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Life insurance for disabled people

There are many different forms of disabilities: physical, cognitive, mental, sensory, emotional and developmental. As a result, there are a lot of people that suffer from one or another type of disability. Disability can have a huge impact on the life quality of the disabled person. Some disabilities are more dangerous than others but there is no doubt that the person suffering from the disability always needs to be insured. With no doubt life insurance is available for the insured person. However, it must be remembered that the price of the premiums and the terms of the contract will depend on the severity of the contract as well as how the life of the insured person was affected by the disability.

The variety of conditions

A person can become disabled for a number of reasons: illness, serious accident and birth defects. These reasons to some extent will always have an impact on the conditions of the contract. However, it is possible to purchase life insurance at a normal rate. For example, if the person has a minor disability that does not prevent him from living a normal life, the disabled person can expect to be asked to pay standard premiums or only a small premiums loading. However, if the disability has or is likely to have an impact on major internal organs, the person can expect higher premiums. Most disabled people fall somewhere between these two extremes.

The factors determining the premiums

To put it simply, the price of the premiums for the disabled person is determined by four different factors. First of all, the severity of the disability. Secondly, the extent to which the disability damages vital organs and creates a risk for future medical conditions is also very important. The third factor is the number of years that is deducted from average life expectancy because of the disability. Last but not least, the extent to which the daily routine of the applicant is affected by the disability is also very important.

 

The advice from professionals

It is important to remember that each person and his disability are different and the insurance company evaluates each case carefully. In order to reject the application of the person the insurance company has to prove that the disability of the individual will have an impact on life expectancy of that person. Since the view of different life insurance providers towards disabled people differs greatly a huge variety of different prices of the premiums can be found. As a result, specialists advise people to take time and compare different quotes. The best option is to consult an insurance professional that specializes in providing life insurance for disabled people. These people have the knowledge and useful contacts and as a result can give people great advice.

Life insurance with preexisting medical conditions

People that are not able to get life insurance at a reasonable price or are rejected can choose to purchase an alternative life insurance cover that is called life insurance with preexisting medical conditions. To put it simply, the policy will not make a payout if the death of the person was directly caused by the disability. The main advantage of this life insurance program is that it allows people to purchase the higher amount of cover at the same price or avoid rejection from life insurance carriers.

Group life insurance

Another option for disabled people is to purchase a group life insurance policy. These policies have become more and more popular in recent days because no medical questions are being asked. It is obvious that if the person is not asked medical question before applying, the insurance company cannot reject a claim from the dependents of that person after the death. Group insurance works in such a way that it collects the funds from a number of people instead of just one. The biggest part of these people are in good health and as a result the insurance company can reduce the risk it carries by insuring people without knowing their medical conditions. A good example of group life insurance is insurance provided by the employer or a professional organization. This is indeed a wonderful opportunity for disabled people because they can stay insured and do not have to worry about the high prices of the premiums. However, there is one drawback of this life insurance policy. Once the person quits the job or decides to terminate his membership in a professional organization, he loses his life insurance and is left without any cover. This is a very bad situation if the health of the person has deteriorated since that time he got his group life insurance.

The role of underwriter

The final answer from the insurance company depends from the underwriter. Some people that are disabled fear that they will be rejected and as a result do not even try to get life insurance. It is important to remember that the underwriter is simply the person that follows the rules of the insurance company. As a result, there is no need to fear or take the answer personally. What is more, since the rules and protocols differ from one life insurance carrier to another it is wise to try and visit as many providers as possible. There are a number of comments and success stories online where people that had serious disabilities and believed that they will never be eligible for a life insurance cover at an affordable price got the insurance hassle free by putting some effort.