Burial Insurance With Pre Existing Conditions

Burial Insurance with Pre Existing Conditions

Are you looking for burial insurance while having a pre-existing condition? Well! Having pre-existing conditions can prevent you from getting life insurance for burial or funeral. Burial and funeral insurance are designed to accept seniors with high-risk health issues.

Burial insurance also called final expense insurance is a life insurance that provides enough lump sum to the people who can’t qualify for standard insurance plans. Surprisingly, no medical exam is required, only a few medical questions to answer. Your rates may be higher but you can still qualify, as it depends on the conditions you may have.

In this blog post, we will discuss burial insurance with pre-existing conditions available. We will also talk about high-risk pre-existing conditions and how to qualify for a life insurance plan with such conditions. Let’s get started!

What is Burial Insurance and How Does It Work?

Burial insurance or funeral insurance is a small whole-life plan that comes with a very relaxed underwriting process. That’s the reason seniors having health issues can still qualify for the plan. Many life insurance companies allow the insured to get coverage from $2,000 to $40,000 for their final expenses. 


The term of the plan never expires until and unless premiums are paid. As it’s a whole life insurance, a type of permanent life insurance, it has a fixed monthly payment that can’t increase. Moreover, the coverage also doesn’t decrease in value or expire due to overage. 


Being a life insurance plan, it offers a tax-free cash payment or death benefit to the aligned beneficiaries. The beneficiaries are allowed to spend the money on anything as there is no restriction from the insurer.


Read More: Cost of Burial Insurance


What are Pre-Existing Conditions?

Any health condition or illness a person has before getting enrolled into a health coverage plan would be considered a pre-existing condition. Many US citizens may have at least one chronic condition, so it’s common. However, having a pre-existing condition can affect the insurance carrier’s ability to offer some affordable coverage. 


How Insurance Companies See Pre-Existing Conditions?

Life insurance companies like to sell their products to individuals who have the lowest risk of death after getting insured. Pre-existing conditions have increased the risk of dangerous health events. So insurers do not prefer to sell plans to people who have severe pre-existing conditions. On the other hand, health insurance companies have different criteria. Recent legislation needs health insurers to accept all plans regardless of any pre-existing conditions. 


Burial Insurance Options With Pre-Existing Conditions

Generally, there are two burial insurance options one can pursue while having pre-existing conditions. There is a big difference between these two plans, as one has a health questionnaire while the other does not.


1- Simplified Issue (Plan With Health Questions and Immediate Coverage)

Burial insurance policies having some health questions are known as simplified issues. They are named so because the insured doesn’t have to go through an exam. The applicant just has to answer some health questions. In addition, the insurance provider also analyzes his/her medical history.


If the applicant gets approved for this plan, there will be no waiting period for him. He is instantly covered for his natural as well as accidental death as soon as the first premium of the plan is paid. If the insured dies after one day of getting the plan, it goes into effect and the insurer is bound to pay the death benefit.


Furthermore, these plans are also the least expensive as the insurance company is at less risk. 


2- Guaranteed Acceptance (Plans With No Health Questions And Guaranteed Approval)

Plans having no health questions or medical examinations are commonly referred to as guaranteed acceptance life insurance. Simply saying, acceptance of the plan is guaranteed. And the insurer knows nothing about the health history of the applicant. 


However, remember that all such plans come with a two-year waiting period and there is no exception to this. No insurance company offers a plan with no questions and no waiting period at the same time. The waiting period is one of the main drawbacks of this plan, meanwhile, its cost is another factor to consider. Guaranteed acceptance is much more expensive as compared to simplified issues. 



What are High-Risk Pre-Existing Conditions?

Many pre-existing conditions are found and some of them are high-risk. It means that such conditions can affect the costs and availability of insurance coverage products like final expense insurance. A wide range of pre-existing conditions are there that may impact life insurance eligibility like diabetes, cancer, hypertension, and others.  


Insurers generally assess the medical condition of the applicant to check the seriousness of the medical condition he may have. In this way, the insurance provider can identify whether the applicant has a low, moderate, or high risk of dying prematurely. Individuals with good health can get quality coverage at the best rates, likewise, terrible health conditions can make it difficult to qualify for simplified issues. 


Below are some of the examples of high-risk pre-existing conditions that can impact coverage decisions. 

  • Asthma 
  • Cancer
  • Diabetes 
  • Angioplasty 
  • Dementia 
  • Cerebral palsy
  • High blood pressure 
  • Heart bypass
  • Arrhythmia 
  • Brain tumor 
  • Heart attack
  • Hepatitis B
  • HIV 
  • Lung disease 
  • PTSD (post-traumatic stress disorder)
  • Leukaemia 
  • Liver disease 
  • PVD (peripheral vascular disease)
  • Terminal illness 
  • Valvular heart disease 
  • Schizophrenia 


How to Qualify for Burial Insurance With Pre-Existing Conditions?

For getting burial insurance with pre-existing conditions, you may have to do a few things. Luckily, a medical exam is not one of them whether you have moderate or severe pre-existing conditions. In case you want coverage from the very first day, you must answer the health questionnaire of the insurer. Along with the questionnaire, your prescription history and file from the Medical Information Bureau are required by the insurance company. 


Both these steps are easy and simple, but health questions can cause trouble for some applicants. Although they are simple and only require a yes or no answer. But keep in mind that your answers will determine your eligibility for the plan and your premium cost. 


Additionally, if you have a pre-existing condition, your plans won’t be automatically denied but you may be offered plans at higher premiums as compared to healthier people. Another condition to consider with these plans is a two-year waiting period, that should pass before your beneficiaries collect the death benefit. 


The Bottom Line

Now you are aware of burial insurance with pre-existing conditions and its complications. Before finalizing a plan, it is recommended to get several quotes from different insurance companies to get better rates. Moreover, you can also consult a professional advisor to get the best plan for your needs.


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