Final Expense Underwriting: Simplified & Guaranteed Issue

August 24, 2020

In today’s insurance market, final expense life insurance is one of the simpler types of life insurance to understand and the least complicated type of policy to get issued. The final expense market is focused mainly on the senior population with most age requirements between ages 50 to 85. Due to these age limits, the insurance carriers have relaxed their underwriting process as they understand that seniors in this range may not be in their best health.

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Simplified underwriting means that your client does not have to take a medical exam or submit medical records of any kind. Clients are given a few simple yes or no health questions to answer. The type of plan that they can qualify for will be determined by the yes or no health questions that were answered on the application. The insurance company will then perform a MIB (Medical Information Bureau) prescription history check on your client to verify the validity of the questions that were answered on the application. If everything checks out, then the policy is set to issue. That’s the extent of the underwriting for an immediate death benefit final expense plan.

Now, you may think “What happens if my client is unable to get through the yes or no health questions?” or “What happens if they’re declined? Does this mean that they have no chance of getting approved for coverage?” The answer is absolutely not!

For these clients, there are plenty of carriers that offer what is called a guaranteed issue final expense plan. Guaranteed issue means that they are automatically accepted regardless of any health conditions. These plans have an automatic 2-year limited death benefit where, if death occurs in the first 2 policy years, the death benefit will return of all premiums plus 10% interest. If death occurs after the first 2 policy years, then the full death benefit will be paid out. Most guaranteed issue plans offer coverage amounts that range between $5,000 and $25,000.

Pinnacle Financial Services has everything covered to make sure you can get your clients in a plan that suits their needs. We offer easy-to-use final expense quoting software, unique lead programs that get you in front of clients, and dedicated sales and support to help with every case. With the uncertainty of COVID-19 (Coronavirus) changing the insurance world for the foreseeable future, you need a partner in success. There’s no better time than now to join us at the top!

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x6003 | lifesales@pfsinsurance.com

Mark Bolger

Mark Bolger

Director of Sales - Life & Final Expense

x7705 | mbolger@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881


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