Is life insurance even possible?

[werking4sense]

What is the name of your state? GA
Hello,
my mother-in-law was recently diagnosed with Pick's disease. She is now living in a nursing home in the Alzheimer's unit because her brain is deteriorating.
I just found out that she has no life insurance. She doesn't have any bills or anything (and no assets) but I was wondering if a burial policy is even possible to take care of her funeral expenses?

 

[Betty]

What is the name of your state? GA
Hello,
my mother-in-law was recently diagnosed with Pick's disease. She is now living in a nursing home in the Alzheimer's unit because her brain is deteriorating.
I just found out that she has no life insurance. She doesn't have any bills or anything (and no assets) but I was wondering if a burial policy is even possible to take care of her funeral expenses?

Hi. I was a life ins. underwriter & I am sorry but I will have to say no, we would not issue a policy of any amt. to her. My co. was a "regular" co. with agents taking the applications for ins. & underwriting done.

I don't know how old your mother-in-law is but there are some policies sold through mail ads, TV ads & over the internet where you don't answer any medical questions. However, there is usually a max. age at which they will issue a policy. Also, they sometimes terminate when you reach a certain age (80 for example) + usually most all of these policies will not pay the face amt. of the policy if the insured dies within the first two years after the effective date of the policy (though normally they will return prems. paid). This protects the co. from having people who are terminally ill apply for a policy & die shortly after issue.

Another thing your mother-in-law being an adult, she would have to be able to sign the application.

 

[werking4sense]

Thank you for your help, Betty. She is 59 years old. She might not last for the required 2 years if we even got a policy. I guess we can try and put extra money away in savings also just in case.
Thanks again!

 

[moburkes]

Just an FYI, OP. If she's in the hospital, unless her medical pays 100%, she's got bills.

 

[werking4sense]

Just an FYI, OP. If she's in the hospital, unless her medical pays 100%, she's got bills.

She's not in the hospital, she is in a nursing home. Her disability/medicaid pays everything.

 

[Dandy Don]

A life insurance policy might not be possible, but a BURIAL insurance policy (just for funeral expenses) might be. Do a GOOGLE search on the term burial policy to try to find companies that might offer one, or contact a local funeral home and they will have some suggestions.

DANDY DON IN OKLAHOMA ([email protected])

 

[BlondiePB]

She's not in the hospital, she is in a nursing home. Her disability/medicaid pays everything.

So, how could MIL even afford a to make any kind of payments for burial arrangements?

 

[Betty]

A life insurance policy might not be possible, but a BURIAL insurance policy (just for funeral expenses) might be. Do a GOOGLE search on the term burial policy to try to find companies that might offer one, or contact a local funeral home and they will have some suggestions.

DANDY DON IN OKLAHOMA ([email protected])

The "burial" policy that she is going to have to get is going to have the restrictions I listed above. (& will be issued by the type of cos. I listed - cos. that advertise on TV, through mail & over internet) They will be issued w/o underwriting but won't pay if you die within first two years, etc. We would not issue even a burial pol. at the co. I worked for on her because underw. would be required & she would be a decline. If a co. would issue one w/o any restrictions, the premium would be outrageous. A funeral home sometimes recommends a savings plan for burial expenses if the person is uninsurable or one of the non-underw. restricted policies.

 

[werking4sense]

So, how could MIL even afford a to make any kind of payments for burial arrangements?

My husband and I will pay for it. I found one today through Colonial Penn for under $30 a month. Her husband died in 2004 and had no life insurance or burial insurance and we got stuck with a $5000 funeral bill. I am trying to avoid this again so that's why we are paying for it.

 

[moburkes]

Is this the policy you bought?


You Can't Be Turned Down!

If you're between the ages of 50 and 85 (in most states), you are guaranteed acceptance for this life insurance. There are no health questions to answer...no physical exam to take. We can guarantee your acceptance because of a two-year limited benefit period.

 

[werking4sense]

Is this the policy you bought?


You Can't Be Turned Down!

If you're between the ages of 50 and 85 (in most states), you are guaranteed acceptance for this life insurance. There are no health questions to answer...no physical exam to take. We can guarantee your acceptance because of a two-year limited benefit period.

Yep! I think that's it! I'm not even sure she will make it past the 2 year waiting period with her disease but I need to at least try for burial coverage.

 

[BlondiePB]

Yep! I think that's it! I'm not even sure she will make it past the 2 year waiting period with her disease but I need to at least try for burial coverage.

The KEY words here limited coverage. In the fine print you should read that that may mean that the premiums paid will be returned, as moburkes previously stated.

Futhermore, your mother is not competent to sign these types of papers - as Betty previously stated.

My suggestions are to put the money that you would be paying ($30.00/month) in a savings account, revokable trust at a funeral home (not under your mother's name), or put the money in an irrevocable trust at a funeral home under your mother's name. Keep in mind that any money in your mother's name must be reported when her Medicaid application is renewed. Medicaid does allow for an irrevocable trust for funerals. Each state has a limit.

Here's a website you may want to check into for final arrangements that can help with local funeral homes and decent prices on caskets, etc.

www.funeraldepot.com

You may also consider cremating mom & bury her remains in the same plot as dad. You need to check with the City/Town Hall or whoever runs the cemetary to find out details. Some cemetaries allow more than one per plot as long as the first decedent (in a casket) is buried first & the other(s) are cremated.