United Freedom Benefits Department: Is it a Scam?

best life insurance for seniors over 60

Written by Kim Wilhelm

Verified!  See guidelines

Verified!  See our editorial guidelines

Last Updated 21 May 2024

No matter what state you live in, you may have received a postcard in the mail for United Freedom Benefits.

The mailer may say things like:

  • “Government benefit supplement policy”
  • “For [state] citizens only”
  • “This is a personal announcement to all [state] citizens age 50-85”
  • “You may qualify for a NEW state-regulated program to pay for your final expenses…”

And how the government will cover 100% of your funeral expenses, up to a certain dollar amount. Tax free, of course?

Sound too good to be true?

That’s because it is.

Here’s what you need to know about the United Freedom Benefits Department and why you shouldn’t fall for this scam.

What is the United Freedoms Benefit Department?

United Freedoms Benefit Department is the entity sending out these unsolicited postcards and mailers to unsuspecting seniors. They claim to offer free government benefits to seniors in the form of final expense insurance, even offering a free government benefits information brochure.

The response mailer will say:

“This Senior Plan will pay 100% of all funeral expenses not paid by Social Security, up to $XX,000 for each Senior Citizen covered. To see if you qualify, mail this postage-paid card today. You will not be charged for this information. This is a “FREE” service for you.”

Notice how free is in quotation marks?

Underneath your mailing address and the spot where you enter your name, age, phone number, and info for your spouse, there is more wording in smaller print.

“Return this card for your FREE Government Benefits Information Brochure.”

Then, in even smaller print, likely so you overlook it all together:

“Not affiliated with or endorsed by any Government or Medicare program.”

And there it is.

Why would a benefits department state numerous times that they are providing a free government benefit, yet not be affiliated or endorsed by any Government program?

Is United Freedom Benefits Dept Legit?

Based on this information, and multiple other sources, it does not appear that the United Freedom Benefits Department is legit.

In several areas of the mailer, it says that this is a state-sponsored program, for residents of your state only, and that it's a free government program?

Yet seniors across the country find out all too late that this supposedly free final expense benefit from the state or government is nothing but a way to scam you into providing your personal information so they can then try to sell you life insurance.

You don’t have to take our word for it, either.

Freedom Benefits

Several years ago, Tony Novak, registered owner of Freedom Benefits who also trademarked the name in the 90s, sent a letter to the Texas Department of Insurance to notify them of a scam alert.

According to Tony, Freedom Benefit Solutions is an unlicensed agency and has used his business name and logo without authorization.

Although United Freedom Benefits uses a Texas address, they are not registered with either the Texas Insurance Department or Texas Secretary of State.

Scam Detector

You can also find information about this final expense insurance scam on scam-detector.com. The website owner includes a helpful video that shows what these postcards and mailers can look like, as there are multiple variations sent to seniors across the country.

Seniors in many cities have fallen victim to this scam to get your information. It’s just one of many scams seniors can face, including:

  • Medical alert systems
  • Hospital liens
  • Free medical bracelets
  • Fake life alert

Before you send back a request for information, do your research to find out if the company is legitimate and if what they’re offering matches what the mailer says.

Better Business Bureau

Perhaps the most convincing website to show us that the United Freedom Benefits Department mailer is a scam is the Better Business Bureau (BBB).

The BBB has given United Freedom Benefits an F, its lowest rating. This rating shows that the company has failed to respond to customer complaints, resolve complaint causes, or provide company information.

BBB has reached out to United Freedom Benefits department to request proof of its advertised claims of “thousands of seniors nationwide are applying for the new state regulated life insurance program.”

It claims United Freedom Benefits violates two specific codes:

  • Advertisements should be sincere selling offers and truthful
  • They should provide proof to substantiate the claims made upon request

It also says United Freedom Benefits use puffery claims, which means it exaggerates, or boasts unreasonable statements. “Puffery also includes general claims of superiority over comparable products that are so vague that it can be understood as nothing more than a mere expression of opinion.”

