Life insurance for nursing home residents can be trickier to find than coverage for younger, healthier applicants. It’s still possible to find a policy that keeps senior applicants in mind. Whether you’re seeking burial insurance or a long-term care rider to add on top of an existing life insurance plan, understanding the options available is the first step to understanding which policy would work best for you.
As experts in this field, Final Expense Benefits take pride in helping people find the best policy for their budget and needs. Get familiar with guaranteed policies and final expense insurance plans that are designed to accommodate senior applicants seeking coverage for long-term care.
If you’re interested in exploring your final expense insurance options, call us at (866) 786-0725, Monday through Friday, 9 a.m. to 5 p.m. ET, or use our free online quoting tool for personalized pricing estimates.
Key takeaways
Guaranteed life insurance can be an accessible option for nursing home residents seeking coverage.
Final expense insurance with long-term care riders can be a good option for nursing home residents with pre-existing conditions.
Nursing homes will not take your policy’s death benefits—they will always go to your designated beneficiaries.
Affordable providers of guaranteed life insurance for nursing home residents include Mutual of Omaha, Aetna Accendo, and Americo.
Getting Life Insurance for Someone in a Nursing Facility
Life insurance underwriting begins when you apply and inform your selected carrier of your medical history and lifestyle. Applicants should be aware that this can be the lengthiest process when applying for life insurance coverage. However, this step in the process can be properly completed with the assistance of a licensed life insurance agent.
Depending on the policy type, a medical examination may be conducted, and your information will be checked and verified by the Medical Information Bureau (MIB).
Insurance company underwriters check if an applicant is in a nursing home through the application and MIB report. This is why seniors in nursing facilities typically have difficulty qualifying for policies such as term life and universal life insurance. Though underwriting can be unfavorable to them, nursing home-bound seniors have many options for guaranteed issue life insurance and long-term care insurance riders.
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Guaranteed Issue Life Insurance for Nursing Home Residents
Guaranteed life insurance is a type of final expense insurance that will accept applicants regardless of their medical condition. Most carriers accept applicants ages 50 to 80, and coverage prices might be higher compared to medically underwritten policies, but this varies between providers. However, some providers may accept older applicants, and insurance coverage continues until the policyholder’s death.
Guaranteed life insurance is often the only option for nursing home-bound seniors or those with pre-existing conditions like dementia and Alzheimer’s. However, you may pay more for coverage: premiums for guaranteed plans are about 25% to 40% more than similar simplified-issue burial insurance policies. In addition, these policies all have waiting periods, typically two to three years.
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Life Insurance for Nursing Home Residents With Pre-Existing Conditions
Modified life insurance is a type of whole life insurance where you pay a lower premium early in the policy period before premium rates increase.
Depending on the insurance provider, your modified life insurance plan can grow anywhere from three to ten years. With relaxed application requirements and a high likelihood of guaranteed approval, modified life insurance can be a viable option for nursing home residents with pre-existing conditions.
If the policyholder dies during the waiting period, the insurer may delay the benefit in a modified structure. Beneficiaries may be paid a reduced or delayed benefit in the form of a graded death benefit, a standard feature of guaranteed issue life policies.
Long-Term Care Riders
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An insurance rider is a policy provision that adds benefits or modifies the terms of an insurance plan. They provide policyholders with additional coverage options at extra cost should they decide to purchase a rider. In the case of a long-term care (LTC) rider, policyholders can use a portion of their policy’s death benefit to pay for LTC expenses, such as assisted living, while they’re alive.
Can the Nursing Home Take My Life Insurance?
Life insurance benefits are always paid to the policy’s beneficiaries. Nursing homes won’t be able to claim your loved one’s life insurance death benefits.
Death benefits are defined as payouts to beneficiaries of a life insurance policy which includes coverage for long-term care.
It is important to ensure beneficiaries know that you have a life insurance policy and to name a secondary beneficiary as a precautionary measure. This is for circumstances when the initial/primary beneficiary can’t accept a death benefit.
