What Does a 2-Year Waiting Period Actually Mean?
If you have looked into Burial Insurance at any point, you may have heard that the policy you are wanting requires a 2-year waiting period.
But what does this mean for you? Does it mean that you literally go 24 months with $0 coverage? What happens if you pass away during that time from? What happens if the reason you pass away is due to an accident?
If you have ever asked these questions, you came to the right place. So let’s get started.
First Things First
First and foremost, you should always be sure you are talking with, or purchasing insurance from an experienced agent that specializes in the type of coverage you are looking for. At arkburialinsurance.com, we specialize in Final Expense Burial Programs to cover costs of funerals and cremations. So this is literally our bread and butter.
Once you have established that your trusted agent is experienced and in fact knows what he or she is doing, the next thing to do is to ask if the policy you are inquiring about has a waiting period. This very well may be a make or break deal for you and your family.
So What Exactly is a Waiting Period?
A waiting period is exactly what you probably think it is. To keep it simple, it basically means that due to certain health concerns or issues that you may have, the insurance company requires that the policy be in effect for a certain amount of time before you are “Fully Covered”. Most companies have a 2 year waiting period on their “Graded” or “Guaranteed Issue” policies. This just means that your health issues cause the insurance company some concern. Once this waiting period is up, your policy is in full effect for the amount that you chose.
What Happens If You Pass Away?
One of the most common misconceptions I hear every day from my wonderful clients is that they believe if they pass away during the waiting period then they are not covered and their beneficiary gets a lump of coal for payment. That is not the case with the carriers that arkburialinsurance.com represents.
With our A+ rated carriers, you are still covered, just not at the full face amount. Some carriers will give your beneficiary 110% of the premium payments that you have made on your policy. This means your beneficiary will get everything you paid on the policy, plus 10% interest. That’s better than any bank account I’ve heard of!
There are also other options. Some carriers will give your beneficiary a certain percentage of the policy for the first 2 years. For example, if you passed away in the first 12 months of having a policy, your beneficiary may get 30%. In months 13-24, 70%. And then after just 24 months and a single day, your beneficiary would get the full death benefit amount that you and your agent decided was best for you.
What Happens If An Accident Occurs?
If an accident occurs, and causes your death, your beneficiary will actually get the full death benefit amount that you pay for. That is the beauty of the waiting period, you are still covered 100% for accidental death IN MOST CASES. This is the way arkburialinsurance.com sets up all of our policies for clients that have a little worse health than others.
What Makes a Client Need a Waiting Period?
Health. It all comes down to your health. That is why it is so important to talk to an Experienced, Professional Life Insurance Agent that can assess your situation properly and figure out the best plan for you. Honestly, in my experience as a Burial Insurance Specialist, I have seen so many sweet people paying too much for coverage that has a waiting period when it is totally not necessary.
The fact of the matter is even if you have COPD, Diabetes, Bipolar or Schizophrenia, and many other common issues, you can still be eligible for Day 1 coverage. Meaning if God forbid you pass away the day after your policy is issued, your beneficiary will get the full amount and will have enough to cover your funeral costs.
What Should I Do To Find Out If I Qualify for No Waiting Period?
The first thing to do is to talk with a professional. Find someone you can trust. I take pride in the fact that no matter what, I take care of my clients to the best of my ability. I personally look for every possible carrier that will give us Day 1 Coverage instead of a waiting period. I will exhaust all of my options before going that route, and it has served me and my clients well. I am typically able to get a very good portion of my clients Day 1 coverage and I am definitely proud of that.
That is the difference in working with a professional who specializes in this type of Insurance, and working with someone who is just an agent.