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Qualifying for Life Insurance while receiving Disability Benefits. Everything you need to know at a glance!

qualifying for life insurance while on disability SSDI


Life Insurance while on Disability

In this article, we wanted to take a moment and try and answer some of the most common questions we get from individuals applying for life insurance while currently receiving Social Security Administration (SSA) Disability Benefits, SSDI or SSI.

Questions such as:

  • Can I qualify for life insurance if I am currently receiving SSA Disability Benefits?
  • Why do life insurance companies care if I am currently receiving SSDI or SSI?
  • What kind of information will the insurance companies ask me or be interested in?
  • What rate (or price) can I qualify for?
  • What can I do to help ensure that I get the “best life insurance” for me?

It is our hope, that this article will help those applying for life insurance to gain a better understanding of some of the challenges they will face when applying as well as become more aware of what options may be available to them regardless of their current health status.

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Can I qualify for life insurance if I am currently receiving SSA Disability Benefits?

 

It is possible to qualify for life insurance if you are receiving Social Security Disability Benefits (SSDI), but it may depend on the specific insurance company and policy you are applying for. Some insurance companies may consider you a higher risk due to your disability and may charge you higher premiums or deny coverage altogether. Other insurance companies may be willing to offer you coverage, but at a higher price than someone who is not receiving disability benefits.

The only problem is…

That there are a lot of different “reasons” why an individual may be recieving SSA Disability Benefits, and while some reasons may not pose too much of a problem for a particular top rated life insurance company, many will.

Which is why one of the first things most life insurance agents are going to want to know “why” have you been able to qualify for SSI or SSDI, before they move forward with your application.

Why do life insurance companies care if I am currently receiving SSA Disability Benefits?

Life insurance companies care about whether an applicant is receiving Social Security Disability Benefits (SSDB) because it can provide information about their current health and financial situation.

Receiving SSDB may indicate that an individual has a serious medical condition that affects their ability to work. This could make them a higher risk to the life insurance company, as they may be more likely to die in the near future. As a result, the company may charge a higher premium for the policy or may even deny coverage altogether.

Ultimately, life insurance companies consider many factors when evaluating an applicant’s risk, and receiving SSDB is just one factor among many. It is important for an individual to be honest and transparent when applying for life insurance, as providing accurate and complete information can help ensure that they get the coverage they need at a fair price.

Common reasons why someone may qualify for SSA Disability Benefits include:

  • Respiratory illnesses
  • Skin disorders
        • Including sever dermatitis.
  • Digestive tract disorders
  • Kidney disease
  • Musculoskeletal problems
        • This would include folks who suffer from back pain or some other type of injury such as:
            • Carpal tunnel syndrome,
            • Severe tendonitis,
            • Thoracic outlet compression,
            • Epicondylitis,
  • Speech or sensory complications.
        • This would include folks who suffer from hearing loss or vision loss which could be due to:
            • Congenital defect,
            • Disease,
            • An injury.
            • Cancer,
            • Blood disease.

What kind of information will the insurance companies be interested in regarding my disability?

When applying for life insurance, an individual who is receiving Social Security Disability Benefits (SSDB) will generally be asked to provide information about their disability and related medical conditions. This may include details about the nature of the disability, how it affects their ability to work and perform daily activities, and any treatment or medications they are currently receiving.

The insurance company may also ask for information about the individual’s medical history, including any past or current health conditions, hospitalizations, and surgeries. They may also request records or reports from the individual’s doctors or other healthcare providers.

In addition to information about the individual’s medical condition, the insurance company may also ask for financial information, such as their income, assets, and debts. This information can help the company assess the individual’s overall risk profile and determine the appropriate premium for their policy.

Specific questions you may be asked might include:

  • When did you first qualify for SSDI or SSI?
  • Why have you been able to qualify for SSI or SSDI?
  • What pre-existing medical conditions have you been diagnosed with?
  • Do you anticipate a time when you will no longer qualify for your disability benefits?
  • Are you currently taking any prescription medications?
  • Do you currently work at all right now?
  • In the past 12 months, have you used any tobacco or nicotine products?
  • In the past 2 years, have you been hospitalized for any reason?

