A study from Pubmed cited that 15% of diabetic patients were first diagnosed when they were admitted for amputation. And for those with a diabetic amputation, the risk of a second procedure increases significantly.
Something that might not have been at the forefront of your mind is whether you can qualify for life insurance after amputation from diabetes.
Can I Get Funeral Insurance After Amputation From Diabetes?
The good news is that you can still get funeral life insurance coverage. However, most companies impose a 2 – 3 year waiting period before your beneficiary can receive full coverage.
Funeral Insurance Basics
Funeral insurance is a type of whole life insurance designed specifically for seniors to provide an affordable way to prepare for funeral expenses and other final costs. This coverage allows people on a budget to leave a lump sum for their family, thus not leaving behind the financial burden of paying for a funeral service out of pocket.
There are three critical benefits to burial insurance.
Affordable: Burial insurance comes in smaller coverage amounts, making it less expensive. Traditional whole life policies begin at $50,000, while burial insurance comes in death benefits from $2,000 – $50,000. The smaller your death benefit, the smaller your monthly premiums will be.
No Medical Exam: Burial insurance is simplified issue, meaning you can complete the applications over the phone and never be asked to get a health exam.
No Denial: There are plans with guaranteed acceptance that ask no health questions; these will have a waiting period and cost slightly more than plans offering immediate coverage. This could be a good option for you if your amputation was recent.
Whole Life Insurance Benefits
Since final expense insurance is a type of whole life coverage, every policy comes with the following benefits.
Coverage Lock: The death benefit you initially take out is locked in for your entire life and will never change.
Price Lock: The monthly premiums will not fluctuate, allowing you to budget your monthly expenses for the future.
Builds Cash Value: A living benefit of these types of plans is the cash value they build. Every month the cash value increases, growing the amount you can borrow against your policy should the need arise.
Underwriting Final Expense Insurance After Amputation From Diabetes
Underwriting is the decision-making process. All insurance providers have predetermined qualifications that must be met to be accepted into a plan. When it comes to getting burial insurance coverage, each health complication you have will play into whether or not you will be accepted.
For example, if you have had an amputation due to diabetes and are now in a wheelchair, your plan options are different than if you have diabetes with retinopathy. Likewise, if you have a heart concern in addition to being a diabetic, this will affect eligibility differently.
Diabetes-Related Health Conditions Insurance Companies Care About
All applications for final expense insurance that begins immediately will ask about diabetes and diabetic complications.
When speaking with an agent, you will likely be asked about the following in regards to your diabetic amputation.
The amount of time that has passed since your amputation will play a role in coverage. Most providers will ask if you have ever had an amputation due to illness, but a select few will ask about procedures done within the last 24 months.
Confined to a Wheelchair, Scooter, Bed, or Hospital
Many carriers will not award coverage if you require assistance to get around. Similarly, coverage options are limited if you are bedridden or confined to a hospital or assisted living facility. Fortunately, guaranteed issue policies are available to everyone.
Requiring Assistance with Activities of Daily Living
This includes bathing, dressing, toileting, eating, and mobility. If you need assistance with any activities of daily living, your ability to get coverage is minimal. However, there are still guaranteed acceptance policies available to you.
Best Plans For Burial Insurance After Amputation From Diabetes
These recommendations are for people who have had an amputation due to diabetic complications.
If you have not had this operation, your options will differ. Suppose you have had this procedure and another health concern unrelated to diabetes. In that case, it is important that you speak with an agent and/or do the research on the other diagnosis, as it will most likely be a determining factor in coverage availability.
AIG: The highly-rated guaranteed acceptance plan from AIG comes with a waiting period and has very competitive rates.
Guarantee Trust Life: The application does not ask about diabetes or other associated complications. However, this company’s plan has a 2-year waiting period before you are fully covered.
Sentinel Security Life: Sentinel Security Life could be the right provider for you if you had your amputation over 2 years ago, are not currently in a wheelchair, and take less than 50 units of insulin daily.
What is the Cost of Final Expense Insurance after Amputation from Diabetes?
The chart below shows non-smoking rates from AIG’s guaranteed issue plan. This plan comes with a 2-year waiting period before you are fully covered.
Life Insurance after Amputation
$10,000 of Coverage
How to Buy Final Expense Insurance after an Amputation from Diabetes
There are two main ways to purchase life insurance; directly from the insurance provider or an insurance agency.
Directly from Insurance Company: While this seems to make the most sense, you need to understand something before you move forward in this direction. Insurance companies often contract their premier plans to insurance agencies, making these plans unavailable online and to the agent representatives on the phone.
Insurance Agency: These agencies can represent multiple plans from various companies, allowing them to have an extensive portfolio. Having this variety lets them better meet the specific needs of more seniors.
Final Thoughts On Burial Insurance After Amputation From Diabetes
a. Finding affordable funeral insurance after amputation from diabetes is possible.
b. Competitive guaranteed acceptance plans might be your best option.
c. Working with a specialized insurance agency is important to ensure that you get the best coverage possible given your circumstance.