Burial Insurance for Terminal Illness

burial insurance for terminally ill people

Finding burial insurance for terminal illness is not impossible. Even with a terminal illness, you can still buy life insurance to protect your family’s finances. We work with several companies that offer coverage specifically for terminally ill people.

Burial insurance is essential for patients with a terminal illness. Many of the top-rated life insurance carriers offer some type of burial coverage for them.

Burial insurance for terminal illness is designed to cover the cost of a funeral and other end-of-life debts, or expenses. It can give your family the essential funds needed to pay your burial expenses. This coverage is critical since the average funeral can easily cost more than $10,000.

When you purchase a burial policy, consider it as an investment in your family and loved ones. While your beneficiaries may not receive a massive amount of payout from the policy, it does need to be enough to cover the cost of your funeral and burial.

Several companies we work with offer burial insurance for terminally ill people. We will review these policies carefully to make sure it makes financial sense to you and your family. Working with an independent life insurance agency like Funeral Funds assures that you will find the most affordable burial policy and get the best rate.

FOR EASIER NAVIGATION:

CAN YOU QUALIFY FOR LIFE INSURANCE IF YOU HAVE TERMINAL ILLNESS?

WHAT IS TERMINAL ILLNESS?

WHAT IF I ALREADY HAVE A LIFE INSURANCE POLICY?

BURIAL INSURANCE FOR TERMINAL ILLNESS

BENEFITS OF GUARANTEED ISSUE LIFE INSURANCE

DRAWBACKS OF GUARANTEED ISSUE LIFE INSURANCE

HOW CAN FUNERAL FUNDS HELP ME?

CAN YOU QUALIFY FOR LIFE INSURANCE IF YOU HAVE TERMINAL ILLNESS?

If you were just diagnosed with a terminal illness and wondering you can be eligible for life insurance to protect your family, then the answer is YES.

However, you should be aware that your options are limited; but there are still options!

You will not qualify for traditional term life or whole life insurance policies, as they require a thorough medical exam and strict underwriting requirements.

The great news is that you still have other insurance options with a terminal illness. It is called a guaranteed issue life insurance policy.

There is a life insurance policy that you can qualify for as a terminally ill patient. You can purchase burial insurance for terminal illness without any questions or requirements. All you need to do is to let us help you fill out a 10-minute application, and you’re covered and protected.

A guaranteed issue policy accepts every applicant as long as he or she is 50 to 85 year old and a U.S. citizen. You can qualify for this plan regardless of your medical condition or current health.

WHAT IS TERMINAL ILLNESS?

An individual has a terminal illness when they are diagnosed with an illness that has no known cure or that has progressed to the point where it cannot be cured. Generally speaking, a physician has diagnosed you with 12-24 months to live.

A terminal illness diagnosis may include many different illnesses.

It can be a single disease or a number of different health conditions. Depending on the condition and treatment, patients may live with a terminal illness for days, weeks, months or even years.

Here are some of the most common types of terminal illness in the U.S.:

  1. Advanced cancer
  2. Amyotrophic lateral sclerosis (ALS)
  3. Alzheimer’s disease
  4. Cystic Fibrosis
  5. Chronic lung problems
  6. Coronary artery disease
  7. End-stage renal failure
  8. HIV/ AIDS
  9. Muscular Dystrophy
  10. Scleroderma
  11. Parkinson’s disease

There are other terminal illnesses, but these are the most common terminal illnesses that occur in the USA.

Insurance companies will assess the risk of carrying a person with a terminal illness based on a number of factors that include:

  • Survivability rate when the disease was diagnosed
  • Potential treatments available
  • History of the disease in terms of longevity of the person

WHAT IF I ALREADY HAVE A LIFE INSURANCE POLICY?

Does life insurance cover terminal illness? If you become terminally ill, but you already have purchased life insurance in the past, there are some options available for you.

You should check to see if your current policy has an accelerated death benefit rider or a living benefits rider. This will allow you to withdraw a portion of your death benefit before you pass away.

The accelerated death benefit option has been around since the 1980s. It was first offered to HIV/AIDS patients. Since then, this option was expanded to include a number of terminal illnesses such as stroke, cancer, and kidney failure.

