In this article, we wanted to take a moment to 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 the pre-existing medical conditions that can make it impossible for you to qualify for a traditional term or whole life insurance policy.

This means that if you have Alzheimer’s, you’ll need to consider alternative options such as a guaranteed issue life insurance policy (also known as a Final Expense Insurance Policy) or an accidental death policy if you still want to purchase some type of coverage.

Why do life insurance companies care if I have been diagnosed with Alzheimer’s Disease?

There are two main reasons why a life insurance company will care if an individual has been diagnosed with Alzheimer’s Disease. The first reason is that Alzheimer’s is a serious pre-existing medical condition that permanently destroys one’s memory and impairs one’s ability to perform even the most basic daily activities.

Symptoms of this disease can include mental decline, difficulty thinking and understanding, delusions, difficulty concentrating, aggression, agitation, mood swings, depression, jumbled speech, loss of appetite, and more. While some medications may slow down the progression of the disease, there is currently no cure for Alzheimer’s Disease.

Due to the seriousness of this condition, most (if not all) best term life insurance companies will be unwilling to provide traditional coverage to those who have been diagnosed with Alzheimer’s.

The second reason why it is difficult to qualify for a life insurance policy after being diagnosed with Alzheimer’s Disease is that purchasing a life insurance policy involves entering into a legal contract. Both parties need to be of sound mind to enter into a legal contract, which may not be the case when working with individuals diagnosed with Alzheimer’s or early-onset dementia.

This is why we, at IBUSA, ensure that the life insurance companies we work with play an active role in the placement of any life insurance policy like these so that it is clear to all parties involved that each side of the contract fully understands all elements of the policy being purchased.

What “kind” of life insurance policies can I qualify for?

As previously stated, individuals diagnosed with Alzheimer’s Disease are not eligible for traditional term or whole life insurance policies. Instead, they need to seek out an alternative product if they wish to purchase coverage for their family. This coverage will not require a medical exam or health questions since having Alzheimer’s Disease disqualifies them from any life insurance policy that requires such information.

The good news is that there are two different products that they may qualify for. However, both of these products have their own set of pros and cons, which they need to fully understand before applying for coverage. For this reason, we encourage them to take a look at our other articles that focus on these types of products or give us a call to review their options in greater detail.

Accidental Death Policies.

First, we want to clarify that an accidental death policy is not a life insurance policy. These products only provide coverage if the policyholder dies from an accident, such as a motor vehicle accident, slip and fall, natural disaster, crime victimization, among others. It means that if the policyholder passes away from a heart attack, stroke, cancer, or other natural causes, the accidental life insurance policy will not provide any financial protection to their loved ones.

However…

These policies can be an excellent complement to a true life insurance policy that pays out in case of natural death. Additionally, because accidental death policies are often affordable, some people may consider purchasing them as an extra “just in case” protection.

It’s important to keep in mind…

Accidental death policies have limitations and exclusions, so it’s essential to read the terms and conditions carefully and understand the coverage and benefits offered. For instance, some policies may not cover death resulting from participating in high-risk activities or illegal acts.

So in conclusion, if you are considering purchasing an accidental death policy, it’s recommended to review your overall insurance needs and financial goals and consult with a licensed insurance agent to make an informed decision.

Guaranteed Issue Life Insurance Policies.

Guaranteed issue life insurance policies are actual life insurance policies that offer coverage in the event of death due to natural causes. However, before coverage begins for natural causes of death, there is a waiting period determined by the insurance company you choose. This waiting period, also known as a Graded Death Benefit, must be lived beyond.

During this waiting period, your guaranteed issue life insurance policy will only provide coverage for accidental causes of death. However, if you die from a natural cause of death before the Graded Death Benefit expires, in most cases, all monies paid to the life insurance company will be returned to your beneficiary.

The reason why guaranteed issue life insurance policies have a graded death benefit is that no medical questions are asked during the application process. Therefore, if someone who is very seriously ill purchases one of these policies just days before they die from natural causes or disease, the insurance company has no way of protecting itself from financial loss. The Graded Death Benefit is used to prevent individuals from purchasing these policies at the last moment.

It’s worth noting that while these life insurance policies can be very helpful for those who don’t qualify for any other type of coverage, they tend to be expensive compared to other life insurance policies, dollar for dollar. Furthermore, these policies typically only allow individuals to purchase up to $25,000 in coverage, which may be a deal-breaker for some.

In conclusion, guaranteed issue life insurance policies offer coverage for natural causes of death but have a waiting period and graded death benefit. While they can be helpful for those who don’t qualify for other types of coverage, they tend to be pricey and have coverage limitations.

What can I do to help ensure that I get the “best life insurance” for me?

In our experience at IBUSA, we have found that individuals who take their time reviewing their options, ask a lot of questions, and seek out experienced life insurance agents tend to find the best life insurance policy for their needs. It’s essential to work with agents who have access to multiple life insurance companies, especially if you have a pre-existing medical condition that may require a more customized approach.

The benefit of working with IBUSA is that we specialize in helping individuals with a wide range of medical conditions, and our agents have access to multiple life insurance companies. This enables us to provide our clients with personalized options rather than a “one size fits all approach.”