One of the benefits we here at InsuranceBrokersUSA have found when working with individuals who are currently receiving some type of disability benefit is that we no longer have to stress how one’s good health is a “gift” and how that “gift” can disappear at any moment.
Instead, individuals who are currently receiving some type of disability benefit will “generally” be more aware of how ones’ health can change overnight! Which is why it’s so important to have a life insurance policy in place just in case the inevitable happens tomorrow!
But the problem is…
If you’re already receiving disability benefits, you’ve already been diagnosed with some type of pre-existing medical condition which may now prevent you from being able to qualify for a traditional term or whole life insurance policy. This is why we’ll often have folks give us a call asking if they’ll be able to qualify for coverage now that they are receiving social security disability.
It’s also why we’ve chosen…
To write this article so that we may be able to shed a little light on what the process of applying for life insurance after you’ve qualified for social security benefits as well as provide you with a few helpful tips that might make the difference between qualify for coverage vs simply being denied.
FINDING LIFE INSURANCE WHILE RECEIVING DISABILITY BENEFITS.
If you are currently receiving disability or have “officially” applied for disability within the past 12 months, you may be worried about getting a life insurance particularly if you’ve already applied for coverage in the past and have been denied!
And while it is true…
That there are certain medical conditions that may have enabled you to qualify for disability insurance, which will make qualifying for a traditional term or whole life insurance policy impossible. It is not a given that “all” of the pre-existing medical conditions that will make you eligible for disability benefits will also disqualify you from being insurable!
At the end of the day…
It’s ultimately going to boil down to the specific condition which is causing your disability and the extent to which your disability is preventing you from living a “normal’ life.
For this reason…
You’ll likely find that most life insurance companies are going to treat “mental disabilities” and “physical disabilities” differently and that some insurance companies are going to be much less “lenient” than other when evaluating applications from those currently receiving disability benefits.
DISABILITY LIFE INSURANCE UNDERWRITING
Regardless of why you’ve been able to qualify for your disability benefits, one thing that will remain constant is that your life insurance application process will tend to be more complicated than that of an individual who doesn’t have any pre-existing medical conditions to speak of.
But that’s not really something…
That’s just something that your agent will need to deal with. But what you’ll need to worry about is…
Have you picked the right insurance agent that is going to be able to help you find the coverage that you need?
How will you know? That’s easy, just ask yourself, has your insurance agent asked you all the right questions to make sure that they’ll know enough about you to first select the right “type” of life insurance for you and your family? And do they know enough about you to understand what underwriting guidelines you may or may not be able to meet?
Questions your life insurance agent should ask would include?
- What goals are you trying to achieve by purchasing your life insurance?
- Protect a spouse or child?
- Cover the cost of a mortgage?
- Or just cover one’s final expenses?
- What medical condition do you have that has allowed you to qualify for disability benefits?
- How long do you anticipate receiving your disability benefits?
- What symptoms are you currently suffering from as a result of your condition?
- Are you currently working now? Part time?
- Do you have a valid driver’s license?
Without knowing the answers to these questions, how can your agent possible know what you’re looking to achieve by purchasing a life insurance policy or what “type” of life insurance policy you may or may not be eligible for?
COMMON DISABILITIES WE FREQUENTLY ENCOUNTER.
MENTAL HEALTH CONDITIONS
Many people suffer from different mental health issues such as depression, anxiety, schizophrenia, bi-polar disorder or Post Traumatic Stress (PTSD).
When it comes to these “types” of conditions, you’re generally going to find that insurance companies are going to vary significantly on who the will and won’t insure. That being said however, in our experiences here at InsuranceBrokersUSA, usually once an individual has been diagnosed with one of “these” conditions, “coupling” that diagnosis with a disability benefit will usually disqualify an applicant from a traditional term or whole life insurance policy.
We will then typically recommend that these individuals being looking at guaranteed issue life insurance policies that won’t require applicants to take a medical exam or any medical related questions.
Individuals may be able to qualify for disability benefits if they suffer from chronic pay. This pain and it may range from knee, back, or it could be arthritis.
If this is the case for you, you “may” be eligible to qualify for a traditional term or whole life insurance policy however, insurance companies are now going to be very interested in what “types” of medications that you are using to treat you pain which may or may not have a significant effect on whether or not you may be eligible.
For instance, if you are taking medications like Percocet, Tramadol, Vicodin, Darvocet and Hyrdocodone which carry the risk of abuse, insurance companies may be less interested in the fact that you’re receiving disability benefits and more concerned the potential for abuse.
For anti-inflammatory and non-narcotic medication, there have less severe side effects which will therefore make it easier to qualify for a traditional term or whole life insurance policy.
SERIOUS HEALTH ISSUES.
This term could cover a large number of topics but we are going to focus on the most serious pre-existing health condition including cancer, heart problems, stroke, uncontrolled diabetes, kidney problems and so much more.
These conditions need to be treated as they can cause shortened life expectancy and they can affect day-today activities.
If the health condition affects your major organs your options for life insurance will be limited.
In cases like these, only a case by case analysis will ultimately determine who will and won’t be eligible for coverage. But… as a general rule of thumb, if you’re suffering from a pretty significant medical issue…. And… your receiving disability benefits as a result of that condition, chance are you’re going to need to pursue a guaranteed issue life insurance policy if you wish to be able to purchase coverage.
LIFE INSURANCE ON DISABILITY TIPS
Before we round up let’s mention a couple of tips and notes that can greatly impact your decision and also the decision of the life insurance company.
You can combine two or three final expense or burial insurance policies from different companies. In theory, it is a good idea but it might be a bit messy dealing with multiple companies but you can leave a good amount for your beneficiaries.
CHOOSE THE RIGHT COMPANY AND “SHOP” YOUR OPTIONS!
It shouldn’t come as a huge surprise that if you choose to work with a company that has access to dozens of different life insurance companies you’re chances at finding a life insurance policy that is going to meet your needs is typically going to increase.
This is why…
We here at InsuranceBrokersUSA, have chosen to remain an independent life insurance brokerage that is able to work with dozens of highly rated life insurance companies so that when we’re confronted with a more “challenging” life insurance application like someone who is currently receiving disability benefits, we don’t have to simply rely on one or two different insurance companies.
We can make those companies “compete” for your business! So, what are you waiting for? Give us a call today and see what we can do for you!