Can You Get Final Expense Insurance With Pre-Existing Conditions?

Many people worry that having a pre-existing health condition will make it difficult to get final expense insurance. Traditional life insurance policies often require medical exams and may deny coverage based on health issues. However, final expense insurance is designed to be more accessible, even for individuals with serious medical conditions.

What Is Final Expense Insurance?

Final expense insurance, sometimes called burial insurance or funeral insurance, is a type of whole life insurance policy that helps cover end-of-life expenses. The primary purpose of this coverage is to ensure that families are not left with the financial burden of:

• Funeral and burial costs

• Medical bills

• Outstanding debts

• Legal fees

Final expense insurance offers smaller coverage amounts (typically between $5,000 and $50,000) compared to traditional life insurance. This allows for lower premiums and easier approval for individuals with pre-existing conditions.

Can You Get Final Expense Insurance With Pre-Existing Conditions?

Yes, individuals with pre-existing conditions can qualify for final expense insurance. Unlike traditional life insurance, many final expense policies do not require a medical exam, making it easier for people with health issues to obtain coverage.

However, the availability of coverage and the cost of premiums depend on the severity of your condition and the type of policy you choose.

Types of Final Expense Insurance for People With Pre-Existing Conditions

There are two main types of final expense insurance policies for individuals with health concerns:

Simplified Issue Final Expense Insurance

This type of policy is designed for people with minor or manageable health conditions. It does not require a medical exam, but applicants must answer a few health-related questions on the application.

Key Features:

• No medical exam required

• Lower premiums than guaranteed issue policies

• Immediate coverage in most cases

• May have health-related disqualifications for severe conditions

Best for: Individuals with mild pre-existing conditions, such as controlled high blood pressure, diabetes, or minor heart issues.

Guaranteed Issue Final Expense Insurance

For individuals with serious or multiple health conditions, a guaranteed issue policy may be the best option. This type of policy guarantees acceptance regardless of health status.

Key Features:

• No medical exam and no health questions

• Guaranteed acceptance for eligible age groups (typically 50 to 85 years old)

• Higher premiums due to increased risk

• Includes a waiting period (usually 2 to 3 years) before full benefits are available

Best for: People with severe health conditions, such as cancer, advanced heart disease, kidney failure, or other major illnesses.

Common Pre-Existing Conditions Covered by Final Expense Insurance

Many final expense insurance providers cover individuals with the following conditions:

• Diabetes (Type 1 and Type 2)

• Heart disease or history of heart attacks

• High blood pressure or cholesterol issues

• Stroke survivors

• Cancer (depending on the stage and treatment status)

• Chronic respiratory issues (such as COPD or asthma)

• Kidney disease or dialysis patients

• HIV or AIDS

• Alzheimer’s or dementia (for guaranteed issue policies)

If you have a serious or terminal condition, a guaranteed issue policy is likely the best option. However, if your condition is well-managed, a simplified issue policy may offer lower premiums and immediate coverage.

How to Find the Best Final Expense Insurance With Pre-Existing Conditions

If you have a health condition, follow these steps to secure the best final expense insurance policy:

Compare Multiple Insurance Providers

Different insurers have different underwriting guidelines. Some are more lenient with specific conditions, while others may charge higher premiums. Get multiple quotes to find the most affordable coverage.

Choose the Right Policy Type

• If your condition is mild or well-controlled, consider a simplified issue policy to avoid waiting periods.

• If you have serious health issues, a guaranteed issue policy ensures acceptance.

Understand the Waiting Period

Guaranteed issue policies often come with a waiting period of 2-3 years. If the policyholder passes away during this time, the beneficiary receives a refund of premiums paid plus interest, but not the full death benefit.

Be Honest on the Application

If applying for a simplified issue policy, answer health questions truthfully. Providing false information can result in a denied claim later.

Check for Additional Benefits

Some policies include riders (optional benefits) like:

• Accelerated death benefits (allowing early payout in case of terminal illness)

• Accidental death coverage

• Cash value accumulation (which can be borrowed against)

How Much Does Final Expense Insurance Cost for Individuals With Pre-Existing Conditions?

The cost of final expense insurance depends on factors like age, gender, health condition, and coverage amount.

On average, monthly premiums for a $10,000 final expense insurance policy are:

• $30 to $70 per month for healthy seniors

• $50 to $120 per month for individuals with moderate health conditions

• $80 to $150 per month for guaranteed issue policies (higher-risk applicants)

While guaranteed issue policies cost more, they ensure coverage for individuals with serious health conditions.

Pros and Cons of Final Expense Insurance With Pre-Existing Conditions

Pros:

✔ No medical exam required
✔ Easy approval for most seniors
✔ Covers funeral, medical bills, and outstanding debts
✔ Provides financial relief for loved ones
✔ Premiums remain fixed for life

Cons:

✘ Higher premiums for guaranteed issue policies
✘ Waiting periods for severe health conditions
✘ Lower coverage amounts compared to traditional life insurance

Conclusion

If you have a pre-existing condition, you can still qualify for final expense insurance. Whether you choose a simplified issue or guaranteed issue policy, you can find coverage that ensures your funeral and other final expenses are taken care of. By researching providers, comparing quotes, and choosing the right policy type, you can secure affordable and reliable coverage that provides peace of mind for you and your loved ones.

Frequently Asked Questions

What is the best final expense insurance for people with pre-existing conditions?

The best option depends on your health condition. If you have manageable conditions like diabetes or high blood pressure, a simplified issue policy is ideal. For more severe conditions, a guaranteed issue policy ensures acceptance.

Will my premiums be higher if I have a pre-existing condition?

Yes, premiums for final expense insurance may be higher for individuals with pre-existing conditions, especially for guaranteed issue policies. However, shopping around for different insurers can help you find the best rates.

How long does it take to get approved for final expense insurance?

Most final expense insurance applications are approved within a few days to a few weeks, depending on the insurer. Since no medical exams are required, the process is usually quick and hassle-free.