One of the main selling features insurance companies and agents use when describing a burial life insurance policy is that, often, individuals can qualify for coverage immediately. In other words, they can purchase their burial life insurance policy with no waiting period.
While it is technically true that most burial life insurance policies can be purchased immediately without having to wait for a lengthy underwriting process, the term “no waiting period” can often be confused with the idea that one is immediately insured for all causes of death upon approval, regardless of what TYPE of burial life insurance policy one has applied for.
This is why, in this article, we’re going to clear up many of the misconceptions people may have about how burial life insurance policies work. How coverage can begin immediately, and how certain guaranteed issue burial life insurance policies will contain a waiting period before they will offer full and complete coverage to the policyholder (or insured).
What Is True No Waiting Period Burial Insurance?
Key insight: True no waiting period burial insurance refers specifically to simplified issue policies that provide immediate full death benefit coverage from the policy’s effective date, with no graded benefit periods or coverage restrictions based on cause of death.
Bottom Line
Only simplified issue burial insurance policies qualify as true “no waiting period” coverage – guaranteed issue policies have waiting periods despite quick approval.
The term “no waiting period” in burial insurance marketing can be misleading because it’s often used to describe two very different types of policies:
Simplified Issue Burial Insurance (True No Waiting Period)
- Requires basic health questions but no medical exam
- Provides immediate full death benefit from day one
- Covers all causes of death equally from the policy effective date
- May have higher premiums, but complete immediate protection
- Applicants can be declined based on health answers
Guaranteed Issue Policies (Have Waiting Periods)
- No health questions required
- Quick approval, but includes 2-3 year waiting periods
- Graded death benefits for natural causes during the waiting period
- Should NOT be called “no waiting period” coverage
- Guaranteed acceptance for eligible ages
“When someone says they want ‘no waiting period’ burial insurance, they should specifically be looking at simplified issue policies – guaranteed issue policies have waiting periods by definition.”
– Insurance Brokers USA Team Clarification
How Do Simplified Issue and Guaranteed Issue Policies Differ?
Key insight: The fundamental difference lies in the underwriting approach and when full benefits become available – simplified issue requires health screening but provides immediate benefits, while guaranteed issue accepts everyone but includes waiting periods.
Simplified Issue vs Guaranteed Issue Burial Insurance
| Feature | Simplified Issue | Guaranteed Issue |
|---|---|---|
| Health Questions | Yes (basic questions) | None required |
| Medical Exam | Not required | Not required |
| Day 1 Natural Death | Full death benefit | Premiums + interest only (varies) |
| Year 2 Natural Death | Full death benefit | Partial benefit (possibly) |
| Can Be Declined | Yes | No (if age eligible) |
| Premium Cost | Moderate | Moderate |
Simplified Issue Underwriting Process
Simplified issue policies require minimal but important health screening:
- Basic health questionnaire: 5-10 simple yes/no medical questions
- Prescription database check: Verification of current medications
- MIB report review: Check of Medical Information Bureau records
- No medical exam: No blood work, urine tests, or physical examinations
- Quick approval: Decisions typically within 24-48 hours
Guaranteed Issue Acceptance Process
Guaranteed issue policies focus on eligibility rather than health:
- Age requirements only: Must be within acceptable age range (typically 50-85)
- Residency verification: Must be a U.S. citizen or a permanent resident
- State availability: Policy must be offered in your state
- No health screening: Medical history irrelevant for approval
- Immediate approval: Accepted as long as the basic criteria are met
Key Takeaways
- Only simplified issue policies provide true immediate full coverage
- Guaranteed issue policies include waiting periods despite quick approval
- Simplified issue requires standard or better health to qualify
- Both policy types serve different needs and health situations
Who Qualifies for Simplified Issue Coverage?
Key insight: Simplified issue burial insurance is designed for individuals with standard or above-standard health who want to avoid medical exams while still obtaining immediate full coverage from day one.
