Burial Insurance for Nursing Home Residents


I often get calls asking if burial insurance for nursing home residents is possible for their loved ones. Sad to say, people in the nursing home are considered high risk and uninsurable by insurance companies that offer immediate coverage. The last thing the company wants is to approve them for life insurance, then only weeks or months later, they have to pay out the full death benefit.

Being confined in a nursing home disqualify you from getting burial insurance with first-day coverage because every insurance company asks about nursing home confinement in their insurance questionnaire.

If you are in a nursing home, getting a no-questions-asked guaranteed issue, life insurance is your only option. However, I don’t recommend it for nursing home residents.

This article will discuss who should buy guaranteed issue life insurance and why I don’t recommend it for nursing home residents. I will also inform you about the non-burial insurance options open for you.



Burial insurance is also called cremation insurance, funeral insurance, or final expense insurance (you will see them used interchangeably throughout this article). Burial insurance is small whole life insurance designed to provide funds to pay for funeral and final expenses.

Burial insurance is available to people age 50 to 85 years old. You can $2,000 up to $25,000 worth of coverage. You should buy burial insurance before nursing home confinement, not after, because you will not be able to qualify for the best plan if you are in a nursing home.

Final expense, funeral, or burial insurance is ideal for people who have a limited income because they can easily fit it into their budget. People who have moderate to poor health can easily qualify for burial insurance. Burial insurance does not require a medical exam or doctor’s visit to qualify. You only need to answer a few health questions (nursing home confinement is one of them) to get the best plan.

There are two types of burial insurance:

Simplified Issue Life Insurance – this is the best burial insurance because it offers first-day coverage. To qualify, you need to answer a few health questions. The major benefit of simplified issue burial insurance is immediate coverage; it does not have a waiting period. It also cost less than a guaranteed issue life insurance.

Simplified issue life insurance is not available to nursing home residents because every life insurance company offering this plan asks for nursing home confinement in their health questionnaire. Nursing home confinement is a cause for disapproval as well as some pre-existing conditions and participating in risky activities.

Guaranteed Issue Life Insurance – this policy is also called no-questions-asked burial insurance. Your approval is guaranteed regardless of your medical conditions. This is the best option for people who have a serious health issue that cannot qualify for life insurance.

Guaranteed issue life insurance would seem ideal for nursing home residents because they ask no health questions, but there is a catch this plan has a mandatory 2-year waiting period before it pays a death benefit for the natural cause of death. This 2-year waiting period makes guaranteed issue burial insurance a terrible choice for nursing home residents.

Some insurance companies have a three or four-year waiting period before they pay the death benefit. If an insurance agent offers you this type of plan, put the phone down immediately!

Here’s why.

You should not wait that long for your policy to start. Insurance policies with three and four-year waiting periods are the most terrible policies you could ever buy. If you recently purchased one of these policies, replace it immediately to get a better plan with lower pricing.

Guaranteed issue life insurance will only pay from the first day if you die from accidental reasons. Death resulting from slips and falls, trips, car accidents, or any other accidental causes are 100% covered from the first day.

If you die for any health reason during the waiting period, the insurance company will only refund your premiums plus 5-10% interest. Your beneficiary will only receive your 100% death benefit after the waiting period has passed.


If you are thinking of buying burial insurance for nursing home residents, I’m sorry, but you are out of luck – you’ve waited too long to get the best insurance that offers first-day coverage.

It breaks my heart that I can’t help family members looking for burial insurance for their loved ones in a nursing home. The best time to buy any insurance product is before its needed, before nursing home confinement.

Buying burial insurance for nursing home residents is like wrecking your car today without automobile insurance. No insurance company would sign you up tomorrow after you wrecked your car. It’s like asking them to pay your beneficiary $25,000 after making just one payment. They will not take that risk because it will drive them to bankruptcy

The same thing applies to burial insurance. No insurance company will sell you first-day coverage if you are in a nursing home with a short life expectancy.

Guaranteed issue burial insurance is available without health questions, but you need to live for the first two years, which makes it a terrible plan for people in the nursing home with a short time to live.

Funeral Insurance, Final Expense Insurance, Burial Insurance For Nursing Home Infographics


If you are in a nursing home because of a terminal illness, buying guaranteed issue life insurance will not help your family much at all. 

Here are the reasons why I don’t recommend guaranteed acceptance life insurance for nursing home residents:

2-year Waiting Period

The number one reason I don’t recommend guaranteed life insurance for nursing home residents is the two-year waiting period.

Your beneficiary will not receive your full death benefit if you die during the waiting period. 

Guaranteed acceptance policies only offer immediate coverage for the accidental cause of death. It will not pay a full death benefit if you die from a natural cause or health-related cause of death. This reason makes these policies a terrible choice for nursing home residents with a shorter life expectancy.

The two-year waiting period is the insurance companies safety net against people who are literally on their deathbed trying to buy burial insurance. 