What life insurance rate class can I qualify for if I am receiving disability benefits?

Life insurance companies use rate classes to classify applicants based on their risk level and determine the premium for their policy. The rate class that an individual qualifies for will depend on a variety of factors, including their age, gender, health, and lifestyle.

If an individual is receiving Social Security Disability Benefits (SSDB), it may indicate that they have a serious medical condition that affects their ability to work. This could make them a higher risk to the life insurance company, as they may be more likely to die in the near future.

As a result, the individual may qualify for a higher rate class (or not qualify for a traditional life insurance policy), which means they will pay a higher premium for their policy.

It is important to note that every life insurance company uses its own underwriting guidelines and criteria to determine rate classes, and the rate class that an individual qualifies for can vary from one company to another.

It is also worth noting that receiving SSDB is just one factor that the insurance company will consider when evaluating an applicant’s risk. Other factors, such as the individual’s medical history, lifestyle, and financial situation, may also be taken into account.

That said, however…

Most individuals who are currently receiving SSDI or SSI will usually fall into one of two categories that we can make some assumptions about that will generally hold true.

Category #1.

Will consist of those who have been diagnosed with a rather serious pre-existing medical condition, which on its own, would likely prevent you from being able to qualify for a traditional term or whole life insurance policy, regardless of whether or not you have qualified for disability benefits.

In cases like these…

What we usually find is that most (if not all) life insurance companies are going to automatically decline one’s traditional life insurance application, forcing these applicants to pursue alternative products such as a Final Expense Life Insurance Policy or an Accidental Death Policy.

Category #2.

The second group of folks that we’ll commonly encounter will be those who have been diagnosed with some type of pre-existing medical condition, which isn’t necessarily life threatening, but has prevented them from finding full time employment.

Situations such as when an individual may have lost their vision or hearing, or have suffered from some type of muscular skeletal condition, which limits their ability to move or perform certain tasks.

In cases like these…

It may be possible for an individual to qualify for a traditional term or whole life policy, provided that they are able to document their injuries and prove that they don’t have more serious symptoms pointing to some other underlying health issue.

Then at this point…

Once we understand what heath rate category you may fall into, we’re then able to narrow down one’s options and begin examining which life insurance companies may provide you with the best opportunity for success.

Which brings us to the last topic that we wanted to take a moment and discuss which is…

What can I do to help 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! So what are you waiting for? Give us a call today and experience the IBUSA difference!

32 comments… add one
  • Shamika July 31, 2019, 5:35 pm

    My name is Shamika I’m a disabled person I’m 27years old looking for life Insurance

    • IBUSA July 31, 2019, 6:37 pm

      Shamika,

      Depending on the cause of your disability, you may still be eligible for coverage. We would suggest that you use our quoter and and see what a life insurance policy might cost you at a “Standard” rate (since rates below standard are not available online), then if it looks like the price is reasonable, give us a call.

      Thanks,

      InsuranceBrokersUSA

  • Steven w September 15, 2020, 5:30 pm

    I’m totally disabled I would like a quote.

    • IBUSA September 15, 2020, 6:35 pm

      Steven,

      Please give us a call during normal business hours and we would be happy to discuss what options may be available to you.

      Thanks,

      InsuranceBrokersUSA

      • Arlene September 20, 2022, 7:08 am

        Im looking for insurance for my brother who was born with physical and mental disabilites. He is now 27 yrs old. Born with spina bifida, cerbral palsy, etc. He can not do anything for himself and doesn’t speak. I am wondering of its best to just obtain final funeral expense insurance for him?

        • IBUSA September 20, 2022, 7:26 am

          Arlene,

          It’s possible we might have an option for you, we would just need to speak with you directly to be certain.

          Thanks,

          InsuranceBrokersUSA

  • Scott A. S. October 27, 2020, 6:34 pm

    Im 100 pecent disabled, I would like a quote.