These death benefits may be available for both term life insurance policies (which last for a particular term or certain number of years but have no cash value), and permanent life insurance such as whole life insurance (which will remain in force as long as you pay the premiums and has a cash value build up that you can withdraw or borrow against).

A plan with an accelerated death benefit will allow you go access money to help you pay for your current medical costs, treatments or care that your health insurance does not provide coverage for.

This accelerated death benefit money can be spent on anything that you desire. You can even use the money to take one last vacation with your loved ones.

The amount you can get as a living benefit varies from state to state, but generally, it is 50 to 95% of your total policy amount.

Whether you have a term or whole life policy, the money you will receive will be subtracted from the death benefit your beneficiary will receive when you die. The proceeds can be received either in a lump sum or in monthly payments.

You can also access your death benefit early if you have a term life insurance where the conversion period has not expired yet. Some term life policies will let you convert your term life to whole life insurance policy until you reach 50 years old or within the first ten years of the term life policy.

Most plans require that your terminal illness must result in your death within a specific amount of time (often either 12 or 24 months).

The proceeds from your accelerated death benefit are not subject to federal income tax. To qualify for a tax-free exemption, you must be classified as terminally ill when you file your income taxes.

How much will I get?

An accelerated death benefit typically pays out 50% to 95% of your policy’s face value.

Some states allow insurance companies to pay an accelerated death benefit to policyholders who are terminally ill with certain medical conditions. For example, some states pay up to 75% of the policy’s face amount for people with heart attack, organ transplant or Alzheimer’s disease.

For example:

At age 50, Adam buys a term life policy with a 20-year term and a $150,000 death benefit. Unfortunately, Adams doctors diagnose him with chronic kidney failure. At age 65, Adam is told he has a year at best to live.

Adam wants to take his grandchildren on a family vacation while he can still travel. He can pay for this with his current life insurance policy with an accelerated death benefit option.

Adam accelerated 80% of his death benefit for $120,000. He received a benefit of $112,500, which he can use for any type of expense. He passes away only ten months after. His beneficiaries still receive the remaining death benefit of $30,000 after his death.

If you take the accelerated death benefit payment, you should still pay premiums to keep your policy in force if you want your beneficiary to receive the remainder of the benefit payout.

The company may charge a small interest in what you receive from this benefit. It will reduce the remaining amount your beneficiary will receive upon your death.

Some insurance carriers will limit the amount of your death benefit by setting a maximum percentage that may be taken as an accelerated death benefit by capping the dollar amount. In some cases, receiving the money from your accelerated death benefit can affect your eligibility for Medicaid and supplemental security income (SSI).

BURIAL INSURANCE FOR TERMINAL ILLNESS

It’s never too late to get burial insurance for terminal illness or final expense insurance after your terminal illness diagnosis.

We’re not going to lie to you, if you have a terminal illness and you’re looking to buy life insurance, your best option is going to be guaranteed issue life insurance or no question asked life insurance. Guaranteed issue plans are also the best life insurance for hospice patients.

BENEFITS OF GUARANTEED ISSUE LIFE INSURANCE 

Guaranteed issue burial insurance is a no-exam, no questions asked life insurance policy.

It is specifically designed for individuals with significant to terminal medical problems. It is ideal for those with a terminal illness which will not qualify for term life or whole life policy.

Guaranteed life insurance offers face amounts ranging from $1,000 to $25,000. The primary objective of this type of plan is to provide final expense and burial insurance. It is a cash value whole life insurance policy that generally comes with a 2-year graded death benefit.

BENEFITS OF GUARANTEED ISSUE LIFE INSURANCE

NO MEDICAL EXAM, NO HEALTH QUESTIONS

When you apply, you will only need to fill out your personal information, beneficiary and the payment information only. If you look at the application form, you will not see any health-related questions on it.

You will easily qualify for this plan and all you need is the ability to sign your name on the application for coverage.

Guaranteed issue life insurance policy will be your best option if you are terminally ill because there are no health questions to answer; there’s no medical exam either!

All you need to do is sign on the application over the phone or your computer, we will send it to the insurance company, and in a couple of minutes, it’s approved. It’s very easy to apply!

The policy will be issued and mailed to you within a couple of days.

EASY TO QUALIFY – SIMPLE APPLICATION PROCESS

The company will not check your health history, check your prescription history, or pull your medical records.