Health Qualification Standards
Simplified issue policies typically require applicants to meet “standard” health criteria, which generally means:
Conditions Usually Acceptable:
- Well-controlled high blood pressure (under 140/90 with medication)
- Managed Type 2 diabetes (HbA1c under 8-9%)
- High cholesterol is controlled with statin medications
- Mild depression or anxiety with stable treatment
- Previous cancer with 2+ years in complete remission
- Arthritis and joint problems without disability
- Sleep apnea sufferers should use a CPAP machine regularly
Conditions That May Cause Declination:
- Recent heart attack or stroke (within 12-24 months)
- Current cancer treatment or diagnosis within 2 years
- Insulin-dependent diabetes with complications
- Chronic obstructive pulmonary disease (COPD) requiring oxygen
- End-stage organ disease (kidney, liver, heart)
- Progressive neurological conditions (ALS, advanced Parkinson’s)
- Recent hospitalizations for serious conditions
“The strategy for simplified issue qualification is being completely honest about manageable health conditions while demonstrating stable treatment and good compliance with medical care.”
– Insurance Brokers USA Team Strategy
Age and Coverage Limitations
Simplified issue burial insurance has broader age ranges than guaranteed issue policies:
- Minimum age: Typically 45-50 years old
- Maximum age: Usually 75-80 years old at application
- Coverage amounts: Generally $5,000 to $50,000 available
- Optimal ages: 45-70 for best rates and highest coverage options
Additional Screening Factors
Beyond health questions, simplified issue underwriters may consider:
- Prescription drug history: Checking for medications indicating undisclosed conditions
- Driving record: Multiple violations or DUI history may affect approval
- Criminal background: Recent felony convictions may result in a declination
- Financial factors: Income and existing coverage amounts reviewed
Bottom Line
Simplified issue policies are designed for people with manageable health conditions who want immediate coverage without medical exams – they require standard or better health to qualify.
What Are the Costs and Coverage Amounts?
Key insight: Simplified issue burial insurance costs more than fully underwritten policies but less than guaranteed issue policies, providing a middle ground for those who can qualify based on basic health questions.
Coverage Amount Options
Simplified issue burial insurance typically offers more flexible coverage amounts than guaranteed issue policies:
- Typical range: $5,000 to $50,000 death benefit
- Most popular amounts: $10,000, $15,000, $25,000
- Higher amounts: Some companies offer up to $100,000 with additional underwriting
- Minimum coverage: Usually starts at $2,000-5,000
Sample Monthly Premiums for $15,000 Simplified Issue Coverage
| Age | Male Non-Smoker | Female Non-Smoker | Male Smoker |
|---|---|---|---|
| 50 | $32-42 | $25-32 | $50-65 |
| 60 | $48-62 | $38-48 | $75-95 |
| 70 | $78-95 | $62-78 | $125-155 |
| 75 | $125-155 | $95-125 | $195-245 |
Cost Comparison Between Policy Types
Understanding how simplified issue fits in the pricing spectrum:
Policy Type Cost Ranking (lowest to highest):
- Fully underwritten (with medical exam): Lowest cost, requires extensive health screening
- Simplified issue: Moderate cost, basic health questions only
- Guaranteed issue: Highest cost, no health questions, but includes waiting periods
“In our opinion, simplified issue policies generally provide the best value for people with manageable health conditions – you get immediate full coverage at a reasonable premium without medical exams.”
– Insurance Brokers USA Team Cost Analysis
Factors Affecting Premium Costs
Several factors influence simplified issue burial insurance premiums:
Primary Cost Factors:
- Age at application: Premiums increase significantly with age
- Gender: Females typically pay 20-25% less than males
- Smoking status: Smokers pay 50-100% higher premiums
- Health answers: Some conditions may result in higher rate classes
- Coverage amount: Higher death benefits require higher premiums
- State of residence: Regulations and taxes vary by state
Bottom Line
Simplified issue policies typically cost 10-20% more than fully underwritten coverage but provide immediate benefits without medical exams, making them ideal for those seeking convenience and immediate protection.
Which Companies Offer the Best Simplified Issue Options?
Key insight: The best simplified issue burial insurance companies combine competitive pricing with flexible health underwriting and strong financial ratings, though each company has different strengths for specific health profiles and age ranges.
