How is burial insurance different than any other life insurance?

Burial insurance or "final expense" insurance is traditional whole life insurance with a few notable features. First off it is designed for burial expenses and therefore usually doesn't go past $30,000 in coverage. Second, it is designed for older people and is therefore has both more lenient underwriting and more expensive premiums per benefit dollar.

What is the range of coverage amounts?

some carriers will go as low as $1500, while others will not go below $5000.  On the high end,  some guaranteed issue carriers will go to $50000. However, the best priced final expense carrier top ou between $25000-$40000. 

What is the age range for Burial insurance policies?

This is carrier specific. most carriers won't issue below age 50 or over 80. However, at least on major burial carrier (LBL) will issue from age 18. We are not aware of any carriers who will issue beyond age 85.

What are Level and Graded policies?

Most final expense carriers offer bothe a "level" and a "graded" policy. The level policy is the best option if available. Level policies are fully vested immediately on the policy issue and and will fully pay out the death benefit. 

Graded policies, which are offered if the applicant does not qualify for level, have a "waiting period" prior to being eligible to fully pay out the death benefit. Generally the  grading period is such that if the insured were to pass in the first year of the policy, the beneficiary would receive 30% of the death benefit. If the insured were to die in the second year,the policy would pay out 70% to the beneficiary. After two years the policy would be through the grading period and would pay out fully. 

Are Guaranteed Issue policies considered graded?

Guaranteed issue policies have a steep grade and are generally referred to as "modified".  Modified or guaranteed policies only pay  back the premiums paid plus interest (usually 10%) for deaths that occur within the first 2 years. After 2 years the policy will pay out fully. 

Which type of policy is the least expensive?

Level policies offer the best pricing and the best benefits and it's not even close.

However, when it comes to garded v. guaranteed issue options, it gets a little tricky. You see, guaranteed issue is often less expensive and simple but there is no immediate benefit available. Whereas, with the more expensive graded policy there is some immediate benefit. Often, the decision comes down to how you feel about your health.  

What questions will the insurance Company want to know?

Most applications will be broken into three parts. the first will ask so-called knock out questions. If you answer yes to a knock out question you will not be eligible for coverage with that carrier. An example is "Have you ever been diagnosed with HIV AIDS? Y/N"

The second part of the application will ask questions that if you say yes to, you will not be eligible for a level policy and you may be offered a graded policy.  An example is "Have you been treated for a heart attack in the last 24 months? Y/N"

if you check yes to a part 2 question, then part three will determine if you will be offered a graded or modified option. An example would be "Have you been treated for a stroke within the last 12 months? Y/N".

In addition to the application, there is usually a phone interview in which you will be asked for a list of any medications you have been prescribed in the last 2 years.

Will The Insurance company be able to see my prescription history?

In a word, Yes. The application gives the carrier the right to access your prescription history and your medication history will override your application answers. That is to say, if you claim not to have had a stroke within twelve months and your script check shows you taking stroke medication, you will be assumed to have had a stroke.

Will the Insurance Company Know If I have been declined for life insurance in the past?

Again the answer is Yes. The medical information board is a insurance industry cooperative that shares  information with its' members. So if you were declined due to an answer you gave on an application, it is likely the new carrier will know about it. This doesn't mean that you will be declined again, but it does require honesty.

How does the application process work?

After speaking with an experienced agent about your health tour budget and your coverage needs, you will be presented with a carrier recommendation.

After going through the application questions with the agent, you will then be transferred to a third party interviewer who works for the carrier. You will again be asked the application questions as well as your drivers licence and banking information.  

After a minute or to the operator will return and relay the underwriting answer. If the offer is acceptable , you will say I accept, and you will have an active policy.

Your hard copy of the policy will be mailed to you for safekeeping and  the carrier will store the recording as proof you were of clear mind.​

How do I get started?

Simply fill out the quote request tool and we will be in touch shortly.