Burial Insurance with Dementia or Alzheimer’s: 2 Key Plans

While these two terms are often lumped into the same category, they are not one and the same.

Dementia is an umbrella term used to describe several types of cognitive impairment and memory loss.

Alzheimer’s is a specific disease that falls under this umbrella and accounts for 60% – 80% of dementia cases.

Burial Insurance with Dementia or Alzheimer’s

You may be wondering if Burial Insurance with Dementia or Alzheimer’s is possible. The answer is YES, however, only policies that have guaranteed acceptance will provide this coverage.

While these two conditions are not the same, the insurance providers look at them as essentially the same diagnosis. As in, each will affect the ability to get coverage in the same exact way.

Why It Matters

Alzheimer’s is the 6th leading cause of death in the United States.

On average someone with this condition lives 4 – 8 years after getting the diagnosis although there have been people known to live much longer.

Complication from memory loss can include:

• Restlessness and agitation
• Bladder and bowel problems
• Depression
• Falls
• Infections
• Wandering
• Malnutrition and dehydration

Some of these situations can lead to further difficulty obtaining a policy.

Let’s dive into how a company decides if it will cover certain conditions.

Underwriting

Underwriting is basically the decision-making process.

Each of the best burial insurance providers has their own predetermined standards of what they will and will not accept in terms of health history and current diagnoses.

While this process may seem personal, it is anything but.

The predetermined health standards are set by the risk tolerance of a company.

Generally speaking the harder it is to qualify for a plan, the lower the premiums will be. On the flip side, the easier it is to qualify, the more expensive the premiums will be.

So with this said, what does underwriting look like for those with degenerative mental concerns?

For policies that go into effect immediately, the proposed insured will be asked a series of “YES” or “NO” health questions. Within these questions will inevitably be one that looks like some version of this:

“Has the proposed insured ever been diagnosed with, treated for, or advised by a medical professional to seek treatment for Dementia, Alzheimer’s Disease, or memory loss?”

By answering “YES” to this question you will be denied coverage. This question is typically found towards the beginning of the questionnaire and is a “knock-out” question.

If you choose to falsely answer with a “NO” the company will find out you are being untruthful as they conduct further research into health history.

For the plans that offer immediate coverage, there will also be a Medical Information Bureau (MIB) check and a prescription history check.

This is how your answers are verified prior to receiving coverage. If you are completely truthful on the application questions there will be no issue.

If you have FILLED a prescription the company will assume that you are taking it and that you have the condition that it is intended to treat.

They do not allow much wiggle room with this.

Some medications that are commonly taken for cognitive conditions are:

• Donepezil
• Galantamine
• Memantine
• Rivastigmine
• Memantine + Donepezil

This will be an automatic denial of coverage for plans with no waiting period.

This may seem all doom and gloom but there is a policy option available!

Guaranteed Issue

Guaranteed Issue policies accept 100% of applicants. There are no health questions whatsoever in order to obtain coverage.

These plans all come with at least a 2-year waiting period. Some companies will impose a 3-year waiting period on their policies with guaranteed acceptance.

Never move forward with any plan that has a waiting period longer than 2 years.

If the insured passes during the waiting period the beneficiary would receive the paid premiums plus a predetermined interest rate, usually 10%.

Not all Guaranteed Issue policies are created equal.

What it all boils down to is the price. All guaranteed policies are essentially the same but some companies charge much more than others.

Why pay more if you are getting the same coverage?

Top Guaranteed Issue Plans

The companies listed below are recommendations for guaranteed acceptance policies only. As mentioned, there will be no medical questions asked.

Please give Willamette Life a call, we will help you determine if you are able to qualify for a better plan or if Guaranteed Issue is your best option. Our experienced agents will be able to discuss your health history with you to determine the best plan that fits your needs.

Oftentimes people will purchase guaranteed policies not realizing that they can qualify for a plan with immediate coverage.

Companies like Colonial Penn, John Hancock, and Globe Life advertise heavily and paint the picture that their plans are superior to all the rest. Some even have celebrities as a spokesperson in commercials.

Some of the policies that you might be aware of provide fine coverage but the rates charged are far higher than what is offered by other, slightly lesser-known, companies.

