One of the major advantages of burial insurance is how flexible it is. Unlike life insurance, burial insurance policies are relatively easy to qualify for. There are certain situations where you can be denied burial insurance, but fortunately, you can take other avenues to receive a policy. See how you can qualify for a burial insurance policy in this post from SLS.
Policies for People with Pre-Existing Conditions
People with pre-existing conditions are often left out of many different types of insurance policies. Fortunately, burial insurance applications are generally more forgiving. There are four types of final expense policies: level, graded, modified, and guaranteed issue. These plans are aimed at people with different health conditions. For example, people in excellent health qualify for level policies, and people with the most severe conditions may only qualify for guaranteed issue plans. Take a low below to understand the basics of each plan type.
Level
Applicant Health: Excellent
When You’re Eligible for Benefits: Immediately after the death
Cost of Plan: Low
Graded
Applicant Health: Minor Health Problems
When You’re Eligible for Benefits: 2-year waiting period
Cost of Plan: Medium
Modified
Applicant Health: Serious Health Problems
When You’re Eligible for Benefits: 2-year waiting period
Cost of Plan: High
Guaranteed Issue
Applicant Health: Non-specific, but generally the most severe problems
When You’re Eligible for Benefits: 2-year waiting period
Cost of Plan: Very High
How to Know Which Plan is For You
If you have severe health conditions, you will likely be denied level or graded plans. Fortunately, you may still qualify for modified or guaranteed issue plans. People who may be eligible for a modified plan include people with:
- Heart failure
- Current oxygen use
- Cancer within the past 24 months
- Amputation as a result of diabetes
- Alcohol or drug use disorder treatment within the past 24 months
Very serious conditions may make you eligible for only guaranteed issue plans. These conditions include:
- Dementia
- HIV/AIDS
- Active cancer
- Dialysis recipient
- Transplant recipient
- Stroke within the last 12 months
- Other terminal illness/hospice care
- Heart attack within the last 12 months
- Chest pain within the previous 12 months
- Vascular surgery within the last 12 months
- Cardiac surgery within the previous 12 months
- Current placement in a nursing home or skilled nursing facility
- Diabetic ketoacidosis or diabetic coma within the last 24 months
If you have these conditions, you may be denied regular burial insurance. However, you may obtain a guaranteed issue policy.
Guaranteed Issue Policies
Guaranteed issue policies are policies that companies are guaranteed to issue to the applicant. The trade-off is that these policies have a higher monthly premium than their regular counterparts. However, some people believe that this is a small price to pay for their loved ones’ peace of mind.
For all your burial insurance questions, contact us at Senior Life Services.
