Final Expense Insurance With Health Problems

Final expense policies generally fall into three groups, and your health usually decides which one fits.

• Simplified issue (level benefit): a short list of health questions, no medical exam, full benefit from day one if you qualify
• Graded or modified benefit: for some health conditions; the full benefit for death from illness is phased in over the first couple of years
• Guaranteed issue: no health questions; a waiting period (often about two years) before the full benefit applies for death from illness, with premiums commonly returned plus interest if death happens earlier

Simplified issue applications commonly ask about recent treatment for serious conditions, such as cancer, heart or lung disease, kidney failure, or needing oxygen or nursing care. Answering yes to some questions may point to a graded or guaranteed issue policy instead.

A level-benefit policy pays the full amount from the start. If your health lets you qualify for one, it's generally a better value than a guaranteed issue policy with a waiting period, so it's worth checking before settling.

Each carrier writes its own health questions, and the same condition can be fine with one company and a decline with another. A licensed agent can compare several at once.

These make it quicker to find the best-fitting policy.

• Your age and the coverage amount you have in mind
• Your conditions and medications
• Any hospital stays in the last few years
• Who you'd like as the beneficiary