Unsurprisingly, the BBB has not received a response from United Freedom Benefits.

You can read the reviews on the BBB website. Many reviewers note the PO Box as return address, no contact phone number, and the many ways the company changes its wording in different states.

  • Immediate Approval Over the Phone Today!
  • Speak to a Live Agent 
  • Just a Few Health Questions 

Can We Report Scams Like United Freedom Benefits Department?

Yes, you can, and we encourage you to report scams like the one United Freedom Benefits Department and other entities use.

You can report fraud to the Federal Trade Commission (FTC) here

You can also continue reporting to the BBB profile for United Freedom Benefits and any other entity that sends senior mailers saying that you’ll get something for free that isn’t free (like funeral insurance or health benefits).

Since the postcards come through the United States Postal Service, you can also report them to the Office of Inspector General.

If a company says they’re an insurance agency or offers any type of insurance product, they should be registered with the state you live in. Otherwise, they can’t sell you coverage in that state.

You can check your state insurance department to see if they are registered or file a complaint if they aren’t.

It can be hard as a senior to figure out what’s legitimate and what’s a scam, especially when these mailers look legit and you don’t have loved ones to help.

If you’re ever in doubt, don’t provide your personal information or send the mailer back. Instead, run it through the shredder after notifying the proper entities.

The Government offers some benefits for free, although life insurance is not one of them. You can go to the benefits website to learn more about what’s available in your state.

What is State-Regulated Life Insurance?

Companies cannot sell products, like life insurance, in any state unless they meet the state’s specific regulations. State-regulated life insurance simply means that the life insurance product has met those requirements.

Companies like United Freedom Benefits Department will use terms like “state-regulated program” or “state-regulated life insurance” to sound legitimate.

After all, if it’s state regulated, it must not be a scam, right?

Unfortunately, scammers know just what wording to use to make the scam seem legitimate. It’s only after you supply your information and get bombarded with calls that you find out it’s nothing more than lead generation marketing.

And many people find out there’s no way to opt out once you’ve provided your information. The scammers will give your information to other companies, which just perpetuates the cycle of calls and mailers for other “free” products.


  • Get quotes FAST
  • More affordable than you think
  • Compare quotes from top companies
  • Know what you qualify for before you buy!
By pressing "Get Quotes Now" you agree to our privacy policy and consent to have Final Expense Direct contact you by email, phone call, text/SMS message at the phone number & email you provide. You understand that any calls, texts, SMS messages may be made using automated dialing technology. Consent isn’t a condition to purchase our products.

Is State-Regulated Life Insurance a Hoax?

No, state-regulated life insurance is not a hoax. For any legitimate insurance company to sell a product in your state, they must first get a license to sell insurance from the state’s insurance department.

The insurance company has to provide information about the product and the company selling insurance. When all requirements are met, which vary by state, the department of insurance will give the company permission to sell its products.

So, while state-regulated life insurance is not a hoax, these types of mailers make you believe that the state will provide you free life insurance benefits up to a certain dollar amount, which is the scam.

It’s nothing more than lead generation to get you to provide your information, so they can try to sell you something you thought was free.

Does the State Sponsor These Plans?

No, the state does not sponsor these plans. You can see this by the small print on the bottom of the mailer that states “not affiliated with or endorsed by any government agency.”

The state will not cover final expenses, including funeral or burial costs. If you qualify, you could receive $255 from Social Security for end-of-life expenses, but that’s it.

In multiple areas of the mailer, they want you to act quickly, and that time is of the essence. Remember, thousands of people are taking advantage of this opportunity, so you should do it now before it’s gone!

It’s all just a claim to create urgency, so you’ll provide your information without wondering if this is a scam. If you do, then you’ll receive many more mailers and phone calls from different insurance agents hoping to sell you life insurance.

What you won’t get is a friendly state-sponsored agent ready and willing to give you free state benefits. 

Is Final Expense Insurance a Scam?

