Burial Insurance with Dementia

If you think burial insurance with dementia is impossible, you are mistaken. In fact, most people with dementia or Alzheimer’s disease can get burial life insurance.

If you have dementia, you must be aware, though, that your options are limited.

IMPORTANT: Having DEMENTIA or TREATMENT FOR DEMENTIA will result in a MANDATORY 2-YEAR WAITING PERIOD with every insurance company.

In this article, we will discuss what burial insurance options you have if you are diagnosed or being treated for dementia.

FOR EASIER NAVIGATION:

WHAT IS MY BEST INSURANCE OPTION IF I HAVE A HISTORY OF DEMENTIA?

If you or a loved one is ever diagnosed, received or been advised to receive treatment or medication for dementia there is only one insurance option for insurance coverage.

Best Option: Guaranteed issue burial insurance with no health questions

Your approval is guaranteed regardless of your dementia medical condition if you are within the age requirement.

Guaranteed acceptance burial insurance has the first-day coverage for the accidental cause of death.

It also comes with a two-year waiting period for health or medical cause of death. If you pass away during the waiting period, the insurance company will only refund your premiums plus 7-10% interest.


WHY DO YOU NEED GUARANTEED ISSUE BURIAL INSURANCE IF YOU HAVE DEMENTIA?

People with dementia will not qualify for traditional life insurance with first-day coverage.

Only guaranteed issue life insurance will provide insurance coverage for people with this condition. If you were just diagnosed with dementia or in the early stage of dementia we recommend you get a guaranteed issue life insurance.

Ideally, shopping for life insurance must be done before you are diagnosed with dementia.

Unless you have substantial savings or another policy to pass along to your family, it is a wise financial move to apply for guaranteed life insurance protection now.

The sooner you get coverage, the better because of the two-year waiting period.

The sooner you begin working through the waiting period, the sooner you will be fully covered. Additionally, your monthly premium is based on your current age and you will save on premium if you apply now at your current younger age.

Coverage requirements and policy limitations vary from company to company; this is why it is essential to work with an independent agent that can walk you through the whole process.


WHAT TYPES OF BURIAL INSURANCE SHOULD I AVOID?

PLANS TO AVOIDWHY?
Term lifePremiums increase after 5 years. Coverage ends after 80.
Pre-paid funeral plansExpensive
Universal lifeTied with stocks
No health questions policiesWith 2-year waiting period
Plans offering "teaser rates"$9.95 per unit plans or $1 buys $100,000 coverage
Over priced plansInsurance from TV and junk mail
Plans that accept mail-in paymentsRisky
Plans that accept Direct ExpressHigh lapse rate
Plans that accept Credit CardsHigh lapse rate


WHAT TYPE OF BURIAL INSURANCE IS BEST?

FUNERAL FUNDS PLAN BENEFITSINCLUDED
1st Day CoverageYES
Rates NEVER IncreaseYES
Coverage NEVER DecreasesYES
Easy to get approvedYES
No Medical ExamYES
Same Day ApprovalYES
Death Claims Pay FastYES
Builds cash valueYES
Coverage Up To Age 121 YES

IF I HAVE DEMENTIA, DO I NEED A MEDICAL EXAM TO QUALIFY FOR BURIAL INSURANCE?

You are NOT required to take a medical exam to qualify for burial insurance with dementia.

When you apply for burial insurance, you only have to answer some basic questions about your health. The application process is simple, and you don’t need to provide medical records or blood and urine samples.

You’ll get the official approval from the insurance company often within minutes!


BURIAL INSURANCE UNDERWRITING IF YOU HAVE DEMENTIA

Burial insurance companies have two ways of underwriting:

FIRST – They may ask you a series of health questions. Your answers to their questions will determine your eligibility.

SECOND – They will electronically review your prescription history to verify your health.


HEALTH QUESTIONS:

Burial insurance companies with underwriting ask about dementia on the health questionnaire.

