Receiving a terminal illness diagnosis is incredibly difficult. Not only is the prospect of losing a loved one emotionally draining, the financial toll such a diagnosis leaves is immense. Having a quality life insurance plan can alleviate at least some of that financial stress. It can be difficult to qualify for terminal illness life insurance, but seniors have a few options.
Final expense life insurance, also known as burial insurance, is a reliable pick for most seniors and may work for terminally ill seniors. Final expense policies have relaxed application guidelines that allow seniors in poor health to qualify, and some plans are available to terminally ill seniors.
Contact Final Expense Benefits to learn more about your options. Our agents are experts in the life insurance market and can help you find a plan that fits your health and budget needs.
Call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET for more information, or check our free online quoting tool for a personalized pricing estimate.
Can a Terminally Ill Person Get Life Insurance?
People with terminal illnesses can get life insurance, though options are limited. They won’t qualify for typical choices like term life, universal life, and traditional high-value whole life policies because eligibility requirements set by their underwriting processes are strict.
Health requirements are rigid because insurers want to mitigate risk by insuring people with shorter life expectancies. Inexpensive policies like term life or policies with large payouts like traditional whole life always have strict risk management.
Even seniors without major preexisting conditions have difficulty qualifying for these policies, and it’s much more difficult for those diagnosed with terminal illnesses.
Terminal Illness Life Insurance Underwriting
Seniors with terminal illnesses are ineligible for most types of life insurance because of unfavorable underwriting practices. Underwriting, the process through which insurers assess applicants’ health to determine eligibility, is strict for terminally ill seniors because they often have a limited life expectancy, making it hard for them to find a provider that accepts them. Providers generally want policyholders to pay into their policies for at least a few years.
Insurers require applicants to take a medical exam or answer a health questionnaire to assess their health. Their underwriters use this information to approve or deny applications and assign a risk level to applicants to determine premium rates.
Applicants with terminal illnesses and other conditions with limited life expectancy, like cancer, dementia, and severe COPD, are assigned the highest risk levels. Such high risk excludes terminally ill seniors from most life insurance. However, they have one reliable option for terminal illness life insurance: guaranteed final expense life insurance.
Guaranteed Life Insurance for Terminal Illness
Seniors trust final expense insurance as an inexpensive way to cover their funeral costs and other end-of-life expenses. Because final expense insurance is whole life, rates are locked in at the policy’s start, coverage will never decrease, and benefit payouts grow in cash value.
The best part of final expense insurance? It has a low cost, starting at $30 per month. However, final expense payouts are lower than other types of life insurance, ranging from around $5,000 to $50,000.
This isn’t a major downside for most seniors, as they typically use life insurance to pay for their funerals, which cost around $10,000 on average.
Guaranteed life insurance is a type of final expense insurance that doesn’t ask any medical questions or require a health exam, making it accessible to people with severe preexisting health conditions. Because guaranteed plans are so lenient with underwriting requirements, they have premiums around 25% to 40% higher than typical final expense plans and more restrictive death benefits that usually range from $5,000 to $30,000. One of the most detrimental aspects of guaranteed life insurance is that they have a waiting period, which is typically two to three years.
If the policyholder dies during the waiting period, payouts may be reduced or paid in a modified life insurance structure. Insurers typically pay 40% of the death benefit in the waiting period’s first year and the remainder when the waiting period ends.
Some providers replace the death benefit with a return of paid premiums, but we often advise seniors to avoid these policies. Your beneficiaries should receive the payout you paid for.
For a reliable guaranteed final expense plan, contact Final Expense Benefits. We can help you find a policy to fit your needs and budget.
How Much Does Terminal Illness Life Insurance Cost?
Guaranteed life insurance typically costs about 25% to 40% higher than comparable standard final expense policies. Below is a chart with sample guaranteed life insurance rates for a policy with a benchmark $10,000 death benefit for a non-smoking applicant.
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$49 |
$39 |
$78 |
$60 |
$122 |
$89 |
|
|
$44 |
$36 |
$68 |
$57 |
$120 |
$99 |
|
|
$40 |
$30 |
$57 |
$43 |
$87 |
$64 |
|
|
$71 |
$68 |
$102 |
$85 |
$142 |
$110 |
|
|
$59 |
$56 |
$85 |
$76 |
$142 |
$110 |
These rates are estimates only, calculated for guaranteed life insurance with a non-smoking applicant.
If you’re interested in these or any of our other life insurance options, contact Final Expense Benefits, or check our free online quoting tool for an instant pricing estimate.
