consumers.

Are all insurance companies regulated? Yes, all insurance companies are regulated in their state of domicile and all the states where they sell life insurance. Insurance companies that fail to comply with the regulatory requirements may have their license suspended or revoked. They may also be fined for regulatory violations.

Why do states regulate insurance? Life insurance is highly regulated to protect American consumers. State regulation ensures that every life insurance company fulfills its promise to its consumers.

How are insurance companies being regulated? States regulates the insurance industry. Each state has its own set of rules. This regulation stemmed from the McCarran-Ferguson Act of 1945 that the public interest must come first.

Is it better for insurance to be regulated by state or federal? Yes, federal regulation gives way to uniformity and efficiency. However, a federal charter could be more cost-effective. Federal regulation supporters claim they can be more competent regulators.

What is the new state regulated life insurance program about? The new state-regulated life insurance program is a paid-postage mailer addressed to people between 50 and 85 in every state. Telling the recipients they qualified to apply to a state-regulated life insurance program to pay for burial and final expenses for just a few pennies a day, regardless of their medical condition, even if they have been denied coverage in the past.

What is a 2025 state regulated life insurance program? State-regulated life insurance is a marketing strategy employed by insurance agencies to sell final expense life insurance policies to seniors. State-regulated life insurance is used to make it sound like a state program to convince people to buy.

What is a 2025 state regulated life insurance program? The 2025 state-regulated life insurance program is a marketing tactic used by insurance agencies to sell final expense life insurance to seniors. They send postage cards to seniors to find potential buyers.

What is a T2 benefit? The T2 benefit information form is an official-looking government form created by shrewd marketing agencies to attract the attention of seniors and sell final expense insurance. The recipients need to return the card to Direct Mail Processing LLC.

What is a t2 form? The T2 form is an official-looking government form sent to seniors to get their contact information such as name, spouse name, age, phone number, and address so that the life insurance agencies sending them can sell them final expense insurance.

Is the T 2 form legitimate? The T 2 benefit information form is not a government issue form. This form comes from insurance agencies to gather information from seniors and sell them final expense life insurance.

What is the new state regulated life insurance program about? The new state-regulated life insurance program is a paid-postage mailer sent to people between 50 and 85. This program states that seniors can avail of this state-regulated life insurance program to pay for their funeral, burial, and final expenses.

What is a t2 2020 benefit information? The T-2 2020 benefit information form is a government-looking form from life insurance agencies wanting to sell final expense insurance. This form is not a part of the state’s database but a tactic used to get personal information.

Is Direct Mail Processing LLC a legitimate company? Direct Mail Processing LLC is a legitimate company. They are a third-party mail provider for insurance companies. Their mailing address is PO Box 2910 Kennesaw, GA 30156. Their final expense postcards and final expense flyers look like government documents however, if you look at the fine print, you will see a disclaimer indicating that they are not affiliated with any government agency.

Is Dmpoptout com legit? The dmpoptout.com is a Direct Mail Processing LLC that sends IRS or state tax document-looking postcards. They are official-looking, but in reality, they are not. Look at the disclaimer and you will find that they say they are not affiliated or endorsed by any government agency.

What is the distribution processing center in Kennesaw Georgia? Distribution Processing Center, LLC in Kennesaw, Georgia is a third-party mail processor sending officially looking materials from legitimate insurance companies. They distribute their mail to people between the ages of 50 to 85 years old.

What is distribution processing center Kennesaw GA? Distribution Processing Center is a third-party mail processor based in LLC in Kennesaw GA. They work with insurance companies by distributing their mail.

Is distribution processing legit? Distribution processing companies are legitimate businesses. They act as the third-party mail processor for life insurance companies. You need to be very careful with dealing with these companies because they collect personal information and sell it.

What is Direct Mail Processing LLC Kennesaw? The Direct Mail Processing LLC is a third-party mail provider based in Kennesaw, GA. Direct Mail Processing LLC Kennesaw sends postcards to people between 50 and 85 to get information and sell final expense insurance.

What is Records Division Kennesaw Georgia? Records division Kennesaw Georgia with a mailing address of PO Box 2910 Kennesaw, GA 30156, is a third-party mailing provider that issues official-looking postcards saying people can qualify for a government benefit. People who respond to information will then be sold to insurance companies.

Is American Senior Benefits legit? American Senior Benefits is an insurance brokerage in the US. They are a legitimate company.

How do I stop getting calls from senior benefits? To stop getting calls from senior benefits, you must register online at www.donotcall.gov. Your registration will not expire, so you don’t need to register again to stop getting calls.

Is United Freedom Benefits department legit? Yes, United Freedom Benefits is a legitimate company. Freedom Life Insurance Company owns them.

Who owns United Freedom Benefits Department? The USHealth Group owns United Freedom Life Insurance Company. They only sell term life insurance policies but their parent company offers health, dental, and vision coverage. You must know that their insurance policies are unavailable in all 50 states.

Where can I read American Senior Benefits BBB complaints? Read American Senior Benefits BBB complaints here.