Premiums Are Expensive

Guaranteed issue no-questions-asked life insurance is the most expensive life insurance policy. It is two to three times more expensive than simplified issue life insurance that asks health questions. The high premiums are because of the higher risk insurance companies take for approving coverage without asking any health questions.

Limited Death Benefit Option

Guaranteed issue burial insurance coverage is only available in small amounts, often between $2,000 and $25,000. This plan is only designed to cover final expenses such as medical bills, small debts, and end-of-life expenses. If you want to pay your mortgage or leave money for your children’s education, you need to buy multiple policies, which I don’t recommend because it will cause you an arm and a leg.


I always try to help people qualify for first-day coverage. The last time I looked at my sales numbers, 82% of the people I helped qualify for first-day coverage.

I only sell guaranteed issue life insurance under these circumstances:

  • The applicant has a life expectancy of two years or longer.
  • The applicant has medical conditions that make them uninsurable for traditional life insurance.
  • When the guaranteed issue is the most affordable policy because of their health.
  • When applicants insist on no-health-questions asked life insurance application.

Guaranteed issue life insurance can provide essential insurance coverage to some people who need insurance but don’t have other options.

If you have any of these conditions, buying guaranteed issue burial insurance is often your best option:

  • COPD with 24 hours a day oxygen use
  • A heart attack, heart surgery, or stroke in the last 24 months
  • Renal failure, on dialysis because of end-stage kidney disease
  • Organ or tissue transplant
  • Alzheimer’s disease
  • Cancer diagnosis or treatment in the previous 24 months
  • AIDS
  • Amputation due to disease
  • Wheelchair use because of chronic illness
  • Needing help with activities of daily living (eating, bathing, dressing, toileting, transferring and continence)

These medical conditions are considered high-risk because they generally reduce the amount of time you will live. If you have any of these conditions, you will get an automatic decline if you’ve been diagnosed or treated for these conditions in the last two years.

Having any of these conditions only qualifies you for guaranteed issue burial insurance because it does not ask any health questions, and your approval is guaranteed.

I will only offer guaranteed issue life insurance if you do not qualify for first-day coverage. The main reason I recommend no-questions-asked guaranteed insurance for some people is when they can’t qualify for anything else.

Guaranteed issue life insurance is not a poor choice for insurance if you have a high-risk medical condition. You will need to wait for two-years before your coverage is in full effect, but most people that I helped survive past the waiting period.

Once you live past the first two years, the insurance company will pay your full death benefit if you die for any reason. Your premium will never increase, and your policy can never be canceled (even if your health worsens).

Guaranteed issue life insurance should be your last option. Don’t settle for a plan with a two-year waiting period if you are in good health or with some minor health issues that qualify for first-day coverage.

Call us at (888) 862-9456 to know your options, and we will let you know if you can qualify for first-day coverage.


If you are in a nursing home and cannot qualify for life insurance, here are your options to cover your funeral and final expenses:

Prepaid Funeral Plan

You can take care of your funeral arrangements in advance. Instead of buying burial insurance, you can buy a prepaid funeral plan from your nearest funeral home to cover your funeral and burial expenses. 

A word of warning. A prepaid funeral plan is not cheap. Be ready to pay between $8,000 and $15,000 to cover for your final wishes. You may need to come up with the money immediately if you choose to buy a prepaid funeral plan because you need to pay the plan in full. 

Savings Accounts

Opening a savings account or joint savings account where you can deposit money to take care of your final expenses is your other option if you can’t qualify for burial insurance.

The amount you need to deposit in your account must be between $8,000 to $15,000, so it could be sufficient to cover your final expenses.

When you pass away, your loved ones can immediately access your savings account to pay all the expenses associated with your death.

Payable on Death Account (Totten Trust)

If you don’t have burial insurance, you can opt to open a Payable On Death (POD) account or Totten Trust. POD allows you to name a beneficiary on your bank account. Your beneficiary can access the funds on your account upon your death to pay for your final expenses.


You should buy burial insurance NOW! Do not wait until you are a nursing home resident before you decide to make a purchase. That’s too late because you can no longer qualify for the best plan.

If you have a loved one in a nursing home, learn from their mistake, and buy burial insurance now while you can still qualify for coverage. You have the first-hand experience that waiting to buy burial insurance will create a financial burden on your family.

Waiting to buy burial insurance when you are in a nursing home is what poor financial planners do. We all know we are going to die someday, so don’t wait until its too late to get insurance coverage.

The best time to buy burial insurance is now! The younger you buy, the lower your rates. The healthier you are, the lower your premiums will be.


You should only buy burial insurance from an independent insurance agency like Funeral Funds. Save yourself the effort of calling multiple insurance companies by working with us. My agents and I can shop over 30 insurance companies and compare prices to get you the best plan with the best rate.

I will assist you in securing the insurance coverage you need at a rate you can afford.

Answer the quote the form on this page, and I will provide you with an accurate quote. Then, I will show you the plan with the most benefits at the lowest price. You can also call me at (888) 862-9456 if you have any questions regarding burial insurance.