    • IBUSA October 27, 2020, 7:49 pm

      Scott,

      Just knowing that you’re 100% disabled isn’t going to be enough information for us to provide you with a quote because we would also need to know other things like:

      – How old are you?
      – What state do you live in?
      – How much insurance are you looking for?
      – Etc…

      For this reason, we would encourage you to give us a call when you have a chance.

      This way, we can provide you with a better idea of what your options may look like and what it might cost for you to become fully insured.

      Thanks,

      InsuranceBrokersUSA.

  • Camacho November 4, 2020, 5:03 pm

    my daughter is 18 and disabled and i am looking for some type of life insurance for her. i have tried several companies and once i state that she is disabled they say they don’t provide life insurance coverage for her.

    • IBUSA November 4, 2020, 6:37 pm

      Camacho,

      We would need to learn more about her particular situation before we could say whether or not she might be able to qualify for a traditional life insurance policy. Our advice would be to give us a call when you have a chance.

      Thanks,

      InsuranceBrokersUSA.

  • steven m. December 30, 2020, 6:13 pm

    Been on disability since 2013. Meds working
    Blood pressure
    CHF
    NEED A POLICY

    • IBUSA December 30, 2020, 7:56 pm

      Steven,

      We’d love to help, but before we can we’d need to learn a little bit more about you and what your insurance goals are. For this reason, please give us a call when you have a chance.

      Thanks,

      InsuranceBrokersUSA.

  • Cynthia O. February 19, 2021, 10:23 am

    I’m 49 years old and I am on ssi Disability I suffer from severe depression I’ve been diagnose with depression for more then 5 years. Plus I also have underlining conditions such as chronic pain and fibromyalgia and leg and knee pain. Can you help me find a policy that can get me buried and help take care of my 2 year old granddaughter that stays with me. Please help me find and affordable reseasonable policy.

    • IBUSA February 19, 2021, 10:37 am

      Cynthia,

      We may have a few options for you to consider. We’ll have an agent reach out to you via email shortly.

      Thanks,

      InsuranceBrokersUSA.

  • Erin M. February 23, 2021, 12:03 pm

    I have been receiving SSDI benefits for slightly over one year now, due to mental health issues including depression, anxiety, and substance abuse. I am under medical care for all of the above so my mental faculties are intact. I have an 8 year old daughter for whom I would like (eventually) to own our home when I leave this world.
    I’m 46 and owe ~113,000 on my mortgage. It’s probably worth ~200,000.
    Thank you!
    Erin
    XXX-XXX-XXXX

    • IBUSA February 24, 2021, 10:04 am

      Erin,

      We may have a few options for you to consider. We’ll have an agent reach out to you via email shortly.

      Thanks,

      InsuranceBrokersUSA.

  • Beverley February 27, 2021, 3:17 am

    Hi I am looking for life insurance for my Disabled daughter she is 29 years old.she has cerable palsey and brain damage and learning difficulties. Would I be able to get Life Insurance policy for her. Thankyou

    • IBUSA February 27, 2021, 7:39 am

      Beverley,

      We work with one insurance company that offers a no health question or exam (guaranteed issue life insurance policy) for individuals your daughter’s age. It will provide up to 25,000 dollars in coverage but contains a Graded Death Benefit period (waiting period before it will provide full coverage for natural causes of death).

      If this is something that you might consider, please give us a call to determine whether or not this product is available where your daughter lives and whether or not she might be able to qualify for it.

      Thanks,

      InsuranceBrokersUSA.

  • Gina March 1, 2021, 7:13 pm

    I’m 48 on SSDI for mental health reasons but medications have kept me stable for years. I do have high blood pressure and a blood clotting disorder but maintained through medication. I just want to be able to leave my 3 son’s with something to help them out when I go. Will I qualify?

    • IBUSA March 2, 2021, 8:58 am

      Gina,

      We never like to make any definitive judgments about whether or not an individual will be able to qualify for a “traditional” life insurance policy without going through a complete medical history background.

