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 companies have different underwriting criteria, but most folks can qualify for burial insurance with first-day coverage, even if they have some 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 the different ways how you can qualify for life insurance, funeral insurance, cremation insurance, and burial insurance with first-day coverage and no waiting period.
FOR EASIER NAVIGATION:
- Benefits of Burial Insurance with First-day Coverage
- What Is a Waiting Period?
- What Are the Different Death Benefit Periods in Life Insurance?
- Why Do Insurance Companies Evaluate Your Health Before Offering First-day Coverage Insurance?
- 5 Ways to Get Burial Insurance with First-day Coverage
- The Best Way to Get First-Day Coverage Life Insurance
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 whole 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 as long as 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 from 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!
To better understand the importance of first-day coverage, let’s take a look at a waiting period plan.
A waiting period is a span of time (typically two years) imposed by the 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 be a cause of disqualification in terms of death benefit payout. The waiting period helps discourage people who are 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 only receive all the premiums you paid plus some interest, typically 7-10%.
If you bought a $25,000 guaranteed issue life insurance policy with a two-year waiting period, and you die in the first year. Your beneficiary will not receive the $25,000 death benefit payout. They will only get all the premiums you paid for one year plus 10% interest.
You need to live for the first two years so that 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
Burial insurance with first-day coverage and no waiting period is the best death benefit option you can get.
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 that ask health questions in order 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 have first-day coverage but with 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
There are some health issues that 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 you die during the first two years, your beneficiary will only receive all 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.
With a guaranteed issue life insurance policy, the insurance company never asks health questions. Your approval is guaranteed regardless of your medical condition.
If you’ve been diagnosed with a chronic illness, terminal illness, 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.
The 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 deathbed. By evaluating your health, they are assured that they will stay in business in the years to come.
They want to ensure that you will not die right away and pay a huge amount of 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 any of your health issues.
Unfortunately, you can’t do it on your own.
You need to work with an independent life insurance agent who is knowledgeable in insurance underwriting.
Luckily you found us!
#2 Avoid burial insurance offered on TV
Most insurance companies offering burial insurance on TV commercials typically sell life insurance that comes with a two-year waiting period.
Avoid these companies at all costs.
To guarantee insurance coverage for everybody regardless of their medical conditions, companies offering insurance on TV only sell guaranteed acceptance life insurance with a two-year waiting period.
#3 Avoid burial insurance from Junk Mail
The number three way to get burial insurance with first-day coverage is to avoid burial insurance offers that come from the mail.
Burial insurance companies that advertise through the mail never ask health questions. When an insurance company asks no health questions, it means they are selling guaranteed acceptance life insurance that comes with a mandatory two-year waiting period.
If you want to get 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 will be able to 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 it.
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 a large selection of 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, the more you can qualify for life insurance with first-day coverage.
Buy life insurance now. Do not wait until you have chronic illness before buying life insurance. Having chronic or terminal illness may disqualify you from getting first-day coverage life insurance.
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.