When people start researching final expense insurance, they often come across something called “open care final expense.” I understand the confusion—there are a lot of different terms floating around in this space, and it’s not always clear what they mean or how they differ from regular final expense coverage.
For a complete overview, see how final expense insurance works.
Let me break down what open care final expense actually means, how it works, and whether it might be the right choice for your situation.
What Is Open Care Final Expense Insurance?
Open care final expense insurance is a type of simplified issue life insurance that’s specifically designed for people who might not qualify for traditional final expense coverage due to health issues. The “open care” designation means the insurance company is more willing to accept applicants with certain pre-existing conditions that would typically result in a decline.
Think of it as a middle ground between guaranteed issue life insurance (which accepts everyone but has waiting periods) and standard simplified issue final expense (which has stricter health requirements). Open care policies typically ask fewer health questions and are more lenient with conditions like diabetes, heart disease, or COPD.
In my experience working with families, I’ve found that open care final expense can be a lifeline for people who’ve been declined elsewhere but still want immediate coverage without the two-year waiting period that comes with guaranteed issue policies.
How Open Care Final Expense Works
The application process for open care final expense is similar to other simplified issue policies, but with some key differences:
Simplified Health Questions
Instead of the typical 10-15 health questions you’d see on a standard final expense application, open care policies might ask only 5-8 questions. These questions are also more broadly worded, focusing on major disqualifying conditions rather than every possible health issue.
For example, where a standard policy might ask about specific heart conditions, an open care policy might simply ask if you’ve had a heart attack or heart surgery in the past two years.
No Medical Exam Required
Like other final expense policies, open care doesn’t require a medical exam, blood work, or urine tests. The insurance company bases their decision entirely on your answers to the health questions and sometimes a prescription drug database check.
Immediate Death Benefit
Unlike guaranteed issue policies that have graded death benefits, open care final expense typically provides full coverage from day one. If you pass away from any cause after the policy is in force (usually after a brief contestability period), your beneficiaries receive the full death benefit.
Who Qualifies for Open Care Final Expense?
Open care final expense is designed for people who have health conditions that might disqualify them from standard coverage but aren’t severe enough to require guaranteed issue. Some examples of conditions that might be acceptable under open care guidelines include:
Controlled Diabetes
Many open care policies will accept people with Type 2 diabetes as long as it’s well-controlled and they haven’t had complications like amputations or dialysis.
Stable Heart Conditions
Some heart conditions that would be automatic declines on standard policies might be acceptable if they’re stable and well-managed. This could include people who’ve had bypass surgery or stents more than two years ago.
Controlled High Blood Pressure
While most final expense policies accept treated hypertension, open care policies might be more lenient with higher readings or multiple medications.
Respiratory Issues
Conditions like COPD or emphysema might be acceptable depending on severity and whether supplemental oxygen is required.
Previous Cancer History
Some open care policies will consider applicants who’ve had certain types of cancer if they’ve been treatment-free for a specific period.
It’s important to understand that every insurance company has different guidelines, and what’s acceptable to one carrier might not be to another. That’s why working with an independent agent who has access to multiple carriers is so valuable.
Open Care vs Other Final Expense Options
Let me help you understand how open care final expense compares to your other options:
Open Care vs Standard Final Expense
Standard final expense has stricter health requirements but typically offers better rates for healthy applicants. If you can qualify for standard coverage, it’s usually the better choice from a cost perspective.
Open care final expense costs more than standard coverage but less than guaranteed issue. It’s the right choice when you can’t qualify for standard coverage but want immediate full coverage.
Open Care vs Guaranteed Issue
Guaranteed issue accepts everyone regardless of health but comes with a graded death benefit, meaning limited coverage for the first two years. It’s also the most expensive option.
Open care final expense requires answering health questions but provides immediate full coverage if approved. It’s less expensive than guaranteed issue.
Open Care vs Graded Benefit
Some companies offer graded benefit policies that are similar to open care but with modified death benefits for the first two or three years. Open care typically provides immediate full coverage, making it more attractive if you qualify.
Coverage Amounts and Costs
Open care final expense policies typically offer coverage amounts between $5,000 and $50,000, which is standard for the final expense market. The exact amount you can qualify for depends on your age, health, and the insurance company’s guidelines.
As for costs, open care final expense falls somewhere between standard simplified issue and guaranteed issue:
- Standard simplified issue: Lowest cost for healthy applicants
- Open care final expense: Moderate cost for those with health issues
- Guaranteed issue: Highest cost but guaranteed acceptance
The exact premium depends on several factors including your age, gender, coverage amount, and the specific insurance company. In my experience, the peace of mind that comes with immediate full coverage often justifies the slightly higher premium compared to guaranteed issue options.
