Burial Insurance With COPD

Jake Irving

Jake Irving is the Founder of Policy and has contributed to articles for Synchrony Financial, GoBankingRates, Yahoo News, UpCity, Zapier, LegalZoom, and more.

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Chronic Obstructive Pulmonary Disease (COPD) is a group of conditions that cause breathing-related problems. The most common contributors are Chronic Bronchitis and Emphysema.

COPD affects more than 16 million Americans. The chances of getting diagnosed with this condition significantly increase with long-term tobacco use or exposure to heavily polluted air.

There is no cure for this chronic lung disease. However, there are several ways to treat the symptoms that provide a good quality of life for seniors.

Can A Person Get Final Expense Insurance With COPD?

A person with COPD can get affordable final expense insurance with no waiting period if they apply for the right policy with the right provider. Finding a policy that will accept COPD is simple if you work with a specialized agency representing multiple final expense life insurance companies because not all companies will provide immediate protection with this diagnosis.

Life insurance coverage could be affected if you have Chronic Obstructive Pulmonary Disease. However, a few final expense insurance carriers will provide coverage with this condition.

The Basics of a Final Expense Insurance Policy

Final expense life insurance was designed specifically for seniors as an affordable way to cover burial costs. Final expense is a type of whole life insurance commonly referred to as burial or funeral insurance.

A permanent whole life insurance policy guarantees that your loved ones will have the money needed to cover your final expenses.

The following are all elements of whole life insurance policies.

  • No Expiration
  • Coverage Lock
  • Price Lock
  • Builds Cash Value
  • No Medical Exam
  • No Waiting Period Options

You must qualify based on your health to get funeral insurance with no waiting period. If you cannot qualify for immediate coverage, you can still get coverage, but the insurance provider will implement a waiting period. Qualifying for immediate coverage depends entirely on the insurance company you are applying with.

Final expense insurance policies are more affordable than other coverage types due to the small amounts they come in. Traditional life insurance policies start around $50,000, while burial insurance companies provide coverage ranging from $1,000 to $50,000.

Does COPD Affect Life Insurance?

Your ability to get life insurance with COPD could be affected. However, select providers will give immediate final expense coverage, while most companies will implement a waiting period before complete protection begins. Either way, you can get burial life insurance with COPD. It is just a matter of how long you have to wait to be fully covered.

doctor explaining lung scans on computer

Underwriting For Funeral Insurance With COPD

Underwriting is essentially the decision-making process. Your agent will get to know your overall health and goals of getting final expense coverage. They will then prequalify you for a policy based on your individual needs.

A specialized agent will fill out the application with you and submit it to the insurance carrier. The application will then go through the formal underwriting process. Each burial insurance company has its own predetermined guidelines to qualify for coverage.

Why Lung Disease & COPD Matters for Life Insurance

COPD patients are at an increased risk of the following complications.

  • Respiratory infections
  • Heart problems
  • Cancer of the lungs
  • High blood pressure in lung arteries
  • Depression

Each of these illnesses poses its own risk. In fact, each of these pre-existing health conditions on its own can affect the ability to get funeral insurance coverage.

If you have had Chronic Obstructive Pulmonary Disease or associated complications, it is in your best interest to work with a specialized agent. Working with an expert will allow them to pre-qualify you for the best policy at the lowest rate.

The monthly cost will increase if you are a current tobacco user, including cigarettes, cigars, and pipes. Burial insurance carriers usually look back 12 months for tobacco use.

How Funeral Insurance Companies Ask About COPD

As it pertains to this chronic lung disease, you will be asked in one of the following three ways.

1: “Has the proposed insured ever been diagnosed or treated for COPD?”

The way this question is asked leaves no wiggle room as to when you were diagnosed or treated. If you have ever been treated or diagnosed, you will have to answer “YES” to this question, which will place you into a specific plan type as predetermined by the carrier.

2: “Within the last 24 months, has the proposed insured been diagnosed with or treated for COPD?”

If you have received treatment in the past but no longer are and can answer “NO” based on the timeline, you may qualify for a top-tier plan. This is assuming that you are otherwise in good health with no other pre-existing conditions.

Some insurance companies will ask about a longer timeline. For example, Sentinel Security Life asks about treatment within the past 5 years.

3: COPD is not asked about on the application.

Some burial insurance companies will not ask about COPD. If this is the case, there is typically a two-year waiting period attached to your policy.

Types of Burial Insurance Policies

There are 4 different plan tiers that final expense life insurance companies may offer. There will be a series of “YES” or “NO” health questions each carrier asks to place COPD patients into these different tiers.

Each company determines which plans they offer and the criteria to qualify for each. Not all final expense insurance companies provide all four options. In fact, most only offer 2-3 plan types on average.

Level: This is the top-tier plan because it has the lowest monthly premiums and no waiting period. For these reasons, this plan is also the hardest to qualify for. However, specific companies will still provide level burial insurance with COPD.

Graded: These affordably priced plans provide partial coverage during the 2-year waiting period. Graded is the second-best life insurance option for seniors with COPD.

Modified: With a 2-year waiting period, modified policies are also called “return of premiums plans” because of the payout structure. If the insured passes away during the waiting period, the beneficiary will receive all premiums paid plus 10% interest.

Guaranteed Issue: Nearly all applicants get approved for guaranteed acceptance coverage. These plans accept everyone who can sign their name and agree to the mandatory 2-3 year waiting period as there are no health questions asked to qualify. Payout during this time is structured the same as a modified plan.

If you have Chronic Obstructive Pulmonary Disease without any complications or other pre-existing conditions, there is no need to get a guaranteed issue life insurance policy. However, if you have other health concerns, such as taking continual oxygen to assist with breathing, you will be unable to obtain most other funeral insurance plans. Oxygen use will be a cause for you to apply for a guaranteed issue life insurance policy.

Guaranteed issue life insurance might be right for you if you:

senior walking on trail coughing

How To Find Top COPD Funeral Insurance Companies

The best burial life insurance for COPD is from Aetna/CVS and Transamerica. Both of these companies offer immediate coverage for COPD patients. However, availability depends on your state of residence, age, and other pre-existing conditions.

There are 3 things that you want to look for when getting life insurance with COPD.

Company: A company with a good financial rating is essential. This will give you peace of mind that your beneficiary will receive the money when it is due. Any company that has a B+ rating or better is a good option.

Coverage: Whenever possible, getting coverage that starts immediately is essential. If you cannot get full coverage initially, ensure the waiting period is not longer than 2 years.

Cost: Getting the lowest and most affordable price is critical. The death benefit amount can be adjusted to accommodate any budget.

Ways to Purchase

There are two main ways to buy life insurance, through an insurance agency or directly from the insurance company.

Directly from Company: If you call the insurance company directly, you will be limited to the plans they offer. This becomes problematic because these agent representatives cannot compare the underwriting and prices of other carriers. Thus, you could end up with coverage that is not ideal for you.

Insurance Agency: Life insurance agencies can represent as many policies as they wish. Agencies specializing in burial life insurance usually have a much more extensive portfolio of products to fit a more comprehensive range of needs, like COPD.

As noted above, there are several different ways that insurance providers react to specific medical conditions. Working with an agency will give the proposed insured the best possibility of qualifying for the best plan.

Life Insurance With COPD Final Thoughts

a. Final Expense Insurance with COPD is possible at an affordable monthly rate.

b. For those currently receiving treatment, a few specific insurance carriers will accept your application with no waiting period enforced.

c. Working with a specialized insurance agency will provide you with the most options for low-cost, immediate coverage. This is especially important when dealing with medical conditions considered high-risk by burial insurance carriers.