If you don’t have life insurance already and you don’t have enough money saved to cover your final expenses, you could leave your loved ones in quite a bind since they’ll have to cover it.
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The average funeral costs around $9,000+. That’s a lot of money to ask anyone to cover for you. Most people wouldn’t be able to, which would leave you without a proper goodbye and your loved ones without closure.
The problem is dialysis patients often have a hard time securing life insurance because of the risk their illness causes. Most insurance companies automatically deny anyone with End-Stage Kidney Disease.
But that doesn’t mean you will leave your loved ones without the money to cover your final expenses. Burial insurance may help.
Here’s what you must know.
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Table of Content
What is Burial Insurance?
Burial insurance, as the name suggests, is insurance to cover the cost of your burial. It may cover other things like your wake, final hospital bills, or credit card bills too. There’s no rule stating what your loved ones must use the money for, but it’s earmarked for your final arrangements.
How does it Work?
Burial insurance for dialysis patients is one of the best options because it’s a guaranteed issue life insurance policy.
Insurance companies can’t turn you down.
Got your attention, right?
Even though you are on dialysis, they can’t turn you down because it’s guaranteed coverage. This means the insurance company will accept anyone who applies.
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What’s the catch?
It’s expensive, and you’ll only get enough coverage for your final arrangements. Most companies max out the coverage at $25,000. You may find a few that offer up to $40,000, but it’s rare.
With this policy, when you die, your loved ones receive the funds, which are just enough to cover your final arrangements and final expenses.
Do Dialysis Patients Qualify for Final Expense Insurance?
Everyone qualifies for final expense insurance. It may not be what you want, but it’s better than nothing, right?
You can die with peace of mind knowing you covered your final expenses and didn’t leave the burden on your loved ones.
The key is to shop around to find the best deals. While the premiums are higher because of the risk, some companies don’t charge unaffordable premiums, even for dialysis patients.
What’s the Cost?
Like we said earlier, final expense insurance is expensive. The younger you are when you buy it, the less it will cost. Every company has a different minimum age, though. Some sell it starting at age 40, while others wait until age 55 or older.
If you wait until the average age of the typical dialysis patient of 64-years old, you’ll likely pay $400 – $500 a month in life insurance.
What are the Benefits of Burial Insurance for Dialysis for Patients?
Like all insurance policies, final expense insurance for dialysis patients has benefits including:
- You’ll automatically get coverage.
Final expense insurance doesn’t require a medical exam or even medical questions. If you can afford the premiums, you can get coverage.
- It’s just enough to cover your final expenses.
If you aren’t worried about leaving money behind for your loved ones because they’re already financially secure, the final expense policy is just enough to cover your final expenses. You’ll pay premiums only for the insurance you need and nothing more.
- You don’t have to worry about passing a medical exam.
The hardest part about getting life insurance with dialysis is passing the medical exam. With final expense insurance, there isn’t a medical exam.
Are there Downsides?
Like most personal finance decisions, there are bad sides to final expense insurance you should know about.
- The premiums are expensive.
The longer you wait to buy final expense insurance, the more it costs. The average 64-year old pays $400 – $500 a month.
- The coverage amount is low.
You can typically only get a maximum of $25,000 for final expense insurance, which isn’t enough to cover anything except your funeral, burial, and final medical expenses in some cases.
- There’s a 2-year waiting period.
Most burial insurance policies have a 2-year waiting period before your benefits begin. If you die within 2 years of taking out the policy, your loved ones will only receive the premiums you paid to that point plus a small percentage.
Can dialysis patients get any other life insurance?
Typically, dialysis patients are stuck with burial insurance as their only option. The only exception is if you have a kidney transplant and can prove you’re in good health a year or so after the transplant. You may secure traditional whole life insurance then, but still at higher premiums.
Is dialysis a sign of a chronic illness?
In most cases, if you’re on dialysis, life insurance companies assume you have a chronic illness. Since chronic kidney disease can lead to End Stage Renal Failure, most insurance companies won’t insure you.
What is guaranteed issue whole life insurance?
Guaranteed issue whole life is similar to final expense insurance. You don’t need a medical exam, and your coverage amount is limited. Since there’s no medical exam, the premiums are much higher.
If you are on dialysis and don’t have life insurance, a final expense insurance policy may be the answer. You’ll die with peace of mind knowing you took care of your loved ones. While it may cost quite a bit of money, it’s better than leaving your loved ones with nothing.
The money can help them cover your funeral, burial, and final medical expenses, which can add up quickly if you have a chronic illness.