No, final expense insurance is not a scam. It’s a type of whole life insurance marketed mainly to seniors, with a small death benefit that should be enough to cover final expenses, like a funeral or burial. That’s why you can also see final expense insurance referred to as funeral insurance or burial insurance.

Final expense insurance from a legitimate, state-regulated and licensed company is completely real.

But you just told me all about the mailer scam for final expense insurance! How is this different?

The mailer scam is a scam because it promises to provide you free state-regulated program benefits that don’t exist. Instead, the information you provide on the postage-paid return mailer is sold to insurance agents, so they can then call you or mail you another mailer trying to get you to buy life insurance from them.

If you were to get the life insurance mailer first, without the state-sponsored and government wording, you might be more willing to throw it out and move on with your day.

That’s why companies will use these tactics to try to get you to respond. 

A legitimate final expense insurance company licensed in your state might send you a mailer about its products.

But the mailer will be clear about what they’re offering, and won’t try to make you believe they’re from the government, when they’re not.

That’s the difference.

Should I Buy Final Expense Life Insurance?

You might be the right candidate to buy a final expense life insurance policy if:

  • You’re a senior
  • You don’t have life insurance
  • You have term life insurance that will expire soon
  • You can’t afford to pay for your funeral
  • Your loved ones can’t afford to pay for your funeral
  • You have serious health problems
  • You’ve been turned down for life insurance before

If any of these sound like you, then you might want to buy final expense life insurance. 

Funeral insurance provides seniors the ability to provide for their loved ones after they’re gone. The beneficiary can use the death benefit to pay for your burial, funeral, or other end-of-life expenses, or for any other reason, which is why you should choose a beneficiary wisely.

One of the great things about final expense insurance is that you don’t have to take a medical exam. You can apply right over the phone or online and get a decision fast.

If you have serious health concerns, you can even get approved without answering any health questions. 

Not many products offer this fast and easy way to get approved for a small amount of coverage, which is why burial insurance is a great fit for seniors who need the coverage.

Where Can I Get Final Expense Funeral or Burial Insurance?

You can buy final expense funeral insurance directly through some carriers that offer it. 

Or, you can work with a broker like Final Expense Direct. A broker has the advantage of working with multiple life insurance companies, instead of just one company. The agents are licensed to sell insurance through the state you live in and licensed with the insurance company to sell its product to you.

Some seniors, and even adults helping their parents, can find it overwhelming to shop for life insurance with so many options available. That can mean settling for a policy that might not be the right fit, or more expensive than you expect. 

Working with a broker means they do all the work, so you don’t have to. Final Expense Direct gets to know the insured, asking relevant health and lifestyle questions to determine your coverage needs and insurability.

The agent can then identify which company will best fit your needs and budget. Since the agents understand the company guidelines, they can know what company you’ll have the best chances of approval with before you even start the application.

If you’re looking for the best final expense insurance rate for your age and health, call us today at Final Expense Direct. Our agents are waiting for your call. 

Most of our customers get approved before the end of the phone call. Our goal is to provide you and your loved ones peace of mind, knowing they’ll be taken care of when your time comes.

Additional Questions and Answers

Does United Freedom Benefits Sell Life Insurance?

United Freedom Benefits sells life insurance through individual insurance agents. It collects leads through mass mailers to U.S. households. The people who respond with their personal information turn into a lead, which is then sold to insurance agents or companies. The insurance agents use the personal information people supply to sell them life insurance and other insurance products.

What is United Freedom Benefits Department Legitimate?

United Freedom Benefits Department sends vague mailers to seniors in all 50 states, acting as a state-regulated program to entice seniors to respond with their personal information. Those who do will receive phone calls or mailers from insurance agents selling life insurance in their state, hoping they will buy coverage from them and not another life insurance agent or agency.

Is Life Insurance Highly Regulated?

Yes, life insurance is highly regulated. Each state has its own insurance department, which regulates each life insurance company selling products within its borders. Individuals have to be licensed through each state in order to sell life insurance products there.

