Peace of Mind for a Farewell you Deserve
Best burial insurance for pre-existing conditions
Planning for final expenses can be stressful, especially for individuals with pre-existing health conditions. Many people believe that having a health issue will disqualify them from obtaining burial insurance or result in excessively high premiums. Fortunately, burial insurance is designed to be more accessible than traditional life insurance, and there are policies available for individuals with pre-existing conditions.
In this article, we’ll explore how burial insurance works for individuals with health issues, the types of policies available, and tips for finding the best burial insurance for those with pre-existing conditions.
What Is Burial Insurance?
Burial insurance, also known as final expense insurance, is a type of life insurance that provides a smaller death benefit, typically between $5,000 and $25,000, to cover funeral and burial costs. Unlike traditional life insurance, burial insurance is more focused on covering the immediate costs associated with end-of-life expenses, such as funeral services, cremation, burial plots, and unpaid medical bills.
Types of Burial Insurance Policies for Pre-Existing Conditions
- Guaranteed Acceptance Burial Insurance
- No Medical Exam or Health Questions: Guaranteed acceptance policies are the most accommodating for individuals with pre-existing conditions. As the name suggests, these policies offer guaranteed approval, meaning you cannot be denied coverage based on your health status. This makes them a great option for individuals with serious health conditions such as heart disease, cancer, or diabetes.
- Waiting Period: One downside of guaranteed acceptance policies is that they often come with a waiting period, typically ranging from one to two years. If the policyholder passes away during the waiting period, the insurer may return the premiums paid but will not pay the full death benefit. After the waiting period has passed, the full death benefit becomes payable to the beneficiary.
- Higher Premiums: Because guaranteed acceptance policies take on more risk by not asking health questions, the premiums are generally higher than those for simplified issue policies.
- Simplified Issue Burial Insurance
- Limited Health Questions: Simplified issue burial insurance policies require the applicant to answer a few health-related questions, but there is no medical exam required. These policies are more lenient than traditional life insurance, making them accessible to individuals with certain health conditions. For example, you may be asked about your smoking habits, recent hospitalizations, or specific medical diagnoses.
- Immediate Coverage: One of the advantages of simplified issue policies is that they often offer immediate coverage with no waiting period, meaning that the full death benefit is payable from day one if you qualify.
- Lower Premiums: If you are in relatively good health despite having a pre-existing condition, a simplified issue policy may offer lower premiums compared to guaranteed acceptance policies.
How to Find the Best Burial Insurance for Pre-Existing Conditions
1. Choose Between Simplified Issue and Guaranteed Acceptance
The first step in finding the best burial insurance is to determine whether a simplified issue or guaranteed acceptance policy is right for you.
- If you have a manageable health condition and are in relatively stable health, a simplified issue policy may offer immediate coverage and lower premiums. This type of policy asks a few health questions but does not require a medical exam.
- If you have more serious health issues, such as recent heart surgery, cancer, or other chronic conditions, a guaranteed acceptance policy may be the best option. While these policies tend to have higher premiums and a waiting period, they guarantee coverage regardless of your health status.
2. Look for Policies with Fixed Premiums
One of the advantages of burial insurance is that many policies come with fixed premiums, meaning your payments will not increase over time. This is particularly important for seniors on a fixed income. When comparing policies, look for those that offer fixed premiums to ensure that the coverage remains affordable throughout the life of the policy.
3. Consider the Waiting Period
For individuals with pre-existing conditions, guaranteed acceptance policies often include a waiting period before the full death benefit is payable. This waiting period is typically between one and two years. If you pass away during the waiting period, the insurer may only return the premiums paid.
If immediate coverage is important to you, consider a simplified issue policy, which may offer full death benefit coverage from day one, provided you qualify based on the health questions.
4. Compare Premiums Across Providers
5. Check the Financial Strength and Reputation of the Insurer
Common Pre-Existing Conditions Covered by Burial Insurance
- Diabetes: Many burial insurance providers offer policies for individuals with both Type 1 and Type 2 diabetes, even if insulin is required.
- Heart Disease: Those with a history of heart attacks, heart disease, or heart surgery can still qualify for burial insurance, especially through guaranteed acceptance policies.
- Cancer: If you have been diagnosed with cancer or have undergone cancer treatment, you can still qualify for a guaranteed acceptance policy. Some insurers may offer simplified issue policies depending on the type and stage of cancer.
- Chronic Conditions: Individuals with chronic conditions such as COPD, kidney disease, or high blood pressure can often find coverage through burial insurance, though guaranteed acceptance policies may be necessary.