Burial Insurance with First-day Coverage

Getting burial insurance with first-day coverage should be your primary goal when applying for burial insurance. With first-day coverage, your beneficiary will receive your full death benefit even if you die within a few days when your policy is in force.

WARNING: Never settle for a plan with a waiting period if you can qualify for a first-day coverage policy.

Every life insurance company has different underwriting criteria, but most folks can qualify for burial insurance with first-day coverage, even if they have existing health issues.

The best way to get burial insurance with first-day coverage is to work with an agent who knows the companies that will accept all your health issues and offer first-day coverage.

In this article, I will show you how you can qualify for life insurance, funeral insurance, cremation insurance, and burial insurance with first-day coverage and no waiting period.

Benefits Of Burial Insurance With First-day Coverage 

Burial insurance with first-day coverage has many benefits, including:

1. Full insurance coverage starts upon first payment – your insurance coverage begins after you pay your first premium. Your beneficiary is entitled to receive 100% of your face amount when you pass away due to an accident or a medical reason.

2. Level premium – your monthly premium will remain the same. It will never increase due to your age or worsening health condition. You lock the price at the age you bought the policy so it will remain the same throughout your life.

3. Level benefit – your death benefit will never decrease. It is guaranteed to remain the same, and your beneficiary will receive the full death benefit when you pass away.

4. Lifetime coverage – you are fully covered your whole life. You can never outlive your policy because it will remain in force until age 121.

5. Non-cancelable – your policy cannot be canceled except for non-payment. Life insurance with first-day coverage will never be canceled due to age. Your policy will remain in force if you keep paying your premium on time.

6. Cash value grows over time – burial insurance with first-day coverage has a cash value that grows over time. You can withdraw your cash value or file a policy loan if you need funds.

What Is A Waiting Period?

Most people who buy life insurance don’t realize that some insurance plans come with a two-year waiting period… until they read the fine print!

Let’s look at a waiting period plan to understand the importance of first-day coverage better.

A waiting period (typically two years) is imposed by life insurance companies, where they will not pay the full death benefit if the insured dies due to the natural cause of death or health reasons.

Your beneficiary will only receive 100% death benefit if you survive the two-year waiting period.

The waiting period serves as a safety net for the insurance company. It is their way of reducing the risk of payout to those people who are terminally ill, intending to commit suicide, and those who will die shortly after purchasing their policy.

Suicide during the waiting period can cause disqualification regarding death benefit payout. The waiting period helps discourage people thinking about suicide from purchasing burial insurance.

The waiting period allows the insurance carriers to contest a claim filed during the first two years of the policy. It gives them enough time to conduct a proper investigation if the policyholder has been honest on the application.

A waiting period works this way:

If you die during the waiting period, your beneficiary will receive only the premiums you paid plus some interest, typically 7-10%.

For example:

If you bought a $25,000 guaranteed issue life insurance policy with a two-year waiting period. Your beneficiary will not receive the $25,000 death benefit payout. They will only get all your premiums for one year plus 10% interest.

You must live for the first two years so your beneficiary can receive your full death benefit when you pass away.

What Are The Different Death Benefit Periods In Life Insurance?

1. NO WAITING PERIOD

Your best death benefit option is burial insurance with first-day coverage and no waiting period.

Burial insurance companies that offer no waiting period policies will pay the full death benefit when you pass away due to an accident or natural cause of death.

Do you want to know the secret to tell if a company offers first-day coverage?

They ask health questions. Yes, you heard it right. The insurance companies ask health questions to offer you first-day coverage.

The good news is that most people qualify for burial insurance with first-day coverage and no waiting period…even when they are not in perfect health.

2. PARTIAL WAITING PERIOD

Burial insurance offering partial waiting period policies has first-day coverage but a phase-in death benefit schedule. It is also called a graded benefit plan.

Insurance policies with a partial waiting period don’t pay the full death benefit during the first two years. They will only pay a portion of the death benefit depending on the time you pass away.

