151,600 people die every single day. That is approximately one person every half second.
Sure, almost no one likes talking about death. But there is a 100% chance for all people who have ever lived, that they are going to die.
There are many things one has to consider before their death. Where will their belongings go? How will their family make do? How much will their funeral expenses cost?
And most of us do not perceive death as something that can come at any time. Look at Canada: more than half of the population over 65 does not have a valid will or Last Will and Testament.
When we do not prepare for our deaths, we leave it to fall on the loved ones that we leave behind. But rest assure insurance companies are taking people’s lack of punctuality into account.
If you have waited too long to get insurance, you still may qualify for burial insurance with no waiting period. Scroll down to learn more about this decision and whether or not it is a good one for you.
Well, What is Burial Insurance with No Waiting Period?
Burial insurance with no waiting period is a type of policy that pays out all the financial means from the very first day you sign up. Whoever your beneficiary is will receive 100% of the death benefit when you pass away: even if you have only made one payment on your policy.
It is important to note that there is a difference between life insurance and burial insurance.
Many people assume that their employer’s life insurance policies will be enough for their families to get by on, as well as pay for things like funerals, but this is not so. Most funerals cost between $8-10,000, and this is often a fair portion of what your family receives from your life insurance policy.
Well, What if I get Burial Insurance with Only a Partial Waiting Period?
A vast majority of us do not plan where, when, or how we will pass away. If you decide to purchase an insurance policy that has a partial waiting period, you better hope that you do not die in the first twenty-four months of the policy.
In scenarios where people passed away and chose a partial waiting period plan, their family could receive none of the benefits. However, in most cases, insurance companies use something referred to as a “Graded” plan.
In laymen’s terms, what this means is, depending on how many payments and how much of your burial insurance with partial waiting period you made it through directly effects how much money you get.
Most commonly, an insurer is willing to pay approximately 30%-40% of your death package if you pass away within the first 12 months. They often pay between 70%-80% if your death occurs between 13-24 months.
It is only after the completed two calendar years that the insurers are willing to pay the 100% to your family.
Even if you are 100% healthy: accidents still happen. This is why one must be cautious when choosing plans with insurance waiting periods.
Making Sure You Are Signing up for Burial Insurance with No Waiting Period
Insurance companies that sell different types of final expense policy are not all the same. If you want to sign up for burial insurance with no waiting period, make sure you are going through someone you can trust.
Talk to friends and family about their experiences for some navigation. Also, do not hesitate to talk to an insurance broker or other people in the field. They will get you quotes to help you have a better idea of what things cost and what you should look out for when purchasing a policy.
Like for example: all burial insurance policies with no waiting periods will ask you for your health history. This intake of your history will be similar to the one you did for your life insurance policy.
You will not have to necessarily go anywhere to get this done before signing up for this insurance. However, if an insurance company is offering you a no waiting period and ask no questions about your health, that is a warning sign that it is scammy in one way or another.
Even in Death: Health is Wealth
One of the most important things you will run into time and again while trying to sign up for burial insurance with no waiting period is questions about your health. This is especially so with people desiring any form of senior life insurance.
One of the most important things to keep in mind is: if an insurance company doesn’t ask about it, then don’t bring it up, because they do not care about it.
Even though insurance is something people purchase with care in mind, insurance companies are still businesses, and they must assess the risk factor of offering you insurance.
Especially with policies with no waiting period, because this means if you die today, they have to pay 100% to your family today. So, for an insurance company to be open to taking such a risk factor, they must try and see if you are not (statistically) going to die immediately.
Think about it like this: if the insurance company accepted everyone from the get-go, people could call from their deathbeds, and the insurance company would essentially be putting itself into bankruptcy.
Questions on these applications about health are already put into different columns, and if there are health issues, there only four basic options the insurance company will give you based on your health: automatic decline, a higher premium with a waiting period, a higher premium with a partial waiting period, or a higher premium and immediate coverage.
Since health matters when it comes to not only you but what you leave your family behind with, it is pivotal that you stay on top of your health prior to and while applying to receive insurance benefits such as these.
Death Doesn’t Wait and Neither Should You
In a perfect world, people would all live their lives for as long as they wished. They would have no financial insecurities, and they would never have to worry about their health.
However, that is not the world we live in. But that’s ok, because that is what insurance is there for: to protect us from the things we cannot control.
If you have not signed up for burial insurance with no waiting period yet, or if you are currently on a plan with a waiting period, you should make time to talk to someone about some better options.
Not just for you, but for all of those you love.
Have questions or concerns about your burial policy or other forms of insurance? Please feel free to contact us.