After getting a new diagnosis, it is natural to start thinking about your future, your finances, and your family.
Perhaps you’re thinking:
- What happens when I pass away?
- How much does a funeral cost?
- Who pays for funeral expenses?
- Can I get life insurance?
These are all great questions that need your attention, but for this article’s purpose, let’s focus on the question about life insurance.
Can I Get Funeral Insurance With Retinopathy?
Select life insurance companies will provide coverage for people with retinopathy and other diabetic complications. If the application does not ask about a specific condition, the company does not care if you have it.
The best funeral insurance carriers look at your overall health. So while it may not be the retinopathy itself that disqualifies you for coverage, it could be another pre-existing condition that you have.
Whole Life Insurance Basics
Funeral Insurance is simplified whole life coverage that typically comes in policy amounts from $2,000 to $40,000. There are no exams to determine coverage, just some “yes or no” health questions. You can obtain coverage completely over the phone.
These plans are intended to cover funeral expenses and are also known as burial insurance or final expense insurance. However, the death benefit has no restrictions and can be used to cover any necessary costs.
Never Expires: Once the policy is taken out and in force, it will never expire. By paying the monthly premiums, you are guaranteed financial protection for funeral expenses by the insurance company.
Coverage Lock: The death benefit amount is locked in and will never change. This is important to allow for peace of mind knowing exactly how much money your beneficiary will receive upon your passing.
Price Lock: The monthly burial insurance premium will not fluctuate. The price you pay for your first monthly payment will be the same as your last. This is vital for budgeting purposes.
Builds Cash Value: As a living benefit, the policy builds a cash value. Over time the value will grow, allowing the policyholder to borrow from it if necessary.
Burial Insurance Coverage Features
Affordability: Because these policies come in smaller death benefit coverage amounts, they are at a lower cost than traditional whole life insurance plans. Traditional policies start around $50,000 while burial insurance coverage peaks around $40,000.
No Medical Exam: As a simplified issue plan, applicants will never be asked to get an exam to qualify for final expense protection. Seniors can apply for coverage over the phone without leaving home.
No Waiting Period Options: Upon qualification, people with diabetic retinopathy are eligible for coverage with no waiting period. However, other health concerns could prevent seniors from getting immediate protection.
Underwriting: Why Does Retinopathy Matter?
Your health and how you live your life matters to insurance carriers since it is your life that they are insuring.
Multiple conditions can contribute to a retinopathy diagnosis.
When it comes to retinopathy, final expense insurance companies only ask specifically about diabetic retinopathy. This diagnosis will not impact your ability to get a policy as much as other pre-existing conditions might.
It is the applicant’s overall health that companies look at before awarding coverage with no waiting period.
Level: No waiting period and the lowest available price comes with level plans. These policies have the most strict qualifying standards. A few companies will accept diabetic patients with retinopathy for level coverage.
Graded: This plan has a progressive payout structure for death within the first 2-years and slightly higher prices. This is a common reaction to people with diabetic retinopathy.
Modified: Another popular plan for seniors with retinopathy is modified. This plan has a 2-year waiting period with a return of paid premiums if the insured dies during this time.
Guaranteed Issue: No medical questions are asked, and everyone is approved with this type of plan. The extreme leniency that this policy type offers comes with a 2-year waiting period. For seniors that have other health concerns in addition to retinopathy, this is a good option.
3 Options for Final Expense Insurance with Retinopathy
Insurance companies will react in one of three ways for diabetic patients with retinopathy. Typically companies respond in these ways with diabetic neuropathy and nephropathy as well.
Some carriers do not ask about this diabetic complication, which means they will cover seniors with this diagnosis. You will essentially be treated as though you do not have this eye concern.
A plan with no waiting period would be considered level, as discussed above.
Coverage at a Higher Price & a 2-Year Waiting Period
This is the most common way that companies will react when applying for funeral insurance with retinopathy.
These policies would be graded, modified, or guaranteed issue because they all come with a waiting period before the full death benefit can be awarded.
Denial of Coverage
This is uncommon for diabetic retinopathy, plus with the option of a guaranteed plan, diabetics can always get insurance coverage. A burial insurance company only denies people if it does not offer a policy with guaranteed acceptance.
The goal is to get immediate day-1 coverage, but this is not always possible and depends on additional pre-existing conditions.
How To Find The Best Insurance For Diabetic Retinopathy
Insurance companies take a look at the overall health of the applicant. It is best to be upfront and honest with the agent you are working with to best help you get optimized coverage.
Not only do final expense insurance companies look at retinopathy differently, but they also have different specifications when it comes to coverage for diabetic patients. Prediabetes will not cause concern, just when you initially got diagnosed with diabetes and how you manage it.
Your agent will be able to assist you in navigating this process.
3 Things to Look For
It can be intimidating trying to sort through all of the information and finding the best life insurance coverage. However, there are really just a couple of things to pay attention to.
Price: Make sure that the policy you take out is affordable with your current and future budget. The price of the premiums will never change, but your budget and income might, so make sure you are getting the lowest rate available.
Company Financials: There are several third-party rating companies that look into the financial strength of insurance carriers. These ratings can be found through a simple internet search. We use AM Best as a reference and work with companies that have an A (excellent) rating or better.
Start of Coverage: While it is not always possible to qualify for immediate coverage, it is always the goal. For diabetics with retinopathy, a plan that has no waiting period is possible to get from multiple companies, including Royal Neighbors of America. However, other health complications including insulin shock can affect eligibility.
Working with a professional final expense insurance agent will help assist you with the process.
Independent vs. Captive Agents
Captive Agents: These agents can only sell a limited amount of products from one single company. An example of a captive agent would be a State Farm agent who can only sell State Farm products.
Thus, to shop around for pricing, you would need to directly call each of these captive agencies to receive quotes. Furthermore, the products offered by these captive agencies are generally more difficult to qualify for. So with your retinopathy, there is a good chance that you will be turned down altogether or steered towards a guaranteed acceptance plan.
Independent Agents: Able to represent several insurance companies and shop around on your behalf, independent agents provide the most choices. Independent is the way to go and will save you time and money.
Doing research and talking with an expert in the niche of burial insurance is best and will ensure that funeral insurance is a good idea for your specific situation.
Why Willamette Life?
Willamette Life is an independent agency that specializes in senior funeral insurance. Because of our specialization, we understand the details of what health conditions the carriers will and will not accept. This is of huge benefit to you as the consumer.
Willamette Life strives to be educational, and bring all the information to you so you can make an informed decision.
Give us a call if you have any questions or would like more information about getting a policy at 844-576-0019
a. Funeral Insurance with retinopathy is attainable at affordable rates.
b. Select companies will provide immediate coverage, while others will still accept you but it will cost more and there will be a 2-year waiting period.
c. Finding an independent agency, life Willamette Life, to work with is your best option to save time and money.
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.