2024 Guide To Life Insurance With COPD
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
In this guide to life insurance insurance with COPD, we will go over everything you need to know. Let’s jump right in!
Getting life insurance with COPD can be debilitating, and life insurance is a must-have for those who are diagnosed with this condition.
COPD, or Chronic Obstructive Pulmonary Disease, affects millions globally. One common concern among individuals with COPD is the availability and affordability of life insurance.
If you’re a COPD patient seeking life insurance, this guide will provide you with the essential information you need.
Can You Get Life Insurance With COPD
Life insurance for people with COPD, can I get covered?
If you have been recently diagnosed with Chronic Obstructive Pulmonary Disease COPD and asked yourself, “does having COPD make you ineligible for life insurance”, the answer is no.
Above all, having COPD will come down not to whether you can get coverage, but to what rating class you will get. All life insurance companies have different guidelines when it comes to COPD.
However, being diagnosed with COPD and finding affordable life insurance rates will come down to whether it is mild, moderate, or severe. In addition, if you are on oxygen and what type of treatment or medications you are taking.
COPD Life Insurance Eligibility
I guess we have answered the question, “Can I get life insurance if I have COPD”. Again, it will come down to a few things when it comes to COPD life insurance underwriting.
COPD insurance coverage and life insurance rates will be determined on which carrier to go with. An experienced independent agent will lead you to the best choice. Overall, life insurance is based on mortality.
So if you are asking yourself, “can you die from COPD”, the answer is yes. But we are all going to die someday. If you have smoked you’re just getting there faster.
The bottom line, stop smoking and you will live longer than if you continued.
Life Insurance For Smokers With COPD
Life insurance carriers will want to know when the diagnosis was. In addition, they will want to know if you are still smoking. Overall, if you are still smoking then you will be considered high risk, and depending on your treatment, you may be declined.
Again, having any type of lung disease like COPD with a combination of active smoking is a double WHAMMY!! So if you are looking for the most affordable insurance quotes you might want to put down the cigarettes.
Does moderate COPD qualify for disability?
Above all, COPD is a progressive disease that will take years off your life. In addition, if you are unable to do daily activities because you are gasping for air, then YES you are disabled.
However, moderate COPD insurance coverage would be a rating of Table 4 at best. For example, this would include occasional infections with no steroids but regular medication use.
Getting The Best Life Insurance For COPD
I have COPD can I be covered by life insurance?
This is one of the most common questions when engaging with COPD life insurance. Regardless, if you have COPD we will find you a policy. It will just come down to the following as far as rate class.
Here is the rule of thumb ratings for COPD and Life Insurance:
| Degree | Rx | Fev1 | Rating |
|---|---|---|---|
| Mild | None | 60-80% | Table 2/B |
| Moderate | Inhaler | 50-60% | Table 4/D |
| Severe | Steroids, Multiple Inhalers | 40-50% | Table 7/G |
| Extreme | Home Oxygen | <40% | Decline |
All of these ratings will determine the price you pay.
Furthermore, don’t worry if you have an extreme case of Chronic Obstructive Pulmonary Disease, there is always a guaranteed acceptance policy as a last resort for a death benefit.
Keep in mind that the underwriting process will consist of:
- Health Questions
- Treatment and medications
- Medical Exam
- Last pulmonary function test and results
- Medical Records
In addition, have you been recently admitted to the hospital for shortness of breath or chronic bronchitis?
Term Life Insurance for COPD
Above all, if you are looking to protect your loved ones that depend on you financially then a term policy probably will be the best way. However, even if you have mild COPD it will impact the price of the policy.
Here are the prices for a 65-year-old with Mild, Moderate, Severe, and Extreme COPD for $100,000.00 15 year term:
| COPD Diagnosis | Rate Class | Monthly Premium |
|---|---|---|
| Minimal | Standard | $117.85 |
| Mild | Table 2 | $146.72 |
| Moderate | Table 4 | $193.91 |
| Severe | Table 7 | $264.69 |
| Extreme | Decline | Decline |
Having a pre-existing condition such as COPD, you must understand that the disease is progressive and only gets worse. Overall, underwriters think the same way. So it comes down to an accurate risk assessment.
This will be the basic underwriting that we spoke about earlier in this article. However, it would be best to fill out a COPD Questionnaire.
