One of the best things about burial insurance is that you don't have to go through a lengthy and complicated underwriting process to get coverage.
While this is excellent in itself, it also makes working with an independent final expense insurance agency that much more valuable.
Agents understand the rules and regulations set by the carriers, and they know what to look for when purchasing a plan. Many carriers keep this information confidential from the public, meaning it is available only to agents.
This is especially true for whole life insurance policies that have simplified issue underwriting. These are often referred to as final expense insurance, or burial insurance. Because all of the medical information is collected through “yes or no” questions, an experienced agent will have an excellent idea of whether or not you will be approved for a particular policy, saving you time and hassle.
Let's dig into the underwriting process that makes this all possible.
What Is Simplified Underwriting?
Simplified underwriting is a method of pricing a life insurance policy that does not require a medical exam. Instead, the insurer will ask you questions about your health and your family's health history. The answers you give will help the insurer decide whether or not to approve your application.
Simplified issue underwriting is generally used for life insurance policies. However, you may also be able to find simplified issue underwriting for other types of insurance, such as disability insurance or long-term care insurance.
Simplified issue underwriting can be a good option if you do not want to go through a medical exam or worry that your health status may make it difficult to get approved for a policy.
However, it is essential to note that simplified issue underwriting policies may have higher premiums than policies that do not require a medical exam. This is because the insurer is taking on more risk by offering coverage without knowing your exact health status.
The Life Insurance Medical Exam
With most life insurance policies, you have to undergo a medical exam to get approved for coverage. This can be an invasive and time-consuming process, particularly if you have health conditions that the insurance company is interested in.
What Happens During The Medical Exam?
During the medical exam, a technician will come to your home or office and take a sample of your blood and urine. They may also check your height, weight, and blood pressure.
The insurance company will use these test results and your answers to their questions about your health to decide whether or not to approve your application.
If you are approved, the insurance company will use the information from your medical exam to determine your premium.
Simplified Underwriting vs. Traditional Underwriting
Simplified underwriting is a newer pricing method for insurance policies that do not require a medical exam. Traditional underwriting is the older method and does require a medical exam.
Underwriting is the process that insurance companies use to decide whether or not to approve an application and set premiums.
Simplified underwriting is generally faster than traditional underwriting because you do not have to wait for the results of a medical exam. You may also get approved for coverage more easily with simplified.
Final Expense Insurance Underwriting
For all of the top burial insurance policies, there is no medical exam required.
In most cases, you can get approved for coverage simply by answering a few questions about your health. This makes it much easier and faster to get the coverage you need.
What Questions Are Asked?
When you apply for burial insurance, the insurer will ask you questions about your health and your family's health history.
The answers you give will help the insurer decide whether or not to approve your application. In some cases, the insurer may also request that you provide information from your medical records. These records may include things like your lab results or doctor's notes.
How long does it take to get approved?
The approval process for burial insurance is generally much faster than other types of life insurance. This is because there is no medical exam required. In most cases, you can get approved for coverage within a few days.
What if I am not approved?
If you are not approved for burial insurance, other options are available. You may be able to get a policy with a higher premium, or you may be able to get coverage through a rider on another life insurance policy.
Guaranteed Issue Policies
A guaranteed issue life insurance policy is a type of policy that does not require a medical exam. These policies are typically more expensive than other types of life insurance, but they may be the only option available if you have certain health conditions.
What Health Conditions May Make It Difficult to Get Approved?
There are many health conditions that may make it difficult to get approved for life insurance. These conditions include things like cancer, heart disease, and stroke.
If you have any of these conditions, you may still be able to get coverage through a guaranteed issue policy.
What Is the Process for Getting Approved?
Getting approved for a guaranteed issue life insurance policy is typically much more straightforward than the process for other types of life insurance. You will not even need to answer any health questions in most cases.
You're all set as long as you meet the age and geographic eligibility criteria.
What Is the Coverage Like?
Guaranteed issue life insurance policies typically have lower death benefits than other types of life insurance. These policies also often have shorter terms and higher premiums.
How to Shop for a Policy
When shopping for a guaranteed issue life insurance policy, it is essential to compare the policies from different insurers. Look at things like the death benefit, the term length, and the premium.
It is also good to talk to an insurance agent to get more information about the different available policies.
Which Company Offers the Best Policy?
There is no one "best" company for guaranteed issue life insurance policies. Different insurers may offer different features and riders, so it is important to compare the policies from different companies.
Some of the insurers that offer these policies include:
- Mutual of Omaha
- Gerber Life
- Great Western
- Sons of Norway
Final Thoughts on Simplified Issue Life Insurance
Simplified issue life insurance is a type of life insurance that does not require a medical exam. These policies are typically more expensive than other types of life insurance, but they may be the only option available if you have certain health conditions.
If you’re looking for insurance to cover your end-of-life expenses, be sure to look into final expense insurance and be sure to work with an independent insurance agent when doing so.