Top Companies Offering Open Care Final Expense
Several reputable insurance companies offer open care or similar lenient underwriting programs:
Mutual of Omaha
Known for their flexible underwriting and strong financial ratings. They offer several final expense products with varying levels of health requirements.
Transamerica
Offers multiple final expense options including more lenient underwriting for certain health conditions.
AIG (formerly American General)
Has final expense products designed for people who might not qualify for standard coverage.
Foresters
Known for accepting applicants with various health conditions that other companies might decline.
Liberty Bankers
Specializes in simplified issue coverage with flexible underwriting guidelines.
Each company has different strengths and appetites for various health conditions. What one company declines, another might accept. That’s why it’s crucial to work with someone who understands the nuances of each carrier’s underwriting.
Common Misconceptions About Open Care Final Expense
“It’s Just Expensive Guaranteed Issue”
This isn’t true. Open care final expense typically provides immediate full coverage, while guaranteed issue has waiting periods. The underwriting is also different—open care requires answering health questions.
“The Claims Won’t Be Paid”
Some people worry that because the underwriting is more lenient, the insurance companies will find ways to avoid paying claims. In reality, as long as you answer the health questions truthfully, legitimate claims are paid just like any other life insurance policy.
“It’s Only for Very Sick People”
While open care is designed for people with health issues, you don’t have to be severely ill to benefit from it. Sometimes it’s the right choice for people with controlled conditions that make standard coverage more expensive or unavailable.
How to Apply for Open Care Final Expense
The application process is straightforward:
- Complete the application with accurate health information
- Answer the simplified health questions honestly
- Review your prescription history (if required by the carrier)
- Wait for approval (usually 24-48 hours for simplified issue)
- Pay your first premium to put coverage in force
The key is being completely honest about your health. Insurance companies have access to prescription databases and medical records, so any attempt to hide information will likely backfire and could void your policy.
Is Open Care Final Expense Right for You?
Open care final expense might be the right choice if:
- You’ve been declined for standard final expense coverage
- You have controlled health conditions but want immediate full coverage
- You want to avoid the waiting periods that come with guaranteed issue
- You’re willing to pay slightly higher premiums for better coverage
It might not be right if:
- You can qualify for standard final expense at lower rates
- You’re comfortable with guaranteed issue waiting periods to save money
- You need more coverage than final expense policies typically offer
Working with an Agent
Navigating the final expense insurance market can be overwhelming, especially when you’re dealing with health issues. Different companies have vastly different appetites for various conditions, and the underwriting guidelines change regularly.
When I work with clients who need open care final expense, I start by understanding their specific health situation and then match them with the carriers most likely to approve their application at the best available rates. Sometimes what seems like a disqualifying condition to one company is perfectly acceptable to another.
I also make sure my clients understand exactly what they’re buying—the coverage amounts, premium costs, and any limitations or exclusions that might apply.
- Consider open care final expense if you’ve been declined for standard coverage due to health conditions like controlled diabetes, stable heart disease, or COPD, as it offers more lenient underwriting guidelines.
- Expect fewer health questions (5-8 instead of 10-15) that focus on major disqualifying conditions rather than every possible health issue, making approval more likely for those with manageable conditions.
- Understand that open care provides immediate full death benefits from day one, unlike guaranteed issue policies that have two-year waiting periods and graded benefits.
- Know that no medical exam, blood work, or urine tests are required - approval is based solely on your answers to health questions and sometimes a prescription database check.
- Recognize that open care serves as a middle ground option when you can’t qualify for standard final expense but want better coverage than guaranteed issue policies offer.
The Bottom Line on Open Care Final Expense
Open care final expense insurance serves an important niche in the life insurance market. It provides a viable option for people who need immediate coverage but can’t qualify for standard simplified issue policies due to health conditions.
While it costs more than standard coverage, it typically provides better value than guaranteed issue by offering immediate full benefits without waiting periods. The key is making sure you’re working with the right insurance company for your specific health situation.
Every person’s situation is unique, and what works for one person might not work for another. The insurance companies all have different appetites for different conditions, and these guidelines change over time.
The life insurance market can be overwhelming, but that’s exactly why I’m here. I’ll cut through the noise, compare your options across multiple carriers, and help you find coverage that makes sense for your situation.
Related Reading
- Burial Insurance for Seniors Over 80: Your Complete Guide
- Affordable Final Expense Insurance: Your Complete Guide
- Understanding Final Expense Insurance
- Guaranteed Issue Final Expense Insurance: Your Complete Guide
Ready to see your options? Contact me for a free quote and let’s find the right fit.
