Burial insurance is a kind of whole life insurance that covers final expenses in the event of death. While this may very well be one of the most important types of insurance that a person can purchase, many people are unsure about the process of obtaining this type of insurance.
If you’re interested in finding out more about the process and what an insurance underwriter does, then you’ve come to the right place. We are here to help you understand exactly what an insurance underwriter does, and what to expect when considering an insurance policy to cover funeral expenses.
Keep reading to learn everything you need to know about burial insurance underwriting.
What Does an Insurance Underwriter Do
In short, insurance underwriters assess risk. They consider many factors and they use those factors to determine the risk involved in issuing an insurance policy to an individual.
In the case of burial insurance underwriting, the factors they consider have to do with a person’s age, health, and lifestyle.
They will consider things like:
- The current age of the person/people applying for the policy
- The gender of the person/people applying
- Any current medical conditions
- Medical history
- Whether or not the person/people make healthy lifestyle choices
- Driving record
How Do They Use This Information
This might seem like a lot of personal information to provide for burial insurance coverage, but in many cases providing this information can save you money on your policy. Like any form of insurance underwriting the underwriter’s job is to make sure that the insurance company is making wise choices, in who to provide insurance to, and how much to charge for it.
When it comes to funeral insurance the underwriter uses the information that you provide them to determine, among other things, the monthly premium of a policy based on the length of time that you will likely be paying the premium. In other words, a person who makes healthy life choices and has few serious medical conditions is likely to pay a lower monthly premium than a person who smokes and has heart trouble.
Do all Insurance Policies Require an Underwriter
You might be wondering if there are types of funeral insurance policies that don’t require an underwriter. For instance, if you have pre-existing conditions that you’re afraid might make you seem like an insurance risk.
While there will be some form of underwriting or application process with any funeral expenses policy, don’t let that keep you from doing all that you can to make sure that your family is taken care of in the event of your death.
It’s important to keep in mind that there are many different types of policies to cover funeral expenses. Burial insurance coverage is not one size fits all, and you will be working with your insurance agent whose job it is to make sure that you know your options and get the burial insurance coverage you need.
Is Burial Insurance Coverage the Right Choice For You
Now that you’ve learned what a burial insurance underwriter is and what they do, we hope that you feel a little better prepared to consider your options. We understand that it isn’t always easy to think about final expenses, but we are here to help.
Please get in touch with us so that one of our experienced insurance agents can answer your questions and help you choose the best burial insurance policy for you.