Living life with a disability can be challenging and may raise many concerns. This diagnosis can come with lifestyle changes and new ways of everyday living.
What is not always thought about are the options that you have for life insurance with a disability.
Most families do not realize the financial burden that comes with funeral expenses, and unfortunately, these costs typically fall to unexpecting loved ones. There are thousands of seniors across America that have nothing set aside for a burial fund.
Burial insurance coverage becomes a necessity for families at the end of life. This financial protection is also called funeral or final expense insurance.
Can I Get Burial Insurance On Disability?
Every burial insurance carrier sets its own qualifying standards. Having a disability in itself does not affect coverage, but the specific disability could. Fortunately, when it comes to disabilities, the majority of insurance companies are lenient and will approve the applicant for immediate coverage.
How To Find The Best Burial Insurance On Disability
The most suitable burial life insurance company is specific to the health of the disabled applicant.
Since each provider creates its own individual qualifying standards, some insurance companies are more lenient with pre-existing disabilities than others.
For example, someone with multiple sclerosis could qualify for no waiting period with one company but be denied by another.
A wide range of conditions can qualify someone for disability benefits, including arthritis, back pain, fibromyalgia, depression, and diabetes. If you have these conditions, you can still find an affordable, top-tier plan with no waiting period.
However, a few conditions could cause an insurance company to use caution before issuing a burial policy. The insurance providers have a list of pre-existing diagnoses that they will be more focused on.
Disabilities That Matter to Insurance Companies
If you have had any of the following, you may be required to have a waiting period or pay higher premiums for coverage.
The typical waiting period is two years and limits the beneficiary’s money if death occurs during this time. The full death benefit is available once the waiting period has concluded.
If you are currently receiving home health care or are in a facility, the insurance providers will require you to pay more for the policy each month and institute a waiting period.
Being able to accomplish the five activities of daily living (ADL) on your own is also required by every company to get immediate coverage. If you cannot do the following on your own, there will be a 2-year waiting period.
Coverage is available with a cancer diagnosis. The plan structure and price will vary depending on whether you are in remission or currently receiving treatment.
Most insurance companies will look back 2 to 4 years for cancer treatment. If you are currently receiving cancer treatment, the best option is to find a highly rated guaranteed acceptance plan.
A plan with guaranteed coverage will ask no medical questions but implement a 2-year waiting period before the full death benefit is available to the beneficiary.
Circulatory System Disorders
If you have had circulatory or heart surgery, immediate coverage is available if it has been over 2 years since the procedure. Some insurance companies will provide no waiting period coverage after 12 months.
If the applicant has neuropathy, nephropathy, or retinopathy, many carriers will approve coverage but require a higher monthly premium and a waiting period.
Depending on how long ago your diabetic coma was, you could be eligible for immediate coverage. Amputation due to diabetes will result in delayed coverage.
For seniors that have controlled diabetes, immediate coverage is available from many final expense insurance companies.
Many medical conditions are in this category. Depending on when the heart disease was diagnosed and its severity, it will determine the price and coverage timeline you can receive.
The coverage timeline and acceptance will also be affected for seniors with arrhythmia, congestive heart failure (CHF), and peripheral artery disease (PAD).
If you rely on a wheelchair or scooter for mobility, the insurance provider will require a higher monthly premium and a two-year waiting period.
If immobility is expected to be temporary, you are still eligible for immediate coverage.
Nervous System Disorders
Epilepsy, multiple sclerosis, Parkinson’s Disease, and paralysis will all affect insurance eligibility. A few companies will provide immediate coverage for these conditions.
Working with an experienced agent who represents companies that look favorably upon these disorders will be the best way to secure burial insurance coverage with no delays.
Paying for Burial Life Insurance Policies
Social Security Disability Insurance (SSDI) coverage is paid in one of two ways.
Direct Express Card: Payment is placed onto a direct express debit card that recipients can use to make purchases.
