Life Insurance for People With Disabilities

If you or a loved one is living with a disability or chronic condition, you might wonder if life insurance is even an option. It’s hard to say for certain, as it really depends on the nature of the disability. For example, blindness or missing a limb due to an accident should not disqualify someone from life insurance. However, some severe cases of cerebral palsy or down syndrome may. Congenital disorders that impact someone’s development are more likely to disqualify the individual.

However, many disabled individuals are able to get life insurance, especially if, excluding the disability, they are in good health. Your Farm Bureau agent can inquire before formally submitting an application, which may be good practice if the person looking for coverage may be rejected, as future applications can ask if they’ve ever been turned down in the past. 

Can a Disability Impact Life Insurance Premiums?

When anyone applies for life insurance, there are a variety of factors that are assessed to determine what their premium should be. Things like age and gender impact everyone, regardless of health. Additionally, things like dangerous hobbies or professions with a higher risk of accidents can also impact anyone. Non-disability-related health considerations, such as weight and blood pressure, can also factor into how a premium is calculated. 

Within that context, health and medical history are significant factors in determining the monthly cost of life insurance. In general, younger and healthier people pay less each month, so a disability may impact the monthly premium on a life insurance policy. You will need to be prepared to answer health questions, share your medical records and provide doctors’ contact information.

Types of Life Insurance for Disabled People

People living with disabilities typically have access to the same types of life insurance policies that those without a disability do. There are two main categories:

• Term life insurance covers the insured for a set number of years and is typically less expensive.
• Whole life insurance covers the insured for their entire life. It is typically more expensive but accrues a cash value.

Helpful Riders for People with Disabilities 

Life insurance riders, which are optional features that can be added to life insurance policies, can be valuable for people with disabilities by providing enhancements that address their long-term needs. Not all riders are available on all policies and in all situations;  having a disability may impact your eligibility. Talk with a knowledgeable agent about your options. 

Guaranteed Purchase Option

A guaranteed purchase option rider allows the insured to periodically purchase additional whole life insurance without undergoing a medical exam or providing proof of insurability, which could be beneficial for someone with a disability who is young and anticipates their need for life insurance will increase in the future, such as when they purchase a home, get married and/or have children.

Waiver of Premium

A waiver of premium rider waives premiums if you experience a total disability that continues for at least 90 consecutive days. That means that if you can’t work, your policy will remain active. This isn’t applicable for any conditions you have at purchase, but if you anticipate further health issues that would prevent you from working, you may want to ask about this rider. 

Daily Living Rider

A daily living rider accelerates a portion of your policy’s death benefit if you have been chronically ill for at least 90 days and are ill for another 90 days or longer. This may or may not be available to disabled people seeking life insurance based on the insurer and the disability. 

Living Benefit Rider

If you are diagnosed with a qualifying terminal illness, you can use a portion of the policy’s death benefit for income. Also known as the accelerated benefit rider in some states, this feature is provided at no additional cost.

Tips for Getting Life Insurance for People With Disabilities 

Having a disability means that your experience getting life insurance will be slightly different than others. Here are some tips to make it go smoothly:

1. Work with an experienced agent who knows the ins-and-outs of the policies and can provide guidance on how the fine print. 
2. Consider the different policies to find the option that fits both your needs and your budget. Don’t just go for the least expensive; you want to ensure you’re getting what you need.
3. Only apply for the coverage that you need so that you aren’t paying extra premium for coverage above and beyond what you need, especially if your premium is expensive.
4. Disclose your disability to ensure your policies go into effect; if fraud is suspected, you could lose out. 
5. Improve your health in any way you can prior to the health exam. You’ll benefit from doing everything you can to reduce premiums, such as eating a balanced diet, exercising, stopping smoking, etc.  
6. Consider no-exam life insurance if you really don’t think you’d be eligible for insurance any other way. Depending on the disability, you may  not be eligible without completing a medical exam. If you are, the cost may be higher. 

Get the Help You Need

Talk to your Farm Bureau agent, who can help you navigate the details and find the right coverage for you.