Life insurance for the disabled

Life insurance for people with disabilities can be more difficult to purchase. Life insurance companies may consider health. This means that the disability can affect the coverage options and the cost of the policy. However, policies may still be available. This guide to life insurance for people with disabilities can provide insight into your insurance options.

Can you get life insurance if you have a disability?

When insurance companies issue life insurance policies, they are allowed to take health into account. Insurers assess the risk of a person’s death during the insurance period. If the risk is too high, the insurer may refuse the policy entirely. If there is an increased but still reasonable risk, the insurer may issue a policy but charge higher premiums.

In some cases, finding life insurance with pre-existing conditions can be difficult or impossible because insurers go through this underwriting process to assess risk. Depending on the nature of the disability, it may be considered a pre-existing disqualifying condition.

If the disability does not affect life expectancy or general health, then the insurance company may still be willing to provide coverage at an affordable price. For example, a person who is deaf or blind but has no other medical problems may have no problem getting life insurance coverage. But if a disability makes a person more susceptible to early death, life insurance coverage may be denied, or it may be too expensive or impossible to obtain from a standard insurance company.

What do life insurance companies consider a disability?

The specific definition of disability may vary by life insurance company. In general, any condition that affects mental or physical health can be considered a disability. Common examples:

  • Mental health problems, including anxiety, depression or post-traumatic stress disorder
  • Conditions affecting hearing, vision, or other senses
  • Medical problems that affect movement
  • Conditions that affect thinking, memory, or communication

Disability is something a person is born with. Or it can be acquired through illness or injury during life.

Types of life insurance policies for people with disabilities

Types of life insurance for people with disabilities generally fall into two categories. These are the same types of life insurance plans available to people without disabilities. However, some people may find it more difficult to find an insurer that offers these policies because of their condition.

Term of life

A term life insurance policy provides coverage for a set period of time. For example, it can pay a death benefit if the policyholder dies within 10, 20 or 30 years. If the insured does not die during the policy term, no death benefit is paid.

All life

A whole life insurance policy, also called a permanent life insurance policy, provides coverage indefinitely. The policy is valid as long as the premiums are paid. There is also an investment component. Part of the premium money is invested. As a result, the policy accumulates cash value.

A whole life is more expensive than a long life. It’s usually not worth the extra cost. That’s because most people become self-insured at some point. Their dependents no longer rely on their income or services.

How to qualify for disability life insurance

A person’s ability to qualify for disability life insurance will depend on the nature and type of condition. While this may be out of a person’s control, there are things that can sometimes be done to increase the chances of being approved for coverage.

Take control of your condition

If the disease is well controlled, insurers are less likely to deny coverage due to disability. Insurers will want to see medical records. They will also ask detailed questions about your health. If this information shows that the disability will not lead to premature death, insurers are more likely to approve the policy application.

Buy insurance coverage

Some insurers have stricter restrictions on when they issue life insurance to people with disabilities. That’s why it’s especially important to shop around with different insurers to explore your coverage options. Those who are disabled and interested in purchasing a policy should contact as many insurance companies as possible to find the coverage available.

Be honest in your application

It is very important to inform in advance about the disability. It is also important to be completely honest about all medical matters. This will help avoid cancellation of the policy later.

Consider a policy that does not require a medical exam

Some insurance policies are guaranteed. A medical examination is not required. Insurers also won’t ask about medical history. If standard insurance coverage isn’t available, this may be another option for disability life insurance.

Other life insurance options if you are denied coverage

If a person with a disability cannot qualify for a standard whole life or term insurance policy, there may still be life insurance options available. Some examples of life insurance for people with disabilities who cannot get a standard policy include the following.

Final costs

Final expense insurance is a type of life insurance policy. It is intended to cover funeral expenses. You can purchase this coverage regardless of your disability status or existing illnesses. Policies typically provide relatively low death benefits.

Guaranteed issue

Guaranteed problem coverage is also available to individuals regardless of their health status. Policy limits may be lower than standard term or whole life insurance. However, the money should still be for funeral expenses and some support for loved ones. However, there is usually a graduated death benefit. This means that only a portion of the full death benefit will be paid out during the first few months or years of the policy.

Life Insurance vs. Disability Insurance

Life insurance is not the same as disability insurance. Disability policies can pay out money to people who have become disabled and cannot work because of it. Life insurance policies, on the other hand, provide compensation to loved ones who survive death.

A disability income premium can be added to most life insurance policies. This is additional coverage. It pays a monthly stipend to help compensate for lost wages if a disability prevents work. However, a stand-alone disability policy usually offers more coverage at a lower cost than purchasing this type of life insurance.

Life insurance of disabled persons

In some cases, non-disabled individuals may wish to purchase life insurance for their dependents. Depending on the nature of the disability, guaranteed issue or standard term or whole life policies may be available. Or parents can get a rider on their own coverage to add their child.

Purchasing life insurance for a disabled child at an early age can help ensure that they can have protection later in life. They may decide to keep this policy.

Leave a Comment

Your email address will not be published.