How to get burial insurance for terminally ill patients? You might ask if you just found out you have a terminal illness and wondering if you could still buy burial insurance to protect your family from debt. Yes, you can get burial insurance even if you’re diagnosed with a terminal illness. However, you need to be aware that your options are very limited.
Since you can’t buy traditional life insurance plans where you need to go through a medical exam and rigorous underwriting that you can’t qualify, the best option for you is a guaranteed issue life insurance which you can purchase with no health questions or medical exam.
Guaranteed issue burial insurance doesn’t require you take and medical examination or physical screening at all. It is guaranteed acceptance which means you can be accepted regardless of your health or current situation. Once you apply, you will get approval right away.
Guaranteed acceptance policies are common nowadays, especially among terminally ill patients. In fact, many of the top-rated life insurance companies offer this coverage. If you have a terminal illness, then you may need to find affordable burial insurance by comparing the premium rate and choosing the right amount of coverage.
Funeral Funds work with many A-rated life insurance companies and we can help you get quotes from different carriers. This way, you will be able to compare prices and get the one that best suits your budget.
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WHAT IS A TERMINAL ILLNESS?
Depending on their condition, people may live with a terminal illness for days, weeks, months or even years. A qualified doctor can attest that the disease can lead to death within six to 12 months.
Here are the most common types of terminal illness:
- Advanced cancer
- Amyotrophic lateral sclerosis (ALS)
- Chronic lung problems
- Cystic Fibrosis
- Dementia and Alzheimer’s disease
- Heart disease such as severe coronary artery disease
- HIV/ AIDS
- End-stage renal failure
- Muscular Dystrophy
- Parkinson’s disease
There are other terminal illnesses, but these are considered the most common in the U.S.
If you are diagnosed with a terminal illness, you will need to face a number of decisions:
- What type of care do you need?
- Where should you seek palliative care?
- How should you manage your finances?
- What type of funeral services do you want?
IS CANCER CONSIDERED A TERMINAL ILLNESS?
Cancer in itself is not considered a terminal illness. Cancer can be treated in many cases, but can also be terminal in others. Cancer as a terminal illness depends on the type of cancer and the stage it is in when first diagnosed.
For example, melanoma or skin cancer has a high mortality rate when it afflicts a person. 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 cancers are highly treatable, and patients can experience complete remission. But, late-stage cancer is a terminal illness that may progress quickly and the period of time between diagnosis and death may be from a few weeks to a few months.
BURIAL INSURANCE FOR TERMINALLY ILL PATIENTS
Now that you have been diagnosed with a terminal illness, you need to figure out how to protect your loved ones and family financially when you die. If you are not in a financially secure position or don’t have the money to leave them, it is best to have life insurance in place.
Can a sick person get life insurance? Life insurance with pre existing conditions is possible. Burial insurance is designed to cover the cost of a funeral and other final expenses. It can provide your family with the funds needed to cover your burial expenses. This coverage is essential since the average funeral can cost more than $10,000.
There is no specific insurance policy designed for terminally ill patients or life insurance for hospice patients but there is a life insurance policy that you can be eligible as a terminally ill patient, it’s called a guaranteed acceptance or guaranteed issue life insurance policy.
Guaranteed acceptance life insurance is a great relief to people who can’t get traditional life insurance coverage because of age, medical history, or other issues. Applications don’t require you to take medical exams, or even detailed questionnaires and approval is guaranteed.
Guaranteed life insurance policy is intended for people who can’t qualify for a term or whole life insurance due to terminal illness or higher risk factors and is usually considered as a last resort. No medical exam is necessary for a guaranteed acceptance policy. The only condition to be eligible is that you are between 50 and 80 years old and you are a U.S. citizen.
Whole life insurance does not have a specific period of coverage. You can own the policy for the rest of your life, as long as you pay the premiums on time. Once your coverage begins, the company cannot cancel your policy as long as you pay the premium.
There is a leveled premium with a whole life policy. The amount you pay when you start your coverage is the same amount that you’ll pay throughout the life of your policy. The only time your premiums will change is if you decide to increase your death benefit or the frequency of your payments.
Whole life insurance policy has a “cash value” component. Cash value is money that is set aside by the insurance company for your policy, which can be accessed if you need it. The cash value is permitted to grow on your account on a tax-deferred basis. The longer you own your whole life policy, the more cash value you have in your policy.
HOW MUCH CAN I GET FROM A GUARANTEED ACCEPTANCE POLICY?
There is a wide range of guaranteed acceptance coverage option starting from $1,000 to a maximum of $25,000. Your death benefit is fixed and it will never decrease for any reason. This death benefit is not subject to Federal tax if paid to your beneficiary.
