Burial Insurance With No Waiting Period

Written by Jeff Root

Burial insurance is a form of life insurance which gives you a limited amount of coverage typically between $2,000 and $25,000 designed specifically to cover the cost of your burial or final expenses.

This money is intended as a last resort in relation to the other life insurance policies that are out there. More often than not people will opt for burial insurance when they don’t need a larger form of death benefit, or when they would otherwise not qualify for any other form of life insurance.

How Does Burial Insurance Work?

Burial insurance stipulates that your beneficiaries are only allowed to use the money set aside in your death benefit for your burial costs. In some cases, you can take out burial insurance with an insurance company ahead of time in what is called a pre-need contract. This type of contract will vary from one state to another but what they all have in common is the fact that they are agreements you come to with your life insurance company and a funeral home ahead of time.

You could for example setup everything you want for your final expenses, including what service you want for the burial, what casket you want for the burial or what you want for the cremation, and everything in between. Once you set this up you come to an agreement as to what the cost will be and then take out a burial insurance policy for that exact cost.

Obviously, this isn’t the requirement. You could just as easily guess how much coverage you want or determine how much coverage you can take out based on what it would cost for the monthly premium and then set that up to go to your beneficiaries when you pass.

Types of Burial Insurance Policies

When it comes to burial insurance, there are two forms of coverage you can receive, depending on the type of policy you have.

The first is called a no waiting period, and the second is called a partial waiting period.

What is a Waiting Period in Burial Insurance?

A waiting period simply refers to an agreement which does not go into effect immediately.  Instead, there is an amount of time that you have to wait after you purchase the agreement for it to go into effect. It would be the same as if you purchased a television cable package but you didn’t get access to the television channels for one or two or even three years.

You purchased a life insurance policy but you don’t get full access to the death benefits for the first, second, or third year. The amount of time that you have to wait is going to be based on which company you use. It is also going to be based on whether you off to answer limited health questions or not.

No Waiting Period Burial Insurance 

Obviously, as the names suggest, you do not have to wait to simply get coverage as soon as you take out the policy. As soon as you get coverage that you buy and pay for you could pass away the very next day and your beneficiaries would still receive access to the full death benefit to which they are entitled.

Partial Waiting Period Burial Insurance 

If you do have to wait, for what is called the partial waiting period, then you will have to inform your beneficiaries that if you were to pass away during that amount of time they do not get access to your full death benefits. This amount to which they gain access is going to vary from one company to the other. Some companies might allot 40% of your total death benefit during the first year and then 75% during the second year, only allowing your beneficiaries to receive the full death benefit after the third year.

Others might not give you any coverage for the first two years and instead will return to your beneficiaries the premiums you have paid. Most of the time when it company decides to do this they also offer interest in the form of 10% of the total premium on top of your premiums paid.

The reason for this is that you choose not to answer questions or answer questions about your health when you apply.  If you choose to answer just a few questions you don’t have to go into full detail about your medical situation or your family history. However, you are giving the insurance company something to work with you are giving them some idea of what your situation is and how quickly you are going to die.

Is No Waiting Period Better?

This is a business and life insurance companies need to know what level of risk you pose, basically when you are likely to die. The sooner you are likely to die the more money they have to charge you for your premiums and the less money they’re going to offer you for a death benefit because you won’t be able to pay premiums enough to equal the amount of your death benefit before you pass away. If you provide no answers, you do not want to supply any information about your medical history, you can still get coverage but the companies are going to assume that you are an incredibly high risk as a result.

After all, if you didn’t have something risky to hide you would be willing to answer questions. So, you are typically going to have to wait two or three years before you have access to the full benefit. The reason for this is to mitigate the amount of financial loss that the company would have to face if you were to pass away immediately and since you aren’t willing to give them any information at all, The company has to assume that the chances of you passing away within the first two years is very high.

How to Get Burial Insurance with No Waiting Period

If you want to get this type of burial insurance you simply have to apply with one of the companies that offer the coverage but you will have to qualify. Again in order to be offered this lack of waiting time you have to answer at least a few questions. You have to give them something to work with. So you will have to typically fill out a one-page questionnaire with limited information about your medical history and if you are approved then you will be provided coverage.

Can I Get No Waiting Period Burial Insurance with Health Conditions? 

There are conditions that will prohibit you from getting the no waiting time coverage.

