High Risk Life Insurance | Final Expense, Burial Insurance, Guaranteed Issue

Written by Jeff Root

Burial insurance is typically offered in small policy face amounts because of the life insurance company’s increased risk.

Burial insurance is a type of permanent life insurance that is designed to cover the burial or final expenses that someone will incur when they die.

It is commonly misconceived that people who have health issues cannot get life insurance coverage, but this is just not true. Even for people with terminal and critical health conditions, finding affordable burial insurance coverage while at high risk, is possible.

This type of life insurance is mostly available for people who have low health classifications which prevent them from receiving traditional life insurance coverage.

In this article, we will cover some frequently asked questions about burial insurance for people with health issues, and also identify some great burial insurance companies for people who need coverage.

Can You Get Burial Insurance With Health Issues?

If you have a pre-existing health condition you can still get affordable burial insurance coverage. Minor health concerns like high blood pressure or type 2 diabetes that are properly controlled will typically land you in the standard health class.  

It is a myth that having a health condition will not allow you to get coverage and place you as high risk. There are always guaranteed issue policies out there. More serious conditions like a history of stroke or cancer will still qualify you for a graded death benefit policy through the guaranteed issue products.

The cost of your burial insurance is going to increase based on your age. In fact, the type of health issue you have might be better favored by one company over another and can result in a discrepancy in your premiums of up to 70% which is why it is in your best interest to do your homework, work with a third-party broker, and figure out which companies are most favorable to your conditions in particular and your history.

Types Of Burial Insurance Policies Available To People With Health Issues?

Both of the basic types of burial insurance share the fact that they provide small coverage amounts, usually no more than $25,000 in most cases.

There are a few companies that offer $100,000 or more in burial insurance coverage to people in certain health classes, but these are the outlier.

On top of that, both burial insurance policies are no medical exam life insurance policies, meaning there is no medical exam required to obtain coverage. This also means that underwriting is accelerated and that you can often obtain life insurance coverage in 24 hours or less.

Lastly, burial insurance policies are permanent life insurance policies, which means that coverage lasts your whole life or until the maximum policy age (usually 121 for burial insurance, but varies per company and policy).

Simplified Issue Burial Insurance

Simplified issue life insurance is a type of permanent life insurance that has no medical exam, but a few health-related questions. For this type of burial insurance, applicants can still be denied coverage in cases where they have health conditions such as:

  • Cancer
  • COPD
  • Emphysema
  • Fibrosis
  • Hepatitis
  • Other terminal or critical illnesses

Simplified issue burial insurance is the less expensive of the two, but is often times not available for people with very serious health conditions.

Guaranteed Issue Burial Insurance 

Guaranteed issue life insurance is offered to everyone. This type of burial insurance is also the most expensive because it encompasses a much higher risk pool of people, which life insurance companies must hedge against.

As a result, this type of burial insurance policy also usually has a graded death benefit, which means your beneficiary cannot receive the full amount of your death benefit until the graded benefit period has expired. We will explain this further in the next section.

Guaranteed issue policies offer burial insurance with no medical exam and no health questions, which can often be acquired within 24 hours or less and a simple phone call.

How Does Being High Risk Affect Burial Insurance Death Benefits? 

Burial insurance plans come in many shapes and sizes. As your health declines, you typically will only be able to find burial insurance policies with graded or modified death benefits.

For the most part, these plans feature death benefits that work in one of 3 ways:

Level Death Benefits 

Burial insurance plans with level death benefits pay out 100% of the policy’s death benefit upon the death of the insured. There is no waiting period to receive the full death benefit. Typically, most burial insurance policies do not feature this type of death benefit, but there are a few out there on the market available to people who are in excellent health.

Graded Death Benefits

Graded death benefit burial insurance plans are the most common type of death benefits offered on most burial plans. This type of death benefit is paid out based on a time scale. Usually, there is a 2-year waiting period after the purchase of the policy before the full death benefit can be paid out.

The table below shows an example of how graded benefits for burial insurance policies are paid out. These numbers vary based on the company and policy you choose.

Time Period Benefit Pay Out
Year 1 or less 20% death benefit
Year 1-2 50% death benefit paid out
Year 3+ 100% death benefit paid out

Modified Death Benefits 

Modified death benefits are also offered fairly regularly on burial insurance plans. This type of death benefit is a combination of level and graded death benefits, which also gives back a portion of the premiums paid with a graded death benefit.

Time Period Benefit Pay Out
Year 1 or less 20% death benefit + all premiums paid
Year 1-2 50% death benefit paid out + all premiums paid
Year 3+ 100% death benefit paid out

How Do Health Issues Affect Burial Insurance Rates?  

Your health condition greatly affects your life insurance rates. In fact, it is the number one factor besides age that affects burial and life insurance rates.

This being said, there are affordable burial insurance plans for everyone. Generally speaking, the healthier you are, the lower your burial insurance rates will be and vice verse.

How Much Does Burial Insurance Cost High Risk Applicants?

Depending on the health condition you suffer from and its affect on your health, you may have varying burial insurance rates from other applicants.

We built the tables below to give you an idea of how much burial insurance costs for people with some of the more common health conditions we encounter with our clients.

Sample Burial Insurance Rates for Males and Females at High Risk

High Blood Pressure

One in three Americans suffers from high blood pressure which means approximately 75 million people. As such life insurance companies have to mitigate the risk this condition poses. You won’t be denied coverage but you will be put in riskier health categories, which means you pay more money.

