Most final expense policies fall under simplified issue. It means that there is less underwriting involved than a traditional Columbia, MO policy.
For example, a whole life policy in Columbia, MO will require an application, medical exam, and sometimes even a phone interview. Simplified issue skips the exam and interview processes. It often also shortens the application.
You’ll need to answer a few medical questions, but that’s it. The company will take a few days to double-check the application then send the policy back for you to sign.
These policies make everything easier and faster. Most people hear back within a week.
Final expense policies in Columbia, MO are simple. Most are simplified issue. That means fast underwriting. You'll only answer a few health questions, and get to skip the medical exam.
The more straightforward application process doesn’t disqualify more people. With the low face amount (relative to other types of life insurance), the insurance company is less worried about scrutinizing your health. However, guaranteed issue is different. Literally everyone in Columbia, MO gets approved.
The catch? Instant approval means higher premiums and a waiting period.
Insurance companies mitigate their risks of going out of business by putting restrictions on policies. The easier the policy is to acquire, the more limits.
Guaranteed issue policies have waiting periods to manage the risk of a no-questions-asked application process. You’ll see these called graded premiums.
Graded premiums stagger the face amount a Columbia, MO beneficiary will receive if the insured passes away within the first few years of owning the policy. While this varies slightly between insurers, it will look similar to the following:
While health questions can be intensely personal, you’ll save more money answering them.
Guaranteed issue final expense insurance should be a last resort option. If you aren’t sure that you can qualify for other life insurance, talk to an agent about your options. The industry standards are always changing. You may be surprised.
It’s rare for a final expense policy to require a medical exam. The policy premiums are lower, and it doesn’t make sense for the company to pay for the medical exam for each application.
We’ve seen Columbia, MO people ask about final expense policies as a way to skip the medical exam on a traditional life insurance policy. However, the face amounts available are usually insufficient for estate planning needs.
Traditional policies virtually all require medical exams after age 55. If avoiding a medical exam is your goal, talk to your Columbia, MO agent about the type of policy that will best serve your reasons for getting life insurance. From there, you can look into no exam options.
Waiting periods can mean two things when it comes to life insurance in Columbia, MO. First, it could be the graded benefits on a guaranteed issue policy. The insured person needs to survive for at least 2 years for the beneficiary to see the full face amount.
Second, it can mean the time between the application and waiting for policy approval. Final expense life insurance has a faster turnaround time than traditional policies.
Speed this up by filling out an online application. If you aren’t comfortable with this, your Columbia, MO agent can help.
Some final expense companies can get you an offer on a simplified issue policy in a matter of days.
Avoid the whole thing by naming yourself the owner and beneficiary of the policy.
A policy without any health questions falls under the guaranteed issue category. Daytime TV ads push these policies hard because they’re easy and more profitable.
A good rule of thumb is the less the insurance company knows about you, the more they’ll charge you.
In spite of the extra premiums, there are several reasons people look into policies without health questions.
Being denied for life insurance is a huge pain. However, a Columbia, MO insurance agent can avoid that frustration with their experience. They’ll know what health conditions different insurers accept or penalize. For example, some insurers charge exorbitant rates for diabetes. Others barely concern themselves with it.
Even if you’ve been denied in the past, insurance companies regularly change their underwriting guidelines. 20 years ago, a history of cancer was awful on a life insurance application. Now, with the advance in medical treatment, it’s much less of an issue.
As a society, we generally don’t share our health history with friends, much less perfect strangers.
The Health Insurance Portability and Accountability Act prevents people from sharing your medical information with any entity without your written permission. This governs everyone from your doctor to the insurance underwriter reviewing your medical information.
Telling your Columbia, MO insurance agent about any medical history helps them find the best company for your needs.