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Life Insurance for People with Disabilities

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Life insurance can help anyone, including those with disabilities, protect their families. Qualifying for life insurance with a disability can be more difficult, but it's still within reach. Below, we'll explore some life insurance options for people with disabilities and discuss several tips for finding competitive rates for the coverage you need.

What is considered a disability?

A disability is a physical or mental condition that makes it difficult for the person with the disability to interact with the world around them or participate in certain activities. Disabilities have three factors:1

  • Impairment: A person's bodily or mental function is impaired.

  • Activity limitation: A person's ability to perform certain actions, like walking or hearing, is limited.

  • Participation restriction: A person's ability to engage in regular daily activities, such as working or socializing, is restricted.

Some common examples of disabilities include:1

  • Hearing and vision problems

  • Cognitive conditions that impair thinking or memory

  • Post-traumatic stress disorder

  • Loss of limbs

  • Down syndrome

  • Traumatic brain injury

    • Can people with disabilities qualify for life insurance?

    People with disabilities can still qualify for life insurance, especially if they are in good health besides their disability. In fact, denying coverage solely based on disability may violate the Americans with Disabilities Act.2

    The insurer weighs several other factors, such as other parts of your health history, age, gender, smoking status, and lifestyle, when determining your rates. However, you will likely pay higher premiums for coverage.2 This is because insurers calculate your risk based on your lifespan. A disability can bring more risk, and the insurer charges higher premiums to account for that.

    Types of life insurance for people with disabilities

    Here are some life insurance options for people with disabilities:

    Term life insurance

    Term life insurance offers competitive premiums and a large death benefit. Coverage typically lasts for a fixed 10 to 30-year period that you choose. A term life policy can work well for those with disabilities who don't need additional wealth-building options, thanks to its straightforward nature and cost-effectiveness.

    Whole life insurance

    Whole life insurance costs much more than term life insurance but extends coverage over the rest of your life and offers a cash value growth component. Each premium you pay grows this component, which earns tax-deferred interest at a fixed rate.

    As you accumulate cash value, you can cash it out via no-credit-check loans and low rates or policy withdrawals. If you surrender the policy, you can receive the cash value minus surrender charges. If you need a substantial amount of lifelong coverage and additional wealth-building options, you may consider whole life insurance.

    Final expense insurance

    Final expense insurance is a small whole life policy with a large enough death benefit for funeral expenses, medical bills, and other end-of-life costs. The death benefit is small. However, premiums are low, coverage is lifelong, and cash value builds with each payment. You don't need to take a medical exam, but may have to answer some health questions on the application. These policies may help you most if your loved ones primarily need help with the high cost of funerals and other expenses.

    Guaranteed issue life insurance

    Guaranteed issue life insurance is a no-exam policy that approves every applicant, offering quick and easy coverage for people with disabilities with no exam or health questions. Like final expense insurance, it offers a small benefit in exchange for favorable premiums, lifelong coverage, and cash value. However, these policies may require one to two-year waiting periods. If you pass away during the waiting period, your loved ones may only receive a refund of the premiums paid.

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    Tips for getting life insurance for people with disabilities

    You can put an excellent life insurance policy within reach by following a few tips:3

    Work with an experienced life insurance agent

    An experienced life insurance agent, especially one that specializes in helping applicants with disabilities, can help you navigate the life insurance market and find great options.

    Agents understand the ins and outs of how insurers underwrite policies and can help find insurers who are more lenient regarding disabilities. They also help you determine what policy type may work best and can handle the work of gathering quotes to compare.

    Only apply for the level of coverage you need

    The more coverage you apply for, the stricter the underwriting requirements may be, increasing the chance of denial. Even if you get approved, you may end up paying more than you need for coverage you don't need.

    Carefully weigh your household income, expenses, debts, and financial goals. Consider your estate plans as well. These will help you get enough coverage to meet your needs without overpaying.

    Shop around

    Insurers vary in how they underwrite policies and must compete with other insurers for your business. Plus, some may work with those with health conditions or disabilities to help them get coverage.

    Shopping for quotes from different insurers helps you weigh approval chances and compare rates to find the most favorable price on the coverage you need. Insurance agents can help you do this, saving you time and helping you understand each quote.

    Improve your health

    Improving health factors within your control can increase your eligibility for life insurance and drive down premiums for two reasons:

    • You could improve your medical exam results, leading to a lower-risk health profile

    • You can demonstrate to the insurer you're managing your condition, such as with medical records

    Here are a few ways to improve your health to maximize eligibility and reduce premiums:

    • Eat a balanced diet

    • Exercise as regularly as you are able

    • Quit smoking

    • Reduce alcohol consumption

    • Follow treatment and medication regimes given by your medical providers

    Consider life insurance with no medical exam

    Those with disabilities may consider a no-exam policy, especially if their disability has a more significant impact on their health. Some no-exam policies ask basic health questions on the application but do not require the exam itself. However, guaranteed issue life insurance doesn't ask these questions since it approves every applicant.

    Another benefit of no-exam policies is underwriting and approval occur much faster since scheduling, attending, and awaiting medical exam results can delay the process by weeks. Some insurers approve applications in as little as one day.4

    Can I get life insurance for my child with a disability?

    If you have a child with a disability, you can get life insurance coverage for them in a few ways:

    • Child life insurance: This policy can insure your child and allow you to name yourself as the beneficiary should they pass away, helping you cover costs while grieving. Premiums may be higher and coverage may be limited, but you can transfer these policies to your child when they reach adulthood.

    • Adding a child rider to your life insurance policy: This rider is a policy add-on that lets you extend a portion of your policy's coverage to your child without a medical exam. Coverage remains until your child reaches a certain age, such as 22 or 25, or until the child gets married.5 You can convert the rider to a permanent policy at that point. One rider can cover all your qualifying children.

    Get the life insurance coverage you need

    Life insurance for people with disabilities may have higher premiums and require more due diligence, but it can offer plenty of benefits for you and your loved ones. Working with a life insurance agent, following a healthy lifestyle, and shopping around are some ways to make the process easier.

    Aflac understands the need for those with disabilities to protect their loved ones and create financial security with life insurance. We're here to help you find and get approved for the coverage you need. Speak with an agent today to get a quote.

    Still have questions?

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