Types of dementia and other disorders linked to dementia the insurance companies want to know about:

Progressive Dementia:

  • Alzheimer’s disease
  • Vascular dementia
  • Lewy body dementia
  • Frontotemporal dementia
  • Mixed dementia

Other disorders linked to Dementia:


You will typically see dementia question asked this way:

  • During the past 24 months have you been diagnosed by a physician as having, or been treated for dementia, Alzheimer’s disease, or mental incapacity?
  • Have you ever been diagnosed treated or taken medication for Alzheimer’s disease, dementia, or schizophrenia?
  • Have you ever been diagnosed with, or received or been advised to receive treatment or medication for Alzheimer’s disease or dementia, or been prescribed: Aricept, Cognex, Donepezil, Exelon, Razadyne, or Namenda?

If you say “yes,” the insurance company will decline your first-day coverage dementia life insurance coverage application.


PRESCRIPTION HISTORY CHECK

There are some dementia medications they are on the lookout for. Filling a prescription for any of these drugs will put you on the applicant with the dementia category.

Here’s a list of common dementia drugs:

  • Acetyl L-Carnitine
  • Aricept
  • Cognex
  • Donepezil
  • Ergoloid Mesylates
  • Exelon
  • Galantamine
  • Hydergine
  • Namenda
  • Namzaric
  • Razadyne
  • Reminyl
  • Rivastigmine Tartrate

The presence of these drugs on your prescription history check will confirm that you have dementia, and this will override your “no” answer to the health questions of the application.


HOW MUCH INSURANCE DO I NEED IF I HAVE DEMENTIA?

The amount of burial insurance you should buy varies depending on your personal and financial circumstances. However, burial insurance should cover the cost of your funeral, burial, and final expenses.

The first step to figuring out how much burial insurance you need is to know your end-of-life expenses. Your funeral cost is often the biggest single expense you need to pay. Other end-of-life expenses to consider are your outstanding medical bills, living expenses, credit card bills, and other debts.

Here’s an example of a funeral cost breakdown from the National Funeral Directors Association.

AVERAGE FUNERAL COST WITH VIEWING AND BURIAL 
Non-declinable basic$2,195
Removal/ transfer of remains to funeral home$350
Embalming & preparation of the body$1,005
Use of facilities for viewing & funeral ceremony$925
Hearse$340
Service car/van$150
Basic memorial printed package$175
Metal casket$2,500
Vault$1,495
Median Cost of a Funeral With Viewing and Burial$9,135
AVERAGE FUNERAL COST WITH VIEWING AND CREMATION 
Non-declinable basic services fee$2,195
Removal/ transfer of remains to funeral home$350
Embalming & preparation of the body$1,005
Use of facilities for viewing & funeral ceremony$925
Service car/van$150
Basic memorial printed package$175
Cremation fee (if firm uses a third-party crematory)$350
Median Cost of a Funeral with Viewing and Cremation$5,150
Cremation Casket$1,200
Rental Casket$995
Alternate Cremation Container$150
Urn$295


HOW SHOULD I PAY MY PREMIUMS?

The best way to pay your premium is through a savings or checking account. We recommend you set a bank draft from your savings or checking account. That way, the bank will automatically pay your premium each month and you don’t need to worry about your policy lapsing due to non-payment.

PAYMENT METHODRECOMMENDED?
Savings AccountBest way to pay
Checking AccountBest way to pay
CashNot recommended
Money OrderNot recommended
Cashier's CheckNot recommended
Debit CardNot recommended
Credit CardNot recommended
Direct ExpressNot recommended
PAYMENT FREQUENCYRECOMMENDEDACCEPTED BY
MonthlyRecommendedAll Companies
QuarterlyNot RecommendedSome Companies
Semi-annuallyNot RecommendedSome Companies
AnnuallyNot RecommendedSome Companies


DEMENTIA AND BURIAL INSURANCE RIDERS

Insurance policy riders add benefits to your policy. Adding insurance riders will enhance your policy to fit your needs. Some riders are built into your policy, while other riders can be added at an additional cost. Most riders are affordable, and it involves little to no underwriting.