      However, based on the information that you have provided, it’s safe to say that qualifying for a traditional policy will be challenging at best. The good news is that we here at IBUSA will do everything we can to help you, and we do work with one particular life insurance company that will offer individuals younger than 50 years of age with a no health question or exam (guaranteed issue life insurance policy).

      This policy can provide up to 25,000 dollars in coverage but does contain a Graded Death Benefit period (waiting period before it will provide full coverage for natural causes of death).

      If this is something that you might consider, please give us a call so that we can determine whether or not this product is available where your daughter lives and whether or not she might be able to qualify for it.

      Thanks,

      InsuranceBrokersUSA.

  • Glen March 4, 2021, 5:12 am

    I’m totally frustrated, 58 male cardiovascular disease. never had a heart attack/stroke. receiving long term disability. can i get a quote.

    • IBUSA March 4, 2021, 7:07 am

      Glen,

      We would be happy to provide you with a quote. But before we could do so, we’d need to know a little bit more about your situation.

      Such as:
      – How old are you?
      – How much insurance are you looking for?
      – What state do you live in?

      For this reason, it’s probably best that you just give us a call when you have a chance.

      Thanks,

      InsuranceBrokersUSA.

  • Regina March 7, 2021, 6:57 am

    My 69 year old brother who has been blind and developmentally disabled since birth receives SSI and Medicaid, lives in a group home. I understand Medcaid will pay $2400 for a burial with the family only allowed to contribute 1500.00 which is the bare min (cermation) not a proper funeral……Can he have life insurance with me as beneficiary? Or will Medicaid take it as an asset upon his death?

    • IBUSA March 7, 2021, 8:30 am

      Regina,

      Here at IBUSA, we don’t like to give advice about how a life insurance policy can affect one’s Medicaid benefits because while many people consider Medicaid a “federal program”, the truth is each state will have its own rules and regulations on how it is administered.

      For this reason, we would recommend calling your local state Medicaid offices and ask them how a small burial life insurance policy would affect your brother’s benefits and go from there.

      From there, if it looks like purchasing a life insurance policy would be in your best interest, we would be happy to assist you in any way possible.

      Thanks,

      InsuranceBrokersUSA.

  • Jessica April 9, 2021, 9:15 pm

    Hello. My Mother and I are looking for life insurance for her. She is 54 years old, receives SSI for having renal failure. Does anyone have a general idea of what type of plan she would qualify for to set us in a good direction to find insurance for her?

    • IBUSA April 10, 2021, 8:06 am

      Jessica,

      Please be on the lookout for an email from one of our agents so that they can discuss what options may be available for your mother.

      Thanks,

      InsuranceBrokersUSA.

  • Denise C. May 17, 2021, 12:38 pm

    I’m on SSI and SSA I am 58 yrs old and have Copd. Am I eligible for a 16,000, Whole Life Insurance Policy in NC? And would Life Insurance effect Medicaid , food stamps or SSI or SSA in NC?? Thank you! Denise x/x/xx

    • IBUSA May 17, 2021, 3:29 pm

      Denise,

      We will have an agent reach out to you via email so that they may discuss what opitions might be available to you.

      Thanks,

      InsuranceBrokersUSA

  • JDP;) April 29, 2022, 10:05 am

    Would like to find out if a 49 yr old male on SSI for various health reasons if he can get coverage before the age of 50? I feel he may pass on before he can qualify for certain affordable plans.

    • IBUSA April 29, 2022, 11:08 am

      JDP;

      We do have an insurance carrier that offers a guaranteed issue life insurance policy up to $25,000 in coverage for those that are younger than 50 years of age. Please give us a call so that we can provide you with the details and confirm that you live in a state where this policy is available.

      Thanks,

      InsuranceBrokersUSA

  • Tiffanie R. July 20, 2022, 8:03 pm

    I’m on disability for PTSD. I’m having a hard time finding life insurance because of it which I find unfair. I have 3 kids that need protected when I pass on. Thanks.

    • IBUSA July 22, 2022, 3:12 pm

      Tiffanie,

      We would be more than happy to see what options might be available to you. Just give us a call when you have a chance.

      InsuranceBrokersUSA

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