Everything You Need to Know About Underwriting

Nov 26, 2021 | USA Life Insurance | 0 comments

Nothing in life is without risk, but we all do what we can to minimize our exposure to risk. Everyone from individuals to large corporations, banks, and yes, even insurance companies do their best to offset risk whenever possible. Companies that provide final expense insurance are no exception to this rule. Like their counterparts in business and banking, insurance companies use underwriting to determine the risks associated with a particular policy. Broadly, underwriting is the action that a financial institution takes to verify income, assets, debt, and property to determine eligibility for a loan or to pass final approval for another service. But in the instance of burial, or final expense insurance, the risks are lower, and the underwriting process is far shorter and less invasive.

Burial Insurance Underwriting is Simple 

To begin with, the underwriting process for burial insurance does not require a complete health history, or ask you to undergo a medical exam. You will simply answer a few very basic questions on a short form. Underwriters may take a look at what prescription medications you are taking, since they may represent an increase in risk. However, even a pre-existing condition or a chronic illness won’t necessarily disqualify you for final expense coverage. Instead, each funeral insurance policy is individually underwritten, and approval is determined by numerous factors specific to each applicant. 

Coverage for Pre-Existing Conditions

Here is an extensive, but by no means exhaustive, list of health conditions that won’t be screened out during the underwriting process, and that would still be eligible for burial insurance coverage*:

  • Aneurysm
  • Arthritis
  • Asthma
  • Atrial fibrillation
  • Basal cell skin cancer
  • Bipolar disorder
  • Blindness
  • Blood clots
  • Blood thinners
  • Cancer (depending on diagnosis time)
  • Chewing tobacco
  • High cholesterol
  • Chronic bronchitis
  • Cigars
  • Circulatory surgery (depending upon time of surgery)
  • Cirrhosis
  • COPD
  • Crohn’s disease
  • Cystic Fibrosis
  • Defibrillator
  • Depression
  • Diabetes and related issues
  • Diverticulitis
  • Epilepsy
  • Fibromyalgia
  • Graves’ disease
  • Heart attack (depending on time of heart attack)
  • Heart surgery (depending on time of surgery)
  • Hepatitis
  • High blood pressure
  • Home health care
  • Insulin shock (depending on time of event)
  • Kidney disease
  • Lupus
  • Multiple sclerosis
  • Nephropathy
  • Neuropathy
  • Overweight
  • Pacemaker
  • Parkinson’s Disease
  • Pipe smokers
  • Retinopathy
  • Sarcoidosis
  • Schizophrenia
  • Scleroderma
  • Seizures
  • Sickle cell anemia
  • Sleep apnea
  • Smokers
  • Stroke (depending on time of stroke)
  • TIA attack
  • Tumors
  • Wheelchair usage

What Can USA Life Do For You?

That being said, there is still a range of underwriting policies for burial insurance that differ from carrier to carrier. This is where USA Life comes in. As an independent agency, with a wide range of carriers in our portfolio, we work with each individual to find the perfect match for your history and needs. No matter what the specifics of your case are, we can help you compare rates and policies, and navigate the underwriting process to find a carrier that can provide you with the coverage you are looking for. We can even do that for you without ever asking you to leave the comfort of your home. You can reach out and speak to a real, live individual on the phone, or simply fill out our online form to receive a free, no-obligation quote at any time.

*Information subject to change based on carrier changes and industry fluctuations.

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