Perhaps you were recently diagnosed with nephropathy and wondering what your options are for life insurance. This article will discuss the basic features of burial insurance, why your diagnosis matters for coverage, and how to qualify for the best burial insurance plan.
Can You Get Burial Insurance With Nephropathy?
Immediate burial coverage with no exam is available from a select few carriers. Most life insurance companies will accept seniors with diabetic nephropathy but include a waiting period before you are fully covered.
The cost and coverage of burial insurance depend highly on what you can qualify for, given your current health concerns.
Final Expense Insurance with Nephropathy Might be Your Best Choice 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 Features
Burial life insurance is also known as final expense or funeral insurance. This policy type was created to cover funeral expenses, not income replacement, which is why coverage maxes out at around $40,000.
There are 4 main benefits to every whole life policy.
Never Expires: These policies allow people to easily qualify for coverage that lasts for their entire life, so they never need to worry about outliving the policy.
Coverage Lock: The amount of coverage you take out will never fluctuate. The beneficiary will receive the exact amount of money intended, regardless of how long the insured lives.
Price Lock: The monthly premiums are locked in, allowing for easy budgeting. Some policy types increase the premiums the older you get.
Builds Cash Value: As a living benefit, your policy’s cash value allows you to borrow money from the plan if desired. A portion of each premium payment goes towards the cash-value account, overtime this amount increases.
Basic Burial Benefits
The below features are unique to senior life insurance.
No Medical Exam: Funeral insurance is simplified issue whole life insurance. Simplified issue refers to the fact that you will never be asked to get a medical exam to qualify for coverage. The application can be completed entirely over the phone without leaving the comfort of your home.
No Waiting Period Options: For those that qualify, no waiting period is available. Depending on the applicant’s health, insurance companies will either provide immediate coverage or impose a waiting period of 2 – 3 years before the full amount can be awarded. No waiting period options are available for seniors with diabetic nephropathy.
Low-Cost Premiums: This coverage is designed for people 50-85 years old looking for a policy with coverage under $40,000. Traditional whole life insurance death benefits begin at around $50,000, making the premiums higher than funeral insurance coverage.
Underwriting: Why Diabetic Nephropathy Matters For Coverage
Your overall health matters when looking into life insurance coverage. The healthier the applicant, the easier it is to qualify for coverage.
Certain carriers will accept some health conditions that others will not. There is a carrier for nearly every health condition, including diabetic complications like nephropathy.
Every company that offers burial insurance plans with no waiting period asks a series of “yes or no” health questions. If a company does not ask about a specific health concern on the application, they are not concerned if you have it and will accept you.
Nephropathy Risk Factors
Nephropathy is a progressive kidney disease common in people with diabetes. If you are a diabetic looking for burial insurance, do your research on acceptance with this condition as well.
Diabetes is the most common way people get nephropathy, and final expense insurance companies will only ask about diabetic nephropathy. Risk factors for developing this diabetes-induced kidney disease are below and will not affect your ability to qualify.
- Uncontrolled high blood sugar (hyperglycemia)
- Uncontrolled high blood pressure (hypertension)
- High cholesterol
- Family history of diabetes and kidney disease
Complications of Nephropathy
Along with others, the below-listed conditions can be complications of diabetic nephropathy. Each of these medical concerns affects eligibility for burial life insurance coverage.
- Cardiovascular disease
- Diabetic retinopathy
- Nerve damage (neuropathy)
- End-stage kidney disease (kidney failure)
- Kidney dialysis
- Kidney transplant
Some of these conditions will require you to get a guaranteed issue plan. Many guaranteed acceptance policies have competitive rates, but they will all have a 2-year waiting period.
Level: This plan has no waiting period and the lowest prices. Diabetic nephropathy patients are eligible for this plan from a few select companies.
Graded: This plan has slightly higher prices with a progressive payout structure during the 2-year waiting period. This is a common plan offered by insurance carriers to people with nephropathy.
Modified: This plan is also called a “return of premium” plan because of the payout structure during the 2-3 year waiting period. This is another common option given to seniors with diabetic nephropathy and is usually the most expensive.
Guaranteed Issue: These policies accept everyone. The application does not ask any medical questions, but this plan is priced higher and has at least a 2-year waiting period.
How To Find The Best Funeral Insurance With Nephropathy
When determining what company is the best for you, it is critical to understand that the carriers look at several health conditions. If you have another health condition that a carrier asks about, it may affect your eligibility more than nephropathy.
For diabetes, it will depend on when you were diagnosed and how you manage it, along with any complications. Royal Neighbors of America is considered one of the best companies for diabetic complications.
However, it is best to speak with an agent directly to get coverage recommendations based on your specific needs.
What To Look For in a Final Expense Insurance Company
Price: Getting coverage that fits within your budget is fundamental. The premiums will never change, but your income might. Make sure you can afford the cost well into the future so you can stay protected.
Company’s Financial Strength: Using a financially stable insurance carrier will give you peace of mind knowing that the death benefit will be paid out upon filing the claim. Several third-party rating companies can be found online through a quick search.
Begining of Coverage: Policies that protect you immediately are the best choice. To avoid a waiting period, you’ll want to apply with a diabetes-friendly insurance provider. No waiting period is available with certain companies and should be selected if given the option.
Captive Agent vs. Independent Agent
There are many agents that you can purchase insurance coverage from. These individuals fall into two categories, captive or independent agents. While both can represent fine products, the way they go about finding coverage for clients is quite different.
Captive: These agents can only sell insurance from one carrier. This option does not present applicants with the most policy options. Having options is vital when it comes to pre-existing conditions because each plan varies in acceptance standards. Captive agents may not be the best price or the best plan for your specific health situation.
Independent: Agents that are independent can have access to as many insurance companies as they wish. Having more options allows independent agents to compare the prices and plan structures of multiple providers. Not all policies are created equal with preexisting conditions like kidney disease. This is the best option when finding final expense insurance with nephropathy
a. Burial insurance with nephropathy is possible with no waiting period from a select few life insurance companies.
b. Your overall health is taken into account, and it is best to speak with an expert directly to see what you can qualify for.
c. An independent agency is your best option to get the most value out of your plan.