What day-one coverage really means
A plan with no waiting period, for people who qualify, is usually a level benefit plan. If you qualify for one, the full benefit is usually paid from the first day the policy is in force, rather than a reduced amount in the early years. Like other final expense plans, it is whole life coverage with a level premium.
The key word is qualify. These plans ask health questions, and the insurer decides based on your answers and, often, your prescription history and medical records. Not every applicant is approved, and no one can promise approval before the insurer reviews the application.
Who tends to qualify for a level benefit plan
Each insurer sets its own rules, but in general, level benefit plans go to people whose health answers show no recent serious events. Many insurers look closely at the last 2 to 5 years. Conditions that are stable and managed may still fit, depending on the insurer. Common signs that a level plan may be possible include the ones below.
- No recent hospital stays for serious conditions
- No current oxygen use and no need for help with daily activities
- Diagnosis dates that are not too recent, depending on the condition
- Honest answers that match prescription and medical records
Talk to a licensed agent: (949) 807-3995
When a waiting period does apply
If your answers do not fit a level benefit plan, you may be offered a graded or modified plan. On those plans, if death from natural causes happens in the first two or three years, the benefit is reduced or limited. Accidental death is usually covered in full from the start. A plan with no health questions usually has a limited benefit for natural death in the first two years.
Because insurers judge health differently, a condition that means a waiting period with one insurer may not with another. That is one of the main reasons to compare more than one insurer before you settle on a plan with an early limit.
Getting ready for the health questions
Before you call, gather a list of your medications, the dates of any diagnoses, and the dates of any hospital stays in recent years. Level benefit decisions often turn on dates, so having them ready lets the agent match you with the right insurer. If you are not sure of a date, it is better to check than to guess, since an answer that does not match the records can change the plan you are offered.
How the call works if you want day-one coverage
Tell the agent you are looking for a plan that pays in full from the first day. They will ask your age, tobacco use and the health questions, and they will check which insurers may offer you a level benefit plan. If you qualify with more than one, they compare the premiums side by side. If you do not, they explain the graded options and how the early years would work. You can apply by phone, and there is no obligation.