LEVEL PREMIUM

One of the great benefits of guaranteed life insurance is that the monthly premium is fixed.

Your monthly insurance bill will never increase because you locked in your premium at your current age and will remain for the rest of your life. As long as pay the monthly premiums on the time it will never increase for any reason.

NOT CANCELLABLE

Some people complain about their life insurance canceling because of their worsening health condition. Guaranteed issue burial insurance for terminally ill people will never cancel because of advancing age or declining health, as long as premiums are made on time.

YOUR DEATH BENEFIT WILL NEVER DECREASE

Your death benefit is a fixed amount and is guaranteed to never decrease for any reason. Your beneficiaries will receive 100% death benefit when you pass away after the two-year waiting period.

YOU CAN PURCHASE MINIMAL COVERAGE

If your purpose of getting burial insurance is to pay for your funeral and burial, guaranteed issue policies allow you to buy as little as you need. You can choose between $2,000 to a maximum of $25,000.

CASH VALUE ACCUMULATION

Guaranteed issue burial insurance for terminally ill people is whole life insurance that accumulates cash value over the years. This cash value can be used to pay premiums, or you can borrow against it to be used for whatever purpose you want.

Funeral Insurance, Final Expense Insurance, Burial Insurance For Terminal Illness Infographics

DRAWBACKS OF GUARANTEED ISSUE LIFE INSURANCE

Here are the drawbacks to guaranteed issue burial insurance for terminally ill people:

#1 DRAWBACK

The biggest drawback of guaranteed issue life insurance is that there is no immediate coverage other than for accidental death within the first 2 years.

When you take out this plan, you will automatically be approved for coverage, but it has a graded death benefit (a waiting period). Since it has no medical underwriting and everyone qualifies, you cannot escape the waiting period.

A graded death benefit waiting period acts as a financial safety net for the burial insurance company to protect them from paying large sums of money to people who are literally on their deathbed who will not pay much into their life insurance policy.

A graded death benefit life policy means you must live for the first two or three years of the policy before the policy is in force. If you pass away during the waiting period, your beneficiaries will only get the money that you paid towards your premiums plus interest which is usually 8-10%.

For example, if you pay $100 per month for one year before passing away, your beneficiaries would receive the original $1,200 plus $120 to account for the 10% interest with a total of $1,320. You won’t lose money here, and with that amazing interest rate, you cannot even earn that amount in a savings account.

For accidental death, the company will pay the full death benefit amount even if you die on the first day or within the waiting period. It’s only for natural causes of death where first-day full coverage doesn’t take effect until after the two-year waiting period.

#2 DRAWBACK

The second drawback to a guaranteed issue life insurance is the cost.

Dollar for dollar, this coverage is a bit more expensive than life insurance with medical underwriting. You will typically pay 15 to 40% more on your policy because of the additional risk the life insurance company takes for approving your policy without asking for you any health questions.

#3 DRAWBACK

The third drawback is the limited death benefit you can purchase.

Guaranteed issue life insurance coverage maxes out at on $25,000. If you’re planning to buy a life insurance policy to cover the balance on your mortgage or pay for the education of your children this plan may not work for you.

Guaranteed issue life insurance can be a good investment for terminally ill people who do not know if you will survive for an extended period of time.

With a guaranteed issue policy even terminally ill people can rest assured that your loved ones will receive some benefit. Your premium is guaranteed to be returned, so it’s an excellent way to save money for your family’s future.

HOW CAN FUNERAL FUNDS HELP ME?

Trying to find life insurance with pre existing conditions needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.

If you have a health history of terminal illness, let us help you; we will work with you side by side to find a plan that fits your needs.

We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore searching for multiple insurance companies because we will do the dirty work for you.

We will shop your case to different insurance carriers and get you the best price.

We work with many A+ rated insurance carriers that specialized in covering high-risk clients like you. We will search all those companies to get the best rate. We will match you up with the best burial insurance company that gives the best rate.

We will assist you in securing the coverage you need at a rate you can afford. So, if you are looking for terminal illness funeral insurance, terminal illness burial insurance, or terminal illness life insurance, we can help.

Fill out our quote form on this page or call us at (888) 862-9456 and we can give you an accurate quote.

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