If someone is terminally ill, they may wonder about life insurance and if it is even available to them with their condition. Thankfully, there are some life insurance options available to patients who are terminally ill. The amount they are eligible for will likely be limited, but the options are available to them can help their loved ones, nonetheless.
If someone is terminally ill and in search of a life insurance policy, they will need to look for a specialized life insurance company that handles policies for the terminally ill. To find these companies, you may consider going through a broker who works to find the best policy for their customers from the several different insurance companies they work for.
The life insurance policies available to terminally ill patients are referred to as graded life policies that typically have a maximum available amount of $50,000. You can get your own life insurance quote on AAMIs new site, check it out today.
While graded life insurance policies are available, a terminally ill patient must stay alive for the two year period after the policy is taken out to receive the full amount. If the patient passes away before that two year period, their beneficiary will only get the monthly premium amount paid on the policy.
It may seem a bit difficult to decide if this is a good choice for a terminally ill patient, but it is important to keep in mind that graded life insurance policies ensure that nothing will be lost financially if they pass away before the two year period is up. Graded life insurance is called such because it pays a graded amount for the first 2-3 years of the policy, in addition to paying 100% of the premiums paid from day one in the case of an accidental death.
In addition to graded life insurance policies for the terminally ill, there are also final expense policies. These are only for a small amount of money to cover the policy holder’s funeral expenses. With this type of policy, there is no requirement of a physical exam, so any person can get one, including those who are terminally ill. A final expense policy can help a terminally ill patient’s loved ones handle the expense of a funeral during such a difficult time.
Medical costs for a terminally ill patient can be incredibly costly, causing a lot of emotional distress for the patient and his or her loved ones, which is why many terminally ill patients look to life insurance to help lessen the burden on their loved ones.
A graded life insurance policy or final expense policy can be a huge relief to people who are dealing with so much emotional distress and don’t need added monetary distress. If a terminally ill patient is having trouble obtaining a life insurance policy, they may want to purchase a policy through a funeral home which often offers a shorter graded amount period and more liberal guidelines in regard to age.