Low-Cost Burial Insurance with COPD

burial insurance with copd

For those with COPD, taking out a burial insurance policy can be difficult. Lower-respiratory diseases, including COPD, are the fourth leading cause of death in the United States.

Because it is incurable and has a high mortality rate, insurers are hesitant to extend coverage to individuals with the disease.

However, that doesn’t mean burial insurance isn’t an option for you. It just means it will take a little searching to get the right policy.

Underwriting Applicants with COPD

In the insurance industry, the term “underwriting” refers to risk assessment of applicants—specifically, their health.

When an insurer issues a policy, they do so with the hope that the premiums you pay will earn them more money over time than they will eventually pay out.

The more health conditions you have and the greater the severity, the less likely it is that they will make a profit from insuring you.

Burial insurance companies do not approach a COPD diagnosis with nuance. If you have emphysema or chronic bronchitis, no matter how recent the diagnosis or early the stage, you are a high-risk applicant.

Medications can be Challenging

Another part of the underwriting process is disclosing the medications you take and have been prescribed. Many medications are used to treat more than one condition. For example, COPD drugs treat various respiratory conditions, including asthma.

This can pose a complication for those who don’t actually have COPD. When the underwriter sees certain medications in your history, it can cause them to give your application greater scrutiny and result in your being misclassified as an individual with COPD.

Below are some COPD medications that are also used to treat other respiratory conditions:

Aclidinium BromideAlbuterolDuoneb
Anroro ElliptaBrovanaFluticasone
ArcaptaBudesonideIpratropium Bromide
ArformoterolCombiventPrednisone
Atrovent FHADalirespSpiriva

How Burial Insurance Companies Respond to COPD

Generally speaking, an individual with COPD will not live as long as someone who doesn’t have emphysema. This translates to the insurer having less time to profit from the policy.

While this doesn’t mean they will deny coverage, they will take steps to ensure they are more likely than not to benefit from the arrangement.

How a given company will respond varies. Below are the most common actions for burial insurance companies to take when extending coverage to individuals with COPD.

1. Offer coverage with a higher premium

This is the most common approach for burial insurance companies to take. Whether you pay monthly, quarterly, or yearly, the company charges you higher premiums than they do applicants without emphysema or chronic bronchitis.

This is not a small increase, either; those with COPD can expect to pay anywhere from 15 to 40 percent more than those without the condition.

2. Subject you to a waiting period

In this instance, from the day your policy begins, you have to wait a set period of time to access the full benefits of your policy. How long this waiting period is will depend on the insurance company.

The most common waiting period is 24 months from the date the policy is issued. In general, should you pass away because of natural causes before the waiting period ends, the company will refund the money paid to them plus interest—usually set at 10 percent. While this isn’t ideal, it doesn’t carry the risk of losing money.

3. Place you in a Graded Benefit Plan

In this instance, from the day your policy begins, you have to wait a set period of time to access the full benefits of your policy. How long this waiting period is will depend on the insurance company.

While typically costing less than guaranteed issue life insurance, a graded benefit plan is similar because of higher rates in many cases, and a waiting period before the full death benefit is payable for death from natural causes.

Depending on the insurance company, if death occurs in the first year, the beneficiary receives about 30% of the death benefit. If death occurs in the second year, 75% of the death benefit is paid. 

Typically, beginning in the third year of coverage, the full death benefit is paid to the beneficiary regardless of the cause of death.

4. A combination of penalties but guaranteed issue

In this instance, from the day your policy begins, you have to wait a set period of time to access the full benefits of your policy. How long this waiting period is will depend on the insurance company.

The most common waiting period is 24 months from the date the policy is issued. In general, should you pass away because of natural causes before the waiting period ends, the company will refund the money paid to them plus interest—usually set at 10 percent.

While this isn’t ideal, it doesn’t carry the risk of losing money.

Our final word on Burial Insurance with COPD

you got this

While every burial insurance company will view your COPD as a high-risk condition—and as an extension, you as a high-risk candidate, every company is free to take its own approach to offer coverage.

They set their underwriting criteria at the company level, which means they accept and decline based on different health conditions.

This is why working with an experienced and reputable independent agent is essential. We can take your entire health profile into account while vetting companies and policies for you.

Even if our only solution is to offer guaranteed issue burial insurance, you will have first-day coverage if your death is the result of accidental causes.

Ultimately, we work to find the companies that see your COPD and other health conditions as the least risky. This gives you access to cheaper coverage and minimal penalties, making it easier to cover your final expenses when the time comes.

As an independent life insurance broker, we only represent highly-rated insurance companies that have demonstrated financial stability and have a positive outlook for the future.

After all, life insurance is simply a promise to pay, however, in many cases, this promise must stay in effect for decades.

Get Advice You Can Count On
To get more information about low-cost Burial Insurance with COPD or any other challenging health condition, call us at (844) 528-8688 during normal business hours or contact us through our website.