Burial Insurance With Dementia Or Alzheimer’s

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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Alzheimer’s is the 6th leading cause of death in the United States. On average, someone with this condition lives 4 – 8 years after getting the diagnosis, although there have been people known to live much longer.

Can Someone Get Burial Insurance With Dementia Or Alzheimer’s?

Final expense insurance is available to nearly anyone regardless of health. However, only policies that offer guaranteed acceptance will provide coverage to seniors with dementia or Alzheimer’s Disease. There are many affordable guaranteed policies on the market.

While Alzheimer’s and dementia are not the same, the insurance providers look at them as essentially the same diagnosis. Each diagnosis will affect the ability to get coverage in the same way.

Guaranteed Issue Life Insurance with Alzheimer’s and Dementia

Guaranteed issue policies accept 100% of applicants. There are no health questions to obtain coverage. These plans all come with at least a 2-year waiting period. Some companies will impose a 3-year waiting period on their policies with guaranteed acceptance.

Never move forward with any plan that has a waiting period longer than two years. If the insured passes during the waiting period, the beneficiary will receive the paid premiums plus a predetermined interest rate, usually 10%.

Most guaranteed policies are essentially the same, but some burial life insurance companies charge much more than others.

What is the Cost of Funeral Insurance with Alzheimer’s or Dementia?

As you can tell from the chart below, life insurance rates by age vary greatly. This depends on the provider you get a policy from as well as the coverage amount.

Generally speaking, the harder it is to qualify for a plan, the lower the premiums. On the other hand, the easier it is to qualify, the more expensive the premiums. Since guaranteed issue plans provide coverage to all, they have the highest price tag compared to other types of burial coverage.

Guaranteed Issue Price Range

$10,000 of Coverage

Monthly Premiums

50$34 – $39$44 – $56 
55$47 – $44$58 – $61 
60$51 – $54$64 – $68 
65$63 – $66$85 – $91 
70$76 – $80$99 – $106 
75$108 – $116$139 – $150 
80$176 – $190$206 – $247 

Underwriting Final Expense Insurance With Dementia Or Alzheimer’s

Underwriting is the decision-making process. Each final expense insurance provider has predetermined standards of what it will and will not accept in terms of health history and current diagnoses. While this process may seem personal, it is anything but. The risk tolerance of a company sets the predetermined health standards.

Applicants with dementia or Alzheimer’s will not qualify for policies other than guaranteed issue because every carrier asks about these diagnoses to qualify. The question usually looks something like this:

“Has the proposed insured ever been diagnosed with, treated for, or advised by a medical professional to seek treatment for Dementia, Alzheimer’s Disease, or memory loss?”

By answering “yes” to this question, you will be denied coverage. This question is typically found towards the beginning of the questionnaire with an automatic denial of coverage.

Why Does Memory Loss Matter for Funeral Insurance?

While these dementia and Alzheimer’s are often lumped into the same category, they are not the same.

Dementia is an umbrella term used to describe several types of cognitive impairment and memory loss. At the same time, Alzheimer’s is a specific disease that falls under this umbrella and accounts for 60% – 80% of dementia cases.

Some complications of memory loss can lead to further difficulty obtaining a policy, including the following:

  • Restlessness and agitation
  • Bladder and bowel problems
  • Depression
  • Falls
  • Infections
  • Wandering
  • Malnutrition and dehydration

What About Prescriptions and Treatments for Dementia?

If you have filled a prescription, the insurance company will assume that you are taking it and have the condition it is intended to treat.

Some medications that are commonly taken for cognitive conditions are:

  • Donepezil
  • Galantamine
  • Memantine
  • Rivastigmine
  • Memantine + Donepezil

Taking these medications will be an automatic denial of coverage for plans with no waiting period.

doctor showing nurse brain scans

Top Burial Insurance Companies For Dementia And Alzheimer’s

There are three main things to look at before taking out a final expense policy with a life insurance company.

Cost: Price fluctuates heavily for guaranteed acceptance policies, so make sure you get the lowest cost available.

Financial Rating: Life insurance companies are all awarded a financial rating. Only work with organizations with a solid financial rating, as this ensures the death benefit will be paid out when due.

Waiting Period: Sometimes having a waiting period is unavoidable. Work with an experienced professional to ensure you get the best coverage available with the shortest waiting period.

Funeral Insurance Policy Basics

Funeral insurance plans are simplified issue whole life coverage. A simplified issue plan means that you will never be asked to get a medical exam and the process can be done entirely over the phone and issued quickly. Whole life coverage never expires. As long as you pay the premiums, your policy will remain in force until the insured passes away.

Burial insurance plans were designed specifically for seniors to allow for an affordable way to cover the inevitable final expenses that come at the end of someone’s life.

Coverage amounts can be modified to accommodate virtually any budget.

Final Expense Coverage Highlights

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

You must qualify for immediate coverage, unfortunately, there will always be a waiting period involved for those with diagnosed dementia or Alzheimer’s concerns.

three people at table working on puzzle

What You Need To Know Before Purchasing Final Expense With Alzheimer’s Disease

Life insurance is a contractual agreement you must be fully mentally capable of entering.

We bring this up when discussing dementia and Alzheimer’s Disease because depending on the level of advancement, the proposed insured may not be able to enter into a contractual agreement.

As stated by the American Medical Association Journal of Ethics, adults are generally presumed to have the capacity to enter into a contract, but this rule is not absolute.

“There are two major exceptions to the presumption of an adult’s legal capacity, one of which is being intoxicated when the agreement was made because intoxication can affect judgment. The second exception to legal capacity is mental illness or mental defect. Historically, this exception was intended to protect individuals who were developmentally disabled or insane. Today, the category has been expanded to include those suffering from degenerative diseases that may affect their cognitive abilities.”

Captive vs. Independent Agencies

Captive agencies can sell products from one company only.

Independent agencies can represent and provide plans from many different providers.

It is of great advantage to work with an independent agency because you will have more options. This will save you both time and money by relying on an expert in the field that has ample resources.

Final Thoughts On Final Expense Insurance With Dementia

a. If you are looking for burial insurance with dementia or Alzheimer’s, it is possible to receive coverage.

b. Seniors with memory loss will only be eligible for a guaranteed issue policy. However, there are still affordable options available.

c. It is important to work with an independent agent that represents multiple companies and has expertise in the field. This will guide you in the right direction and secure the lowest-cost final expense plans.