Burial Insurance For Diabetics

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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In the last 20 years, the number of adults in America diagnosed with diabetes has more than doubled.

Getting life insurance with diabetes or any other chronic condition can present some challenges. Final expense is affordable life insurance for diabetics. People looking for coverage should know that the best policy depends on the type of insurance and coverage amount they are looking for.

Burial Insurance For Diabetics

Funeral insurance is a type of permanent life insurance with no medical exam. This coverage was built specifically for seniors and is also referred to as final expense and burial insurance.

Burial life insurance coverage is best if you:

  • do not want to get a medical exam
  • want a permanent policy
  • want a policy to cover funeral expenses
  • have no money set aside for your final expenses
  • want your monthly insurance premiums to be locked in for life
  • want your coverage amount to remain the same
  • are unable to qualify for a policy that requires a medical exam

Final Expense Coverage Basics

Final expense falls under simplified issue whole life insurance. Three features make burial insurance stand out.

Low-Cost: Burial policies range from $1,000 – $40,000 in coverage. This amount is lower than other types of life insurance, making it more affordable. Larger life insurance policies cost more and are meant to replace an income rather than cover final expenses.

No Medical Exam: Simplified issue insurance will never ask applicants to get a health exam. Instead, they will be asked a few simple questions about their health, which determines eligibility.

No Denial: Funeral plans are available to everyone. Some final expense insurance policies come with immediate coverage, while others have a waiting period.

Someone with controlled diabetes can get coverage with no waiting period. Seniors that have experienced diabetic complications could be subject to a waiting period, but no one is denied this type of life coverage.

Whole Life Insurance Features

All whole life insurance policies come with a few standard benefits that are important to understand.

Coverage Lock: The amount of coverage, also known as the death benefit, will remain the same and never expires. Policyholders will never have to worry about the money their beneficiaries will receive because it is locked in.

Price Lock: The insurance premium cost will never fluctuate. The price you pay for your first premium will be the same as your last.

Cash Value: With each premium payment made, a portion goes into the cash-value account, which grows over time. If needed, the policyholder can access this money through a loan.

How Much Does Life Insurance for Diabetics Cost?

The price of diabetic burial life insurance depends on the company and if the applicant has other health concerns. Quotes will also fluctuate by age, gender, and the desired policy amount.

The insurance premiums for $10,000 of final expense coverage for a diabetic senior can range based on age from $23 – $136 for a female and $27 – $193 for a male, 45-85 respectively.

Underwriting & Diabetic Complications

According to the CDC, diabetes is the 7th leading cause of death in the United States and could be underreported.

Because diabetes can lead to several other complications, putting those with this diagnosis at a higher risk of premature death, insurance companies look at diabetes as high risk, often with higher rates.

However, final expense companies will still insure diabetic seniors. If your diabetes is well-managed and you apply with the right company, life insurance coverage could be available at the same price as a completely healthy person.

Most Companies Ask:

The application for coverage could ask about the following information.

Most carriers will check your prescription history & Medical Information Bureau (MIB) to ensure everything lines up with your answers on the application.

If you have had any of the above complications because of diabetes, this will usually put you in an even higher risk category when being considered for coverage.

A few insurance companies will not insure you with these diabetic complications, while others will but at a higher rate. Depending on the specific issue, you may have a 2-year waiting period.

Companies Will Not Ask:

  • A1C levels
  • Blood glucose tolerance test results
  • Foot damage
  • Skin conditions
  • Hearing impairment

Since no medical exam is required, blood sugar levels are not tested to determine coverage.

Plan Tiers

Level: For seniors with controlled diabetes, this plan is readily available from funeral insurance companies. Level plans offer low-cost coverage with no waiting period.

Graded: Partial coverage is available immediately, with full coverage available after 2 years. Graded plans are just slightly more expensive but have more lenient health standards to qualify.

Modified: Also known as a “return of premium” plan, modified has a 2-year waiting period before the full death benefit is available. If the insured passes within these two years, the beneficiary gets a return of paid premiums +10% interest.

Guaranteed Acceptance: These plans will be best for diabetic seniors who have had severe diabetic complications. Guaranteed issue plans accept everyone. With a 2-year waiting period and a similar payout structure as a modified plan, this is an excellent alternative for those who cannot qualify for a level or graded option.

Funeral Insurance With Diabetes Common Questions

Can I Get Life Insurance with Type 2 Diabetes?

People with type 2 diabetes can get final expense life insurance with no waiting period. If the applicant has encountered complications from their diabetes diagnosis, they could be subject to a waiting period and higher prices. Each company has slightly different qualifying criteria.

Which Final Expense Insurance is Best for Diabetics?

Many insurance companies accept people with diabetes. Since each sets its own standards, acceptance with certain companies is more lenient than others. Age of diagnosis, how you manage your diabetes, and any associated complications play a role in which company is best for people with diabetes.

Is it Hard to Get Life Insurance with Diabetes?

Getting life insurance with diabetes is not hard, but you want to ensure you are working with the right company. Some life insurance companies will make people with diabetes wait a couple of years for coverage to begin, while others will provide immediate coverage.

The best way to get fast approval at the lowest rate is by working with a specialized insurance agency with many policies to decide from.

How To Find The Best Burial Insurance For Diabetics

All burial insurance is obtained without a medical exam. No company within the final expense insurance market will offer a discount or a better rate for taking an exam.

Every life insurance company has a different tolerance for covering someone with diabetes or any other health condition.

It is critical to understand that if you have any health condition besides being a diabetic, that condition is just as important when qualifying for funeral insurance.

When it comes to obtaining coverage with a health complication, especially diabetes, it is vital to work with an agency that has access to multiple policies from top burial insurance carriers since they each have considerably different underwriting criteria.

How to Buy Burial Insurance as a Diabetic

There are 2 ways to purchase final expense life insurance, directly from a company or through an insurance agency.

Directly from Company: Calling a company directly may seem like the best idea, but it can be problematic for people with health concerns, such as diabetes. The final expense insurance policies available only with the company can be very health restrictive or highly-priced guaranteed acceptance plans.

Insurance Agency: Specialized insurance agencies can shop on your behalf because they have access to many burial life insurance policies. An experienced agent will know which policy best suits each pre-existing condition, including diabetes.

Your agent may start by asking broad questions about your health and then specific follow-up questions based on your answers and their industry knowledge. They are asking these questions to help you find the best plan possible.

Final Thoughts

a. Funeral insurance for diabetics is available at an affordable rate with no waiting period.

b. Complications of diabetes may reduce your chance of immediate coverage, but you still have many options.

c. Make sure you select a specialized insurance agency to work with that represents multiple policies.