AIG

AIG is the premier company when it comes to guaranteed policies.

Not only are the premiums some of the lowest available but the plan also has living benefits.

As the name suggests a living benefit is something that you can take advantage of while you are still living.

Quick Facts:

• Age range: 50 – 80
• Coverage amount: $5,000 – $25,000
• 2-year waiting period
• 3 extra benefits

During the waiting period, if the insured passes, the beneficiary will receive the paid premiums plus 10% interest.

3 Included Benefits:

Accidental Death Benefit – If the insured passes during the waiting period but the cause of death is ruled to be an accident (rather than natural causes) the beneficiary will receive the full face amount of the policy.

Chronic Illness Accelerated Death Benefit – This pays a one-time lump-sum of up to 25% of the face amount of the policy.

Terminal Illness Accelerated Death Benefit – This feature pays 50% of the policy face amount if the insured receives a terminal diagnosis.

Again, these added benefits are included in the quoted price of the policy and will not cost you any more to have these benefits available.

This is NOT typical of guaranteed policies and should be viewed as an added bonus.

To read more about the details of this plan from AIG click the link or navigate to our “blog” page under the main menu.

Quotes:

Gerber

Gerber Life Insurance Company offers several products that you might be aware of, one of which is a policy that guarantees acceptance.

While the prices from this company rival the competition, the policy does not come with any of the added benefits that AIG offers.

Quick Facts:

• Age range: 50 – 80
• Coverage amount: $5,000 – $25,000
• 2-year waiting period

During the waiting period, if the insured passes, the beneficiary will receive the paid premiums plus 10% interest.

Below are quotes from AIG and Gerber side-by-side to easily compare which is best. As you can see, the lowest prices are in bold.

Quotes:

Policy Basics

Burial Insurance is Simplified Issue Whole Life coverage.

Simplified Issue means that you will never be asked to get a medical exam and the process can be done entirely over the phone and issued quickly.

Whole Life coverage never expires. As long as you pay the premiums, your policy will remain in force until the insured passes away.

This plan was designed specifically with seniors in mind to allow for an affordable way to cover the inevitable costs that come at the end of someone’s life.

Coverage can be modified to accommodate virtually any budget.

Coverage highlights:

• No Expiration
• Coverage Lock
• Price Lock
• Builds Cash Value
• No Medical Exam
• No Waiting Period Options

You must qualify in order to not have a waiting period placed on your policy. Unfortunately, for those with diagnosed memory loss concerns, there will always be a waiting period involved.

As you are probably aware, this is a contractual agreement in which you must be fully capable of entering into.

We bring this up when discussing dementia and Alzheimer’s Disease because depending on the level of advancement, the proposed insured may not be able to enter into a contractual agreement.

As stated by the American Medical Association Journal of Ethics, adults are generally presumed to have capacity to enter into a contract, but this rule is not absolute.

“There are two major exceptions to the presumption of an adult’s legal capacity, one of which is being intoxicated when the agreement was made because intoxication can affect judgment. The second exception to legal capacity is mental illness or mental defect. Historically, this exception intended to protect individuals who were developmentally disabled or insane. Today, the category has been expanded to include those suffering from degenerative diseases that may affect their cognitive abilities.”

Captive vs Independent Agencies

Captive agencies are able to sell products from one company only.

Independent agencies are able to represent and provide plans from many different providers.

It is of great advantage to work with an independent agency because you will have more options. This will save you both time and money by relying on an expert in the field that has ample resources.

Why Willamette Life

Willamette Life is an independent agency that specializes solely in Burial Insurance. By having one focus it allows our agents to completely understand every aspect of each company represented.

Since this industry is very specific with accepted health requirements, our agents are able to place you with the premier company to fit your unique situation.

We have helped many people find the perfect policy for them and achieve peace of mind knowing their end-of-life expenses are taken care of.

From Connecticut to Florida to California, Willamette Life is here to help.

Final Thoughts

a. If you are looking for Burial Insurance with dementia or Alzheimer’s it is possible to get, however, you will be eligible for a Guaranteed Issue policy only.

b. It is imperative that you work with an independent agent that represents multiple companies and has expertise in the field. This will guide you in the right direction and receive the lowest price.

Give Willamette Life a call at 844-576-0019