Everyone needs life insurance, even people living with one disability or the other are not exempted. Life insurance for the disabled is not impossible, although it can be challenging. As long as they are adults they or their custodian can purchase life insurance for them
The main purpose of life insurance is to provide financial security for loved ones left behind after your demise.
The form of disability you have will help you make a decision on the type of life insurance you should have and who you should use as your beneficiary.
What disability means in insurance
Disability is when one has physical or mental afflictions that limit one or more of major life activities such as sight, speech, hearing, walking, breathing, etc.
How the disability affects your health will determine your premium and health classification. For instance, someone born deaf will be classified as lower risk than someone who became deaf as a result of ailment or due to old age.
Premiums are calculated differently but based on the same factors by different insurance companies.
Factors that affect the price of premium for the disabled
- Form of disability: some forms of disability affect the length of life expectancy while some don’t. The level of management of the disability and its effect on the individual can increase or reduce the price of their premiums.
- Habits and hobbies: the habits of the insured are also looked into, for instance, if the individual is risky smoking, heavy drinking, etc, it will affect the value of their policy.
- Employment: being employed is an advantage for the individual as insurers view having employment as being able to pay your premiums regularly.
- Medical history: insurers check the medical record of the individual, both past and present, and the cost of each treatment gotten and future possible treatments.
- Type of policy: basically insurance plans are classified into two, term insurance and permanent insurance. Going for a term insurance plan means the price would be lower.
Type of life insurance benefits to the disabled
Guaranteed issue whole life insurance is a type of insurance that would be beneficial to the disabled as it requires no medical examination. It can be useful for paying for final rights, medical bills, and other expenses
Insurance riders beneficial to the disabled
While some riders must be initiated at the beginning of the policy some others can be added later on. Insurance riders are advised as it is more flexible than traditional whole life insurance. Some of these riders include:
Accelerated benefits riders: this rider allows the insured to use a part of their death benefit while they are alive. This can be used to pay for medical bills, nursing homes, private nurses, etc.
Chronic illness riders: this rider pays benefits to the insured if he can no longer perform basic activities such as bathing, eating, walking, toileting, dressing up, and inability to control bladder
Child riders: this rider is for children whose parent(s) are disabled, this insurance covers the child throughout their childhood. Once the child gets to adulthood, the policy can be converted to permanent life insurance.
Substitute insurance for the disabled.
Group life insurance: some employers or organizations offer insurance to their workers at little or no cost at all. No medical examination is required but it does not offer extensive coverage.
Joint life insurance: you can get traditional life insurance with all its benefits if your partner qualifies, both of you can get joint life insurance. Although you can lose coverage when your partner dies, the plan can also not pay out until both of you die, depending on the contract agreement.
Life insurance for veterans: for veterans with disabilities, life insurance is usually offered to them while In active service.
Final expense insurance: this type of insurance helps with the bills for final burial rites. It does not require a medical examination, although there can be health or age restrictions.
Make sure to check different quotes before making a choice.