Simplified Issue Final Expense Policies
Simplified issue is a type of burial insurance that does not require a medical exam, but it does require completion of a health questionnaire.
In addition to your answers to the health questions, the insurer will access medical databases (with your authorization) from Milliman Intelliscript and the Medical Information Bureau, which reveal a great deal about your prescription history and prior diagnoses.
The data they discover from Milliman and MIB, combined with your answers to the health questions, determines if the insurance company will approve you and the final price they’re willing to offer.
Most insurers will have two to three health ratings (the names of each rating vary by company) that you can potentially qualify for. Some ratings have no waiting period, a partial waiting period, or a full two-year waiting period. Below is a breakdown of each one.
- Preferred or Level: These are the least expensive plans offered. In addition, there would be no waiting period. In most cases, you’d need to be able to say no to all the health questions (except tobacco questions) to qualify for these ratings.
- Standard: The premiums are higher than preferred or level plans, but there is still no waiting period. A standard rating is usually offered if you respond with a ‘yes’ answer to specific questions in the health questionnaire. For example, Aetna will approve you at a standard rating if you mark ‘yes’ to the COPD question.
- Graded: This is generally a partial coverage plan that pays out a portion of the death benefit if you die during the first two years. While it varies by company, it’s common to see a 30%-40% payout during the first year and 50%-75% during the second year. After two years, the full death benefit becomes payable. A graded plan will only be offered if you have health issues mentioned in a specific section (usually the middle portion) of the application.
- Modified, Basic, or “ROP“: These options are the most expensive, and there will be a complete two-year waiting period. If you die during the waiting period, the insurer will merely refund your premiums plus approximately 10% interest (the interest amount varies by company). Modified plans are only offered if you have one or more health conditions indicated in the health questionnaire (typically the last set of questions).
Most simplified issue policies render an approval or decline within 10-15 minutes or, at the high end, within a few business days.
Guaranteed Issue Final Expense Policies
Guaranteed acceptance final expense policies have no health questions, and a medical exam is not required. You cannot be denied due to your lifestyle or health history.
It’s critical to know that all guaranteed policies have a two-year waiting period. Any non-accidental death during the waiting period will result in the insurance company returning your premiums, plus approximately 10% interest (on the premiums, not the death benefit).
Burial policies with no health questions are generally more expensive than simplified ones. That’s because the insurer is taking a significant risk insuring your life while simultaneously not knowing anything about your health conditions. A higher risk translates to a higher price.
Which Type Of Burial Insurance Is Best?
The best type of burial insurance is a simplified issue policy with no waiting period or partial coverage. It would lead to being fully or partially covered for accidental or natural causes of death, and the premium will likely be lower compared to a guaranteed acceptance policy.
Guaranteed issue policies should generally be a last resort. If you’ve exhaustively tried to qualify for immediate coverage and cannot due to your health history, then a guaranteed policy would be a good choice.
It’s important to note that simplified issue final expense policies are generally only sold through licensed agents. It’s very rare to be able to buy them online or through the mail.
- Nationally licensed life insurance agent with over 15 years of experience
- Personal annual production that puts him in the top .001% out of all life insurance agents in the nation.
Anthony Martin is a nationally licensed insurance expert with over 15 years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
- Nationally licensed life insurance agent with over 19 years of experience
- Best selling Amazon author.
Jeff Root is a nationally licensed life insurance expert with over 19 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
- Nationally licensed life insurance agent with over 14 years of experience
- Best selling Amazon author of five insurance sales books.
David Duford is a nationally licensed insurance expert with over 14 years of experience. He has personally helped more than 15,000 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
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Milliman Intelliscript. https://www.rxhistories.com/
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Medical Information Bureau. https://www.mib.com/index.html
