Final expense insurance is easy to qualify for. With a few helpful tips, you can find out whether or not you’re eligible for one of these plans.
How Final Expense Insurance Works
You must know how final expense plans function to understand the qualifications for a final expense plan. These plans are intended to help people cover certain fees after they have passed away. This will likely include funeral costs, remaining debt, and/or an established inheritance.
While these are the most common and well-known uses of a final expense plan, it is not all they’re used for. Unlike a pre-need plan, final expense plans don’t go directly to a chosen funeral home, and can instead be used in almost any way you choose.
Final expense policies are targeted towards a payout referred to as a death benefit. This payout can range from several thousand dollars up to $50,000 or $75,000, much less compared to other insurance plans. These policies are only intended to cover short-term and final expenses (as the name implies), not ongoing expenses like retirement or college.
Applying for a Final Expense Plan
If you decide you want a final expense plan, the best way to know if you qualify is to simply apply for a plan. There are generally 4 steps in the application process, all of which will contribute to your potential eligibility.
The first step in applying for any plan is to get a quote from a legitimate insurance company. Most companies will give you a quote completely free of charge, and Senior Life Services offers a free quote with no strings attached. One of the best ways to ensure that you are getting the best deal on a plan is to compare it against other options. When getting a free quote, you will likely have to provide this information to determine the price of your potential plan:
- State of residence
- Health class
- Amount of coverage you want
- Phone number
- Email address
After gathering and comparing your options and having chosen the one that best serves you, you will have to decide which type of plan fits your goals with an insurance plan. There are two main types of final expense insurance, either being a great option depending on the type of coverage you are looking for, including guaranteed issue and simplified issue. This is where the most issues with qualifying for a plan arises, so we will cover it more in-depth in the following section.
Once you have chosen a final expense plan, you will have to officially apply for it. The requirements for this application may vary depending on the insurance company, but, in general, you will be asked for your:
- Your social security number
- Driver’s license number
- Beneficiary information
- Contingent beneficiary information
- Your doctor’s contact information
You will also be asked about your:
- Health history
- Family health history
- Prescription medications
- Any dangerous hobbies and activities
- Driving record
- Criminal record
If your answers to any of these questions do not meet the plan’s standard, you may not qualify for it. To qualify for a final expense plan, then, you will more than likely have to have a good recent medical record (excluding pre-existing conditions) and family history, clear evidence of proper prescription use and what they are used to treat, no dangerous careers or hobbies including (but not limited to) logging, skydiving, racing, etc., a reasonable driving record, and clean criminal record.
The final step in the application process, if you are applying for a simplified issue plan, you must also have a phone interview to officially qualify for the plan. In general, you will provide much of the same information as you listed on your application form. You may skip this step if you’re applying for a guaranteed issue plan.
Qualifying for Guaranteed Issue Final Expense Insurance
A guaranteed issue plan is typically considered one of the easiest life insurance plans to qualify for. In general, this policy guarantees approval regardless of your existing health condition — you are not required to take a medical exam or answer many if any health-related questions. This option, then, is great for those who have been rejected from other life insurance policies. Those with pre-existing health conditions, for example, can qualify for a guaranteed issue plan even if they can’t qualify for traditional life insurance.
Qualifying for Simplified Issue Final Expense Insurance
Simplified Issue insurance does not require a medical exam, but some health questions will be asked on the application. This process is referred to as medical underwriting, and it may mean that you cannot qualify for a plan. However, in comparison to other types of life insurance, this process is incredibly easy, and very few fail to qualify.
If your answers are sufficient during the underwriting process, your coverage will be approved. This process may include a background check, prescription medication, and motor vehicle records. You may still qualify for a plan if you answer “yes” to any of these questions depending on the insurance company you are working with.
Some example questions you may have to answer on the application include:
- Have you tested positive for HIV or AIDS?
- Are you currently bedridden, hospitalized, in a care facility, or receiving hospice care?
- Do you have a disease of the heart, including heart attack or heart surgery?
- Do you have congestive heart failure?
- Do you have diseases of the circulatory system, including stroke?
- Do you have cancer?
- Have you had alcohol or drug abuse?
- Do you have Alzheimer’s disease or dementia?
- Are you taking medication or been treated by a physician for any of the conditions above in the last 2 years?
Don’t Settle for a Plan — Call Senior Life Services
If you’re worried about qualifying for a life insurance plan, you run the risk of settling for the first plan you can get. Even if you feel you’re stuck with poor options, we’ll put in the work to find you the best possible plan out there. If you want to get started with a free, no-strings-attached quote, contact Senior Life Services today.