The partial waiting period plan death benefit schedule looks like this:

• First 12 months – 30%-40% death benefit
• 13-24 months – 70%-80% death benefit
• After 24 months – 100% death benefit

Some health issues will not qualify for first-day coverage like:

• Alcohol or drug abuse treatment
• Cancer within the last 24 months
• Congestive heart failure
• Diabetic amputation

If you have any of these conditions, your best option for insurance coverage is a partial waiting period or a graded plan.

3. TWO-YEAR WAITING PERIOD

Guaranteed issue life insurance or guaranteed acceptance life insurance comes with a two-year waiting period.

Guaranteed acceptance life insurance only offers first-day coverage for the accidental cause of death. However, it has a two-year waiting period for the natural cause of death or health-related death,

If you have a guaranteed issue life insurance and die during the first two years, your beneficiary will only receive the premiums you paid plus 7-10% interest.

How can you tell if a life insurance policy has a two-year waiting period? Simple, if there are no health questions on the application. No questions asked life insurance automatically has a two-year waiting period.

The insurance company never asks health questions with a guaranteed issue life insurance policy. Your approval is guaranteed regardless of your medical condition.

If you’ve been diagnosed with a chronic illness, terminal illness, or confined in a care facility, life insurance with a waiting period is your only option for coverage.

Why Do Insurance Companies Evaluate Your Health Before Offering First-day Coverage Insurance?

Burial insurance companies offering first-day coverage insurance ask health questions.

Insurance companies are in the business of managing risk, and they will evaluate your general health before approving your coverage.

They face a tremendous amount of risk if they offer first-day coverage to people who are on their deathbeds. By evaluating your health, they are assured that they will stay in business in the future.

They want to ensure you will not die immediately and pay a huge death benefit payout.

Most insurance companies have lenient underwriting. Most health issues are offered first-day coverage. However, some health issues are considered a high risk that no insurance company is willing to offer first-day coverage.

The following health issues will result in a two-year waiting period:

• Alzheimer’s disease
• Angina within the last 12 months
• Recent cancer and cancer treatment
• Confined to hospital, hospice care, or nursing home
• Diabetic coma within the last 24 months
• Have an organ transplant or advised to receive an organ transplant
• Heart attack within the previous 12 months
• Heart or circulatory surgery within the previous 12 months
• HIV or AIDS
• Oxygen Use except for sleep apnea
• Renal failure, dialysis
• Terminal illness

Consult with one of our independent insurance agents if you have any of these conditions to know your best option.

5 Ways To Get Burial Insurance With First-day Coverage

#1 Don’t be afraid to answer health questions

The number one way to get burial insurance with first-day coverage is to request your agent for a plan that asks health questions. Insurance companies that ask simple health questions are the only ones that offer first-day coverage.

Simplified issue life insurance is a no-medical exam policy that offers first-day coverage and the lowest premiums.

Asking health questions is the companies’ way of evaluating your risk. It is critical to be honest when you answer health questions.

Lying on the insurance application is considered insurance fraud. Insurance fraud is a serious crime that may cause the insurance company to deny a death claim.

By answering the health questions, you can qualify for burial insurance with first-day coverage and save on your monthly premium.

Do you have some health issues and want to get first-day coverage? My number one tip is to find an insurance company that doesn’t care about your health issues.

Unfortunately, you can’t do it on your own.

You need to work with an independent life insurance agent knowledgeable in underwriting.

Luckily you found us!

#2 Avoid burial insurance offered on TV

Most companies offering burial insurance on TV commercials typically sell life insurance with a two-year waiting period.

Avoid these companies at all costs.

Companies offering insurance on TV only sell guaranteed life insurance with a two-year waiting period to guarantee insurance coverage for everybody regardless of their medical conditions.

#3 Avoid burial insurance from Junk Mail

The third way to get burial insurance with first-day coverage is to avoid burial insurance offers from the mail.

Burial insurance companies that advertise through the mail never ask health questions. When an insurance company asks no health questions, they are selling guaranteed acceptance life insurance with a mandatory two-year waiting period.

If you want burial insurance with first-day coverage, avoid insurance companies that advertise through the mail. Only apply for a life insurance policy that asks health questions.