Top Simplified Issue Carriers
1. American General (AIG)
- Coverage amounts: $5,000 to $50,000
- Ages: 40-75 at application
- Competitive rates for standard health applicants
- Strong financial stability (A- A.M. Best rating)
2. Mutual of Omaha
- Flexible health guidelines for managed conditions
- Coverage up to $40,000 available
- Ages 45-80 accepted
- Excellent customer service reputation
3. Transamerica
- Competitive pricing for younger applicants (45-65)
- Coverage amounts from $10,000 to $50,000
- Lenient underwriting for diabetes and heart conditions
- Fast electronic application process
4. Globe Life
- Simplified online application process
- Coverage from $5,000 to $100,000 available
- Ages 18-80 accepted
- Same-day approval possible
“The key strategy is working with agents who have access to multiple simplified issue carriers, as each company has different health guidelines and rate structures for specific conditions.”
– Insurance Brokers USA Team Recommendation
Company Selection Criteria
When evaluating simplified issue carriers, consider these factors:
Financial Strength Ratings:
- A.M. Best ratings of B+ or higher are recommended for long-term security
- Comdex scores above 70 indicate strong financial stability
- Claims-paying history and customer satisfaction ratings
Health Underwriting Flexibility:
- Specific guidelines for your health conditions
- Prescription drug acceptance policies
- Build charts for height/weight requirements
- Age limits and coverage amount maximums
For comprehensive comparisons of burial insurance companies, including both simplified issue and guaranteed issue options, our Best Final Expense Insurance Companies guide provides a detailed analysis of top-rated carriers.
Key Takeaways
- Different companies excel with different health conditions and age groups
- Rate variations of 20-40% exist between carriers for the same applicant
- Working with brokers provides access to more company options
- Financial strength ratings are crucial for policy security
How to Apply for Simplified Issue Coverage?
Key insight: Successful simplified issue applications require complete honesty about your health while being prepared with organized medical information, even though no medical exam is required.
Pre-Application Preparation
Before applying for simplified issue burial insurance, gather essential information:
Required Information:
- Complete list of current medications with dosages and prescribing doctors
- Dates of recent doctor visits and the reasons for the visits
- Details about any hospitalizations in the past 2-5 years
- Information about specialists you’ve seen recently
- Your primary care physician’s contact information
Health Questions Preparation:
- Review typical health questions beforehand to ensure accurate answers
- Organize your medical timeline chronologically
- Note any treatments, surgeries, or procedures with dates
- Understand the difference between “controlled” and “uncontrolled” conditions
“The simplified issue application process succeeds when applicants are completely honest about their health while demonstrating good medical compliance and stable condition management.”
– Insurance Brokers USA Team Application Strategy
Typical Health Questions
Simplified issue applications generally include questions about:
- Current medications and dosages
- Recent hospitalizations or emergency room visits
- Diagnosis or treatment of specific conditions (heart disease, cancer, diabetes)
- Use of medical equipment (oxygen, wheelchair, walker)
- Tobacco use within the past 12 months
- Drug or alcohol treatment programs
- Pending medical tests or procedures
Application Strategy
Our recommended approach for simplified issue applications:
Working with Professionals:
- Experienced agents know which companies are most lenient for specific conditions
- They can help present your health history in the best possible light
- Professional relationships often expedite the underwriting process
- Agents can submit applications to multiple companies if needed
Multiple Company Strategy:
- Apply with 2-3 companies simultaneously for best options
- Different companies have varying health guidelines
- Rate differences of 20-30% are common between carriers
- Backup options prevent delays if one company declines
If you’re dealing with pre-existing conditions, our comprehensive guide on Life Insurance Approvals with Pre-Existing Medical Conditions provides detailed strategies for different health situations.
What Happens If You’re Declined?
If you are declined for simplified issue coverage, you have several options:
- Apply to different companies that may have more lenient guidelines
- Consider guaranteed issue policies (which include waiting periods)
- Explore no-exam life insurance with higher coverage amounts
- Wait and reapply after health improvements or time passage
Bottom Line
Simplified issue applications succeed through complete honesty, proper preparation, and working with experienced agents who understand each company’s specific health guidelines and preferences.
When Does Guaranteed Issue Make Sense Instead?
