Finding the right life insurance can feel overwhelming when you look at all the different options. Some people choose final expense insurance to help pay for funeral costs and other end of life expenses. When you shop for these plans in Florida, you might see terms like guaranteed issue or graded benefits. It is important to know exactly what these mean before you sign up for a policy. These terms often describe how a waiting period works for your coverage.
What Is a Guaranteed Issue Policy
A guaranteed issue policy is a type of life insurance that does not require a medical exam. You do not have to answer health questions to apply. Because the insurance company does not review your health history, they take on more risk. To balance this risk, these policies almost always include a waiting period. This period is a set amount of time you must wait before the full death benefit is active. If you pass away during this time, the company will typically refund the premiums you paid rather than paying out the full policy amount to your beneficiaries.
Understanding Graded Benefit Plans
A graded benefit plan is another common option for final expense insurance. These plans are designed to pay out benefits in stages. Instead of having one fixed coverage amount from the first day, the amount the insurer pays increases over time. For example, a policy might pay a small percentage of the benefit if a death occurs in the first year. It might pay a higher percentage in the second year. By the third year, the policy often pays the full face value of the death benefit.
How Waiting Periods Affect You
Waiting periods exist so insurance companies can provide coverage to more people. Without them, it would be difficult for companies to offer policies to those with serious pre-existing conditions. When you look at these plans, think about your main goal for the insurance. If you want coverage that begins immediately, you might look into a fully underwritten plan. These require you to answer health questions. If you are healthy enough to qualify, these plans often provide full coverage from day one.
Getting the Right Plan for Your Family
Choosing between these plans requires looking at your health and your financial goals. If you have questions about which type of coverage is right for you, we are here to help. Bernard Health Group Inc. works with many carriers to find options that suit your specific situation. We can help you compare final expense plans in Florida at no cost to you. Please contact Bernard Health Group Inc. today to request a free quote and discuss your insurance options.