People with dementia may find difficulties when buying burial insurance. However, there are options available for them. Dementia is a gradually-deteriorating health condition that can reduce the overall life expectancy. Hence, insurers are wary and consider such people as underwriting risk.
Burial insurance can be the best bet as it can ignore such medical conditions and provide the coverage a person with dementia may need. If you want to buy this insurance for your parents or anyone with dementia or Alzheimer’s, check your options at an independent agent’s website https://insuranceforfinalexpense.com to know more.
Why Are Insurers Unwilling To Offer Insurance In Such Cases?
Since dementia may result in severe brain function loss, it impedes the ability to perform daily tasks. It becomes more challenging as a person ages, and sometimes, dementia can lead to a premature demise. Hence, insurers have these reasons to reject your application. Some insurers offering burial insurance also consider dementia as a risk and provide coverage with a waiting period.
The options may be limited, but you can find a guaranteed issue policy that fulfills varied insurance needs. The only downsides are waiting period and substantially high premiums. In this case, if the death occurs during the first two policy years, premiums will be refunded with a 10% interest to the beneficiary, instead of full death benefits.
What is the Underwriting Process for Someone with Dementia?
When buying burial insurance, the intended insured has to answer some health-related questions that may include the dementia conditions. If your parents are aged, you can help them answer these questions or seek support from an independent agent.
The company may ask if the insured received treatment, diagnosis, or medical advice for dementia or Alzheimer’s disease?
If this question is answered with ‘yes’, the company will decline the application due to its high risk. Or, it may offer a plan with a 2-year waiting period at a higher price.
Another way to underwrite people with dementia is to check their prescription history to validate their health status. They will check the medications flagged for dementia or Alzheimer’s treatment.
How Can You Get Burial Insurance for Someone with Dementia?
The only option, as mentioned above, is to buy a guaranteed acceptance policy. It asks no questions and requires no medical tests for the application. The intended insured will be approved for coverage irrespective of their dementia conditions. To qualify for this coverage, they have to fulfill these criteria:
- Must be a US citizen
- Residency in the State where the product is allowed
- Aged between 40 and 85
- Mental ability to sign a legal agreement
Why Should You Choose Guaranteed Acceptance Policy?
Buying burial insurance with dementia can be challenging. But, you need this coverage to meet the funeral expenses, mortgages, or any outstanding medical bills after your loved one’s passing. Since it has a 2-year waiting period, you shouldn’t delay buying a policy. Also, the monthly premium is charged according to the insured’s age.
So, the sooner the better it is. It has several benefits like ease of application without any health questions or medical exams. The premium is fixed and never increases with age. A beneficiary or beneficiaries will receive a fixed death benefit. Most importantly, the policy never expires before the insured’s demise, and it accumulates cash value over its term. The coverage amounts may also range up to $50,000.
Here, it is worth noting that dementia or Alzheimer’s does not result in an immediate death, and medication can elongate a patient’s life. Hence, people still have 8-10 years of life after their first diagnosis. If you buy a guaranteed acceptance policy at the right time, it can save your family from excessive financial burdens later on.
How to Find Burial Insurance Policy for Someone with Dementia?
You need to focus on the waiting period and cost when buying a burial insurance policy for a parent or loved one with dementia. It can be confusing for a buyer. Therefore, working with qualified independent agents is a wise course. These are professionals representing multiple insurers to give you precisely what you need.
You can compare several plans on the website and choose the right one according to the intended insured’s health, age, and gender.