Key insight: While guaranteed issue policies include waiting periods and shouldn’t be called “no waiting period” coverage, they serve an important purpose for individuals who cannot qualify for simplified issue due to serious health conditions.
When to Consider Guaranteed Issue
Guaranteed issue burial insurance makes sense in specific situations:
Health-Related Reasons:
- Serious health conditions that would cause simplified issue declination
- Multiple health problems that combined exceed simplified issue guidelines
- Progressive conditions are likely to worsen over time
- Recent major medical events (heart attack, stroke, cancer diagnosis)
Practical Considerations:
- Previous declinations from simplified issue or fully underwritten policies
- Need for guaranteed acceptance without health questions
- Limited budget where lower initial premiums are important
- Younger age, where waiting through the graded benefit period is feasible
“Guaranteed issue serves people who need some coverage but can’t qualify for immediate benefits – it’s better to have graded coverage than no coverage at all.”
– Insurance Brokers USA Team Perspective
Understanding Guaranteed Issue Waiting Periods
Guaranteed issue policies include graded death benefits that work as follows:
Typical Benefit Schedule:
- Year 1: Return of premiums paid plus interest (typically 10%) for natural death
- Year 2: 0-100% of death benefit for natural death (varies by company)
- Year 3+: Full death benefit for all causes of death
- Accidental death: Full benefit available from day one
Important Waiting Period Facts:
- Waiting periods apply only to natural causes of death
- Accidental death pays full benefits immediately
- Some companies offer modified waiting periods (2 years instead of 3)
- Benefits increase automatically – no additional applications required
Alternative Options to Consider
Before choosing guaranteed issue, explore these alternatives:
No Medical Exam Life Insurance:
- Higher coverage amounts available ($25,000-$500,000)
- Simplified health questionnaire required
- Immediate full death benefit if approved
- May accept applicants who were declined by burial insurance companies
Our detailed analysis of the Top 10 Best No Exam Life Insurance Companies explains these options and qualification requirements.
Accidental Death Insurance:
- Immediate full coverage from day one
- No health questions required
- Significantly lower premiums
- Limited to accidental death only (not illness)
Understanding the differences is crucial – our comparison of Accidental Death vs Life Insurance clarifies these important distinctions.
Key Takeaways
- Guaranteed issue serves people who cannot qualify for simplified issue coverage
- Waiting periods make guaranteed issue inappropriate, as “no waiting period” coverage
- Alternative options may provide better solutions for some health situations
- Each policy type serves different needs and health circumstances
What Are Common Misconceptions About Waiting Periods?
Key insight: The most common misconception is believing that “immediate approval” means the same as “immediate full coverage” – these are completely different concepts in burial insurance.
Misconception #1: Quick Approval = No Waiting Period
Many people confuse the application approval process with benefit waiting periods:
The Reality:
- Guaranteed issue policies can be approved immediately
- This doesn’t mean full benefits are available immediately
- Waiting periods still apply to natural death claims
- Only accidental death benefits are available from day one
The Confusion:
- Marketing materials emphasize “immediate approval”
- Waiting period details are often in fine print
- Sales presentations may not clearly explain graded benefits
- Consumers assume approval equals full coverage
“The most important question to ask is not ‘Can I get approved quickly?’ but rather ‘When does full coverage for natural death begin?’ – these are very different questions with very different answers.”
– Insurance Brokers USA Team Clarification
Misconception #2: All Burial Insurance Has Waiting Periods
Some people incorrectly believe all burial insurance includes waiting periods:
The Truth:
- Simplified issue policies provide immediate full coverage
- Fully underwritten policies also offer immediate benefits
- Only guaranteed issue policies include waiting periods
- True “no waiting period” options do exist for qualified applicants
Misconception #3: Waiting Periods Apply to All Deaths
Another common misunderstanding involves when waiting periods apply:
Clarification:
- Waiting periods apply only to natural causes of death
- Accidental death benefits are typically available immediately
- Some policies define “accidental” very specifically
- Suicide exclusions are separate from waiting periods
Misconception #4: Waiting Periods Last Forever
Some people believe they’ll never receive full benefits:
The Reality:
- Waiting periods are temporary – typically 2-3 years
- Full benefits become available automatically
- No additional applications or health questions required
- Benefits often increase gradually during the waiting period
How to Avoid These Misconceptions
Strategies for understanding your coverage clearly:
Questions to Ask:
- “If I die from a heart attack in month 6, what will my beneficiaries receive?”