By simply answering basic health questions, you can qualify for first-day coverage.

#4 Never settle for a two-year waiting period plan if you can qualify for first-day coverage

Never believe that a two-year waiting period plan is the only thing you will qualify for because of your health issues. Always request a policy that provides first-day coverage.

Most health issues qualify for first-day coverage.

Every life insurance carrier has different underwriting criteria. Some health issues will be declined by some, while other companies will accept them.

The secret to getting life insurance with first-day coverage is knowing which company will accept all your health issues.

#5 Work with an independent life insurance agent

The number five way to get burial insurance with first-day coverage is to work with an independent life insurance agent, as we have at Funeral Funds.

Independent agents like us work with many A-rated insurance companies offering burial insurance.

Captive agents who work for a specific company will cost you an arm and a leg by selling you overpriced burial insurance with a two-year waiting period.

We are experts in underwriting, and we know the companies that will accept your health issues. I can help you secure burial insurance with first-day coverage and better pricing.

The Best Way To Get First-day Coverage Life Insurance

The best way to get first-day coverage in life insurance is to buy a life insurance policy when you are young. The younger you are, the healthier you are likely to be, and the more you can qualify for life insurance with first-day coverage.

Buy life insurance now. Do not wait until you have a chronic illness before buying life insurance. A chronic or terminal illness may disqualify you from getting first-day life insurance coverage.

Don’t forget to work with an independent insurance agency like Funeral Funds. 

My agent and I will walk you through the whole insurance application process. Once we know more about your age and health history, we can provide accurate quotes from burial insurance offering first-day coverage.

Please fill out our quote form on this page or call us at 888) 862-9456 to know your options.

Frequently Asked Questions

How long does it take for coverage to start?

For the policies we help people with, coverage starts on the first day of the policy. If you die on the first day of your policy, your beneficiaries will receive the death benefit. Other people’s policies have a waiting period, which is usually two years. If you die within the first two years of your policy, your beneficiaries will not receive the death benefit.

What happens if I die before the policy starts?

If you die before your policy starts, your beneficiaries will not receive the death benefit. This is because the coverage has not yet started.

What happens if I die after the policy starts?

If you die after your policy starts, your beneficiaries will receive the death benefit. This is because the coverage has already started.

What is the death benefit?

The death benefit is the amount of money your beneficiaries will receive if you die while your policy is in force.

What is the effective date of an insurance policy?

The effective date is when coverage under an insurance policy begins. This date is usually the same as when the policy is issued but may be different if the policy has a waiting period.

What is a waiting period?

A waiting period is a specified length of time that must pass before coverage under an insurance policy begins. This period is usually two years; we do not recommend these plans.

What are the benefits of first-day coverage insurance?

The main benefit of first-day coverage insurance is that your beneficiaries will receive the death benefit if you die on the first day of your policy. This can be helpful if you are worried about dying before your policy starts.

What type of insurance has a waiting period?

Some policies, such as guaranteed issue burial insurance, have a waiting period. If you die within the first two years of your policy, your beneficiaries will not receive the death benefit.

What type of insurance does not have a waiting period?

Most policies, such as first-day life insurance, do not have a waiting period.

What is meant by the waiting period?

The waiting period is when a policy is issued and when coverage under the policy begins. This period is usually two years; we do not recommend these plans for the people we help.

What are the rules for first-day coverage life insurance?

First-day coverage life insurance policies have no waiting period. If you die on the first day of your policy, your beneficiaries will receive the death benefit.

What are the rules for guaranteed issue life insurance?

Guaranteed issue life insurance policies have a waiting period of two years. If you die within the first two years of your policy, your beneficiaries will not receive the death benefit.

Why do insurance companies have waiting periods?

Waiting periods prevent people from buying insurance policies and then immediately filing claims when they already have serious significant life-threatening health conditions.

Can you get the insurance that starts immediately?

Yes, you can get insurance that starts immediately. This type of policy is called first-day coverage life insurance.

When does the life insurance policy start?

