2024 Burial Insurance for Terminally Ill Patients

If you’re looking for burial insurance for terminally ill patients, you need to be aware that your burial, cremation, final expense, and life insurance options are limited.

!!! IMPORTANT – READ THIS & WATCH VIDEO !!!

We DO NOT offer insurance plans for anyone with a terminal illness.

Terminal illness policy shoppers can only qualify for a policy with a 2-year waiting period, which we DO NOT recommend.

In this article, we will explain who should buy burial insurance, and the options you have if you are a terminally ill patient.

FOR EASIER NAVIGATION:

• What Is My Best Insurance Option If I’m a Terminally Ill Patient?
• Why We Don’t Recommend Guaranteed Issue Burial Insurance for Terminally Ill Patients?
• What Types of Burial Insurance Should I Avoid?
• What Type of Burial Insurance Is Best?
• If I Have Terminal Illness, Do I Need a Medical Exam to Qualify for Burial Insurance?
• Burial Insurance Underwriting If You’re a Terminally Ill Patient
• How Much Insurance Do I Need If I’m a Terminally Ill Patient?
• How Should I Pay My Premiums?
• Terminally Ill Patients and Burial Insurance Riders
• Non-Burial Insurance Options for Terminally Ill Patients
• Benefits of Burial & Funeral Insurance
• Other Common Uses for Final Expense Life Insurance for Terminally Ill Patients
• When Is the Best Time to Buy Burial Insurance?
• How Can Funeral Funds Help Me?

What Is My Best Insurance Option If I’m A Terminally Ill Patient?

A terminal illness is a progressive disease that expects to end a person’s life within 12-24 months because the disease has no known cure or has progressed to the point where it can’t be cured.

If you’re a terminally ill patient, your only option for insurance coverage is a guaranteed issue burial insurance with a two-year waiting period.

Guaranteed acceptance life insurance policies require no medical exams or health questions, so people with poor health are approved for coverage. However, this plan is expensive, and you must live for the next two years before getting full coverage.

Best Option: Guaranteed issue burial insurance

Here are the most common types of terminal illness the insurance companies care about:

• Advanced cancer
• Amyotrophic lateral sclerosis (ALS)
• Chronic lung problems
• Cystic Fibrosis
• Dementia and Alzheimer’s disease
• Heart diseases such as severe coronary artery disease
• HIV/ AIDS
• End-stage renal failure
• Muscular Dystrophy
• Scleroderma
• Parkinson’s disease

There are other terminal illnesses, but these are considered the most common in the U.S.

IS CANCER CONSIDERED A TERMINAL ILLNESS?

Cancer in itself is not considered a terminal illness. Cancer can be treated in many cases but also terminal in others. Cancer as a terminal illness depends on the type of cancer and its stage when first diagnosed.

For example, melanoma or skin cancer has a high mortality rate after being diagnosed. However, as long as cancer remains on top of the skin, it is highly curable and not considered terminal. Moreover, cancer in its early stage is also considered highly curable when treated.

Many forms of cancer are highly treatable, and patients can experience complete remission. But, late-stage cancer is a terminal condition that may progress quickly, and the period of time between diagnosis and death may be from a few weeks to a few months.

Why We Don’t Recommend Guaranteed Issue Burial Insurance For Terminally Ill Patients?

1. 2-Year Waiting Period

The #1 reason why I don’t recommend guaranteed issue life insurance for a terminal illness is the waiting period. This plan does not offer immediate coverage except for accidental death during the first two years.

When you take out this plan, you will automatically be approved for coverage with no questions. Your plan will also have a mandatory two-year waiting period for any health or medical-related cause of death.

The two-year waiting period is a financial safety net for the insurance company. It is their way of protecting themselves from paying a lot of money to people who are literally on their deathbeds and trying to buy life insurance.

This policy will require you to live for the first two years before your policy pays for any health or medical-related cause of death. If you pass away during the waiting period, your beneficiary will not get your full death benefit. Instead, they will get a Return Of Premium (ROP) plus interest (usually 7-10%)

If death occurs for natural causes within the first two policy years, your beneficiary will only receive all premiums plus 7% – 10% interest. If death is due to accidental reasons within the first two policy years, the full death benefit shall be paid to your beneficiary.

2. More Expensive

Dollar for dollar, a guaranteed issue life insurance is up to two to three times more expensive than life insurance with medical underwriting. You will pay more on your policy because of the additional risk the life insurance company takes for approving your policy without asking any medical questions.

3. Limited Death Benefit Option

Guaranteed issue life insurance coverage maxes out at $25,000. That’s the highest coverage you can buy. If you’re planning to buy a life insurance policy to pay off your mortgage or pay for your children’s college education, this plan will not work for you.

What Types Of Burial Insurance Should I Avoid?

PLANS TO AVOID	WHY?
Term life	Premiums increase after 5 years. Coverage ends after 80.
Pre-paid funeral plans	Expensive
Universal life	Tied with stocks
No health questions policies	With 2-year waiting period
Plans offering "teaser rates"	$9.95 per unit plans or $1 buys $100,000 coverage
Over priced plans	Insurance from TV and junk mail
Plans that accept mail-in payments	Risky
Plans that accept Direct Express	High lapse rate
Plans that accept Credit Cards	High lapse rate

What Type Of Burial Insurance Is Best?

