What a reduced first period means
Some final expense plans don't pay the full face amount right away. If death from natural causes happens in the first two or three years, these plans pay a reduced or limited benefit instead. People sometimes call this a waiting period, though the policy is in force from the start.
After that early period ends, the full benefit is paid. Accidental death is usually covered in full from the start, even on plans with a reduced early benefit. The exact rules depend on the insurer, so ask the agent to explain each plan's schedule in plain words.
Which plans have it and which don't
Which one you are offered depends on your health answers. Many insurers ask about diagnosis dates, recent treatment, medications, oxygen use and tobacco use. Plans with health questions don't use a medical exam, and they often include a prescription and records check.
- Level benefit: no reduced period. If you qualify, the full benefit is usually paid from day one.
- Graded benefit: for some health histories. Pays a percentage of the face amount early on.
- Modified benefit: may return the premiums paid plus interest if natural death happens early.
- Guaranteed issue: skips health questions, and the benefit is limited for natural death during the first two years.
Talk to a licensed agent: (949) 807-3995
Why it is worth looking for a level plan
Because a level plan pays in full from the start if you qualify, it's usually worth seeing whether one is available before settling on something else. Insurers write their own health questions, so a history that leads to a graded plan with one insurer may qualify for a level plan with another. A guaranteed issue plan is usually the last choice, because its benefit is limited in the first two years, its face amounts are smaller and its premiums are higher.
The amount you choose still matters on any plan. The National Funeral Directors Association's 2023 General Price List Study put the national median cost of a funeral with viewing and burial at $8,300, and with viewing and cremation at $6,280, without cemetery, plot, monument or marker costs. Face amounts often run from a few thousand dollars up to about $50,000.
Comparing plans from Georgia
Eterna is an independent insurance agency, and its licensed agents help Georgia residents compare plans from several insurers. Final expense insurance is a smaller whole life policy with premiums that usually stay level, and the insurer you choose issues it. Plans, prices and availability vary by state, insurer, age and health.
On the call, the agent asks your age, the amount you want and the health questions, then compares quotes from several insurers. If any of them would put you on a graded or modified plan, the agent explains how much it pays in the early years before you decide. You can apply by phone, the quote is free, and you are under no obligation. Agents take calls every day, 9am to 9pm Eastern time.
If you want to confirm an agent's license, you can reach the Georgia Office of Insurance and Safety Fire Commissioner at https://oci.georgia.gov/. Along with licensing agents, it regulates insurers and handles consumer questions.
