Life Insurance with Alzheimer’s Disease or Dementia.
In this article, we wanted to take a moment and try and answer some of the most common questions we get from folks applying for life insurance after having been diagnosed with Alzheimer’s Disease.
Questions that will be addressed will include:
- Can I qualify for life insurance if I have been diagnosed with Alzheimer’s Disease?
- Why do life insurance companies care if I have been diagnosed with Alzheimer’s Disease?
- What “kind” of life insurance policies can I qualify for?
- What can I do to help ensure that I get the “best life insurance” for me?
So, without further ado, let’s dive right in!
Can I qualify for life insurance if I have been diagnosed with Alzheimer’s Disease?
Unfortunately, Alzheimer’s Disease is one of those “kinds” of pre-existing medical conditions which is going to make it impossible for you to be able to qualify for a traditional term or whole life insurance policy which means that you will need to consider an “alternative” option such as a guaranteed issue life insurance policy (AKA Final Expense Insurance Policy) or an accidental death policy if you still wish to be able to purchase some type of coverage.
Why do life insurance companies care if I have been diagnosed with Alzheimer’s Disease?
There are basically two main reasons why a life insurance company is going to “care” if an individual has been diagnosed with Alzheimer’s Disease. The first and most important reason is because Alzheimer’s is a serious pre-existing medical condition which over time essentially destroys one’s memory and impairs one’s ability to perform even the most basic daily activities.
Symptoms of this disease can and often will include:
- An overall mental decline,
- Difficulty thinking and understanding,
- Difficult concentrating,
- Aggression and agitation,
- Significant mood swings,
- Jumbled speech,
- Loss of appetite,
- Etc, ect…
And while there may be some medications that have shown signs that they may be able to slow down the progression of this disease, currently this is not a cure for Alzheimer’s Disease which is why most (if not all) best term life insurance companies will be unwilling to provide “traditional” coverage to those who have been diagnosed with this condition.
The other reason why…
It is difficult to qualify for life insurance policy after one has been diagnosed with Alzheimer’s Disease is because the “process” of purchasing a life insurance policy consists of entering into a legal contract. A contract whereby the insured agrees to pay a premium and a life insurance company agrees to pay a death benefit in the event that the insured dies while the life insurance policy is in effect.
The reason why…
This becomes complicated is because both parties need to be of “sound mind” to enter into a legal contract which may or may not be the case when working with individuals who have been diagnosed with Alzheimer’s disease or early onset dementia. This is why we here at IBUSA generally only like to work with family members in cases like these or like to ensure that the life insurance company that we are working with plays an active role in the placement of any life insurance policy so that it is clear to all parties involved that each side of the contract fully understand all elements of the policy being purchased.
Now at this point…
It’s probably a good idea to remind folks that while we here at IBUSA may seem like we know a lot about a particular medical condition, we are by no means medical professionals and we’re certainly not doctors! All we are is a bunch of life insurance agents who are passionate about helping folks qualify for life insurance particularly if they have been diagnosed with some “kind” of pre-existing medical condition which could make it more difficult for them.
If you feel like you may need medical assistance or you find yourself trying to “self-diagnosis” yourself by using some of the information that you find on our website, please do yourself a favor and go seek out REAL medical advice from REAL medical professionals.
As for those…
Who are just looking for help finding and qualifying for a traditional life insurance policy, the good news is you’re definitely at the right place!
What “kind” of life insurance policies can I qualify for?
Now as we’ve already stated, individuals who have been diagnosed with Alzheimer’s Disease are not going to be able to qualify for a traditional term or whole life insurance policy. Instead, they are going to need to seek out an “alternative” product should they wish to purchase some “type” of coverage for their family.
Isn’t going to require them to have to take a medical exam or answer any health questions because having been diagnosed with Alzheimer’s Disease is going to mean that you would not be able to qualify for any type of life insurance policy that would require that from you.
The good news is…
That there are two different products that you might be able to qualify for, but they are both going to have their own set of Pros and Cons that you will want to be fully aware of prior to applying for coverage. For this reason, we’re going to take a moment and discuss what some of those Pros and Cons are but would encourage you to also take a look at some of our other articles that focus on these “types” of products as well as just give us a call so that we can review your options in greater detail.
Accidental Death Policies.
The first thing that we want to make clear about these types of policies is that an accidental death policy is NOT a LIFE insurance policy. This is because these “types” of products/policies will only provide coverage in the event that you die from an accident.
An accident like a:
- Motor vehicle accident,
- A slip and fall accident,
- A natural disaster,
- Victim of crime,
- Etc, etc…
Which means that if you end up dying from a heart attack, a stroke or cancer, an accidental life insurance policy isn’t going to provide your loved ones with any kind of financial protection.
We should point out that these policies are a great way to supplement a TRUE life insurance policy that will pay out in the event that you do pass away from a “natural” cause of death and that because accidental death policies are often quite affordable, some folks may choose to purchase one of these “types” of policies as a “just in case” type of protection.
Guaranteed Issue Life Insurance Policies.
Guaranteed issue life insurance policies on the other hand are TRUE life insurance policies, that will provide coverage in the event that you die from a natural cause of death. The problem is that before they will begin providing coverage for “natural causes” of death, you will need to live beyond a certain waiting period (which will be determined by the insurance company you choose). A “waiting period” which is commonly referred to as a GRADED DEATH BENEFIT.
During this “waiting period”…
Your guaranteed issue life insurance policy will only provide coverage for accidental causes of death, but will (in most cases) return all monies paid to a life insurance company to your beneficiary in the event that you die from a natural cause of death prior to the GRADED DEATH BENEFIT expiring.
The reason why…
Guaranteed issue life insurance policies contain a graded death benefit is because you will not be asked any medical questions during the application process. In fact, as long as you live in a state where these “types” of life insurance policies are offered, and you are a US citizen over the age of 50 (sometimes 45), you should be eligible.
Which means that…
It’s possible that someone who is very seriously ill might decide to purchase one of these types of life insurance policies just days before they die from some kind of natural cause or disease. In cases like these, the insurance companies would have no way of protecting themselves from such a financial loss which is why they use a Graded Death Benefit as way of ensuring that folks don’t try to purchase these types of life insurance policies at the last moment.
We should note however…
That while these life insurance policies can be very helpful to those who can’t qualify for any other “type” of life insurance coverage, they do tend to be a bit “pricey” dollar for dollar when compared to other types of life insurance policies and will generally only allow an individual to purchase up to $25,000 dollars in coverage which may be a “deal breaker” for some.
Which brings us to the last topic that we wanted to take a moment and discuss which is…
What can I do to help ensure that I get the “best life insurance” for me?
In our experience here at IBUSA, what we have found that usually the folks who seem to find the “best” life insurance policy for them are those that:
- Take their time reviewing their options.
- Ask a lot of questions.
And seek out those life insurance agents who not only have experience working with individuals who have been diagnosed with a wide variety of pre-existing medical conditions, but also have access to dozens of different life insurance companies so that when it comes time to helping a more “challenging” case, they don’t have to rely on a…
“One size fits all approach!”
The good news is that this is exactly what you’re going to find here at IBUSA!