Written by Kim Wilhelm
Last Updated 26 Mar 2023
Healthy people can save on final expense insurance by purchasing a simplified issue policy over guaranteed issue. Both provide the same coverage, but the former is less expensive than the latter.
How Does Final Expense Insurance Work If You Are Healthy?
To understand how your health can change your final expense policy, you must first understand what these policies do. Final expense provides a death benefit to chosen beneficiaries on behalf of the policyholder. The death benefit is a sum of money, ranging anywhere from $2,000 to $50,000, and can be used for costs such as funeral arrangements, medical bills, and more.
The cost of your final expense policy will vary based on a few factors. Firstly, the death benefit you purchase will, of course, influence how much you pay—the higher the death benefit, the higher the premium.
Costs are also determined by age. Younger people will pay less than older people. Keep in mind that, once you’re signed up for a policy, your premium will not change—it is best, then, to enroll as soon as possible.
The final determining factor of cost is health. The healthier you are, the less you’ll pay. But how does this work in the enrollment process?
Two Different Ways You Can Qualify If You Are Healthy
When you sign up for a final expense policy, you will have two options to sign up under—simplified issue and guaranteed issue.
Compared to other life insurance policies, simplified issue significantly reduces the medical underwriting process. Medical underwriting typically consists of a full doctor’s examination, which is then used to determine your eligibility and payment. If you have pre-existing health conditions your premium may be slightly higher but in some cases it doesn't affect the cost, at all.
With simplified issue, all you have to do is fill out a simple questionnaire regarding serious, life-threatening illnesses and conditions.
On the other hand, you can also qualify for final expense with a guaranteed issue policy. Unlike simplified issue, this plan skips the underwriting process and accepts you for coverage regardless of your health.
Get The Best Deal If You Are In Good Health
This information can be confusing to many individuals, or not explained well by most insurance companies. We won’t steer you wrong—with Final Expense Direct, you are in charge. We’ll give you the information you need to make the right decision on your final expense insurance policy. To get started, give us a call today at 1-877-674-0236.