Burial insurance is a part and parcel of the comprehensive whole life insurance policy which is permanent in nature. The sole purpose of any burial insurance is to facilitate the loved ones after the death of the policyholder. This only caters to the immediate after-death small expenses of the person who died.
Burial insurance usually caters to minimal expenses such as funeral costs, burial costs, cremation charges, casket or urn price, flowers cost, obituary expense, funeral home charges, memorial service charges, pending medical bills, or small credit card bills.
Since it has an urgent nature, it has a quick payout between 24-48 hours of the approval of the claim. After the beneficiaries show a copy of the death certificate of the deceased, his corpse’s photo at home, and a beneficiary statement copy with signatures; their claim is approved.
Within the next 3 business days, his death benefit payout check is cut out and the beneficiaries receive the proceeds. Now they can use this amount in whichever manner they’d like to. Mostly it is used for arranging and holding a decent funeral ceremony through funeral homes.
No Exam Burial Insurance Options
Generally, there are 2 types of burial insurance:
1. Simplified issue
For this, the senior applicant does not have to undergo any medical exam. The nurses do not go to their homes to collect their blood or urine samples either. The process is fairly simple and straightforward. The applicant answers some health-related queries. He has to formally fill out a health-related questionnaire. His prior health record can affect his eligibility for buying a simplified issue burial policy.
In most cases, undergoing this lenient underwriting of burial insurance enables them to buy it quickly. This entitles them to receive coverage from day one. The premiums are leveled till their death. It does not expire since it is a permanent whole life insurance policy, cut out for funeral costs. It does not require any waiting period at the death of the policyholder, beneficiaries can get the payout within 24-48 hours of claim approval by the insurer agency.
People who are usually ineligible for this are those suffering from terminal illnesses like cancer, fatal heart conditions, or renal failures.
2. Guaranteed acceptance
As the name suggests, anyone and everyone can apply for it with the guarantee of their application getting accepted. There is no medical exam to undergo, and no health questions are asked. The biggest 2 drawbacks of this are:
- A compulsory 2 years waiting period for receiving the payout after the death of the policyholder.
- Awfully expensive nature since no prior or present health data is taken by the insurer agency.
How does burial insurance work?
Burial insurance has three major aspects:
1. Quick Payout
Since its purpose is widely known, it is usually paid out within 24-48 hours of claim approval. Proceeds go to the beneficiary, who further divides it amongst the funeral services, funeral home, post-hospitalization costs, and any other small expenditures.
2. Minimal Coverage
Obviously, it is for the funeral costs, so it requires very low coverage. Usually, it ranges from $1000-$15,000. It can be up to $50,000 but that seldom happens in real-life cases. A presentable funeral ceremony requires around $7000-$10,000 on average. The remaining cash is used by the beneficiary as they like.
3. Medical Record
Your past medical record is irrelevant while applying for burial insurance, there is no medical exam either. It is a lenient whole-life policy for only covering the final expenses of the policyholder. And aims to save the relatives from further trauma and cash crisis.
How Much Does Final Expense Life Insurance With No Exam Cost?
Plainly put, ever thought about how much burial insurance with no exam costs? Here’s the answer. Since its face value/death benefit payout is around $10,000-$15,000 only, the premiums are affordable. These are leveled premiums for life. The monthly premium can range from $50-$100 for burial insurance with no exam life insurance policy. The amount is affected by the age, health condition, tobacco usage, and demographics of the policyholder.
Top No-Exam Burial Insurance Agencies
The top-notch burial insurance companies according to the latest rankings from 2023, include:
- Mutual of Omaha
- American Amicable
- Royal Neighbors of America
What is the difference between a “no-exam” and a “no-health-questions” burial insurance?
One is a simplified issue while the other is a guaranteed acceptance burial insurance policy. For no exam burial policy or simplified issue, the applicant does not undergo any medical exam. He only has to answer health questions revealing his past medical records. Simplified issue or no exam burial insurance has an immediate payout after death. It has no waiting period. It is cost-effective.
No health questions burial insurance is also called guaranteed acceptance burial insurance. For no health questions burial insurance, the applicant has to undergo no medical exam. Similarly, he has to answer no health-related queries. As the name suggests, all applicants get guaranteed acceptance. It is very pricey and only comes with a waiting period of 2 years.
Why is “Mutual of Omaha” the best burial insurance provider?
Mutual of Omaha is the best insurance agency when it comes to “no-exam burial insurance”. It offers the lowest-price burial insurance policies. It provides “burial life insurance without exams” with no waiting period. Furthermore, apart from New York, it offers no-exam burial insurance in all states, with coverage up to $40,000.
Is there a guaranteed acceptance life insurance with no waiting period?
A guaranteed acceptance of no health questions asked burial insurance policy is expensive and comes with a compulsory 2 years’ waiting period. There is no such thing as “no questions burial insurance with no waiting period”. It is a myth, and it is usually falsely advertised and sold by scam names by insurer agencies. Be sure to stay on guard for such policies.