I started Insurance Blog by Chris™ because I have a passion for insurance. Here at the blog, our job is to educate and inform people about the best insurance for them. Since then, we have grown into national brands with a large team of researchers helping people understand all forms of insurance.

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Written by Chris Huntley
Founder of Huntley Wealth & Insurance Services Chris Huntley

Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insu...

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Reviewed by Rachael Brennan
Licensed Insurance Agent Rachael Brennan

UPDATED: Apr 18, 2022

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Are you looking for a life insurance policy without a 2 year waiting period? If not, you should be!

You know that policy you heard about on TV? The one that promises easy guaranteed coverage for final expenses with no medical exam?

Well, I’m just gonna say it – don’t buy it.

It seems like a really great deal, doesn’t it? No medical exam and guaranteed approval? It sounds good to be true…

…AND For what it’s worth, it IS a real offer. But there’s a catch.

If you want a life insurance policy without a 2 year waiting period then final expense is probably not for you!

Final expense life insurance isn’t inherently bad.

It’s a good option for a lot of people who can’t get coverage anywhere else.

Life Insurance Without a 2 Year Waiting Period

life insurance no waiting period

The thing is, there are three different offers you will get once the insurer asks a few questions about your health:

#1 – Immediate Benefit:

This type of policy works the same way as traditional life insurance, and you’re covered from Day 1. You can typically get this sort of offer if you’re in good health.

#2 – Graded Benefit:

This is life insurance with a 2 year waiting period. With this type of offer, your loved ones won’t get the full death benefit until the policy has been in force for two years.

Instead, if you die in the first 2 years, they may receive only 30% to 40% during the first year, or 60% to 70% of the death benefit if you die during the second year.

The full death benefit won’t become available until 2 years in force have passed.

#3 – Guaranteed Issue:

This policy type is designed specifically for people who cannot pass the medical exam. This can include those that are terminally ill or have other major health problems.

However, you must be 50 years old to qualify for most Guaranteed Issue policies.

This is another type of graded death benefit policy, in that upon your death, it will not pay out the full death benefit until 2 or 3 years in force.

However, if a death occurs in the first 2 years, the carrier will pay back all premiums paid to date, plus interest.  It is not a loss, even if death occurs during the first 2 years of coverage.

Also, with most of these policies, accidental death is covered because it’s not a product of poor health.

So, what happens if your family really needs the full benefit and you die before your two-year period is up?

…they either get a small portion or just the premiums back.

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Drawbacks of Graded Benefit and Guaranteed Issue Life Insurance

First of all, you’re gambling with your life if you obtain a graded benefit or guaranteed issue policy.

Dealing with a life insurance policy with a 2 year waiting period is a major drawback, but it’s not the only one.

For example, these offers tend to have minimal face values.

…we’re talking policies which, at the high end, can cover you for $100,000 – but in most cases, they offer less – usually only $25,000 or $50,000 in protection.

That may be fine with you. But if one of your goals is to provide income replacement, you’re probably out of luck.

Not to mention the fact that they are COSTLY!

Secondly, these policies can be extremely expensive for the amount of coverage you get in return.

You’d think that companies that offer life insurance policies with a 2  year waiting period would have mitigated their risk, but they reach further into your pocket.

which means they’re going to charge you a higher amount for your premiums to boot!

For example, here are some sample quotes from Gerber Life, one of the better insurance companies for final expense insurance:

CompanyA.M. Best RatingPrice
Pacific LifeA+$239
Mutual of OmahaA+$247
Mass MutualA++$267
New York LifeA++$333
Northwestern MutualA++$406
Get Your Rates Quote Now

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So what if this same client opted for term?

In contrast, a 60-year-old male with the fourth best health class rating could get $25,000 of 10-year term life insurance coverage for as little as $35 per month.…that’s a huge difference!

Now, of COURSE, this depends on your personal health considerations, but that’s exactly why you need to speak with an independent life insurance agent.

RELATED: Check Sample Life Insurance Rates by Age (No Personal Info Required)

There are no obligations and you will be shocked to hear what sort of conditions we have been able to cover with a traditional policy.

Sadly, too many people overestimate the impact of their medical issues.

Speaking to someone who understands underwriting is a fantastic tool for getting the cost of your premiums down.

Compare Life Insurance Rates Now!

What If Term Isn’t For You Because You Want To Be Covered For Life?

The savings sounds GREAT but I have to be honest – I’m really leaning toward permanent insurance. I want coverage ’til the day I die.

I hear ‘ya! That’s true for a lot of my more mature clients.

Over the past few decades, the average person’s lifespan has risen almost everywhere in the world. In China, the US and most of Eastern Europe, the average life expectancy at birth has reached the late 70s, according to the Organisation for Economic Cooperation and Development, or OECD. People in Western Europe and Japan, meanwhile, can expect to live into their early 80s. The rich are banking on living to 100, The Sydney Morning Herald 

In that case, there’s another option – which I really like.

Guaranteed Universal Life is a form of permanent insurance that doesn’t come with the extra cash value benefits of whole and traditional universal life.

In fact, it’s kind of a term-permanent hybrid. As a result, the rates are much cheaper than other forms of permanent insurance, and you’re guaranteed coverage for as long as you live.

Hey, there’s no guarantee you’ll be approved, but you should definitely find out before you opt for that pricy life insurance policy with a 2 year waiting period!

Remember the best way to save money on life insurance is to look at ALL your options.

How To Get Life Insurance Without a 2 year Waiting Period?

For what it’s worth, getting a policy with a 2 year waiting period isn’t terrible for everyone.

If you have a terminal illness, for example, it might be the only option you have.

…but don’t just assume that’s the case.

A lot of people who apply for a life insurance policy with a 2 year waiting period can probably get approved for a policy that offers death benefit coverage on Day 1.

This is why it’s so important that you work with an independent life insurance agent.

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Work With An Independent Life Insurance Agent

Not only can an independent agent give you more options than what you see on TV, but they can also help you find the insurance company that’s most lenient with your particular health issues.

If you opt for a life insurance policy without a 2 year waiting period, you’ll also get more flexibility in choosing your term.

For example, final expense life insurance policies, including life insurance policies with two-year waiting periods, are a form of permanent insurance.

…but this approach may not be your ONLY option if you are looking for lifetime coverage. You should really consider whether or not guaranteed Universal Life Insurance fits the bill.

AND there are those of you that don’t require lifetime coverage at all. Well, a good independent agent can help you weigh your term options based on your needs.

Life insurance isn’t straightforward and there are a lot of moving parts.

So, regardless of what policy is best for you, call Huntley Wealth today at 888-603-2876, and we’ll take the hassle out of the equation.

Remember the REAL superheroes in life are those that PLAN for the needs of their family. Don’t forget to bulletproof your finances your loved ones will appreciate it.