What Could Restrict Me From Buying Burial Insurance?

Burial insurance is a type of smaller life insurance policy that allows your loved ones to have some financial comfort after your passing. Burial insurance is inherently flexible, which is part of what makes it so appealing to so many people. It is also very easy to qualify for in comparison to life insurance. However, some things could restrict you from purchasing a burial insurance policy. Read on to learn more about what obstacles you may face.

Pre-existing Conditions

Many people have pre-existing conditions, whether they are minor health conditions like hypothyroidism or major health problems like cancer. Fortunately, burial insurance is very forgiving. People with pre-existing conditions can still receive burial insurance. However, your options may be restricted based on the severity of your conditions.

There are 4 types of burial insurance policies: level, modified, graded, and guaranteed issue. If you have no health issues, you can qualify for a level policy. These policies are cheaper per month. If you have health conditions, you’ll likely be unable to qualify for a level policy and will instead have to opt for a modified, graded, or guaranteed issue policy. These policies are more expensive depending on your conditions. Guaranteed issue policies are for the most severe conditions—meaning the insurance company is guaranteed to accept your policy application. In exchange, you pay a much higher monthly premium. Take a look at the basics of the plan types below.

Level

Applicant Health: Excellent

When You’re Eligible for Benefits: Immediately after 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 typically the most serious problems

When You’re Eligible for Benefits: 2-year waiting period

Cost of Plan: Very High

If you have the following conditions, you’ll likely have to opt for a modified plan:

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

If you have the following conditions, you’ll likely be restricted to a guaranteed issue plan:

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

These conditions are considered very serious.

Budget

Depending on your budget, you may be unable to purchase a burial insurance policy. The entire premise of burial insurance policies is that they are cheaper than life insurance. However, this doesn’t mean they’re affordable for everyone. 

As stated above, people who have pre-existing conditions that qualify them for guaranteed issue plans will have to pay more. Older people, men, and people who smoke also have higher monthly premiums. You can start buying a burial policy at age 55. Check out our list of prices at different age points to determine whether these plans are within your budget.

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 75

Female No Waiting Period:

$5,000: $37.81

$10,000: $72.41

$15,000: $107.01

$20,000: $141.62

Female Tobacco & No Waiting Period

$5,000: $48.54

$10,000: $94.43

$15,000: $140.31

$20,000: $186.20

Female Guaranteed Acceptance

$5,000: $45.60

$10,000: $90.29

$15,000: $134.98

$20,000: $179.67

Male No Waiting Period:

$5,000: $51.37

$10,000: $99.53

$15,000: $147.69

$20,000: $195.85

Male Tobacco & No Waiting Period

$5,000: $67.57

$10,000: $132.49

$15,000: $197.42

$20,000: $262.34

Male Guaranteed Acceptance

$5,000: $62.79

$10,000: $124.49

$15,000: $185.74

$20,000: $246.98

Pre-existent Life Insurance Policy

If you purchased a life insurance policy earlier, you might be wondering whether you need a dedicated burial insurance policy. While you’re not necessarily restricted from buying a policy if you already have a life insurance policy, it just doesn’t make sense financially. A burial insurance policy is a type of smaller life insurance policy. If you already have insurance, you do not need a secondary policy. However, there are certain situations in which your life insurance policy expired. Talk to an agent to figure out whether you have a term policy that has expired and if you should purchase a burial policy.

Get Flexibility with Burial Insurance

Burial insurance is fortunately very flexible. There are generally few hurdles when you go through the application process. However, some roadblocks may still appear depending on your circumstances. At Senior Life Services, we can help you choose the right plan for you and help you successfully apply. Contact us to get started today!