Here are some common questions that will assist the underwriter in making a decision.
What Questions To Expect On The Application
COPD Underwriting Questionnaire
- Date Of Diagnosis
- Type of lung disease diagnosed with Chronic Obstructive Pulmonary Disease (COPD):
Asthma, Chronic Bronchitis, Emphysema, Restrictive Lung Disease, Etc.
- Has the proposed insured ever been hospitalized for the condition
- Is the proposed insured taking any medications
(Incl. Inhalers and oxygen?)
- Has a pulmonary Function Test ever been done?
- What is the proposed insured’s build?
- Has a chest X-Ray been done?
- Has an ECG been done recently?
- Are there any other medical conditions affecting the proposed insured?
If yes, please describe in detail below:
Again, the more information the underwriter has the better chance they can make a better decision. A key point to know if you make the underwriter’s job easier you make get a lenient process.
Which Exposure Accounts For Most Cases of COPD
Overall, about 80-90% of COPD cases are due to exposure to tobacco smoke. Other cases are usually associated with occupational work, secondhand smoke, and pollution.
COPD is a progressive disease that takes several years to develop in addition to being the 3rd most common cause of death in the US.
Is COPD a degenerative disease? Yes, it is!!
Best Life Insurance For Seniors With COPD
Affordable life insurance with COPD
Once you are at retirement age the amount of life insurance usually changes. You are now considered an empty-nester. In fact, you may only have a spouse that depends on you.
In this case, if you need life insurance these are the best products at age 65 or over.
- Term life insurance (Need to protect against a mortgage or some debt)
- Guaranteed Universal Life GUL (This is the most cost-effective permanent life insurance policy)
- Final Expense/Burial Insurance (Cover burial, face amounts between $1000-$40,000)
Here are life insurance rates per product with COPD for a 65-year-old Male with Mild COPD.
| Coverage | Term | Monthly |
|---|---|---|
| $250,000 | 15 Year Term | $260.58 |
| $100,000 | GUL To Age 100 | $228.50 |
| $40,000 | Lifetime | $213.42 |
Burial Insurance With COPD
Finding burial insurance or final expense insurance with COPD can be frustrating.
However, there are many life insurance carriers that will cover you on day one as long as you are not using oxygen. If you are using Oxygen, then you will have to settle for a graded, modified, or guaranteed issue policy.
Here are our go-to carriers that you should be aware of that will cover COPD for day one coverage.
- CVS (Aetna Accendo) Standard
- Foresters (PlanRight) Standard
- SBLI Standard
Life Insurance For People on Oxygen
Although you may have options for non-oxygen COPD life insurance, there are not many options for oxygen use. You see, adding oxygen use to any high-risk pre-existing condition will be enough to scare any insurance carrier into not taking a risk.
However, we do have a burial insurance carrier that will give you a modified policy on 30% (Year one), 70% (Year 2) then 100% after year 2 as far as coverage. Feel free to contact us to find out more.
If you have other health issues like alzhiemers or gastrointestinal disease than a guaranteed issue life insurance policy may be the only option.
Is COPD Classed as a Critical Illness
Overall, Chronic Obstructive Pulmonary Disorder can be considered a disability. In fact, any health impairment that causes substantial limiting or quality of life would be considered under ADA guidelines.
However, when it comes to “critical illness” insurance such as heart, cancer, this would be covered if these were caused by COPD. You should check with your life insurance professional to find out more.
FAQs
Yes, but premiums might be higher. It’s advisable to quit smoking to improve health and potentially reduce insurance costs.
Insurance providers might ask for medical exams or records to determine COPD’s stage. Those with mild symptoms and good management might get better rates.
Policy terms vary, but exclusions specific to COPD are rare. It’s essential to read and understand your policy thoroughly.
Improving health, quitting smoking, and demonstrating effective COPD management can sometimes lead to rate reconsiderations.
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Conclusion
Life insurance with COPD isn’t out of reach. By understanding how COPD impacts insurance rates and exploring various options, you can secure a policy that provides peace of mind for you and your loved ones.
Remember, consultation with specialized insurance agents and adherence to COPD treatments are crucial steps toward finding the best life insurance coverage.
Have any other questions? Just ask!
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