FUNERAL FUNDS PLAN BENEFITS	INCLUDED
1st Day Coverage	YES
Rates NEVER Increase	YES
Coverage NEVER Decreases	YES
Easy to get approved	YES
No Medical Exam	YES
Same Day Approval	YES
Death Claims Pay Fast	YES
Builds cash value	YES
Coverage Up To Age 121	YES

If I Have Terminal Illness, 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 for terminally ill patients.

When you apply for burial insurance, you only have to answer basic questions about your health. The application process is simple; 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’re A Terminally Ill Patient

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:

• During the past 18 months have you been diagnosed or treated as having a condition expected to result in death within 12 months?
• Have you been diagnosed with, received, or been advised to receive treatment, medication, or any terminal illness or end-stage disease?
• Have you had or been advised or been diagnosed as having a terminal illness or an illness that would reasonably be expected to cause death within 12 months?

Every life insurance company asks about terminal illness on the health questionnaire. If you answer “yes” to the terminal illness question, your application for a first-day coverage plan will be declined.

If you have a terminal illness, you will only qualify for a no health questions guaranteed issue burial insurance.

How Much Insurance Do I Need If I’m A Terminally Ill Patient?

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 services	$2,300
Removal/ transfer of remains to funeral home	$350
Embalming & preparation of the body	$1,050
Use of facilities for viewing & funeral ceremony	$965
Hearse	$325
Service car/van	$150
Basic memorial printed package	$183
Metal casket	$2,500
Vault	$1,572
Median Cost of a Funeral With Viewing and Burial	$9,420

AVERAGE FUNERAL COST WITH VIEWING AND CREMATION
Non-declinable basic services fee	$2,300
Removal/ transfer of remains to funeral home	$350
Embalming & preparation of the body	$1,050
Use of facilities for viewing & funeral ceremony	$965
Service car/van	$150
Basic memorial printed package	$183
Cremation fee (if firm uses a third-party crematory)	$368
Cremation Casket	$1,310
Urn	$295
Median Cost of a Funeral with Viewing and Cremation	$6,970
Rental Casket	$995
Alternate Cremation Container	$150

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.

Terminally Ill Patients 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 others 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-ONS	AVAILABILITY
Terminal Illness Add-On Benefit	Included with most plans
Nursing Home Care Add-On Benefit	Included with most plans

Non-burial Insurance Options For Terminally Ill Patients

Insurance is about risk management; insurance companies see terminal illness life insurance as a poor business decision.

If you have a terminal illness that prevents you from qualifying for insurance, you have three other options.

1. Prepaid Funeral Plan

You can pay for your funeral and burial in advance. You have the option to buy a prepaid funeral plan and make arrangements before your death.

When you sign up for a prepaid funeral plan, you don’t need a burial insurance policy to cover your final expenses.

Be warned! Funeral and final expenses are not cheap. If you choose this option, be prepared to pay between $8,000 and $15,000.

Prepaid plans are not great options for people with terminal illnesses because they must be paid off for your funeral.

2. Savings Accounts

Instead of buying burial insurance, you can open a savings or joint savings account to deposit money to take care of your final expenses.

When you die, your family can immediately access the funds from this account to pay for your funeral, burial, and other costs associated with your death.

Savings accounts are not a great option for people with terminal illnesses since most people we help have fixed or limited incomes and don’t have $8,000 to $15,000 in their savings accounts.

3. Payable on Death Account (Totten Trust)

Opening a Payable On Death (POD) account is your other option if you can’t get life insurance. POD allows you to name a beneficiary on your bank account.

The funds on your account can be used for your funeral. Your beneficiary can immediately access the funds to pay for your funeral expenses upon death.

Since most people ages 50-85 are on fixed or limited incomes, starting a POD account is difficult, if not impossible, for the people I help daily.

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 if 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 For Terminally Ill Patients

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

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

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.

When Is The Best Time To Buy Burial Insurance?

The best time to get life insurance is before you are sick or ill, as your health is a determining factor for insurability from first-day coverage companies.

If you’re considering getting burial insurance, do it NOW before it’s too late! Do it now while you can still lock in the lowest pricing!

To get the lowest price on life insurance, buy it when you are younger rather than when older. The older you are, the more expensive your premium will be.

Buy it when you are healthier rather than with significant health problems. The healthier you are, the lower your premiums will be.

How Can Funeral Funds Help Me?

Trying to find life insurance when you or a loved one has a terminal illness is a losing proposition. Chances are you just waited too long to take care of something you knew would happen someday. 

Suppose you are a family member shopping for insurance for a terminally ill patient. In that case, we highly recommend you get burial insurance for yourself before it’s too late, and we would love for Funeral Funds to be the one who helps you.

If you’re 50-85 years old and looking to buy burial insurance, working with an independent agency like Funeral Funds will make the application and approval process easy and affordable.

You don’t have to waste your precious time searching for multiple insurance companies because my agents or we will do the work for you.

We will shop 20-30 different insurance carriers to get you the best price. We will search for those companies and match you with the best burial insurance company that gives the best rate.

Fill out our quote form on this page, or call us at (888) 862-9456 to get an accurate quote.

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