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If you’ve been declined for life insurance in the past on the basis of a disability, that doesn’t mean you cannot get cover anywhere. Depending on the severity of your condition, cover is most likely available to you in one form or another.
The term disability is a wide umbrella which applies to a great variety of conditions and circumstances. Life insurance is very often taken on an individual, case-by-case basis, and if you’re unsure whether you can be covered because of a disability, it is always worth finding out.
Read on to find out how your disability could affect the life insurance options available to you, and how your disability could affect your life insurance.
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Life insurance and pre-existing conditions
Standard life insurance policies universally ask for a comprehensive view of your medical history. They will want a full picture of your current state of health, as well as any serious, adverse illnesses you have had in the past.
Virtually any disability that has a significant impact on your life will be considered a pre-existing condition under most standard life insurance policies
Virtually any disability that has a significant impact on your life will be considered a pre-existing condition under most standard life insurance policies. That means a few things, but for one it could mean that your insurance premiums are higher than they otherwise would be.
Disability is seen in this way by most insurers, so how does this affect your chances of securing standard care cover?
How disability will affect your life insurance
Again, the important thing to stress is that how your disability affects your cover will vary greatly depending on individual circumstances. That said, you should really have no problem obtaining a standard policy, perhaps at a slightly inflated premium, if you have a disability.
If your disability can be shown to affect your life expectancy, then an insurer can decline your application on this basis. If your disability does not have an effect on your life expectancy, securing a standard policy should not be a problem.
The cost will be affected, though. Any pre-existing condition which affects your health in a major way is likely to mean your policy is more expensive. The pay-outs available to you will be the same, but the monthly premiums you pay will be higher.
If you are on any strong or steroid based medications as a result of your disability, this could also affect your premiums.
Why life insurance
We compare plans from the leading life insurance providers
Living costs are going up, and when you are disabled, the cost is already almost £600 higher than the normal average. Choosing life insurance can be a big decision, then, and while you can rest assured that affordable options are available to you, knowing why life insurance could be a good choice for you is equally important to know.
As a disabled person, the reason you might need cover would likely be the same as anyone’s. If you have anyone who relies on you, would they be provided for if you were to pass away?
The biggest cost most of us incur in our lifetime is our mortgage. Life insurance policies can ensure that your family will be able to keep the home if you are not around anymore to cover the mortgage.
Costs like childcare, living costs and even your funeral costs are also common considerations in life insurance policies. Try to identify your own needs, and then you will be able to find a policy that suits you.
Best life insurance for disabled people
Assuming you are able to obtain cover with your disability, you will likely be able to have access to the full range of available plans.
There are multiple kinds of life insurance, each one suited to different needs.
Term life insurance
Term life insurance is the most common, and covers you over a specified amount of time. A lump sum is paid out to your loved ones if you pass away during this time. This can be taken out on a level or decreasing term basis, meaning either that the amount paid out remains the same or declines over the course of the policy.
Term life insurance is great for paying off mortgages, and decreasing term especially for repayment mortgages. Decreasing term policies are usually the most cost effective, and if the amount still left to pay on your mortgage slowly decreases over time, then the amount you would need to be paid out will decrease, too.
Whole of life cover
Whole of life cover is not set over a specified amount of time, but provides cover when, not if, you die. As you might expect, these plans are typically much more expensive on a monthly basis, on top of the already inflated premiums as a result of your disability.
Furthermore, you can very frequently wind up paying into them more than they pay out, if the policy is active for too long.
Depending on your circumstances, it may be best for you, but there are other options.
Over 50s plan
If your disability has affected your ability to be accepted for plans in the past, then an over 50s plan may be best for you. If you are a UK resident aged 50-85, you are guaranteed coverage on the over 50s plan, regardless of your medical history—they will not even ask for this information.
The premiums are naturally a bit higher than standard plans, and you typically are not covered for the first two years of the policy. You have to pay into it during this time, but if you pass away in the first two years you will not receive a pay-out. Given that the insurer is taking on added risk by providing blanket insurance to anyone in the age bracket, you can understand why premiums might be higher.
Cover is arranged up to £25,000 for over 50s plans, so if you have substantial mortgage payments remaining, it may not be the best option for you.
But even as a person living with a disability, there are all sorts of options available to you when it comes to life insurance. You just need to do your due diligence to find a provider and a policy which works best for your needs. Compare different providers to find the best cover.