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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 folks applying for life insurance while currently receiving Social Security Administration (SSA) Disability Benefits, SSDI or SSI.

Just know that we at IBUSA can help you locate and buy life insurance while on disability SSI or SSDI. We are not a lead vendor. We will not sell your information. Rather, we will connect you with a top life insurance agent on our team who will go over all your options.

Questions Pertaining to  Life Insurance while on Disability that will be addressed will include:

  • 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?

So, without further ado, let’s dive right in!

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

Yes, individuals who are currently receiving SSDI or SSI may be able to qualify for a traditional term or whole life insurance policy.  In fact, some may even be able to qualify for a Standard or better rate!

The only problem is…

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

And this 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?

The main reason why most (if not all) life insurance companies are going to “care” if you are currently receiving disability benefits at the time of your life insurance application is because qualifying for these government benefits usually isn’t all that easy.

Which means that…

If you have demonstrated that you suffer from a medical condition which is preventing your from being able to work full time, chances are your condition is a serious one, and one that may prevent you from being able to qualify for a traditional term or whole life insurance policy.

Common reasons why someone might be able to 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,
            • Etc…
  • Speech or sensory complications.
        • This would include folks who suffer from hearing loss or vision loss which could be due to:
            • Congenital defect,
            • Disease,
            • Or an injury.
  • Cancer
  • Blood disease

And here is where…

Things can become a bit “tricky” because one only need to take a look out our Pre-Existing Medical Conditions page to see that many of the conditions that we’ve listed above are in fact insurable provided that one’s symptoms or complications aren’t too “severe”.

And…

One of the main ways a life insurance company will try to determine the “severity” of one’s condition is by looking to see if an individual has either tried to apply for disability benefits, or has actually been approved for disability coverage.

The good news is…

That there are some life insurance companies out there that won’t automatically deny someone a traditional life insurance policy simply because they have applied for or been approved for SSA disability.

The trick then becomes knowing which life insurance companies tend to be more lenient than other and what conditions those companies may still be willing to insure despite, the fact that you have been able to qualify for disability benefits.

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

Common questions we like to ask will usually 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 can I qualify for if I am receiving disability benefits?

As you can see, there are a lot of variables that can come into play when trying to determine what rate an individual receiving SSA Disability Benefits will qualify for.

And this is why it’s near impossible to know what kind of rate you might be able to qualify for without first speaking with you directly.

That said …

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 any form of 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 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!

8 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

  • 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.

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