Burial Insurance With No Waiting Period: How It Works

How Does a Burial Insurance Waiting Period Work?

A waiting period for some burial or final expense insurance policies refers to the amount of time you must wait before the insurance company will pay the death benefit when you pass. For instance, if you took out a guaranteed issue policy when you were 60, you will have to wait until you are 62-63 years old for your beneficiaries to receive the death benefit when you pass.

If you pass before the waiting period is over, the insurance will do one of two things: it will pay a portion of the death benefit, or it will refund all the premiums you paid plus interest.

Guaranteed-Issue Burial Insurance and Waiting Periods

Guaranteed issue burial insurance requires no medical exam and you don’t have to answer health questions. You are issued a life insurance policy no matter what your health condition is. These types of policies are more expensive than other types of life insurance because the insurance company is taking a greater risk issuing you the policy. Once the policy is in effect, there is a 2- to 3-year waiting period before your beneficiaries are eligible for the death benefit. Learn more about how guaranteed-issue life insurance works, including its eligibility and benefit structure.

Simplified Final Expense Insurance

On the other hand, a simplified final expense life insurance policy may allow you to skip the waiting period. This type of burial insurance requires no medical exam, and you will only have to answer a few questions about your health and your lifestyle. The policy takes effect on day one – if you pass on day two, the insurance company will pay the death benefit.

Here’s a chart that shows the clear differences.

Differences in Waiting Periods
Guaranteed Issue Life Insurance	2- to 3-year waiting period, depending on your state
Simplified Final Expense Life Insurance	No waiting period

Who May Qualify for Burial Insurance With No Waiting Period?

Burial insurance no waiting period policies are granted to people who answer a few health and lifestyle questions. The underwriting department of the insurance company will review your answers and determine whether or not to issue you a final expense life insurance no waiting period policy.

Seniors comparing eligibility, coverage amounts, and potential costs can also review our guide to burial insurance for seniors.

Some of the questions you may be asked are:

• Do you smoke?
• Do you live in an assisted facility or a nursing home?
• Have you ever had heart disease?
• Do you have HIV?
• Have you been diagnosed with cancer, kidney disease, or other serious illnesses?
• Have you had a stroke in the past 12 months?
• Do you have Alzheimer’s disease or dementia?
• Have you been diagnosed with a terminal illness?

Depending on your answers, you may or may not be issued a final expense life insurance policy with no waiting period. For example, if you smoke, the insurance company may deny your application. Likewise, if you have a pre-existing condition such as cancer or advanced heart disease, your application may also be denied.

The Importance of Truthfulness When Answering Health Questions

When applying for health insurance and answering questions about your health and lifestyle, it’s important that you are honest. All life insurance policies in the U.S. have something called a contestability clause. This clause stipulates that if the applicant does not answer the questions truthfully, the insurance company will have the right to not pay the death benefit. In most cases, they will refund the paid premiums instead.

For instance, imagine that you received a cancer diagnosis and didn’t disclose it when answering the health questions. Six months later, you died of cancer. At that time, the final expense insurance company would pull your medical records. If it found that you had received a cancer diagnosis before applying for the policy but didn’t disclose it, they could deny your claim.

When Might Burial Insurance Have a Waiting Period?

When applying for senior burial insurance no waiting period policies, whether or not you have a waiting period will depend on your health and the type of insurance policy you apply for.

For instance, if you have a terminal illness, you won’t qualify for simplified burial insurance and will need to apply for guaranteed issue life insurance. In that case, you will have a waiting period of 2-3 years, depending on your state of residence.

On the other hand, if you are 99 years old and want to purchase burial insurance to ensure that your loved ones don’t have to pay the average of $10,000 for your funeral, you can purchase a guaranteed issue life insurance policy, no matter what your health is. If you pass shortly after purchasing the policy, your beneficiaries will receive the death benefit.

In short:

• You can purchase guaranteed issued burial insurance no matter what your health, age, or preexisting conditions are, but you will pay a higher premium and have a 2- to 3-year waiting period.
• If you can honestly answer some health and lifestyle questions, the insurance company may issue you a simplified burial insurance policy with no waiting period.

Burial Insurance With No Waiting Period FAQs

Here are some of the most common questions about burial insurance with no waiting period.

Is there a waiting period for burial insurance?

There is a waiting period for certain types of burial insurance. You can also purchase burial insurance policies that do not have a waiting period.

Is there any life insurance that takes effect immediately?

Yes, simplified life insurance takes effect immediately. You will only have to answer a few health and lifestyle questions to qualify for it.

What happens if I die before my life insurance waiting period is over?

If you pass before the 2- to 3-year waiting period ends, the insurance company will refund your beneficiaries all the premiums you paid, plus interest – usually 10%.

Do You Qualify for No Waiting Burial Insurance?

If you don’t want to leave your loved ones with an expensive bill for your funeral, burial insurance (also called final expense insurance) is a great way to ensure that you cover your expenses. The policies are a type of whole life insurance, which means that the premiums will stay the same and will build cash value.

To get an idea of what a no-waiting burial insurance policy will cost, head over to Lincoln Heritage, and fill out an easy questionnaire that will give you a free estimate of your premium.