Here’s a list of common burial insurance riders:

FUNERAL FUNDS ADD-ONSAVAILABILITY
Terminal Illness Add-On BenefitIncluded with most plans
Nursing Home Care Add-On BenefitIncluded with most plans


HOW TO OBTAIN BURIAL INSURANCE WITH DEMENTIA

People with dementia can get guaranteed issue life insurance plans.

Guaranteed issue life insurance companies do not care how mild or severe your cognition loss due to dementia because you will be covered with no health questions asked. This policy is intended for people with pre-existing high-risk conditions like dementia. You can get approved for coverage regardless of your medical condition.

Who qualifies for a Guaranteed Issue life insurance?

  • You must be a U.S. citizen.
  • You must reside in the state where the product is available.
  • You must be between the ages of 40-85
  • You must have a mental ability to enter into a legal contract.

The minimum age requirement to obtain burial insurance with dementia is 50, but we know the companies that provide coverage to persons as young as 40 or 45. If you are a U.S. citizen and live in the state where these policies are sold and fall within the required age requirement, you will qualify for this policy.

Guaranteed life insurance is whole life insurance, and it is usually graded during the first two years for natural death. Each company that offers this policy will require a two-year waiting period. No insurance company pays out death benefits for the first two years if you have dementia.

If you pass away from illness as a consequence of your dementia, the company will pay your beneficiary all the premiums you paid on the policy plus 7-10% interest. After the two-year waiting period, the policy will pay 100% of the death benefit for death of any reason.

Guaranteed issue policies usually pay 100% of the death benefit from day one if you die from an accident.


BENEFITS OF BURIAL & FUNERAL INSURANCE

Here are some of the benefits of purchasing a burial or funeral policy:

  • No medical exam or doctor’s visit required – easy to get approved.
  • Ease of issue – easy to qualify and get insurance coverage.
  • No Money Down to get approved – have your policy start whenever you want.
  • Level premium – your premium will never increase.
  • Fixed death benefit – your death benefit will never decrease for any reason.
  • Permanent protection – your policy can not be canceled by the life insurance company as long as you continue to pay your premiums.
  • Tax-free – the death benefit is directly paid to your beneficiary tax-free upon your death
  • Cash value builds up – burial insurance is a whole life policy that builds cash value over time.


OTHER COMMON USES FOR FINAL EXPENSE LIFE INSURANCE WITH DEMENTIA

All of these examples are appropriate uses for Final Expense Life Insurance:

  • Burial insurance plan with dementia
  • Cremation insurance plan with dementia
  • Funeral home insurance plan with dementia
  • Final Expense insurance plan with dementia
  • Prepaid funeral plan insurance with dementia
  • Mortgage payment protection plan with dementia
  • Mortgage payoff life insurance plan with dementia
  • Deceased spouse’s income replacement plan with dementia
  • Legacy insurance gift plan to family or loved ones with dementia
  • Medical or doctor bill life insurance plan with dementia

We can help you with any of the plans above. Your pricing will depend on your age, health, and coverage amount for each program option.


HOW CAN FUNERAL FUNDS HELP ME?

To find the best burial insurance with dementia, you need to work with an experienced independent life insurance agency like Funeral Funds that represents many insurance companies.

Funeral Funds is experienced in life insurance for people with cognitive issues like dementia. By working with an independent agency that specializes in burial insurance coverage with dementia, you increase your chances of finding the most affordable plan.

Beware of inexperienced and less knowledgeable insurance agents because they will cost you a lot of money by selling you overpriced burial insurance policies.

Getting affordable burial insurance with dementia doesn’t have to cost you an arm and a leg.

My job at Funeral Funds is to be the most knowledgeable burial insurance expert you can trust. Once I learn about your age and health history, I can give an accurate quote from burial insurance companies that offer the best premium.

I will assist you in securing the coverage you need at a rate you can afford. Fill out the quote form on this page or call us at (888) 862-9456 if you want to know your options.

Funeral Insurance, Final Expense Insurance, Burial Insurance With Dementia Infographics

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