If you currently have any of the conditions listed below you will be forced to accept a policy that comes with the graded death benefit, where you have to wait to receive the full death benefit amount for two years:

  • AIDS or HIV
  • Alzheimer’s
  • Cancer
  • Chest Pains (angina) (in the past year)
  • Circulatory Surgery (in the past year)
  • Currently In:
    • Hospital
    • Hospice Care
    • Nursing Home
    • Skilled Nursing Facility
  • Dementia
  • Dialysis
  • Heart Attack (in the past year)
  • Heart Surgery (in the past year)
  • Hospice Care
  • Insulin shock or Diabetic Coma (in last 2 years)
  • Organ Transplant – Had A Transplant
  • Organ Transplant – Recommended To Have A Transplant
  • Stroke (in the past year) (TIA mini strokes do not count)
  • Terminal Illness (life expectancy of 2 years or less)

Now, there are some conditions where you can still get a partial waiting period, wherein you only have to wait a year or two before you get coverage. These include:

  • Amputation – Due To Diabetes
  • Cancer within the last 2 years (cannot have cancer currently)
  • Congestive Heart Failure (CHF)
  • Oxygen Use (sleep apnea is not a problem, and is eligible for no waiting period)
  • Treatment for alcohol abuse (in last 2 years)
  • Treatment for drug abuse (in last 2 years)

How Do You Know if You’re Qualified for No Waiting Period?

The best way to know if you are qualified is to work with a third party agent. You can certainly review the list of items above and it will give you a slightly better idea of what you can qualify for based on your generic health, but in some situations, you could find leniency from different companies for very specific issues. For that reason, working with a third party agency that specializes in burial insurance, and burial insurance for those with your conditions, will help you receive the best quotes.

Who is No Waiting Period Burial Insurance Best for?

1. People Who Need Immediate Life Insurance Coverage

If you are in need of immediate coverage, you can find life insurance policies that are burial insurance products. Typically, you might receive a certain diagnosis which causes you to take a hard look at your financial situation. You could, as a result, need to ensure your loved ones are not saddled with the burden of an unexpected funeral.

With guaranteed acceptance burial, for example, you are guaranteed to receive coverage immediately. Obviously the better your health, and the more willing you are to answer a handful of questions, the more likely you are to receive the immediate, no waiting period burial insurance.

2. People Who Want Life insurance that pays immediately

If you need life insurance which pays immediately, consider a burial policy that has no graded death benefits and no waiting period. These policies go into effect immediately. If you need a policy that pays out immediately,  you will be required to answer health questions. obviously, the term and permanent policies that you take out require more health questions and examinations to be completed in exchange for immediate coverage and higher dollar amounts of coverage.

3. People Over 85 Who Need Life Insurance with no Medical Exam

If you are over the age of 85 your options for life insurance start to change rather dramatically. In fact, many companies no longer offer any policy other than burial insurance at this age. If you don’t want to undergo a medical exam, one of the best companies to use is AIG.

How Much Does  No Waiting Period Burial Insurance Cost?

While rates may vary based on the company, age, health conditions, and coverage amount, this table shows the average of what you can expect to pay in given age ranges for both males and females for a certain amount of burial insurance coverage

Age $5,000 Male $5,000 Female $10,000 Male $10,000 Female $25,000 Male $25,000 Female
45 $14 $13 $26 $23 $58 $52
50 $16 $14 $29 $26 $69 $58
55 $19 $17 $35 $29 $85 $67
60 $23 $18 $43 $34 $102 $80
65 $29 $23 $56 $42 $133 $100
70 $39 $29 $73 $55 $176 $129
75 $52 $39 $100 $73 $244 $176
80 $71 $54 $139 $100 $340 $255
85 $100 $72 $200 $142 $496 $351

Best Burial Insurance Companies for No Waiting Period

There are many burial insurance companies on the market, each of which have their own advantages and disadvantages. For the most part, most burial insurance policies are fairly similar and inexpensive, but this does not mean that based on your needs that there are not a few companies that offer superior coverage on the market.

Company A.M. Best Rating Customer Reviews
Mutual of Omaha A+ $25/mo.
Transamerica A $41/mo.
Assurity A- $100/mo.
Americo A- $30/mo.
Foresters A $55/mo.
Sagicor A- $130/mo.
United Home Life A $130/mo.
AIG A $130/mo.
Phoenix B $130/mo.

Finding the No Waiting Period Best Burial Insurance Coverage

When it comes to finding burial insurance coverage, you want to first compare pricing. Once you have done this, we strongly recommend speaking with an independent life insurance agent who can recommend some of the best burial insurance companies on the market for your specific needs.

Our online quoting tool is easy to use and gives you quick and easy burial insurance quotes in seconds!

Once you have compared the price point on a few burial insurance policies from dozens of the best companies, give one of our highly experienced independent agents a call to learn more about your coverage options and find out more about the best burial coverage for you and your loved ones.

About Burial Insurance Coverage
About Burial Insurance Coverage

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