What Role Your Health Issues Play When Buying Burial Insurance

One fact of life is that health issues naturally accompany age. Unless you’ve won the genetic lottery, most people will likely endure some health challenges in the latter part of life.

Thankfully, life insurance companies designed burial insurance plans to absorb the risk of some pretty major health issues. For that reason, most health conditions will have no impact whatsoever when you go to apply.

Note: This page was last updated on 22nd of February 2018

Nevertheless, aside from age and gender, your health status will be the third biggest factor that determines what you qualify for, and exactly what you will pay.

Burial Insurance Companies Tell You What Health Issues They Care About

When you go to apply for a burial policy, the application will have a series of health questions. medical history with stethoscope  and penThe insurance companies heavily rely on the answers to these questions to determine the eligibility of the applicant.

Here’s the most important thing to understand about the health questions.

What health issues you see asked about are the only issues they care about!

To put it another way, if you do not see them ask about a health condition, it means they are okay with it.

For example, let’s say you have diabetes. If you see a company not mention diabetes in their health questionnaire, it means they will gladly accept you (assuming you had no other health issues that got in the way). To them, being diabetic is just the same as not being diabetic.

This formula so to speak is true for all health issues. If you don’t see it on the application, you are a green light for an approval.


What Happens When You See A Burial Insurance Company Ask About A Health Condition That You Have

It does not matter which company you apply with, if you say yes to any health question, the insurance company will have a response. It’s important to remember that every burial life insurance company has unique underwriting, so the responses will vary. Ultimately, saying yes to a health question will result in one of the following consequences:

1. They outright decline you.

2. They simply charge you a higher monthly premium to compensate for the increased risk.

3. They charge you a higher monthly premium and they impose a limited payout of death benefits during the first two years. It will usually be 30-40% of the death benefit if death occurs during the first year of the policy. Then it will be 70-80% of the death benefit if death occurs during the second year. After a full two years has passed, 100% of the policy will payout at any time.

4. They charge you a higher monthly rate, and they impose a full two year waiting period. During this waiting period, they will not pay out any death benefit. Instead, they would refund all premiums paid plus interest (most carriers pay 10% interest). After a full two years has passed, 100% of the policy will payout at any time.

You will not find a single company that allows you to say yes to a question without imposing one of those penalties.



How To Find The Best Burial Policy When You Have Pre-existing Conditions

Ultimately, your best policy will be one with a company where you can say no to all their health questions. Doing so will mean you are eligible for their lowest rates, and coverage that starts 100% on the first day.

Here’s some really good news.

There are dozens of burial insurance companies on the market today, and they all have their own underwriting. This wide array of choices means that most applicants can usually find at least one company where they can legitimately say no to all their health questions.

However . . .

There are some health conditions that are so high risk that it’s impossible to find a company where you will be able to say no to all their questions. For people in this situation, you will have to endure one of penalties mentioned above. If this is you, your goal is to basically find which company will be the most lenient response.

For example, you may have one company merely charge you a higher premium, and still be willing to pay out 100% of your death benefit even if death occurs a month into the policy. On the other hand, another company might charge you a higher premium and make you wait two years before the policy will payout. Comparing the two side by side, the superior option is clear.

Again, every company will respond differently, so look around and get quotes from a variety of companies to see which one comes back with the best offer for you.


Hopefully, this information will be helpful to people looking to buy burial insurance for their parents.


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