Have you ever seen a tv ad, or talked to a life insurance agent about Final Expense coverage, all to find out the plan makes you wait 2 years before it pays the full amount to your loved ones? You might have wondered… what’s that all about? If that’s you, we have the answers you’re looking for.
If you are like most people, you just want to know what you’re getting, when and how you’re going to get it! When it comes to Senior Final Expense Burial Insurance coverage, some plans come with a waiting period and some do not. If this leaves you confused, don’t worry. We’ll explain this by starting with how it works, and why there are differences in the first place.
How it works
When it comes to Senior Final Expense coverage, the insurance companies group applicants in basically two ways. You are either seen as an average risk or a high risk person. In general, if you are a high risk person, you’ll probably have to wait the two years before the policy pays the full amount to your beneficiaries. On the other hand, if you are an average risk, there shouldn’t be any waiting period. In other words, most standard risk policies offer full day 1 coverage after it’s been approved and issued.
So, you might be wondering… what makes a person a standard or a high risk in the first place? There are many reasons the insurance company will see you as one or the other, and it all has to do with your health history. In general you will be standard if you’re not really overweight and if you only take medications to control some moderate conditions like high cholesterol or blood pressure, etc. When you apply, you’ll have to answer a few health questions, and in return you get a policy that will cost you less every month, and with NO waiting period.
People who are considered high risk have serious health problems. This would include illnesses like cancer, heart issues, stroke, transplant surgery, etc. Each insurance company looks at your health history a little differently, and this does also vary a little depending on the State you where you live. For high risk policies you won’t get asked any medical questions, but you will pay more in monthly premiums. Because of the high risk, the company will restrict how it pays upon death. With these types of policies, if the person covered were to pass away within the first two years, the beneficiaries would be entitled to a reimbursement of all premiums paid, plus interest, instead of the full benefit. On the other hand, most policies, including the high risk ones will pay full benefits to the beneficiary without a waiting period, if the passing came from an accidental death.
What does this all mean?
Whether your policy comes with a waiting period or not, coverage is still available - to pay for your funeral, burial and other final expense costs, all without a medical exam. Remember, this type of coverage is specially designed to get seniors the coverage they need and deserve. These standards were put in place to give every senior a real chance to get a plan that they can be approved for, regardless of their medical history. As long as you’re not terminally ill, there are real options available. And that is great news!
This coverage is extremely valuable as you look to put this necessary protection in place for you and your family. Be sure to speak to an insurance agent that is licensed in your State, to get accurate, up-to-date information for your situation.
To learn more, please go to www.communityassurity.com/final_expense