The short answer is yes, you do have to apply for burial insurance. While burial insurance is more lenient in accepting people with severe health conditions than regular life insurance, you still have to answer questions about your health and wellness. Below we walk you through the exact process of applying for burial insurance. Feel a bit more at ease about purchasing burial insurance by reading our step by step guide below.
Step 1: Decide to Purchase Burial Insurance.
This step needs to happen before anything else can. There are multiple types of insurance you can buy to decrease the costs your loved ones will have to pay at the end of your life. Preneed insurance, burial insurance, and life insurance are all solid options. Many people choose burial insurance because it accepts people with health conditions that would not otherwise have been approved by life insurance. Some people also prefer burial insurance as it’s more affordable than life insurance because its death benefit is generally smaller. Perhaps you have read our previous blogs on the benefits of burial insurance. Whatever the case, you must decide on purchasing burial insurance over other forms of financial security before going on to the next steps.
Step 2: Get an Agent.
It’s not absolutely necessary to get an agent to purchase burial insurance. However, getting an agent can help you avoid many common mistakes in choosing your plan and applying. Some people choose plans — like graded or modified plans — because they do not believe they qualify for any other type of level plan that will pay them the full death benefit with no waiting period.
However, a good agent knows that many plans offer no waiting periods provided you search in the right places. An agent is also good to have when you have specific questions, like whether your old life insurance policy can be converted, or whether your new burial insurance policy has a partial waiting period for certain conditions. Getting an agent, in the beginning, will save you vast amounts of frustration and time over the long haul.
Step 3: Compare Plan Options.
There are several ways to compare options. If you have an agent, they can help you compare companies and plan pricing that is competitive in your area. Even if you don’t have an agent, there are still multiple ways to compare. There are third party websites that can compare the best plans for your needs and demographic. One of the most reliable ways to compare options is to get straight to different companies’ websites. Common reputable companies include:
- Mutual of Omaha
- Foresters Financial
- Transamerica
- Royal Neighbors of America
- Prosperity Life Insurance Group
- American Amicable
- AIG
- Americo
- Gerber Life
You can generate quotes on each company’s website and then compare those quotes to each other. This is the best way to make sure you’re getting the most up-to-date quote besides conferring with an agent.
Step 4: Choose the Best Plan for You.
While this is obvious, this is one of the most difficult steps to take. Many factors go into deciding on the best plan for you. This includes the monthly premium, the type of plan, how your death benefit is paid to your loved ones, and the policy amount. Make sure you talk about these factors with your family.
Step 5: Apply.
You can apply online, over the telephone, or face to face with an agent. You’ll need to put down the name of your first beneficiary and a second beneficiary if anything should happen to the first. You’ll also need to answer questions about your lifestyle and medical history truthfully. These answers will help determine which type of plan you are eligible for and whether you will require a waiting period. To apply, you will need your social security number, your driver’s license, medical history, prescription drug names, and other life insurance policies you have.
You will then schedule and complete a phone interview with a representative from the insurance company. They will ask you for clarification on some of your answers. You must answer truthfully both on the written application and the phone interview to avoid being accused of insurance fraud. The phone interview is confidential and takes 15 to 30 minutes.
If you believe you have very high-risk medical conditions that would bar you from almost all regular burial plans, you can apply for a guaranteed issue plan. This type of plan does not ask any medical questions. However, this plan will cost more.
Step 6: Find Out Your Results and Accept Them.
If your application is approved, you will have to complete a few additional steps to confirm that you accept their acceptance. You will have to sign a form electronically, prepare a check or autograft, and apply your signature to any policy amendments.
Applying to a burial insurance plan is as easy as five steps after deciding that burial insurance is right for you. Getting an agent can save you time and frustration in the long run. They can help compare your plan options and choose the best plan for you. While applying is stressful, having all of your documents ready to go for your application will save you time. Once you complete the application, and they have accepted it, you only have a few more lines of paperwork to complete.
Applying for burial insurance can seem intimidating, but at Senior Life Services, we make it easy. Call (800) 548-3249 today.