When you receive the diagnosis of chronic kidney disease (CKD), many things go through your mind. One of the first things is probably not burial insurance acceptance, as this thought probably comes a bit later on.
With major advancements in healthcare, CKD patients can live a long life despite their condition. This is great news for seniors with kidney disease.
Can I Get Burial Insurance With Kidney Disease?
People diagnosed with chronic kidney disease are eligible for burial insurance coverage. Some companies offer immediate coverage, but most will enforce a waiting period before full protection is available. Acceptance will also depend on the treatment and type of kidney disease.
Burial coverage fits into the category of whole life insurance. It is commonly known as funeral insurance or final expense insurance. Senior life insurance is an easy and affordable way to plan for funeral expenses without leaving this financial burden on their families. The beneficiary can use the death benefit to cover anything from cremation to a final utility bill.
Reasons Burial Insurance is the Right Choice for Patients of Kidney Disease
Burial insurance might be a good idea if you:
- are unable to qualify for a policy that requires a medical exam
- 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
Whole Life Insurance Basics
Every whole life insurance policy comes with the following permanent benefits.
Coverage Amount is Locked In: The death benefit amount initially taken out will never fluctuate. While you can always take out additional coverage, the initial amount will never decrease.
Protection Never Expires: Final expense insurance coverage does not terminate and will protect the policyholder throughout their life. You will never have to worry about outliving this policy.
Premium Price Never Changes: While other insurance policies increase in price the older you get, funeral insurance never will. The amount you pay for your first premium will carry through to your last, which is great for monthly budgeting.
Cash Value that Builds: The cash value increases with each payment. Over time, this living benefit accumulates in worth and allows the policyholder to borrow from it.
Final Expense Coverage Features
Three main features make funeral expense insurance coverage great for seniors with kidney problems.
Low-Cost Premiums: These policies are much more affordable than traditional whole life insurance because of the smaller coverage options. A final expense policy offers coverage from $2,000 – $40,000, depending on the carrier. Traditional life insurance begins at around $50,000 and extends into the millions.
No Medical Exam: These plans are simplified whole life insurance, meaning the application process is streamlined and can be completed entirely over the phone. Since the process is more straightforward and requires less information, there is no medical exam the applicant will ever be asked to get.
No Denial: There are a few types of plans within funeral insurance. Qualifying for each depends on the applicant’s health and the company’s acceptance standards. One of the plan types offers guaranteed acceptance with no health questions asked. However, many seniors can qualify for other plans, but the guaranteed option allows everyone to receive the coverage they want.
Underwriting: Is Kidney Disease A Pre-Existing Condition?
Chronic kidney disease is a pre-existing condition that every final expense policy application will ask about. However, seniors with kidney disease will still be able to get coverage for this pre-existing condition. The most important thing is to apply for coverage with the right life insurance company.
Why Does Chronic Kidney Disease Affect Burial Insurance?
The overall health of the senior matters when applying for burial insurance. Insurance companies typically do not ask about the common causes of chronic kidney disease. However, additional diagnoses could affect coverage eligibility.
Health Concerns the Application Will Not Ask:
- High blood pressure
- Blood sugar levels
- Family history or decent
Health Questions the Application Might Ask:
- Height & weight
- Heart disease
- Diabetic complications (nephropathy)
- Kidney failure
- End-stage renal disease
- CKD treatment
How Does Treatment Affect Insurance Eligibility?
The timeline of your treatment could affect coverage acceptance. Some insurance companies will ask when your treatment was, while others will ask if you have ever received a chronic kidney disease diagnosis.
The application will call CKD one of the following, but all companies will ask about this diagnosis.
- Chronic kidney disease
- Kidney damage
- Kidney condition
- Kidney disorder
- Renal disease
The companies that are more lenient with kidney disorders are likely to ask about a shorter timeline. The less kidney-disease-friendly carriers will ask about the diagnosis or treatment in the last four years.
If you have been a kidney dialysis patient within the last 12 months, you will only be eligible for a guaranteed issue life insurance plan. If it has been over 12 months and you meet the other qualifying guidelines, immediate coverage is possible.
Finding life insurance for kidney failure or end-stage renal disease will be much more difficult. A guaranteed acceptance life insurance policy will best suit these advanced kidney problems by getting a guaranteed issue life insurance policy.
Funeral insurance companies will check your prescription and medical history (MIB) to confirm your answers to the application’s health questions. If you have recently filled a medicine, the life insurance company will assume that you have the health condition that the specific medication is known to treat.
How Do Insurance Companies React to Kidney Disease?
All final expense life insurance companies will ask about chronic kidney disease on their application. This means they will place you into different plans based on your CKD. Treatment and the cause of your kidney disease also play a role.
Seniors can get immediate final expense insurance with kidney disease from a select few carriers. However, most insurance providers will enforce a 2-year waiting period before the individual is fully covered.
Finding The Best Funeral Insurance With Kidney Disease
Since each funeral insurance company has its own qualifying standards, it is important to know the main things to look for. The cost, coverage, and company are vital in finding the most personalized funeral insurance for kidney disease patients.
Low-Cost Premiums: Getting a policy with affordable premiums is essential.
Start Date of Coverage: Your goal should always be to obtain immediate coverage. Working with an experienced professional raises your chances of finding full coverage on day one.
Company Financials: An insurance carrier with a strong financial rating will help ensure they will be in business and honor their commitments for many years.
There are four tiers of final expense coverage plans available to seniors. Eligibility for each type of policy will depend on the carrier’s underwriting standards related to the applicant’s health.
Level: This top-tier plan has no waiting period and offers the lowest price point for coverage. Only a few select insurance providers approve seniors with kidney disease for their level plan. An excellent plan option for this is the Foresters Financial Standard plan.
Graded: These policies have a progressive payout schedule during the two-year waiting period. Graded offers more leniency and is a typical life insurance option for kidney disease patients.
Modified: Modified plans have a 2 – 3 year waiting period with a return of paid premiums if the insured dies during this time. Often these plans are the most expensive options and are also commonly available to those with kidney disease.
Guaranteed Issue: Unlike the three plan types above, no medical questions are asked for guaranteed acceptance plans. Several great guaranteed plans on the market are very competitive compared to modified plans. Guaranteed plans are issued with a waiting period of 2 – 3 years.
How to Buy Life Insurance with Kidney Disease
Anyone who has an active life insurance license in your state can sell you life insurance. However, choosing to work with an agency or directly with the company changes your access to plans.
Direct with Company: Calling the company directly may sound fine, but with your kidney disease diagnosis, they could either deny you completely or push you towards a guaranteed acceptance policy. Most guaranteed plans that are sold directly by the insurance company are overpriced.
Insurance Agency: Life insurance agencies are allowed to have access to many insurance policies and companies. By representing multiple policies, insurance agents can shop around on behalf of the customer based on their individual health and budget needs.
a. Finding affordable burial insurance with kidney disease is possible.
b. A select few carriers will award immediate coverage, but most will require a 2-year waiting period and slightly higher rates.
c. To find the best plan at the lowest premium price, work with an insurance agency with access to several policies. This will provide the greatest opportunity to get coverage benefits with no waiting period.