According to CDC, one in four adults in the US has a disability. Compared to normal individuals, disabled people might prioritize having life insurance to provide their families with a financially independent life. However, buying life insurance with physical impairments can be challenging because insurers see those applicants as riskier.
Fortunately, you may still be eligible for life insurance, even with a disability, under some conditions. Let us discuss them.
Who Can Qualify for Life Insurance with a Disability?
Disability-specific term insurance can cover people with impairments. Many prominent insurance companies provide one-of-a-kind plans to offer term insurance to people with impairments.
Insurance companies cannot refuse policies for people with disabilities under the Americans with Disabilities Act (ADA) unless the person’s condition impacts their life expectancy. Your options for coverage might be limited in that situation.
The ADA states a person with a disability is someone whose mental or physical impairment restricts their ability to do major life activities, such as:
Fundamental bodily processes like the digestive, intestine, bladder, circulatory and reproductive functions may also be considered major life activities.
The Impact of Disability on Life Insurance Costs
The insurance company will consider the kind and extensiveness of your disability and how it affects your health and life span. Your disability can impact the coverage types you can buy and their rates. For example, a hearing loss won’t affect life expectancy that much, so you may qualify for life insurance with affordable premiums. If you have cerebral palsy or epilepsy, you cannot get adequate coverage, or you may need to pay higher premiums.
In addition, life insurance providers will also consider other crucial elements like your income, way of life, and medical history while calculating your premiums.
How to Get Life Insurance with a Disability?
Improve Your Health
Your insurer wants to know that you’re making efforts to improve your health and longevity when you apply for life insurance.
There are several strategies to manage your health while having a disability, from making regular appointments with your doctor to taking your prescriptions as directed.
Your requirements for life insurance are as unique as you are, especially if you have a disability. Life insurance is available in various forms, sums, and price points to match your needs.
Consider options and prices before deciding because each insurer has different policies. For example, you might be able to get life insurance if you enlist the aid of an insurance agent or broker who works with several other insurance providers.
Alternative Coverage Options
If you are denied life insurance because of your impairment, consider the following alternatives:
- Guaranteed issue life insurance:
This coverage is assured to be approved without a medical exam. It comes with higher premiums and lower death benefits.
- Group life insurance:
Your employer may provide you with group life insurance that doesn’t need a checkup. Your employer may cover either full or partial premiums.
- Joint life insurance:
Acquiring life insurance with a spouse is another way. However, the coverage may end if your partner dies, or you may not pay the death benefit until you both die.
- Service-Disabled Veterans Life Insurance (S-DVI):
If you have a service-related disability, you may be eligible for S-DVI, which provides up to $10,000 and $30,000 as supplemental coverage.
Even with a disability, you would be eligible for life insurance. Of course, a few things could influence or restrict your alternatives, but with careful market research, you can find great deals for your unique requirements.