How To Choose a Burial Insurance Policy With a Pre-Existing Condition

Burial insurance, also known as final expense insurance, is particularly popular with people who have pre-existing conditions. Those with pre-existing conditions may not qualify for larger life insurance policies. Burial insurance policies allow these folks to get financial protection for their loved ones at a reasonable monthly cost. There are multiple levels to burial insurance policies, meaning there are different price points depending on your health situation. Read on to learn about burial insurance policies and how to choose one if you’re living with a pre-existing condition. 

Burial Insurance: The Basics 

Burial insurance is a smaller type of life insurance policy. The amount your loved ones would get after your passing, called the death benefit, generally ranges from anywhere between $2,000 and $50,000. Compare this to life insurance, which has a minimum death benefit of $50,000 and can go as high as the millions. 

Unlike life insurance, burial insurance is much easier to qualify for. It’s also much cheaper every month than life insurance. Just like life insurance, your loved ones can use burial insurance for anything your family needs. Many people choose to use the death benefit to cover funeral expenses, but it can also be used for bills and other needs. 

Types of Final Expense Plans

There are four types of final expense policies: level, graded, modified, and guaranteed issue. Each plan is geared towards people of different health. Level plans are for the healthiest people and are the cheapest. Graded policies are for people with some health problems, but nothing immediately concerning. Modified options are for people that do have some serious health problems. Guaranteed issues are for people with very serious health problems that could otherwise be rejected from most burial insurance plans. Each plan type is summarized briefly below.

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Level

Applicant Health: Excellent

When You Are Eligible for Benefits: Immediately after death

Cost of Plan: Low

  •  

Graded

Applicant Health: Minor Health Problems

When You Are Eligible for Benefits: 2-year waiting period

Cost of Plan: Medium

  •  

Modified

Applicant Health: Serious Health Problems

When You Are Eligible for Benefits: 2-year waiting period

Cost of Plan: High

  •  

Guaranteed Issue

Applicant Health: Non-specific, but generally the most serious problems

  • When You Are Eligible for Benefits: 2-year waiting period
  • Cost of Plan: Very High

Some conditions that may qualify you for Modified Plans but aren’t so serious that you need a guaranteed issue plan include:

  • Heart failure
  • Cancer within the past 24 months
  • Current oxygen use
  • Alcohol or drug use disorder treatment within the past 24 months
  • Amputation as a result of diabetes

Conditions that are so serious that you may automatically be rejected from all plans except for guaranteed issue plans include:

  • Active cancer
  • Other terminal illness/hospice care
  • Current placement in a nursing home or skilled nursing facility
  • Transplant recipient
  • Dialysis recipient
  • HIV/AIDS
  • Dementia
  • Heart attack within the last 12 months
  • Cardiac surgery within the last 12 months
  • Stroke within the last 12 months
  • Vascular surgery within the last 12 months
  • Chest pain within the last 12 months
  • Diabetic ketoacidosis or diabetic coma within the last 24 month

If you have any of these conditions, you should consider getting a guaranteed issue plan. If you aren’t sure whether your condition will be considered serious, check with an agent

Choosing a Plan Type

The benefit of choosing plans geared towards people with better health is that these plans are generally cheaper per month. Take a look at our chart below to estimate your cost if you were to choose a guaranteed issue plan compared to a regular plan.

People Age 55

Female No Waiting Period:

$5,000: $15.80

$10,000: $28.40

$15,000: $41.00

$20,000: $53.60

Female Tobacco & No Waiting Period

$5,000: $20.66

$10,000: $38.32

$15,000: $55.88

$20,000: $73.44

Female Guaranteed Acceptance

$5,000: $18.38

$10,000: $35.84

$15,000: $53.30

$20,000: $70.77

Male No Waiting Period:

$5,000: $19.15

$10,000: $35.09

$15,000: $51.04

$20,000: $66.98

Male Tobacco & No Waiting Period

$$5,000: $25.24

$10,000: $47.27

$15,000: $69.30

$20,000: $91.33

Male Guaranteed Acceptance

$5,000: $23.51

$10,000: $46.11

$15,000: $68.70

$20,000: $91.30

People Age 85

Female No Waiting Period:

$5,000: $69.55

$10,000: $135.90

$15,000: $202.25

$20,000: $268.60

Female Tobacco & No Waiting Period

$5,000: $96.45

$10,000: $180.70

$15,000: $282.95

$20,000: $376.20

Female Guaranteed Acceptance

$5,000: $103.10

$10,000: $204.20

$15,000: $305.31

$20,000: $406.41

Male No Waiting Period:

$5,000: $93.18

$10,000: $183.15

$15,000: $273.13

$20,000: $363.10

Male Tobacco & No Waiting Period

$5,000: $141.39

$10,000: $279.58

$15,000: $417.77

$20,000: $555.97

Male Guaranteed Acceptance

$5,000: $150.43

$10,000: $298.86

$15,000: $447.30

$20,000: $595.73

You can imagine that everyone in the ages between pays somewhere in this spectrum.

More on Level Plans

Also, level plans don’t often have a waiting period, which is a major advantage over the other plans. A waiting period is 24 month-period after you purchase the policy in which your family will not receive the death benefit if you pass away. As long as you don’t pass away within that 24-month window, your family will receive the entire death benefit. Obviously, this is a major drawback of graded, modified, and guaranteed issue plans. Check with an agent to see if the type of plan you’re most interested in has a waiting period.

Talk to SLS Today

We can help you choose between the different burial insurance plans if you have a pre-existing condition. For more information, talk with an agent at Senior Life Services!