Terminal Illness Life Insurance Rider
Another way for terminally ill seniors to find coverage is through a terminal illness life insurance rider. Riders are extra, optional coverage that can be added to life insurance policies. Some providers include rider options for free, but they typically come at an additional cost.
One rider often included in final expense policies is a terminal illness rider, also known as an accelerated death rider.
If the policyholder is diagnosed with an illness with a short life expectancy (usually about 12 to 24 months), they’re paid either the entire death benefit or a portion. Payouts granted by these riders are usually used to help cover medical expenses, but like any life insurance payout, it can be used for any purpose.
You’d need to hold the policy before a diagnosis to benefit from a terminal illness rider. This highlights the importance of getting a policy early, especially if you are at genetic or familial risk for major health conditions. Contact Final Expense Benefits for help finding a great policy with a terminal illness life insurance rider or to learn more about your options.
Best Terminal Illness Life Insurance Providers
All our top-rated providers are great choices for terminal illness life insurance, but some offer more flexible and less expensive guaranteed policies. Here are some of our top picks for terminal illness life insurance providers:
Mutual of Omaha
- Guaranteed life insurance rates:
Mutual of Omaha’s guaranteed life insurance rates are some of the lowest on the market. - Customer service:
Customers consistently praise Mutual of Omaha’s customer assistance and claims resolution services. - Additional benefits:
Mutual of Omaha has several riders available at additional cost, including a terminal illness rider.
American Amicable
- Guaranteed life insurance rates:
American Amicable has competitive guaranteed life insurance rates for seniors of any age. - Customer service:
As a smaller provider, American Amicable offers a more personalized touch to customer service and claims resolution, backed by positive customer and third-party ratings. - Additional benefits:
American Amicable includes a terminal illness rider in most of their final expense policies, with a large catalog of optional riders at extra cost to help customize your coverage to your needs.
United Home Life
- Guaranteed life insurance rates:
United Home Life (UHL) guaranteed life insurance comes at a slightly higher price, but is a quality policy with several included benefits. - Customer service:
UHL customer service receives great ratings from customers and third-party review services alike. - Additional benefits:
UHL final expense insurance includes some riders, including a terminal illness rider, at no extra cost, and offers several optional riders. This flexible, customizable coverage makes them a great choice for seniors with preexisting conditions or with complex life insurance needs.
If you’re interested in these or any of our other life insurance options, call us at (866) 786-0725 to learn more.
Final Thoughts
Seniors with terminal illnesses can have a tough time finding life insurance coverage, even on the burial insurance market. Eligibility is often unfavorable, and terminally ill seniors usually only qualify for guaranteed policies.
Guaranteed policies offer less flexibility than standard final expense plans, but can still be a reliable choice at a higher cost. If you want to avoid higher prices, being proactive can help.
Apply for final expense insurance as soon as possible to lock in lower rates at a younger age and qualify for extra benefits like life insurance riders.
Final Expense Benefits is here to help you review your terminal illness life insurance options. Contact us for a free consultation and check our free online quoting tool for personalized pricing estimates. If you want to learn more, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET.
FAQ
Can you get life insurance if you have a terminal illness?
People with terminal illnesses are eligible for life insurance, but usually only qualify for guaranteed final expense insurance policies.
What is classed as terminal illness for life insurance?
Underwriting practices vary by provider, but insurers typically classify terminal illness as a condition in which a doctor expects a patient to die within 12 to 24 months.
Can you buy life insurance for someone who is dying?
Yes, but purchasing life insurance for other people can get complicated. Insurers require them to be an active participant in the application process. You can purchase a policy for your loved ones if you can prove you are financially impacted by their death, but policies with medical questions require the insured person to answer them personally. You can answer medical questions on a spouse’s behalf.
What is a terminal illness rider on life insurance?
A terminal illness rider is a type of extra coverage that many life insurance providers offer on policies. These riders pay the policy’s death benefit to the policyholder if they are diagnosed with a terminal illness.
What is final expense insurance?
Final expense insurance is whole life insurance designed to help seniors cover end-of-life expenses like funerals and burial plot costs. It’s often a good idea to purchase a policy ahead of time if you are at genetic risk for major terminal illnesses.
How much does a funeral cost?
The average funeral costs around $10,000, which is why we use $10,000 as the basis for our final expense insurance quotes. Thankfully, final expense life insurance can be an affordable choice for seniors looking to cover their end-of-life expenses ahead of time.