The reason for this is that you put yourself at risk for a handful of other more serious conditions including stroke and heart disease. If you can show you are effectively managing your high blood pressure by visiting your doctor regularly and taking your medication the premiums you pay.

Males 
Age $5,000 $10,000 $15,000 $25,000
50 $18/mo. $30/mo. $44/mo. $70/mo.
60 $33/mo. $53/mo. $70/mo. $102/mo.
70 $48/mo. $72/mo. $105/mo. $178/mo.
80 $70/mo. $136/mo. $199/mo. $314/mo.
Females
Age $5,000 $10,000 $15,000 $25,000
50 $16/mo. $27/mo. $39/mo. $62/mo.
60 $24/mo. $39/mo. $56/mo. $84/mo.
70 $40/mo. $58/mo. $84/mo. $136/mo.
80 $58/mo. $102/mo. $149/mo. $267/mo.

Obesity

Obesity does not automatically disqualify you from life insurance. However, it does put you at a greater risk for things like cancer, high blood pressure, stroke, or heart disease so the companies have to know how severe your condition is, what other health conditions you have, and what you are doing to control it.

This is how they determine what health category you place you in. Many companies will offer favorable ratings if you can prove you are trying to eat better, improve your A1C levels regularly, and visit your doctor.

Males 
Age $5,000 $10,000 $15,000 $25,000
50 $16/mo. $28/mo. $42/mo. $68/mo.
60 $30/mo. $50/mo. $66/mo. $98/mo.
70 $44/mo. $70/mo. $100/mo. $170/mo.
80 $66/mo. $130/mo. $191/mo. $298/mo.
Females
Age $5,000 $10,000 $15,000 $25,000
50 $12/mo. $23/mo. $32/mo. $54/mo.
60 $22/mo. $36/mo. $52/mo. $78/mo.
70 $32/mo. $54/mo. $78/mo. $124/mo.
80 $55/mo. $98/mo. $140/mo. $256/mo.

Cancer

People with a history of cancer will be asked many questions, such as the types of cancer diagnosed, how recently there were issues with certain cancers, and what treatments were or are currently being used. The rates are based on the type of cancer, specifically the survival rate of that particular type of cancer.  

Males 
Age $5,000 $10,000 $15,000 $25,000
50 $16/mo. $28/mo. $42/mo. $68/mo.
60 $30/mo. $50/mo. $66/mo. $98/mo.
70 $44/mo. $70/mo. $100/mo. $170/mo.
80 $66/mo. $130/mo. $191/mo. $298/mo.
Females
Age $5,000 $10,000 $15,000 $25,000
50 $12/mo. $23/mo. $32/mo. $54/mo.
60 $22/mo. $36/mo. $52/mo. $78/mo.
70 $32/mo. $54/mo. $78/mo. $124/mo.
80 $55/mo. $98/mo. $140/mo. $256/mo.

Diabetes

Those with diabetes have to prove that they are controlling the disease and don’t have other diseases like high blood pressure as a result. The degree to which it is being controlled will impact the rates and the health class rating provided.

Males 
Age $5,000 $10,000 $15,000 $25,000
50 $15/mo. $27/mo. $41/mo. $65/mo.
60 $29/mo. $48/mo. $63/mo. $95/mo.
70 $40/mo. $67/mo. $96/mo. $164/mo.
80 $62/mo. $124/mo. $182/mo. $285/mo.
Females
Age $5,000 $10,000 $15,000 $25,000
50 $11/mo. $22/mo. $30/mo. $52/mo.
60 $20/mo. $34/mo. $50/mo. $74/mo.
70 $30/mo. $50/mo. $72/mo. $116/mo.
80 $48/mo. $90/mo. $132/mo. $244/mo.

Smokers

Smokers might fare better if they are trying to quit, as some companies offer programs wherein smokers who are trying to quit have 3 years during which time their policy is the preferred health rating and they have to take measures to quit.

If they fail to quit, their rates go back to smoker rates.

Males 
Age $5,000 $10,000 $15,000 $25,000
50 $18/mo. $30/mo. $45/mo. $69/mo.
60 $30/mo. $50/mo. $66/mo. $98/mo.
70 $43/mo. $70/mo. $99/mo. $168/mo.
80 $65/mo. $128/mo. $188/mo. $292/mo.
Females
Age $5,000 $10,000 $15,000 $25,000
50 $13/mo. $24/mo. $32/mo. $56/mo.
60 $25/mo. $38/mo. $54/mo. $80/mo.
70 $33/mo. $54/mo. $76/mo. $122/mo.
80 $54/mo. $96/mo. $140/mo. $254/mo.

How Can I Find the Best Burial Insurance Rates?

Finding the best burial insurance rates can be difficult. With so many options to choose from you can quickly become overwhelmed and unsure if the choice you are making is best for you and your family. 

Our experts are here to help. We work with some of the best burial insurance companies on the market to help our clients find the best burial insurance coverage for their situation, regardless of their health issues.

Give us a call today to get started working with an expert to compare your burial insurance options, or get started using our online quoting tool for instant burial insurance quotes.

About Burial Insurance Coverage
About Burial Insurance Coverage

We work with individuals across the nation to secure the best life insurance rates.

This entry was posted in High Risk. Bookmark the permalink.

Leave A Reply