Some life insurance companies will allow payments to be made using this card, but most do not. Let your insurance agent know if this is your only form of payment, as it will limit your funeral insurance options.
Direct Deposit: The money is sent directly to your bank account.
If you have a bank account, this is the preferred way to make your funeral insurance payments. Many companies only allow payments through an automatic direct deposit every month.
A senior citizen receiving disability insurance payments will have several more options if they have a bank account that the funeral expense insurance payments can be drawn from.
Work With a Specialized Agent
When you have a disability, it is essential to work with an insurance agent who can access the best burial insurance companies. This will make sure you receive the most optimized coverage at the lowest price point.
How Willamette Life Can Help You
Willamette Life focuses on finding families and seniors living with disabilities the lowest-priced final expense insurance coverage.
Our agents compare different insurance carriers to find the perfect match for your disability and budget.
Instant burial insurance quotes can be calculated using the quote machine on this page or by contacting Willamette Life at 844-576-0019.
Final Expenses & Disability Questions
Does Disability Pay for Funeral Expenses?
Social Security Disability Insurance (SSDI) does not pay for funeral costs. However, funeral insurance is an affordable way to pay for funerals and other final expenses of the elderly. Senior whole life insurance comes in small coverage amounts, making it affordable on any budget.
How Much Does Social Security Give You for Burial?
A $255 death benefit will be awarded to a surviving beneficiary upon qualification with Social Security Insurance (SSI). With average funeral costs of $7,643, the amount provided by the SSI burial fund is nowhere near enough to cover these expenses.
Does Disability Pay for Cremation?
Cremation costs are not covered by disability insurance. However, cremation and other final expenses can be covered by a funeral insurance policy. The average cost of cremation is $6,280 in the US.
What Insurance Can You Get While on Disability?
Final expense life insurance is available for seniors on disability. The type of disability will depend on whether you can qualify for immediate coverage or if there will be a waiting period imposed.
Can I Have a Life Insurance Policy While on SSI?
Funeral life insurance is available to seniors receiving Social Security Insurance (SSI). Immediate coverage is available to those in fair health. If applicants have a pre-existing condition that the insurance providers deem high-risk, there could be a waiting period imposed before full benefits are available.
Does Life Insurance Affect Social Security?
Social Security and life insurance have very little to do with each other. The only real correlation is the payment for the burial policy with your SSI benefits. If you have a bank account to pay the premiums with, there will not be an issue.
The Basics Of Burial Insurance For The Disabled
Senior whole life insurance was designed specifically with the elderly in mind to provide an affordable way to prepare for final expenses.
Each month the policyholder makes a simple and affordable monthly payment. In exchange, the insurance company will pay a death benefit to the beneficiary once the policyholder has passed away.
These plans are affordable because it comes in smaller coverage options, making it less expensive than a traditional whole life insurance policy.
Upon acceptance, there are three pillar benefits.
Price Never Changes: You will pay the same premium month in and month out. The price will never increase, giving you peace of mind with no financial surprises.
Coverage Never Terminates: Your coverage will never decrease or terminate. This will guarantee that your family receives the resources needed.
Builds Cash Value: With each payment made, a portion will go towards the cash value. This amount will grow over time and can be borrowed from if the policyholder chooses.
a. Qualifying for senior life insurance meant to cover burial expenses will not be affected by receiving money from SSDI.
b. The specifics of your disability could affect whether or not someone can qualify for immediate burial insurance on disability. However, every elderly applicant can qualify for some type of coverage, regardless of their health.
c. Working with a final expense insurance specialist who has access to multiple companies will be the best way to apply for immediate insurance coverage with no delay.
Stacie manages the content for Willamette Life by keeping it up to date and accurate. By taking the questions frequently asked by clients she has been able to assist in developing a series of blogs that will hopefully be able to help more people than just those we are able to speak with.
We would be happy to answer your specific questions if there is anything we haven’t covered yet.