Life insurance for disabled individuals

While it is possible to get life insurance for disabled individuals, there are extra considerations to take into account. Understanding the nuances and seeking guidance from professionals can help secure a well-tailored life insurance plan, ensuring financial security for individuals with disabilities and their families.

Young man with prosthetic leg and his friend stretching after a run

How does life insurance work for disabled individuals?

Having a disability doesn’t mean you can’t get life insurance. Acceptance and the premium you pay are based on a number of factors that all play a role in your life expectancy, such as overall health and lifestyle, age, gender, medical history, and occupation. Disabilities can take many different forms and are only one piece of the puzzle.

If your disability does not affect your life expectancy and you are otherwise healthy, you can likely qualify for life insurance easily. However, some disabilities can have lasting effects on your health, which may limit your options and impact your premium payments. By understanding all the considerations that go into applying for life insurance and working with a qualified professional, you’ll have a better opportunity to find the coverage that works for you and your family.


Life insurance for disabled adults

For disabled adults, acquiring life insurance will often be the same as for an abled individual. The policy can be purchased by the adult or a caretaker on their behalf. There are also some considerations that may come into play. Whether you have a disability that doesn’t shorten your life expectancy or a health condition that does, various insurance policies or riders may cater specifically to the needs of disabled individuals.


Life insurance for disabled children

If you have a child with special needs, you are most likely going to want a life insurance policy on yourself as part of a plan to ensure that they have the financial support they need no matter what happens. In order to make sure they continue to qualify for assistance programs, there are a few different ways to structure the policy and accounts. That is just one of the many considerations that go into planning for families with special needs.

In addition, there are benefits to having a life insurance policy on your disabled child as well. It is an unfortunate fact that many childhood disabilities will lower their life expectancy, and in these cases it’s important to plan for the eventuality that you may outlive them. If life insurance is available, a small policy can help with funeral expenses and potentially the loss of income while caring for a disabled family member.


Life insurance for disabled veterans

Veterans with disabilities often have more options when seeking life insurance. Government-sponsored programs like VALife or S-DVI may supplement or replace the need for private insurance. Several approaches are available, and it’s best to reach out to your local VA office first when researching your choices.


How do you apply for life insurance benefits?

The process of applying for life insurance is no different for someone with a disability. As part of the application, you’ll provide your personal details and medical history. It’s important to be accurate and truthful, since claims may be denied if information is concealed. Then, you’ll usually be required to take a life insurance medical exam that is similar to a standard yearly checkup. It can include measuring your height, weight, blood pressure, and heart rate, and a blood or urine sample may be required. Here are some things you should consider when applying:


Work with a qualified professional to find the right coverage

It might seem tempting to fill out a form online to see if you qualify, but life insurance is simply too important and too nuanced to rely on an impersonal questionnaire. Seeking guidance from a qualified financial professional can significantly ease the process of securing life insurance for individuals with disabilities. They can offer advice and guidance about which products and coverage amounts would work best based on your circumstances. They also have extensive knowledge of life insurance add-ons, called riders, that may help with your specific situation. 


Improve your overall health

Lifestyle changes like quitting smoking, better managing conditions like diabetes, adhering to prescribed medical treatments, and eating healthier can have a deep impact on your health, and subsequently on your insurability. Taking steps to adopt a healthier lifestyle can lower your insurance rates and increase the options available to you, whether you have a disability or not.


What if I’m denied coverage?

In the unfortunate event of being denied coverage, there are steps you can take. Seeking an explanation for the denial is the first step. The answer should help you better understand if there are things you can change or improve in order to reapply and get coverage in the future. Also, you may still be able to qualify for other insurance products or with other providers. Another option is no-exam life insurance. For those with disqualifying health issues, it can provide some of the protection you need.


Whole life vs. term life for people with disabilities

Whole life and term life are two distinct types of life insurance policies, each with its own set of features.

Term life insurance provides coverage for a specified term, such as 10, 20, or 30 years, and once the term expires, coverage ends, unless the policyholder renews it at a higher premium. It’s generally used to cover specific assets or as income replacement for a certain number of years.

Whole life insurance provides guaranteed lifetime coverage with premiums that will never increase. It is generally a better and more reliable long-term solution for those looking to provide for their families after they pass away.

When it comes to individuals with disabilities, the choice between these two options may depend on various factors. Both have uses and can play an important role in a financial plan. Ultimately, the choice will come down to your needs, circumstances, and what is affordable.

Life insurance for disabled individuals FAQs

Yes. However, any insurance provider will want to know about your disability and why you are receiving the benefits. Your disability may impact your premiums or ability to qualify for certain products.

Yes. Medicaid does not disqualify you from receiving life insurance. However, some policies may have an impact on your Medicaid eligibility if not structured correctly.

The best first step is to get in touch with a qualified financial professional or life insurance agent to discuss your options.

Since each person’s situation is different, that is a difficult question to answer. If they depend on income you are providing, try to replace that income for at least five years.


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