- “When does full coverage for natural death begin?”
- “What specific conditions determine if a death is ‘accidental’?”
- “Are there any exclusions beyond the waiting period?”
Documentation to Review:
- Policy benefit schedule showing exact amounts by time period
- Definition of accidental vs natural death in policy language
- Exclusions and limitations section
- Free-look period details for policy review
Bottom Line
Understanding the difference between immediate approval and immediate full coverage is crucial – always verify when full benefits for natural death begin before purchasing any burial insurance policy.
Frequently Asked Questions
What is the difference between simplified issue and guaranteed issue burial insurance?
Direct answer: Simplified issue requires basic health questions and provides immediate full coverage, while guaranteed issue has no health questions but includes waiting periods before full benefits are available.
Simplified issue policies are true “no waiting period” coverage for people with manageable health conditions who can answer basic health questions. Guaranteed issue policies should not be called “no waiting period” coverage because they include 2-3 year graded benefit periods where only partial benefits or return of premiums are available for natural death during the waiting period.
Can I get burial insurance with no waiting period if I have diabetes?
Direct answer: Yes, well-controlled Type 2 diabetes typically qualifies for simplified issue burial insurance with immediate full coverage from day one.
Most simplified issue companies accept Type 2 diabetes if it’s well-managed with stable blood sugar levels (HbA1c under 8-9%), consistent medication compliance, and no recent complications. Type 1 diabetes or insulin-dependent cases with complications may need to consider guaranteed issue alternatives with waiting periods.
How much does simplified issue burial insurance cost compared to guaranteed issue?
Direct answer: Simplified issue burial insurance typically costs 10-30% less than guaranteed issue policies while providing immediate full coverage instead of waiting periods.
A 65-year-old male might pay $75-85 monthly for $15,000 simplified issue coverage versus $95-110 for the same guaranteed issue coverage. While simplified issue costs more than fully underwritten policies, it provides better value than guaranteed issue by offering immediate benefits without waiting periods.
What happens if I’m declined for simplified issue coverage?
Direct answer: If declined for simplified issue, you can apply with different companies, consider guaranteed issue policies with waiting periods, or explore no-exam life insurance options with higher coverage amounts.
Different simplified issue companies have varying health guidelines, so declination from one doesn’t prevent approval from another. If all simplified issue options are exhausted, guaranteed issue provides guaranteed acceptance regardless of health, though with waiting periods for full benefits.
Is simplified issue burial insurance worth the extra cost over guaranteed issue?
Direct answer: Simplified issue justifies the cost for most people who can qualify because it provides immediate full coverage without waiting periods, while guaranteed issue includes 2-3 year benefit limitations.
The value calculation favors a simplified issue for anyone concerned about immediate family protection, older applicants who may not want to wait through graded benefit periods, and those with recent health concerns. Only consider guaranteed issue if you cannot qualify for simplified issue due to serious health conditions.
Do all burial insurance companies offer simplified issue policies?
Direct answer: No, not all burial insurance companies offer simplified issue policies – some specialize only in guaranteed issue or fully underwritten coverage.
Simplified issue requires companies to have sophisticated underwriting systems to evaluate health questions quickly while maintaining profitability. Working with insurance brokers who represent multiple companies provides access to more simplified issue options and a better chance of finding coverage that fits your specific health profile and budget needs.
About the Author
The Insurance Brokers USA Team consists of licensed insurance professionals with extensive experience helping clients navigate the complexities of burial insurance options. Our agents specialize in distinguishing between simplified issue and guaranteed issue policies, ensuring clients understand the true meaning of “no waiting period” coverage. With access to dozens of insurance companies, we help individuals find the most appropriate burial insurance solution based on their specific health conditions, age, and coverage needs while providing clear explanations of policy terms and benefit structures.
Get Your True No Waiting Period Burial Insurance Quote
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