Burial Insurance with Diverticulitis: Does It Matter?

Burial Insurance with Diverticulitis
Burial Insurance with Diverticulitis: Does It Matter?

Diverticulosis can be a painful condition.

Diverticula are small pouches that can develop in the wall of the colon. Diverticula is not usually painful but when these pouches become inflamed is when symptoms and pain start. This is when you would be considered to have diverticular disease, also known as diverticulitis.

Someone who has this condition may be directed to adjust their diet in an effort to reduce diverticulosis symptoms.

Something you will not have to adjust is which top life insurance provider you use.

Will I Be Able To Get Burial Insurance With Diverticulitis?

Diverticulitis is a pre-existing condition that is not routinely asked about in the application process for burial insurance. Having this condition alone is not going to make a difference in obtaining coverage.

However, some burial insurance companies will ask about recent hospitalizations and/or recent surgeries. So, if you have been hospitalized or had surgery this could make a difference in acceptance.

This is dependent on the company’s health qualifications and the amount of time that has passed since your surgery or hospitalization.

Assuming you’re here reading this article due to your diverticular disease we have put together a list of the top companies to take a policy out with, but first, let’s look into the basics of a policy and an overview of how and why life insurance companies react to applications for coverage.

Man and women standing outside

Burial Insurance Basics

Burial insurance products were designed specifically with seniors in mind. This is a type of Whole Life Insurance that lasts throughout the entire life of the insured.

These plans are geared towards 50 to 80 year olds who are looking for affordable coverage with under $50,00 of a death benefit. The money is usually intended to pay for the burial expenses of the insured so their family is not burdened by this cost.

All Whole Life policies come with the following basic benefits.

Benefits:

  • No Expiration
  • Coverage Lock
  • Price Lock
  • Builds Cash Value
  • No Medical Exam

Some companies offer additional benefits, so make sure you fully understand your plan options when comparing policies.

doctor writing on paper with pen

Underwriting

Underwriting is the process in which the company determines if it will provide coverage to someone.

They do this by asking a series of health questions and checking the applicant’s prescription history.

Pro Tip: If the company does not ask about a specific health condition, it does not matter to them if you have it or not.

Health concerns are very “nichey” when it comes to getting coverage. Some companies may not mind if you have a specific pre-existing condition while another company might deny coverage outright. Each company has a different risk tolerance.

For example, someone who has had a heart attack will be accepted for coverage with no waiting period with one company, and another company will make that same person wait for 2-years until coverage begins.

Fortunately for you, diverticulitis is not commonly mentioned in the health questions for most burial insurance companies.

There are however some companies that will inquire about recent surgeries or hospitalizations.

Most companies do not ask this.

Typically for the companies that will ask about these 2 health history concerns, they will also ask about the timeline in which it occurred.

If you come across an application that asks about surgery or hospitalization that will adversely affect your coverage, simply move on to the next company because there are plenty of options available.

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Best Burial Insurance Companies

Below is a condensed list of the 5 best burial insurance companies.

If you have additional medical concerns, please understand that this will affect your ability to get coverage.

It is imperative that you speak with an independent agent to get the best policy that uniquely fits your needs.

Mutual of Omaha

This is a top-tier company in the industry with very low and affordable monthly premiums.Mutual Of Omaha Logo

If you have this pre-existing colon condition and are otherwise in good health, Mutual of Omaha is going to provide you with the lowest possible premiums.

Two available plans:

Level – No waiting period & lowest prices

Graded – 2-year waiting period & high prices

The Level plan is the best in the industry while we do not recommend the Graded policy as there are better options available with immediate coverage at lower price points.

All in all, Level coverage is what you want to obtain from Mutual of Omaha.

Foresters Financial

Foresters Financial Logo black and white

Foresters Financial is a fraternal organization meaning that in addition to providing world-class coverage they also provide other benefits to their members.