Who Regulates Life Insurance in Each State?

State insurance commissioners regulate life insurance in each state. Insurance consumers also get additional protection through the National Association of Insurance Commissioners, where consumers can file complaints and find out how many complaints are filed by others for each company.

Are All Insurance Companies Regulated?

Yes, all insurance companies are regulated. Regulations must be met in the state the insurance company is domiciled as well as in each state it sells insurance. Companies that cannot meet regulatory requirements in any state it does business in are subject to fines for violations, and can have their insurance license suspended or revoked, meaning they can no longer sell insurance in that state until their license becomes active.

Why Do States Regulate Insurance?

If the state does not regulate insurance, companies could take advantage of American consumers. With these regulations in place and an entire department in each state dedicated to insurance compliance, states can ensure insurance companies fulfill their promises to consumers and meet their financial obligations to pay claims.

What is the New State Regulated Life Insurance Program About?

The new state regulated life insurance program is a postage-paid mailer sent to seniors aged 50 to 85 in each state. The mailer tells the senior they qualify for a new state regulated life insurance program that will pay for their final expenses, either for free or for just pennies a day. What the program is really about is for lead generation marketing. When the senior sends back their information, the entity that receives it will turn them into a “lead.” Insurance agents and companies will buy these leads, which is when seniors will receive more mailers and phone calls from whoever buys the leads.

What is a 2022 State Regulated Life Insurance Program?

A 2022 state regulated life insurance program is a marketing ploy companies use to get seniors to provide their information to them. They then sell the information to insurance agents or companies, who will then call or mail the seniors’ information to try to get them to buy senior life insurance.

Is American Senior Benefits Legit?

Yes, American Senior Benefits is a legit company. They are an insurance brokerage operating in the United States.

How Do I Stop Getting Calls From Senior Benefits?

If you want to stop getting calls from senior benefits companies, you can register your phone number on the Do Not Call registry at www.donotcall.gov. You do not have to renew your registration on the Do Not Call registry, but you will have to put in a new request if you change phone numbers.

Is Distribution Processing Legit?

Distribution processing companies are legit. They are third-party mail distributors and processors for insurance agents and companies. Distribution processing companies collect personal information and sell it, including companies like United Freedom Benefits Department.

Is Freedom Life Insurance ACA Compliant?

Freedom Life Insurance is not ACA compliant because it offers life insurance, specified disease, sickness, accident, and disability, insurance, not health insurance. Freedom Life Insurance Company of America is a subsidiary of U.S. Health Group, a UnitedHealthcare Company.

Is Freedom Life Insurance Part of UnitedHealthcare?

Yes, Freedom Life insurance is a part of UnitedHealthcare. It is a subsidiary of one of its companies, U.S. Health Group.

Is US Health Advisors a Pyramid Scheme?

US Health Advisors is not a pyramid scheme or insurance multi-level marketing (MLM) opportunity. Like Freedom Life Insurance of America, it is a subsidiary of U.S. Health Group, part of the UnitedHealthcare Company.

Does Freedom Life Insurance Cover Pre Existing Conditions?

Freedom Life Insurance plans do cover pre existing conditions, but it depends on the policy details. For instance, its Hospital Room & Board benefits have a 12 month pre existing condition for medical services. You should read your policy details or ask your Freedom Life Insurance agent about pre-existing conditions coverage.

Is Freedom Life Insurance Medicare?

No, Freedom Life insurance is not Medicare. It is supplemental health and life benefits available for small business owners, their employees, and families. 


  • Get quotes FAST
  • More affordable than you think
  • Compare quotes from top companies
  • Know what you qualify for before you buy!
By pressing "Get Quotes Now" you agree to our privacy policy and consent to have Final Expense Direct contact you by email, phone call, text/SMS message at the phone number & email you provide. You understand that any calls, texts, SMS messages may be made using automated dialing technology. Consent isn’t a condition to purchase our products.