Funeral, final expense, or burial insurance covers the cost of your last rites and other associated expenditure. It can also be used to clear debts in your name, including loans, credit cards, and medical bills.
Getting burial insurance with no waiting period coverage is an integral part of your end-of-life financial planning. You do not have to wait till after your retirement to start prepping for the future. The earlier you apply, you stand eligible to avail of better rates.
Types of Burial Insurance Plans
Final expense insurance falls under two broad categories, as explained here:
Standard Funeral Insurance
This whole life policy is paid to your beneficiary upon your death to cover final arrangements. The latter include funeral home services, obituary notices, preparing the grave, casket, transportation of the mortal remains, headstone, and floral tributes. In the case of a cremation, such policies pay for all the formalities involved, including the urn.
Your beneficiary may choose to divert some of the insurance payouts towards clearing your debts after your passing. The funds received for this purpose can be utilized towards paying off your loans, outstanding credit card, legal and medical bills.
Pre-Need Funeral Insurance
Under this plan, the accumulated funds are handed over directly to the designated funeral home soon after your demise. A loved one is not the immediate beneficiary when a pre-need agreement is entered into, even when the total coverage exceeds the last rite expenses.
The main advantage is you pay for your final arrangements in advance as per existing rates. Should the cost of similar services increase in the future, your next of kin is not expected to pay the difference.
Factors Impacting Your Insurance Premium
The below-mentioned factors determine the premium you are liable to pay for your insurance coverage:
- Extent of your policy – only funeral expenses or pending debts to be covered?
- Your age
- Your gender
- Your current health
Burial Insurance with No Waiting Period
Once your application is approved under this plan, your beneficiary receives the assured death benefit amount in full. Even if you make only a single premium payout and then pass away, the sum received by your beneficiary remains a hundred percent.
What Does It Entail?
The application process involves:
- Honestly answering basic health questions
- Not having to undergo a physical medical examination
- Agreeing to comply with a prescription history check
The burial insurance coverage is based on the inputs provided by you. Any discrepancies found in your application may result in your beneficiary’s claim being denied. The only way for the service provider to assess the risks involved is by requesting you to state complete facts about your health condition.
High-Risk Medical Conditions
Insurance providers comply with their no waiting period assurance provided you do not have a high-risk medical condition or else they face huge losses. If the following applies to you, it is likely to result in a two-year or partial waiting period:
- Cancer
- Terminal illness
- Dialysis
- HIV infection
- Dementia
- Full-blown stroke
- Heart attack
- Diabetic coma
- Living in a hospice care facility
- Undergoing alcohol or drug abuse treatment
- Multiple health issues
Guidelines for Finding Immediate Benefit Burial Insurance
It is advisable to adopt the following strategy to finding a burial insurance policy with no waiting period stipulations:
Approach an Experienced Final Expense Agency
Approaching an independent agency that specializes in final expense insurance for two years, if not more, is a wise move. You can benefit from their experience in this domain. When they represent ten or more companies offering burial insurance, it gives you a wider choice.
After the agency understands your prevailing health status, they can determine which insurance company is likely to offer you a no waiting period. They not only ensure you gain eligibility but also find a policy within your means.
Keep a Tab on Your Outgoings
When you go through an agency, you are not required to pay for their services. The concerned insurance company settles the agency for the policies they sell. On your part, check the same rates apply despite not buying the policy directly from the company but from a designated agent.
Your premiums should not escalate as you age, and you should not outlive the policy you take. A burial insurance policy that is valid for life serves your primary purpose as long as you pay the agreed-upon premium amounts.
Opt for a leader in the final expense coverage field who provides you with the necessary guidance and conveniences without being pushy.