They offer three plans:

Preferred (level) – No waiting period & low prices

Standard (level) – No waiting period & slightly higher prices

Basic (modified) – 2-year waiting period & high prices

The Preferred and Standard plans are amazing, but we would steer you elsewhere when it comes to the Basic plan.

While delivering low-cost premiums the health qualifications are slightly less strict than Mutual of Omaha for certain conditions. For this reason, they are second on the list.

Royal Neighbors of America

Royal Neighbors Logo black and white

Royal Neighbors of America comes in at number three because of their lenient underwriting and affordable rates.

While the rates are slightly higher than the first two carriers listed, the underwriting is even more laid back for certain health concerns such as diabetes and obesity.

They offer two types of plans, Level and Graded.

Level – No waiting period & low cost

Graded – 2-year waiting period & moderate cost

The Graded plan from Royal Neighbors is a true Graded plan meaning that partial coverage starts immediately with full coverage after 2-years.

Graded payout structure:

  • Death in year 1 – 30% of policy amount given to beneficiary
  • Death in year 2 – 70% of policy amount given to beneficiary
  • Death year 3 or later – 100% of the policy amount given to beneficiary

This is a highly respected company that offers good rates if you require more lenient underwriting due to additional pre-existing health concerns.

Guarantee Trust LifeBlack and white GTL logo

This company is certainly not a go-to option for those who have diverticulitis only. However, if you have other serious medical concerns this company provides the most lenient underwriting in the industry.

The forgiving acceptance standards are given with higher premiums and a 2-year waiting period before full coverage can be awarded to the beneficiary.

Waiting period payout structure:

  • Death in year 1 – return of paid premiums +5% to beneficiary
  • Death in year 2 – 50% of policy amount given to beneficiary
  • Death in year 3 or later 100% of policy amount given to beneficiary

This is an extremely client-friendly payout structure given the leniency of qualification. We won’t go into it all now but if you would like to see the full list of underwriting questions you can read a full review on GTL here.

Guaranteed Issue

These policies are highly marketed on TV and direct mail.

Guaranteed Issue policies accept 100% of applicants, in fact, there is no underwriting that these policies go through.

If you fill out the paperwork and continue to pay the monthly premiums you are guaranteed to get coverage.

The drawback to this is that the plans are MUCH more expensive than the policies that you have to medically qualify for.

If you have diverticulosis there is NO need to get a guaranteed acceptance policy.

If someone tells you that this is your only option, run away because they do not have your best interest at heart or are misinformed.Black and white AIG logo

Again, you do not need this type of policy, but if you have additional complications that would deem you “uninsurable” by the companies listed above, this might be your only option. If this is the case for you, we recommend AIG as they have the lowest prices for this plan type.

Captive Agency vs Independent Agency

A captive agency is able to sell products from one company and one company only. They are “captive” to this company. If you are looking for the best burial coverage, these companies often will not have competitive products, meaning higher health standards and higher prices.

An independent agency can represent as many companies as it chooses. They are independently contracted with the providers that they represent. These agencies can be specialized or can represent across multiple lines including home, life, auto, and health.

More often than not, because they have the ability to choose, they represent excellent products that can fit the unique and individual needs of their clients.

Why Willamette Life

Willamette Life is an independent agency that represents several companies specifically in the niche of Burial Life Insurance.

By specializing with this single focus, our agents are able to understand each aspect of the plans they represent. Since this coverage is so specialized from company to company for pre-existing conditions, Willamette Life agents have the best chance of getting top-tier coverage to meet the needs of our clients.

Whether you have diverticular disease or just had a heart attack, we are able to assist you in qualifying for the best coverage.

Final Thoughts

a. Finding affordable Burial Insurance with diverticulitis is easy as it will not affect your ability to qualify for affordable coverage.

b. Working with an independent agency is going to be your golden ticket to securing coverage at the lowest rate, especially if you have a health concern that could raise a red flag with a provider.

Give Willamette Life a call at 844-576-0019

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