Not all Final Expense Underwriting is the Same

January 31, 2020

When it comes to final expense underwriting requirements, most people are under the impression that they will have to go through a rigorous medical examination. Therefore, it’s very common for others to be a little apprehensive before they purchase life insurance. While medical exams are still necessary to qualify for traditional life insurance, final expense underwriting is much simpler and less invasive. There are a variety of common underwriting techniques used by today’s top final expense carriers to ease said concerns.

Simplified Issue Underwriting

Simplified issue is the most common form of accelerated underwriting. Simplified issue underwriting means that your client only must answer a few “yes” or “no” health questions on an application. Your client does not need to elaborate on their answers, (unless they absolutely must by specifying in a ‘special remarks’ page of the application, or on a separate letterhead.) The yes/no health questions are then verified through an MIB prescription check. If there are no prescriptions in your client’s history that conflict with their yes/no answers on the application, then the insurance company will proceed to issue the policy.

An important thing to note is that not all final expense underwriting is the same. Some carriers are more lenient with certain health issues, like diabetes and COPD, while others are very strict. Just because your client was declined or rated with one insurance company, doesn’t mean that all the companies will make the same offer. Pinnacle Financial Services works with dozens of life insurance companies, so we can find something for your clients that offers an immediate death benefit, even if they’ve been turned down elsewhere. You can always contact the life team at Pinnacle, and we’ll be more than happy to help you with a client or prospect.

Guaranteed Issue Underwriting

If your client’s still have difficulty getting through the simplified issue underwriting process, a last resort option is to go through guaranteed issue underwriting. Regardless of your client’s health, they can qualify with a guaranteed issue policy, which has a limited death benefit for the first two years. The limited death benefit typically means that a return of premium (plus interest) will be paid to client’s beneficiary if death occurs in the first two policy years. If your client lives past the two year period, then they will receive the full benefit upon death.

Pinnacle Financial Services offers a wide variety of both simplified issue and guaranteed issue plans to fit your client’s needs. Give us a call today to learn more about the carriers and products that offer these simplified solutions for your clients!

For more information, contact a Pinnacle Representative today at 1-(800)-772-6881 x6003 or email lifesales@pfsinsurance.com.

Mark Bolger

Mark Bolger

Director of Sales - Life & Final Expense

1 (800) 772-6881 x7705

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881


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