I can remember visiting Disney World for the first time as a young child. I was awestruck by how perfect everything was. It truly was a magical place. I remember how excited I was to be there, and I promised myself that I would not leave the park until I had ridden every ride. Unfortunately, I had to break that promise, because at such a young age I did not realize that my height excluded me from going on a lot of the rides. I was devastated and too young to fully understand why it mattered.
None of us like the feeling of being excluded. We don’t like to put ourselves out there only to be told that we do not qualify. This very reason has kept a lot of people from searching for burial insurance. They’ve decided to avoid the process altogether rather than to be told no by an insurance company.
I know from my experience in the burial insurance market that there are burial policies available for most individuals. The policies vary based on certain factors. However, there are a lot of options to consider. In order to better understand these options, let’s investigate the limiting factors for senior life insurance and how they may apply to you.
The first limiting factor is a person’s age at time of application. In most cases this will not disqualify a person from being able to purchase coverage. It simply changes the price of the coverage. For instance, an individual in their 40s will pay less for the same policy than an individual in their 60s or 70s. This is why it is important to purchase a burial insurance policy earlier in life. By doing so, you will save money each month.
Many insurance companies will stop offering coverage when a person has reached a certain age. The industry standard is typically between the age of 80 and 85. However, there are companies that offer policies for individuals up to the age of 89. This does not mean that the policy terminates at that age. It simply means that the policy has to be purchased prior to the individual reaching that specific age.
The second limiting factor is a person’s health at time of application. Again, this is not always a disqualifying factor, but it can change your monthly payment for the same policy. A healthier individual will typically have a lower monthly payment than an individual who has dealt with some significant health issues.
Rather than disqualify a person from coverage, an insurance company might place a waiting period on the policy. Traditionally, a waiting period is for the first two to three years of the policy. This means that a policy must be in place for two to three years prior to it paying out the full death benefit. If the insured passes away during the initial two to three year waiting period, the insurance company will return the monthly premiums paid in plus interest. This type of insurance policy is often referred to as guaranteed acceptance life insurance.
The third limiting factor that insurance companies consider when offering coverage is tobacco usage. Like the other two limiting factors above, tobacco usage typically will not disqualify an individual from coverage. However, if the individual has smoked in the last 12 months or used any form of tobacco products, the rate will be higher typically than an individual who has not. Most burial insurance companies in the senior life market will only consider the last 12 months.
The final limiting factor that we will discuss is an individual’s location at time of purchase. Most companies do not discriminate as to where an individual lives. However, the average company does not offer policies in all 50 states. This means that the state you live in can determine the number of options available. A state like Texas, for instance, has a large number of insurance companies offering policies. However, a state like New York has more restrictions on the type of coverage offered. Therefore, there aren’t as many options available for purchase in New York.
When searching for burial life insurance, there can be limiting factors to purchasing a policy. Most of these limitations will not disqualify an individual from receiving coverage. The insurance companies will evaluate each case, and an offer will be made based on the individual’s specific circumstances. Don’t let fear of rejection stop you from purchasing a policy. We know that most people will be able to find appropriate coverage.
If you would like to speak to one of our licensed insurance professionals to explore your options, you can call us directly at 866-699-1884. We are licensed in most states and would be glad to answer any questions or concerns that you may have.