When diagnosed with the condition that requires continuous oxygen, it can be hard to know where to turn or how to deal with this new lifestyle. Whether the reason for needing oxygen is temporary or permanent, it can be difficult to know what else it will affect in your life.
Something that will need to be considered is if you can qualify for burial insurance with this new reality.
Can I Get Burial Insurance With Oxygen?
When people are receiving oxygen or have been recommended to have oxygen, it drastically limits the ability to qualify for burial insurance coverage. Seniors who use continual oxygen therapy will encounter a waiting period, regardless of the company they apply with. If they are currently only on oxygen at night to help with sleep apnea, they will still qualify for immediate coverage.
Burial Insurance Basics
Burial life insurance coverage is also known as funeral insurance and final expense insurance. These plans were built specifically for seniors to create an affordable way to pay for the inevitable final expenses.
- No Expiration
- Coverage Lock
- Price Lock
- Builds Cash Value
- No Medical Exam
- No Waiting Period Options
Underwriting & Cost of Funeral Insurance With Oxygen
The first thing to understand is that each insurance carrier determines its own acceptance criteria. There are many insurance companies, and each has varying criteria to qualify for their plans.
The underwriting process consists, in part, of a health questionnaire on the application. There are 3 ways that an application for coverage will ask about oxygen usage.
“Are you currently receiving oxygen equipment to assist breathing?”
If you are currently using this treatment, you will be denied. However, if you received this treatment temporarily and have since discontinued use (at the recommendation of your doctor), you will be able to answer “NO” to this question.
“Within the last 24 months, have you received oxygen equipment to assist with breathing?”
The timeline with this question will change from carrier to carrier. Often it will ask about your 12-month or 24-month history with oxygen, but some companies will ask about your health history for up to 5 years.
“Have you ever received oxygen equipment to assist with breathing?”
Answering “yes” will result in an automatic denial of coverage if you have ever received or been advised to receive this treatment.
Commonly these questions will be followed directly by “excluding use for sleep apnea” or “excluding the use of a CPAP machine.” So if you are only using oxygen at night for sleep apnea, you will still be able to qualify, and the question essentially does not apply to you.
How Burial Insurance Companies React to Oxygen
Based upon your answer to the application questions, the carrier will come to 1 of 2 conclusions.
Denial of Coverage: This, unfortunately, is usually the way most carriers react. However, if a company denies you, there are still plenty of carriers that will provide coverage.
Acceptance with a waiting period: It is possible to find a company that will accept those receiving oxygen; however, not with full immediate coverage. A 2-year waiting period is the standard wait time, although some companies will make you wait for 3-years for full coverage. You do not need to wait an additional year, so make sure you find a plan with only a 2-year waiting period.
Refer to the following articles to learn more about related health concerns that might affect qualifying for final expense insurance.
- Burial Insurance for COPD
- Funeral Insurance for Cystic Fibrosis
- Final Expense Insurance with Asthma
- Funeral Insurance with Heart Failure
Quotes for Final Expense Insurance with Oxygen
The cost of funeral insurance depends on age, gender, desired coverage amount, and health. The price estimates below are ranges for final expense insurance with oxygen use. The quotes come from policies that accept oxygen use.
Burial Insurance with Oxygen
Monthly Non-Smoking Premiums
$10,000 of coverage
|50||$32 – $39||$38 – $56|
|55||$38 – $47||$50 – $61|
|60||$48 – $54||$65 – $68|
|65||$61 – $66||$84 – $91|
|70||$80 – $85||$106 – $110|
|75||$116 – $121||$150 – $165|
|80||$173 – $190||$206 – $235|
Finding The Best Final Expense Insurance Companies With Oxygen
Each company has its own standards for determining if applicants will qualify for a plan, so it becomes difficult to recommend a singular company. However, there are three main things you’ll want to look for before applying for funeral insurance.
Coverage Structure: Since there will be a waiting period if you are currently on full-time oxygen, make sure that it does not exceed two years. Get full coverage as soon as possible and understand the payout structure during the waiting period.
Financial Rating: High financial ratings will indicate the company’s ability to honor its commitments, such as paying out your policy when due. Work with a company that has a B+ or better score from AM Best.
Price: Make sure you are getting your desired amount of coverage for the lowest price available. The monthly premiums and coverage are locked in, but the policy will only stay active if the premiums are paid.
Top 3 Companies for Funeral Insurance with Oxygen
These recommendations are based upon oxygen use only and do not consider any other pre-existing conditions that you might have. Your reason for using the oxygen will also play a role in what you can be eligible for.
Sentinel Security Life: If you are using oxygen (other than CPAP for sleep apnea), Sentinel Security Life is a great choice. This is the only company on the market that will accept people using oxygen with Graded coverage. Sentinel’s Graded plan offers partial coverage upon approval with full protection after 2-years. Sentinel Security Life refers to this plan as New Vantage II.
Mutual of Omaha: This provider will accept you with immediate coverage if you are not currently on oxygen OR if you only use a CPAP machine for sleep apnea. If you only use oxygen for speed apnea or have discontinued use at the recommendation of a doctor, you will be eligible for Mutual of Omaha’s Level coverage, assuming you meet the rest of the health requirements.
AIG: The guaranteed plan from AIG has some of the lowest monthly premiums you will find for a plan of this type. Additionally, this policy also offers benefits built into the plan at no added cost. This is uncommon for guaranteed issue products. If you cannot qualify for the plan from Sentinel due to other health concerns, a Guaranteed Issue policy will be your best option.
Buying Coverage: Captive vs. Independent Agents
Captive Agency: This type of agent represents only one insurance provider. Since these agents can compare limited policy options, they may not have access to the best policy for every client. These policies are also known to have strict qualifying requirements and/or high premiums.
Independent Agency: Agents that work at independent agencies can represent multiple companies. Having more resources allows the agents to get to know and understand the wishes of their clients to find the best plan for them. There are more options available to the client because independent portfolios are larger and often more specialized.
Working with an independent agency allows the agent to analyze policies on behalf of the client.
If you wish to compare products offered by captive agencies, you yourself will have to call around to price check and re-explain to each representative what you are looking for, what your health is like, and what your goals for the policy are. With an independent agency, you will only have to go through that process once.
Why Willamette Life?
Willamette Life is an independent agency that focuses exclusively on burial insurance. Because of this specialization, we can focus on placing our clients with the policy that best fits their needs.
Willamette Life prides itself on finding excellent coverage for those with health concerns that could throw up a “red flag” with providers. We understand that each person has a unique set of circumstances and goals regarding life insurance coverage. We get to know you and understand your needs before assuming the best policy.
a. Using oxygen greatly reduces your options for qualifying for final expense insurance.
b. The top company for burial insurance with oxygen is Sentinel Security Life, as they offer partial coverage upon policy issue. If you are currently receiving treatment and cannot qualify for Sentinel’s plan, a Guaranteed Issue plan is your next option. The lowest cost depends on the age at application.
c. Working with an independent agency will save you time and money when looking for the best policy to fit your specific and unique needs.
Give Willamette Life a call at 844-576-0019
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.