The life insurance policy starts when it is issued, and the premium is paid.

What is a first-day coverage life insurance policy?

A first-day coverage life insurance policy is a policy that has no waiting period. If you die on the first day of your policy, your beneficiaries will receive the death benefit.

How fast does insurance kick in?

Your insurance policy will start after you pay your first premium.

What is no waiting period insurance?

No waiting period insurance is insurance that starts immediately. This type of policy is called first-day coverage life insurance.

Can I get first-day coverage insurance with no medical exam?

Yes, you can get first-day coverage insurance with no medical exam. It is available from Funeral Funds to people even with health issues.

What is the difference between first-day coverage and regular life insurance?

The main difference between first-day coverage and regular life insurance is that first-day coverage has no waiting period. If you die on the first day of your policy, your beneficiaries will receive the death benefit.

How long can you backdate a life insurance policy?

It depends on the insurance company you are working with.

What is a policy inception date for insurance?

The policy inception date is the date that your insurance policy starts.

Why does insurance have a waiting period?

Waiting periods exist to prevent people from buying insurance policies and then immediately filing claims when they already have serious life-threatening health conditions (cancer, lung disease, dementia, etc)

What is another name for the waiting period?

The waiting period is also called the exclusionary period.

What is a pre-existing waiting period?

A pre-existing waiting period is a waiting period that applies to people with certain medical conditions.

What is a waiting period notice?

A waiting period notice is a notice that you will receive from your insurance company informing you of the waiting period for your policy.

What is a grace period?

A grace period is when your policy expires, and your coverage under the policy ends. This period is usually 30 days.

Can I get first-day coverage insurance if I have a pre-existing condition?

Yes, you can get first-day coverage insurance if you have a pre-existing condition. This type of policy is available to people, even with health issues.

What is the difference between a waiting period and a grace period?

The main difference between a waiting period and a grace period is that a grace period applies after your policy has expired. In contrast, a waiting period applies before your coverage under the policy begins.

What is the difference between a waiting period and a reinstatement period?

The main difference between a waiting period and a reinstatement period is that a reinstatement period applies after your policy has lapsed. In contrast, a waiting period applies before your coverage under the policy begins.

Do all life insurance policies have a waiting period?

No, not all life insurance policies have a waiting period. Some policies, like first-day coverage life insurance that we help people with at Funeral Funds, have no waiting period.

What is the average length of a waiting period?

The average length of a waiting period is two years.

What is the maximum length of a waiting period?

The maximum length of a waiting period is five years.

What happens if I die during the waiting period?

If you die during the waiting period, your beneficiaries will not receive the death benefit.

Does life insurance start straight away?

Yes, if it is first-day coverage insurance. This type of policy starts immediately.

If I don’t have a waiting period, does that mean I can’t get life insurance?

No, you can still get life insurance even if you don’t have a waiting period. Some policies, like first-day coverage life insurance, have no waiting period.

What is a 2 year waiting period for life insurance?

A two-year waiting period is a waiting period that applies to people with certain medical conditions.

How long do you have to pay on life insurance before it pays out?

Only the worst life insurance policies have a waiting period of two years. You will need to pay premiums for two years before the policy pays out; we do not recommend these plans.

What is the shortest waiting period for life insurance?

The shortest waiting period for life insurance is no waiting period: first-day coverage has no waiting period. e year.

What is pre existing waiting period for burial insurance?

A pre-existing waiting period is a waiting period that applies to people with certain medical conditions.

How do you get around a waiting period for insurance?

You should buy your life insurance before you have serious life-threatening health problems.

Does AIG life insurance have a waiting period?

AIG does have a waiting period for life insurance. They only offer guaranteed issue life insurance with a two-year waiting period. Colonial Penn, Gerber, and Mutual of Omaha also have 2-year waiting periods with their plans.

How long does it take for a life insurance policy to kick in?

Life insurance will begin after you pay your first premium.

What is the risk of having a waiting period in insurance?

The main risk of having a waiting period in insurance is that you may die during the waiting period, and your beneficiaries will not receive the death benefit.