The two types of burial insurance

As mentioned earlier, there are two types of burial insurance options available, each designed to make it more accessible for seniors to obtain life insurance coverage at an older age. Let’s explore these options and how they can provide peace of mind:

1. Simplified issue: Simplified issue life insurance is specifically designed for seniors who may not qualify for fully underwritten life insurance due to their age or health condition, but still fall within a “moderate risk” category. With simplified issue policies, applicants are required to complete a detailed medical questionnaire, eliminating the need for a medical exam. This streamlined process allows seniors to secure a life insurance policy with affordable premiums. Coverage amounts available under this option often range up to $50,000, ensuring financial protection for your loved ones.

2. Guaranteed issue: Guaranteed issue life insurance policies are tailored to cover individuals who may be considered “high risk” due to pre-existing health conditions. These policies require applicants to answer only a few questions to ensure they are not currently terminally ill. While the premiums for guaranteed issue policies may be slightly higher compared to simplified issue, they offer valuable coverage for seniors. The coverage amounts available for guaranteed issue policies are typically at or below $25,000, ensuring that your final expenses and financial obligations are taken care of.

Simplified issue burial insurance

If you’re in your senior years or have health concerns, obtaining traditional term or whole life insurance can be challenging. However, there is a solution that can provide the coverage you need to protect your loved ones and cover funeral expenses: simplified issue life insurance, also known as burial insurance.

With simplified issue burial insurance, you can secure coverage without undergoing a medical exam. Instead, you will be asked to complete a detailed medical questionnaire. This streamlined process ensures that you can still qualify for a policy tailored to your specific circumstances. If approved, you’ll have access to coverage options often ranging up to $50,000, providing financial security for your beneficiaries.

Once you start your burial insurance policy and continue paying your premiums, it remains active for the rest of your life. It’s important to note that depending on your health condition, there may be a waiting period of at least two years before the full death benefit is paid out. However, there are additional options called “riders” that can eliminate this waiting period or offer other valuable features. It’s recommended to consult with your insurance agent to understand the available options and tailor your coverage to best meet your needs.

Guaranteed issue burial insurance

We understand that health concerns can make it difficult for seniors to qualify for traditional or simplified issue life insurance. That’s why guaranteed issue burial insurance exists as a compassionate solution for those who may be facing serious health challenges.

With guaranteed issue burial insurance, there is no medical exam required, and the health questionnaire is usually brief, if there is one at all. The focus is on providing accessible coverage to nearly every applicant, ensuring that you can secure the protection you need without worrying about your health condition.

Once you are approved for a guaranteed issue policy, you can find peace of mind knowing that your coverage will remain unchanged throughout your lifetime. As long as you continue paying your premiums, the policy will provide financial support to your designated beneficiary when the time comes. We understand the importance of ensuring that your loved ones are taken care of during challenging times.

It’s important to note that guaranteed issue policies typically include a waiting period of at least two years before the full death benefit is payable. This waiting period is a common feature designed to manage risks associated with pre-existing health conditions. However, once this waiting period has passed, the full coverage amount will be available to your beneficiary.

What if I pass away during my two year holding period?

We understand that this question is of utmost importance to you and your loved ones. If your burial insurance policy includes a requirement to hold it for a minimum of two years before the full death benefit is payable, we want to provide you with clarity and reassurance.

During this initial period, should the unexpected occur and you pass away, your beneficiary will still receive a predetermined amount. This amount will always be at least equal to the premiums you have paid into the policy. We want to ensure that your family is supported, even in the unfortunate event that the full death benefit is not yet accessible.