Your state of health has a significant impact on your life insurance cost.

The most common question people ask when seeking final expense insurance is “How much will it cost?” Before we can answer that question we need a starting point. We must determine the general class for which you will qualify, and your state of health is the most significant factor that determines your cost.

Final expense life insurance is broken down into three basic classes.

  • LEVEL PREMIUM is the lowest cost. It is reserved for people who don’t have health issues that the insurance companies deem as risky. This doesn’t mean you have to be perfectly healthy. Final expense insurance is more lenient than other forms of insurance, so just because you take a few prescription medications doesn’t mean you won’t qualify for level premium.

  • GRADED PREMIUM is the next level. You may have a condition that forces you into this category and if so, you will pay a higher premium for this insurance. If you have a temporary condition that requires you to purchase a graded premium product, you may be able to get your class lowered when enough time has passed by having the company adjust your class or by getting a new policy with someone else. Expect to pay 30% to 50% more for a graded premium policy over a level benefit policy.

  • GUARANTEED ISSUE policies are reserved for anyone who cannot qualify for the other two classes. As long as you are 85 years of age or younger, you can qualify for guaranteed issue, regardless of your health. Expect to pay 70% to as much as double more for guaranteed issue over a level benefit policy.

Now that you understand the three classes of insurance, let us look at the many health conditions and how they may impact your cost of insurance.

There is a lot of information below. If you prefer to skip all the reading and get a general idea of where you stand with your situation, Then take the Final Expense Health Quiz!

GUARANTEED ISSUE

The health section of any application for final expense begins with a series of what the industry calls “knockout questions.” If you answer “yes” to any of these questions you will most likely be required to purchase a guaranteed issue policy. This is not always the case, so if you have one of the following conditions it is best to check with an experienced agent for your specific situation.

Most guaranteed issue policies contain a two year blackout period. This means if you die within the first two years the death benefit is not paid, but instead the company will refund all premiums paid plus usually 10%. If you make it past two years, you are fully covered.

Conditions that may require you to purchase a guaranteed issue policy

ALS (Lou Gehrig’s Disease)

Alzheimer’s Disease

Autism, moderate to severe

Cancer (except Basil Cell or Squamous Skin Cancer)

Cerebral Palsy

Congestive Heart Failure

Cystic Fibrosis

Dementia

Diabetes Younger than Age 20 with Insulin

Downs Syndrome

HIV or AIDS

Huntington’s Disease

Leukemia

Mental Incapacity

Muscular Dystrophy

Sickle Cell Anemia

Additional situations that may require a guaranteed issue policy

Bedridden

Bone Marrow Transplant

Organ Transplant

Tissue Transplant

Been advised to have surgery, nursing home confinement or hospital confinement and chosen not to do so within 1 year

Life Expectancy of 24 Months or Less

Permanently Bound to a Wheelchair

Confined to Hospital, Long-Term Care facility, nursing home

Advised to have surgery or diagnostic testing and not yet completed

Require assistance with ADLs (feeding, bathing, dressing, transporting, etc.)

If you have experienced any of the following within the last 12 MONTHS you may be required to purchase a guaranteed issue policy.

Aneurysm

Angina

Hospitalized 2 or more times

Required to Use Oxygen Equipment

Stroke with Complications

Transient Ischemic Attack (TIA)

If you have experienced any of the following within the last 24 MONTHS you may be required to purchase a guaranteed issue policy.

Cancer (except Basil Cell or Squamous Skin Cancer)

Diabetic Coma

Insulin Shock

Leukemia

And finally, if you have been diagnosed with any of the following within the last 4 YEARS you may need a guaranteed issue policy.

Leukemia

Melanoma

GRADED PREMIUM

Graded premium policies are cheaper than guaranteed issue policies, but more expensive than level premium. Most companies will include some sort of blackout period for graded premium but it is not as restrictive as guaranteed issue.

If you die within the first two years, it may be common to see a 25% payout in the first year then 50% payout in the second year. Or it may be 50% in year one and 75% in year two. If you live past year two you are fully covered.

Conditions that may require you to purchase a graded premium policy

Multiple Sclerosis

Emphysema

Renal Failure Stages 4-5

Hepatitis B

Hepatitis C

If you have experienced any of the following within the last 12 MONTHS you may be required to purchase a graded premium policy.

Heart Surgery

Chronic Cough

Dialysis

Drug Abuse

Full Disability

Heart Attack

Sleep Apnea CPAP w/ Oxygen

Stroke with No Complications

Unexplained Fatique

Unexplained Gastrointestinal Bleeding

Unexplained Weight Loss Greater than 10 Lbs

Use an Inhaler for COPD or Other Lung Condition

If you have been diagnosed with any of the following within the last 24 MONTHS you may be required to purchase a graded premium policy.

Cardiomyopathy

Chronic Asthma

Chronic Bronchitis

Cirrhosis of the Liver

COPD

Coronary Artery Disease

Diabetes with Insulin

Kidney Disease

Liver Disease

Lung Disease

Neurological Disorder

Schizophrenia

Systemic Lupus Erythematosus (SLE)

Transient Ischemic Attack (TIA)

If you have experienced any of the following within the last 24 MONTHS you may be required to purchase a graded premium policy.

Alcohol Abuse

Aneurysm

Angina

Angioplasty

Circulatory Disorder

Circulatory Surgery

Coronary Artery Bypass Surgery

Diabetic Coma

Driving DUI Convicted More than Once

Driving Reckless More than once

Driving Reckless or 3+ Tickets

Drug Abuse

Epilepsy More than 6 seizures

Felony Conviction or Awaiting Trial for a Felony

Heart Attack

Heart Bypass Surgery

Hospitalized for Mental or Nervous Disorder

Irregular Heart Rhythm

Marijuana Usage

Stroke with No Complications

Transient Ischemic Attack (TIA)

Treated for Bipolar Disorder

Unlawful Drug Use or Prescription Drug Abuse

Valvular Heart Disease with surgical repair

If you have made it through this long list of items and none apply to you, then most likely you will qualify for a Level Benefit policy.

Take the Final Expense Health Quiz

If you would like to see how your health stacks up against insurance industry standards, complete the following short questionnaire. It will take between 2 and 10 minutes to complete, depending on your answers. It can be completely anonymous if you choose. Click the START button below to begin.

The information above should help provide a better understanding of how your health can affect the price for different types of final expense insurance. Look for additional details in the many articles on this website, in addition to our trusted partners, or feel welcome to contact us for a personal review.