Coverage Options for Home Healthcare Services
Depending on the care needed, the cost of long-term care (LTC) and home healthcare can vary. Coverage options for this kind of expense include public third-party payers such as Medicare and Medicaid or private health insurance carriers. With private health insurance carriers, burial insurance or LTC riders may assist in covering expenses for nursing home residents.
Final Expense Insurance Recommendations for Nursing Home Residents
Final expense life insurance is a whole life insurance policy designed to cover end-of-life costs, such as funeral expenses or hospice bills. Also known as burial insurance, this type of policy is often issued without a medical exam, making them ideal for seniors with or without pre-existing health conditions.
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Why You Should Apply for Final Expense Insurance Early
Applying early for burial insurance can save you money and give your family peace of mind when dealing with final expenses.
If you’re looking for the best coverage possible with low monthly premiums, here are the rates for $10,000 burial insurance policies for Final Expense Benefits’ top-rated life insurance partners.
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Final Expense Insurance Rates
| Company |
Male 50y/o |
Male 60y/o |
Male 70y/o |
Female 50y/o |
Female 60y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$50 |
$70 |
$27 |
$40 |
$56 |
|
|
$32 |
$59 |
$105 |
$27 |
$46 |
$79 |
|
|
$31 |
$43 |
$71 |
$26 |
$35 |
$53 |
|
|
$31 |
$43 |
$70 |
$24 |
$33 |
$53 |
|
|
$31 |
$44 |
$75 |
$24 |
$33 |
$53 |
|
|
$34 |
$45 |
$79 |
$29 |
$35 |
$59 |
|
|
$34 |
$45 |
$79 |
$29 |
$35 |
$59 |
These figures are estimates only, based on a $10,000 final expense insurance policy with non-smoking applicants with no pre-existing conditions.
Guaranteed Life Insurance for Pre-Existing Conditions Rates
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| Company |
Male 50y/o |
Male 60y/o |
Male 70y/o |
Female 50y/o |
Female 60y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$49 |
$78 |
$122 |
$39 |
$60 |
$89 |
|
|
$44 |
$68 |
$120 |
$36 |
$57 |
$99 |
|
|
$61 |
$74 |
$115 |
$42 |
$59 |
$87 |
|
|
$59 |
$85 |
$142 |
$56 |
$76 |
$110 |
These figures are estimates only, based on $10,000 guaranteed issue/modified final expense insurance policy with non-smoking applicants.
If you’re interested in any of our recommended insurance options and want to learn more about them, call Final Expense Benefits at (866) 786-0725 for a free consultation.
Final Thoughts
For most nursing homebound seniors, guaranteed life insurance is the only option for life insurance. It’s important to apply for coverage at a younger age to save money on your monthly premium and avoid financial hardship when dealing with final expenses.
If nursing home residents want to access and use their life insurance funds while they’re alive, combining life insurance policies with long-term care riders can be a viable method for covering hospice care costs.
Regardless of which option you choose, we at Final Expense Benefits are here to help you navigate the life insurance market without hassle and help you make the best life insurance decisions possible. Call us at (866) 786-0725 for a free consultation or check out our free online quoting tool for personalized life insurance pricing estimates.
FAQ
What companies offer the best life insurance for nursing home residents?
Some of our top picks for life insurance for nursing home residents include: Aetna Accendo, American Amicable, Mutual of Omaha, Prosperity Life Insurance, and SBLI. Our recommended carriers also offer life insurance options with long-term care riders.
What are long-term care riders?
Long-term care (LTC) riders are add-ons to your life insurance policy that allow the insured to access a portion of their plan’s death benefit while they’re still alive. These riders can cover LTC costs, which include all aspects of assisted living facilities for people older than 65.
Can you have more than one guaranteed life insurance policy?
You can have as many guaranteed policies as you please, so long as you keep up with monthly premium payments.
What insurance options do I have if I am terminally ill?
Guaranteed life insurance or purchasing a life insurance policy with a long-term care rider would be a strong option if you’re looking for life insurance with a terminal illness.