Final expense life insurance What to know

One unfortunate reality with life insurance, particularly with final expense, is certain health profiles do not qualify for coverage. Below is a non exhaustive list of ailments and disqualifying conditions. (This is where it really irks us when agents quote individuals with "YOURE PRE APPROVED WE GOT YOU LOCKED IN".)

****You are NOT approved whatsoever, until your prescription drug history, and health records have been run through the MIB and pharmacy benefit managers automated underwriting system, this is tied to your Social Security Number****

Disqualifying Conditions:

Above the age of 85 ****Aetna(CVS) will insure up to 89 years old, while we do not write Aetna we ALWAYS make sure our super senior humans can get coverage. You can message us and we will steer you over to someone who can help

AIDs, HIV, Organ transplant recipients, Assisted living residents, Wheelchair Confined, Home Health Care Recipients(help needed bathing, dressing, toileting) Alzheimers/Dementia, ALS (Lou Gherigs Disease), Downs syndrome, Mental Incapacity, Dialysis patients, CONGESTIVE HEART FAILURE, currently hospitalized, amputees in which amputation was due to disease, current cancer patients. Diabetes with insulin use before the age of 40 and or neuropathy, nephropathy, or retinopathy.

Any terminal illness or disease will preclude an individual for coverage, we are able to provide GI (Guaranteed Issue) coverage to any individual no questions asked, however we ask that you EXPLICITLY state you need GI. We now require going over prescriptions, due to the time spent submitting apps that would be promptly rejected due to prospective clients failing to disclose Knockout medications. This isn't a good use of time for us or our clients. We thank you for understanding.

These are questions we see daily, so allow us to paint the picture clear.

2 year wait periods apply to individuals with chronic illnesses, that while not immediately terminal, are significant (Lupus, Multiple Sclerosis, advanced COPD, Cirrhosis of the Liver, Chronic Kidney disease etc)
When an individual makes their first premium payment, the wait period begins so an example would be a $15000 dollar death benefit policy, with a premium payment of $75.00 monthly. 24 premium payments must be made before that $15000 may be paid out, $1800 dollars. If that policyowner were to pass away but had only made 20 months of premium payments, the payout would be $1650, or 110% of premiums paid. A Return of Premium or ROP policy (usually referred to as graded but is a misnomer). We at Lopshire & Co. have TRUE "Graded Policy Options" for our clients with more challenging health profiles, in which on a $10,000 dollar graded policy, death in the first year would provide a payout of 5000 dollars, death after the first year but before year 2 would provide 7500 dollars. This is one of our best products, as it offers meaningful coverage, as well as peace of mind, for our clients with more challenging conditions.

Day One Coverage or (Immediate Death Benefit Coverage) (Preferred Coverage)

Level coverage is granted to stable health profiles, and pays out the full policy amount if the insured were to pass away 3 days after their initial premium payment. The rates are always lower than a graded profile, and the face amounts granted are significantly higher.

Your insurance premium may be affected by different things, and different thresholds of health, and medical conditions, dependent on type of policy you wish to secure. The best way to keep premiums low, is to work with a knowledgable producer, that understands each carrier has particular tolerances, and guidelines that can be underwritten and issued at standard rates, whereas another carriers tolerances would have a higher premium and graded coverage.