‹ Back

 

Understanding Waiting Periods—When Does Burial Insurance Actually Start?

When planning for your family's future, it's essential to understand exactly when your burial insurance goes into effect. Many people are surprised to learn that most final expense life insurance policies include a waiting period—but what does that really mean?

 

What Is a Waiting Period?

A waiting period is a time frame—typically the first two years of the policy—during which the insurance company will not pay the full death benefits if the insured dies from natural causes. If the death occurs during this period, the insurance provider will usually return the premiums paid, sometimes with interest.

However, if the insured dies due to an accident during this time, many policies will still pay the full coverage amount.

 

Why Do Waiting Periods Exist?

Waiting periods are common in final expense life insurance because these policies often do not require a medical exam. This makes it easier to qualify, even with a medical condition, but also poses more risk to the insurer.

The waiting period helps protect insurance companies from paying out large death benefits on very new policies for applicants with serious health issues.

 

 

Are There Policies Without Waiting Periods?

Yes. Some insurers offer policies with no waiting period if you can answer “no” to all health questions and meet certain criteria. These are known as "level benefit" plans. However, they may be harder to qualify for.

 

How to Know What You’re Getting

Always review the policy details carefully with a licensed agent. Some policies are “graded,” meaning they slowly increase benefits over time, while others are “modified” or “level.” Understanding the type of policy ensures there are no surprises.

 

Peace of Mind Through Transparency

Even with a waiting period, these policies still provide peace of mind. Knowing that your medical bills, funeral expenses, and life costs won’t become a financial burden to your loved ones is invaluable.

 

 

 

Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Insurance policies, rates, and availability vary by provider and location. Please consult a licensed insurance agent to learn more.

Need help choosing a plan that fits your needs? Visit HackettFamilyInsurance.com or call today to speak with a licensed agent.