If you suffer from COPD and are considering purchasing burial insurance, you have landed in a good place. This review will briefly address the product’s ratings and offerings, underwriting niches, pricing, and alternatives.

What is Congestive Obstructive Pulmonary Disease

COPD is an acronym for Congestive Obstructive Pulmonary Disease. Going by current standards, this can refer to several respiratory disorders.  COPD is defined as a progressive disease, which affects the breathing abilities of those affected by the condition. ‘Progressive’ simply means that the disease will likely get worse 

Smoking is the prominent reason behind a COPD diagnosis, with most people diagnosed with this condition likely to have been long time smokers. Quitting your smoking habits can greatly improve your odds of avoiding this disease.

Ranking as the 3rd largest cause of death in the USA, it is also a major factor in developing disabilities. COPD develops slowly, and starts limiting one’s daily activities until one is eventually dependent on oxygen aid for steady breathing daily. 

Will an Insurance Company think you have COPD

Most insurance firms treat Emphysema and Chronic Bronchitis as different variants of COPD, raising barriers for qualifying life insurance eligibility conditions. COPD has various interpretations. One may diagnose a smoker, who suffers from a respiratory disorder to have COPD.

 Determining whether you qualify for their life insurance policy is up to what the insurance company interprets your condition to be. Some companies will lump chronic respiratory conditions along with COPD. Applicants who suffer from chronic asthma often are frustrated by carriers who view the condition as COPD based on the use of a rescue inhaler.

Burial Insurance with COPD -Possible Underwriting Outcomes

Immediate Level Death Benefits -

Those with no health conditions, which would otherwise push them to a lower level can obtain an insurance policy that does not come with a waiting period of 2-3 years. Their beneficiaries would also be paid 100% of the benefit. For instance,  should you die within 7 months of your policy having turned effective, your beneficiaries can obtain 100% of listed death benefit. This is the best option available in the life insurance marketplace. Always send your application first for these policies and attempt to qualify for them.

Modified or Graded Plans

Also known as Modified or Graded Plans, this is considered the second-best kind of death benefits policies. Should you not be healthy enough for acceptance into a so called "day 1" policy, you should start applying for this type of policy.

For instance, if the insured were to pass in the first year a policy with $10000 in death benefit would pay the beneficiary 40% of death benefits or $4000. If the insured were to die in the second year, the beneficiary would receive 75% of the total death benefit. After the second year the beneficiary would receive the entire payout.

The payout percentages in the example above will differ amongst carriers. Note that many carriers do not offer thgis type of policy and merely skip from level coverage to guaranteed issue with a full waiting period.  However, there are several who do. Among them RNA, Liberty Bankers, Mutual of Omaha, and Prosperity Life. These policies are highly preferred over GI plans.

Guaranteed Issue Burial Insurance

Meant as a last resort option, this is the kind of policy which pays out death benefits only after a 2-3 year waiting period depending on the carrier. These guaranteed issue policies are also termed as Modified or Graded Benefits policies. Being that these policies are a last resort, all other options should be explored and exhausted first.

Applicant's  suffering from COPD and dependent on oxygen will be limited to guaranteed acceptance options.

 Gerber and AIG are among the most top-rated Guaranteed Issue Life Plans that are commonly offered by most independent agents/agencies. If the policyholder passes away within 2-3 years of issuance of the policy, beneficiaries will be eligible to receive total premiums paid till date, along with interest, usually set at 10%. Guaranteed Acceptance Life Insurance plans are  all modified or graded policies,  not a single one offers immediate death benefits beyond premiums paid plus interest. 

How Long Do You Need To Wait For Before Purchasing A Life Insurance Policy While Suffering From COPD?

If your condition is not so advanced that you may still be able to secure an Immediate Level Death Benefits policy, PURCHASE IT NOW. Many people often consider buying  a burial insurance policy, but decide to wait. Unfortunately, COPD has no cure. Since it’s a progressive disease that gets worse with time, one’s health condition is never likely to improve. As you receive more treatment for newly-developed symptoms, your chances of obtaining optimal levels of insurance coverage spiral down. 

Remember, anyone with COPD is still eligible to apply for insurance coverage. However, do note that apart from Guaranteed Acceptance plans, other plans still require you to qualify based on health-related questions. Receiving an insurance policy approval on your first attempt is important since a rejection on your history won’t be helpful- as there are some firms who don’t accept applicants with a history of rejection in the previous twelve months. 

Your Next Step

Thank you for choosing NODLB.com to research burial Insurance policies with COPD. Should you have any questions, please do not hesitate to call or send over an email.