Buying Life Insurance for People with Chronic Illness

chronic illness rider on life insurance

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Life Insurance For Chronic Illness

Those who suffer from chronic illness need secure life insurance, but their conditions pose an even bigger dilemma: how can they be sure they qualify for enough coverage at a price they can afford?

Senior vice president of underwriting at financial services organization Genworth Ray Dinstel says that high insurance costs are some of the biggest fears of people with preexisting conditions. These cover Alzheimer’s to asthma, cancer, and even Chronic Obstructive Pulmonary Disease among many others.

This is a startling concern given that Yahoo Finance reports that up to 60% of adults have at least one chronic illness. The healthcare industry is even expected to reach $42 trillion by 2030.


Chronic Illness Life Insurance Coverage

Required discernment

Living with a chronic illness shouldn’t faze you and your loved ones. However, as James Gonzales’s article on the underlying facets of chronic illness suggested, you still have to be wary of the costs that come with them: in this case, your life insurance coverage.

First off, it’s important to discern the type of life insurance you should apply for, which is usually one of two choices. Term Life Insurance is preferred by most people –especially those with a chronic illness – as it’s a policy that lasts for a set number of years in which premiums are paid to maintain its active status.

On the other hand, Whole Life Insurance is more permanent; it is a combination of life insurance together with an investment. Premiums are paid throughout one’s life until death, with fees being six to ten times greater than the costs of Term Life.


Chronic Illness Rider On Life Insurance

Rest assured

Insurance policies can be personalized by adding riders and endorsements so that you may still reap the benefits while you’re still around. Living benefits life insurance, chronic illness, and terminal illness riders allow for some access to your policy’s death benefits while it’s still active, which is great news for those with underlying health conditions.

For those with chronic illnesses, the accelerated death benefit rider can be accessed if you are unable to perform two out of six Activities of Daily Living. Depending on your medical history, you may have a more difficult time seeking a regular term life insurance policy.

While it’s advised to consult a professional, rest assured, you still have other alternatives. Simplified Issue Life insurance requires a few answered medical questions with no medical exam, and Guaranteed Issue Life insurance requires the opposite.

Although these have higher premiums and low benefits, they still offer some protection.


Life Insurance Policy For Someone With Chronic Illness

Health is wealth

Ultimately, buying the right life insurance policy when you suffer from a chronic illness is no easy feat but it doesn’t mean that it’s impossible. Lay your cards out, be transparent about your history, and talk to a licensed agent because as they say, health is wealth.

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