Burial Insurance After A Stroke

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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There is no doubt that after experiencing a stroke, many things in your life change. From preventative medication to diet and exercise, there are several things that your doctor will recommend.

You may or may not have considered your ability to qualify for burial life insurance.

Can You Get Burial Insurance After A Stroke?

Getting immediate burial insurance coverage after a stroke is possible. The main thing that the insurance companies will look for is the length of time it has been since your stroke. If it has been over twelve months since your stroke, you can get coverage with no waiting period from several final expense life insurance providers.

Women in a wheel chair smiling

Underwriting: Why Does A Stroke Matter For Coverage?

Your health matters to the insurance company, and stroke is the 5th leading cause of death in the United States and a leading cause of disability.

Depending on the severity of the stroke, you are susceptible to further health complications, including memory loss, speech challenges, chronic headaches, blood clots, and a second stroke. Most of these related concerns will not affect burial insurance but taking blood thinners might.

How Recovery Time After a Stroke Affects Coverage

Each insurance company has a different risk tolerance for accepting stroke survivors. Every application for immediate funeral insurance coverage will ask about strokes and TIA. The way that each company asks and reacts to this health history will be what sets them apart.

Over 2 Years Since Stroke

Most final expense life insurance companies will accept you with no waiting period if it has been over 24 months since your stroke. If this is the case, protection from the policy will come immediately upon approval. This would be a level or level-preferred policy option.

12 to 24 Months Since Stroke

A select few carriers, like Atena/CVS, will accept stroke patients if it has been over one year but under two. These plans come with immediate coverage but are slightly higher in price. This is most often a company’s level-standard policy.

Stroke within 12 Months

There would be a mandatory waiting period if your stroke were within the past year. Some plan options will have partial coverage immediately, while others will only return the premiums paid if the insured dies during the waiting period. Depending on the carrier, this would be graded, modified, or guaranteed life insurance policies.

Plan Tiers

There are four tiers of plans within final expense insurance coverage. The company’s leniency with burial insurance for stroke victims will depend on which one of its plans you are eligible for.

With each tier, the cost increases as the leniency for pre-existing health conditions increases.

Level: This policy has immediate protection and the lowest prices. Some companies divide this tier into two plan options, commonly referred to as preferred and standard. Both have no waiting period.

  • Preferred: Has the lowest cost and the most strict health qualifiers
  • Standard: Has slightly increased prices and somewhat lower health restrictions

Graded: This plan has a 2-year waiting period with a progressive policy payout. Common payout structures are 30%, 70%, 100% in years 1, 2, and 3+. This is typical for people who have experienced a stroke in the last 12 months.

Modified: This plan is also referred to as a “return of premium” policy. If the insured dies during the mandatory waiting period, the beneficiary will receive the paid premiums plus some interest. If death occurs after the conclusion of the waiting period, the full death benefit will be awarded.

Guaranteed Issue: Seniors will be subject to a waiting period of usually 2-years. This policy asks no medical questions and accepts all who want coverage. Also known as guaranteed acceptance, these plans have similar waiting period structures as a “return of premium” policy.

How To Find Good Final Expense Insurance For Stroke Survivors

All the top burial insurance companies have different health criteria to qualify for coverage. This is important to understand because every health condition matters.

Overall, there are three things to consider when obtaining funeral insurance after a stroke.

Insurance Provider: Take a policy out with a life insurance company with a solid financial rating. A high financial rating is a powerful indicator that the company will pay its obligations when they come due.

Start of Protection: Twelve months or more after a stroke, it is possible to get coverage with no waiting period. Getting coverage that starts immediately is ideal.

Premium Prices: Not all plans are priced the same, and each company sets its own pricing. As always, try to get the lowest cost plan available.

How to Buy

There are two main ways to purchase burial life insurance after a stroke.

Directly from a Company: You are limiting your options by calling the company directly. Since the company you call will only be able to offer their products, you could be missing out on a more optimal plan for your health history, leading to overpaying or being denied altogether.

Insurance Agency: An insurance agency can represent several products from many life insurance companies, allowing them to shop for multiple plans on behalf of their customers. This tremendously benefits the consumer and will save you time and money.

man and nurse smiling

The Basics Of Burial Insurance

Burial life insurance is a whole life insurance policy designed to cover someone’s funeral expenses. While this is intended, there are no requirements for what the money needs to be spent on.

Policy amounts are available from $2,000 to $40,000. With the average funeral between $8,000 – $12,000, these policies provide enough money for what they are intended to cover.

Whole Life Insurance Coverage

Four permanent benefits determine whether a policy is considered whole life insurance.

No Expiration: These policies last for the entire life of the insured. This gives the policy owner and beneficiary peace of mind that the money will cover funeral expenses as intended.

Coverage Lock: The death benefit amount taken out will never fluctuate. While you can always get additional coverage, the initial amount will never decrease.

Price Lock: The monthly premiums will never be adjusted. The price you pay for the first premium will be the same as the last.

Builds Cash Value: The cash value provides a living benefit allowing the insured to borrow from the policy if desired. A small portion gets allocated to the cash value account with each payment. Over time this value builds and can become quite substantial.

Burial Insurance Specifics

These plans are also known as funeral insurance or final expense insurance. Certain features make burial coverage worth it for millions of seniors across America.

Affordability: These plans come at a low cost because of the small coverage amounts. Traditional whole life policies range from $50,000 to the millions, while final expense coverage maxes out around $40,000. The less coverage you have, the less the premiums will be.

No Medical Exam: Burial insurance falls under simplified issue whole life. A simplified issue plan means applicants will never be asked to get a medical exam. These policies can be issued over the phone without leaving home.

No Waiting Period Options: Immediate burial insurance for stroke victims is possible if it has been over 12 months since the incident. Final expense insurance after a stroke within the last year will encounter a waiting period before full coverage begins

Final Thoughts On Final

a. The most significant factor when finding burial insurance after a stroke is how much time has passed in your recovery process. The more time that has passed, the more options you will have.

b. If it has been over two years since surviving a stroke, you will have the most coverage opportunities. There will be limited options if it has been 12 – 24 months. Burial life insurance companies will enforce a waiting period if your stroke has been within the year.

c. As an applicant with a pre-existing condition working with an independent agency will provide you with the most options. This will allow you to get the best coverage at a budget-friendly rate.