With guaranteed acceptance, you won’t get the amount commonly offered with traditional insurance policies. That means you will not get paid for lost wages, mortgage protection, and other benefits. You will only get enough money to cover the cost of your final expenses.
Qualifying for guaranteed acceptance life insurance is effortless. Due to no medical exam and ease of application, the premium that is charged will be higher than the traditionally underwritten and non-medical policies. It is due to the risk that the life insurance company is taking with you.
We highly recommend that you compare premiums from several insurance companies before deciding to purchase, as premiums among insurance carriers can differ significantly.
The only drawback to a guaranteed acceptance policy is that it comes with a graded death benefit limitation.
WHAT IS A GRADED DEATH BENEFIT?
A graded death benefit is something every guaranteed acceptance provider includes to protect them from having to pay large sums to people on their death bed – and who will not be paying much into their life insurance policy.
A graded death benefit means there is a two-year waiting period after the policy is issued. 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.
For example, you’re a 65-year-old female, and you pay $1,000 per year for a $25,000 guaranteed acceptance policy. If you have breast cancer and you may not live for another two years. If you live a year, your beneficiary will get $1,100. If you live for over two years, your family will get $25,000.
WHAT IF I OUTLIVED THE GRADED DEATH BENEFIT?
If you’re given one year to live but you outlived it and lived for two years, and one month then your family will receive the full death benefit that you’ve signed up for as long as you live past the graded death benefit period.
After the two-year graded period, if you die for any reason, the full face amount of the policy will be paid to your beneficiary. If you die by suicide within two years after you bought the policy, the only amount payable to your beneficiary will be the premiums paid for the policy plus 7% – 10%, less any debt against the policy.
SHOULD I GET A GUARANTEED ACCEPTANCE LIFE INSURANCE WHEN I’M TERMINALLY ILL?
Guaranteed acceptance policy can be considered as a type of investment or a savings account. It makes more financial sense because it has minimal risk since you’re not losing any money. If you live less than the two-year waiting period, your beneficiaries will receive the amount that you paid into the policy plus 7 to 10% interest.
If you outlive the waiting period even by a single day, then your beneficiary will get the full death benefit from the life insurance company. While your family may not receive a significant amount of cash from the policy, it will be enough to cover the funeral cost.
Having a life insurance policy to cover the cost of a funeral, as well as any other debts and medical bills that you may have, can be the best gift you can leave to your loved ones.
Ensuring that your family won’t struggle financially when you die can offer peace of mind to all and your guaranteed acceptance policy can provide all that.
BENEFITS OF GUARANTEED ACCEPTANCE LIFE INSURANCE
Ease of issue. Easy to qualify and get insurance coverage. You can secure a policy without a medical exam or health questions. All you need to do is fill out a 10-minute application, and you’re done!
Level premium. Your premium will never increase. It is lock into a rate at your current age, and the price will never go up regardless of advancing age or medical conditions.
Fixed death benefit. Your death benefit is fixed and guaranteed to never decrease for any reason.
Tax-free. The death benefit is given to your beneficiary tax-free.
Not cancelable. Your policy can never be canceled by the life insurance company as long as premium payments are made on time.
You can get a much smaller amount of coverage. Burial insurance can range from $1,000 to $25,000 some burial insurance companies offer up to a maximum of $50,000 in coverage.
Cash value builds up. Burial insurance is whole life policies that build cash value over time. The longer you have the policy, the higher your cash value that you can borrow against.
WHERE TO FIND THE BEST BURIAL INSURANCE FOR TERMINALLY ILL PATIENTS
Don’t let your doubt get in the way of buying life insurance because it isn’t impossible even when you’re diagnosed with a terminal illness. You still have insurance options as a terminally ill patient. You can purchase a guaranteed acceptance policy as burial insurance or a final expense policy.
It is essential for you to find the best life insurance company that fits your needs and budget. We recommend that you work with an independent insurance company like Funeral Funds who specialize in a high-risk client like yourself.
Funeral Funds work with many top-rated companies, and we know the life insurance companies that specialize in terminal illness.
We will shop the market for the best quotes until we match you with an insurance company that specializes in your condition. We will continue searching until we find the best life insurance company that fit your medical condition.
If you are in need of life insurance coverage and you want to compare premium prices, fill in the instant quote on this page.
We can get you different rates from different insurance companies across the nation. We can help you compare different quotes and policies at once. We can help you save both time and money on your insurance plan. What are you waiting for? Call us at (888)862-9456, and we will be happy to help you.