Mission Impossible

Some of you remember the old television show “Mission Impossible.”  An undercover team of agents always accomplished that which you would think would be impossible.  The best kept secret is that those who are ill and uninsured can do just that.

Most people believe that you can not get insurance once you have a serious illness such as cancer, severe heart or lung disease, Aids, etc...  The good news is that in most cases you can.  There are policies (pre-need funeral plans)  available that can be paid for on  a monthly basis for up to 3, 5  or 10 years.  These plans are funded through life insurance companies and are for the costs of funeral services and, or interment. The amount paid to your beneficiary upon death depends on the length of time the policyholder lives, after purchasing the policy. These are great policies because they grow in interest.  Health questions are asked but no physical exam is required.

If a person has health problems and chooses to pay on a pre-need plan for 3, 5 or 10 years and death occurs in the first 6 months, their family will receive a return of premiums paid plus interest.  They lose nothing.   If a person has health problems and death occurs after 6 months and a day of starting a policy, the death benefit on a 3 year plan would be 50% of the face value of the policy.  After 1 year and a day, the benefit paid out would be 100% of the face amount.  For example: Someone starts a $5,000. 00 pre-need plan for a relative that is ill and chooses a 3 year plan.  If the relative dies in 8 months the insurance company would pay $2,500.00.  If the relative lived 1 year and two months the death benefit would be $5,000.00 plus.  The 3 year plan would be the best for a person that is very ill, however the monthly premium would be higher than the 5 or 10 year plan. If a person has health problems and death occurs after 6 months and a day up until 1 year, on a 5 or 10 year plan, the death benefit would be 30% of the face amount.  After 1 year and a day up until 2 years, the benefit would be 70% of the face amount; and after 2 years and a day the benefit would be 100% of the face amount.  Therefore a person with health problems would need to live 2 years and a day on a 5 to 10 year plan for the full amount of the policy to be payable upon death.  These details can be explained to you in person or over the phone by a pre-need counselor.

The bottom line is that even a very ill person can be insured.  (The exception is a person that is in the hospital terminally ill, on life supports, etc…)  Don’t assume that anyone is uninsurable.  This may seem to be an impossible mission but it can be accomplished. 

Gail Valentine Taylor, M.S.W.

Funeral Director

Woods-Valentine Mortuary

(626) 798-8941