There is nothing more compelling than your doctor telling you that you are terminally ill to consider life insurance options. I hope it is not too late to secure the financial futures of your loved ones. Life insurance can still be purchased even if you have a terminal illness. There are, however, few options available to you.
Following a devastating diagnosis, we'll provide you with everything you need to know about obtaining life insurance quickly.
Five essential facts about terminally ill life insurance When you have a terminal illness, you need to be aware of these five crucial things.
1. The only option available to you is guaranteed issue life insurance When you have been diagnosed with a terminal illness, the only life insurance that is available to you is guaranteed issue life insurance.
Why? The business of life insurance is risk assessment. Due to the high level of risk associated with terminal illness, insurers are only willing to issue a specific type of coverage.
If you cannot qualify for other types of life insurance, guaranteed issue policies can be an invaluable asset.
In the case of terminal illness, if you are under age 40 and under insurance age, it is likely you won't be able to find coverage.
If you are injured in an accident and die as a result, you can get accidental death and dismemberment insurance.
2. You'll Pay a Moderate Face AmountIt's important to understand that guaranteed issue policies are modestly sized.
As a matter of fact, most are capped at $25,000. Great Western will however offer policies up to $40,000.
Stacking life insurance policies is an option to consider. Your total death benefit may increase by purchasing multiple guaranteed issue policies, depending on your budget.
Contrary to traditional life insurance, which has a face amount of $500,000 or more, traditional term life insurance does not require physical examinations.
3. No medical exam is requiredGuaranteed issue life insurance does not require an exam.
If you are terminally ill, a medical examination will NOT be required for your life insurance application:
● Liquid samples
Seniors are increasingly interested in no exam life insurance. You can, in fact, purchase an insurance policy online.
4. Health questions are not asked
Purchasing is a very simple process. No health questions are asked when purchasing guaranteed issue life insurance.
The following questions will NOT be asked of you:
● Use of drugs or alcohol
● Medical history
You will not need to disclose your health information even if you are diagnosed with stage 4 cancer.
5. Your life insurance will be effective immediatelyYou will be able to obtain your policy in just a few minutes since the application process is simple.
Coverage of other types takes longer. Whole life or term insurance, for example, may take weeks.
Terminally ill people can get instant life insurance coverage by following 3 stepsThe process for getting life insurance when you're terminally ill consists of three simple steps.
Application Step 1: Submit itSubmission of the application.
You can find a local agent here. Comparing local and national carriers is that easy.
Our recommendation is to solicit quotes from top-rated companies on the following policies, with the help of an agent:
● Assurance whole life guaranteed by AIG
● Life Insurance with Gerber Guaranteed Issue
● Insurance for final expenses provided by Great Western
● Life insurance offered by Mutual of Omaha
Basic information is all you need for your application:
● Full name
● Date of birth
● SSN (Social security number)
Step 2: Understanding Your PolicyIt is important that you fully understand the details of the life insurance policy before purchasing it. Make sure you know:
● Information about the carrier
● Details about the beneficiaries
● Payments for premiums
● Beneficiary of death
The Third Step: Making Your 1st PaymentIssuing and delivering the policy.
Your policy is issued and delivered once you provide payment and beneficiary information. As soon as your first payment is made, your policy becomes active. Ensure that your policy is stored safely in a place where the beneficiaries can access it.
A Graded Benefit is available for terminally ill people with life insuranceLife insurance that is guaranteed-issue is typically modestly sized and offers a graduated benefit. Graded benefits: what are they? After a certain period of time has passed, the death benefit will fully kick in, which is usually two years (sometimes three years). You will either receive your premiums back (typically with interest) or an amount equivalent to a percentage of your death benefit if you die during the graded period.
A death resulting from a qualifying accident usually waives the graded period. The entire death benefit is paid to your beneficiaries if you outlive the graded benefit period.
There is a possibility that you will outlive the period of graded death benefits. Your beneficiaries will be repaid your premiums plus interest in that case, allowing you to have peace of mind.
It is unlikely that you will experience a loss when you die during the graded period, and you will gain a modest interest amount from your premium payments.
Your beneficiary receives the entire death benefit payment if you outlive the graded period.
Q&As about life insurances for terminally ill peopleLife insurance questions and answers for terminally ill people.
How does a terminal illness differ from other illnesses?According to general definitions, a terminal illness is a condition in which a physician certifies that the patient has a terminal illness with a life expectancy of less than six months.
Illnesses that sometimes qualify as terminal include:
● Kidney disease
● Heart disease
● Lung disease
● Liver disease
● Late-stage Cancer
● Advanced HIV
● ALS (Amyotrophic Lateral Sclerosis)
It is well known that many terminally ill patients survive longer than expected. An expected lifespan does not reflect your specific condition, and is merely an estimation.
If someone is dying, can they buy life insurance?Yes. You can only buy a guaranteed issue life insurance policy in this case. The coverage amount will be lower and there will be a waiting period (often 2 years).
If I am terminally ill, should I buy life insurance?Financially dependent individuals need life insurance.
The only policy you can obtain if you have a terminal illness is a guaranteed issue policy that includes a graduated death benefit period.
I know you're worried about outliving the grading period because you're in the midst of it.
If you die before the graded period, you will not lose money. You will receive your premiums back, plus interest.
Your beneficiaries will receive the full death benefit if you live just one day beyond the graded period.
Life insurance is already in place for me. Does it cover terminal illness?Yes. Good news if you were able to secure health insurance prior to the diagnosis of your terminal illness.
You need to know two things.
● Death benefits are paid in full to your beneficiary.
● Make sure the policy has living benefits. A death benefit rider which accelerates death benefits may now be able to help you access funds.
What to do If You Have a Terminal Illness?There are two things you need to do when you are terminally ill in order to get appropriate life insurance coverage.
Make sure you work with a qualified independent agent who specializes in guaranteed issue policies.
Comparing multiple carriers and policies can be helpful in finding the one that fits your needs the best. Secondly, make sure you are prepared to communicate your basic information.
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