There is no doubt about it; having a peripheral neuropathy diagnosis impacts your everyday life.
From dieting to massages to keeping track of how you sit, the pain endured changes everything about life as you knew it.
You may not have thought about how this condition can affect your eligibility for the best final expense life insurance companies.
Or perhaps you have been searching around for coverage but have been unable to find a plan that covers this pre-existing condition.
Can I Get Affordable Final Expense Insurance With Neuropathy?
You have options when it comes to getting Final Expense Insurance with Neuropathy. Several life insurance companies will accept you with this diagnosis. The important thing to understand here is that each carrier has its own guidelines for acceptance built around the health of the applicant.
Some carriers have lower rates but are harder to get approved for.
Other carriers have higher rates but will accept almost anyone.
And then there are all of the carriers in between.
This industry is very specific when it comes to qualifying for final expense coverage.
For example, one carrier will accept someone who has had a heart attack or stroke but not accept someone with diabetic neuropathy. In contrast, another carrier will accept someone with diabetic neuropathy but not accept someone who has had a heart attack or stroke.
The key to finding the right carrier is to work with an independent agency that represents many carriers that serve these niches and can find the best one for you.
Willamette Life can help open the door to an insurance policy and immediate death benefit with your common or not-so-common conditions.
The Basics of Final Expense
Final expense insurance is a straightforward type of whole life insurance that comes in small policy amounts, typically $40,000 or less. This senior coverage is commonly referred to as funeral insurance or burial insurance. All whole life insurance coverage will last for the insured’s entire life.
The payout is intended for funeral expenses but final expense insurance can cover anything deemed necessary by the beneficiary.
- Never Expires
- Coverage Lock
- Premium Price Lock
- Builds Cash Value
- No Medical Exam
- No Waiting Period Options
These features are characteristics of what most whole life policies offer. Although, some companies have additional benefits included in their plans.
Underwriting: Why Does Neuropathy Matter For Coverage?
Since neuropathy is often a complication stemming from other health conditions, it is important to understand that your overall health is considered when applying for an insurance policy.
This means that whether your nerve damage was caused by cancer treatments or diabetes, the primary condition matters just as much as the conditions it caused.
Since most cases stem from diabetic complications, it is important to look into what carrier would be the best for seniors with diabetes. Unsuccessfully managed blood sugar levels can cause diabetic nerve damage and can then lead to further health complications.
Your health and how you live your life matters to the carrier because this is the exact thing that they are insuring.
Ways Insurance Companies React to Neuropathy
Depending on the predetermined qualifying standards, life insurance companies will react in 1 of 2 ways.
Immediate Coverage: Someone with diabetic neuropathy will be able to get burial insurance coverage with immediate protection. However, you need to apply with a carrier that is willing to accept this condition.
Waiting Period: This is relatively common, however, there is no need to move forward with a plan that makes you wait for full death benefit unless you have additional pre-existing health concerns. Policies that have a waiting period are going to be more expensive than plans that provide immediate protection.
How Your Neuropathy Affects Coverage/ How They Ask
Most insurance companies either ask about diabetic neuropathy or don’t ask about it at all.
If an application does not ask about it, this essentially means that they do not care if you have it and will accept you as though you are 100% healthy.
“Have you ever been diagnosed with or received treatment for diabetic complications including neuropathy, nephropathy, or retinopathy?”
Most carriers ask about this diagnosis in the above manner. So, if your nerve damage is due to another health concern, you will honestly be able to answer “no” to this question.
If you have a peripheral neuropathy diagnosis due to diabetic complications, you’ll want to look for a provider that does not ask about it on the application.
Untreated diabetic neuropathy can lead to infection, amputation, or another disability.
Diabetic amputation will greatly hinder the ability to get insurance coverage with no waiting period for a senior.
Neuropathy Patients with Additional Health Concerns
Several conditions can lead to nerve pain, but not all will affect the ability to qualify for senior final expense coverage.
It is still possible to get insurance for funeral expenses with the pre-existing conditions below. However, it could affect the type of funeral insurance policy you are eligible for.
Conditions that will NOT Affect Coverage
- Exposure to Toxins
- Vitamin Deficiencies
- Bone Marrow Disorders (excluding cancer)
- Inherited Disorders
Conditions that COULD Affect Coverage
Diabetes: Certain companies look more favorably on diabetic seniors than others. Make finding a diabetes-friendly company a top priority.
Cancer/Tumors: If you are in remission, immediate coverage is possible depending on how long you have been cancer-free. If you currently have cancer, a life insurance policy with guaranteed acceptance will be your best bet.
Kidney Disease: Hepatitis and other kidney disorders will affect coverage with most companies, but the timeline of treatment also plays a role in acceptance.
Liver Disease: Depending on the severity and timeline of the condition, you may have to endure a waiting period.
How To Find The Best Final Expense Insurance With Diabetic Neuropathy
Within funeral insurance coverage, there are four types of plans. Some insurance companies offer all four but most only offer 2-3 types.
Level: The only plan with immediate coverage, level policies are the hardest to qualify for but offer the lowest insurance premiums. With that said, this coverage is available to those with peripheral neuropathy.
Graded: With a typical 2-year waiting period, graded plans offer partial coverage immediately will full coverage after the 2-years. Common payout structures are 30%, 70%, 100% in years 1, 2, and 3+ respectively. Graded policies are slightly more costly but more lenient to qualify for.
Modified: Also referred to as a “return of premium” plan, modified policies have a 2-year waiting period with a return of paid insurance premiums +10% if death occurs during this time. The full death benefit is available after the waiting period is over. These policies are high in cost.
Guaranteed Issue: This plan accepts 100% of seniors. The blessing of guaranteed issue is also its curse: no health questions asked. These plans are more expensive and require a 2-year waiting period.
What to Look For in a Policy
There is a lot of information coming your way in this article. To narrow it down, there are really only 3 things that you need to look for in burial insurance with neuropathy.
Cost: The price point needs to be affordable. The monthly burial insurance premium will never fluctuate, but your income might. Ensure that this insurance coverage is something that you will be able to afford well into the future. After all, this plan will last your whole life.
Coverage: Getting coverage that starts immediately is possible with neuropathy. Do not settle for a waiting period unless you have an additional pre-existing condition that makes it unavoidable. There are diabetic-friendly companies like Transamerica and Royal Neighbors.
Company: Finding a life insurance company with a strong financial rating is key to making sure it is still around to pay the death benefit to the beneficiary.
Captive vs. Independent Agents
As long as an agent is licensed in your state, they will be able to provide the protection of life insurance. However, the access to policy options greatly varies when working with a captive or independent agent.
Captive Agent: This option provides limited coverage choices. This is because captive agents are contractually only able to sell products offered by one insurance provider.
While this might not sound like an issue, it is. Since insurance companies all set their own qualifying standards and pricing, neuropathy patients will most likely not qualify OR end up paying more for coverage.
Independent Agent: These agents have access to many insurance companies. Contracting with several carriers opens up the door to finding clients with more optimized coverage to meet varying needs.
Why Willamette Life
That is where Willamette Life comes in as the independent agency solution.
We have access to many companies that will provide coverage with virtually all health complications that a senior might have!
By specializing in final expense coverage, Willamette Life can help clients with a pre-existing condition get the best policy possible.
a. Immediate coverage for Final Expense Insurance with neuropathy is obtainable.
b. You must speak with an independent agency that will consider your health complications when selecting the best policy specific to YOU.
c. Willamette Life is here to assist with any questions or concerns you may have about your health and what you will qualify for.
Reach Willamette Life 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.