Choosing suitable life insurance is one of the most significant decisions that you can make for your family and other loved ones. It should certainly be a priority and on the top of your to-do list. Just as your life continues to change, so does your purpose for life insurance overage.
Final Expense Life Insurance is a form of coverage that delivers funds for the cost of a funeral, burial, and other end-of-life related expenses. This coverage is sometimes referred to as “burial insurance” or “funeral insurance.” The death benefit for this insurance coverage is not usually all that high, typically ranging between $5,000 and $50,000 per policy. In most cases, the person applying for the insurance policy [the applicant] is the same person who would be insured under the policy.
In general, having permanent life insurance is an important part of an effective and solid financial plan. By having the most appropriate type of life insurance, a policyholder’s loved ones will be able to pay off debts and continue their existing lifestyle.
As one gets older, the necessity for senior life insurance coverage becomes even more essential. This form of life insurance is commonly referred to as Final Expense Life Insurance.
Read on to learn why Final Expense Insurance is for you, and you can make an informed decision.
What is Simplified Issue Final Expense Insurance
As its moniker suggests, Simplified Issue Final Expense Insurance is issued on a “simple” basis. The underwriting process is quick and easy, and no medical exams are required. Your current health and health history is provided to the insurer by answering a few simple questions on the application, along with several reports that are gathered electronically. Electronic reports usually include the following:
Medical Information Bureau (MIB)
The MIB is a national database that member insurance companies rely upon to find out if applicants have been denied insurance by other member companies. According to the FAQ Page on the company’s website:
The insurance applicant will provide their written permission for this report information when they sign the insurance application.
MIB does not collect, maintain or store any medical records in its databases such as examination reports, attending physician statements, lab test results, x-rays, underwriting files or reasons for denial of insurance. Instead, MIB’s members furnish “codes” to the MIB, which represent medical and avocational information that is significant to the underwriting process.
Members report information to MIB using these proprietary and highly confidential codes to signify different medical conditions affecting the insurability of the applicant. These are conditions that have an impact on an applicant’s health or life expectancy, and are reported under broad categories. Vist the MIB Website
Prescription Drug Report
Most life insurers also order a report on your prescription drug records through companies like ExamOne. These companies gather data from member pharmacies and provide a list of prescription drugs that you are currently taking or have taken in the past. Your written permission for this report is obtained when you sign the life insurance application.
Simplified Issue Means Quick Issue with First Day Coverage
Even though the underwriters review several reports and the insurance application, most insurance companies issue a Simplified Issue insurance policy rather quickly compared to a traditional life insurance policy. This means your coverage will start in about a week, and provide you with the peace of mind knowing that your loved ones will not be burdened with the costs of your final expenses.