Sleep Apnea: Life Insurance Options And Availability

Sleep apnea is a chronic condition that affects a person's breathing while they sleep. It is characterised by pauses in breathing, which can last from a few seconds to a few minutes, and results in disrupted sleep patterns. This condition affects over 6% of the Canadian population and is linked to other serious health conditions, including heart disease and high blood pressure. As sleep apnea can potentially reduce a person's lifespan, those diagnosed with it may face challenges when applying for life insurance. However, it is still possible to obtain life insurance even with this condition.

How does sleep apnea affect life insurance premiums?

Having sleep apnea doesn't disqualify you from buying life insurance. However, it may lead to higher premiums because it increases your insurance risk if left untreated. The disruptions to your sleep and breathing can lead to daytime sleepiness, which can cause injuries or accidents, and other potentially serious conditions that increase your risk of death, such as high blood pressure and heart disease.

The severity of your sleep apnea will likely have an impact on the cost of your premiums. If you have mild to moderate sleep apnea and stick to a treatment regimen, you'll be more likely to get approved for traditional life insurance coverage at a lower-than-average or average rate. On the other hand, if you have severe sleep apnea and don't comply with treatment, your application may be denied or you may face higher premiums.

The type of sleep apnea you have will also affect your rates. Obstructive sleep apnea is the most common type, occurring when your throat muscles relax and block your airway while you sleep. Central sleep apnea and complex sleep apnea are less common.

During the underwriting process, insurance companies will consider the severity of your sleep apnea, your treatment plan, and other risk factors such as your age, weight, and any other health issues. They will also look at your sleep apnea diagnosis, the type of sleep apnea you have, the severity of your symptoms, your treatment plan, and any medications you are taking.

If you're considering life insurance and have sleep apnea, it's important to shop around and get quotes from multiple insurance companies, as rates and coverage options can vary. It's also a good idea to work with an independent insurance agent who can help you navigate the underwriting process and find the best policy for your needs and budget.

What information should you disclose when applying for life insurance?

When applying for life insurance, you will be required to disclose a range of information, including personal, medical, and lifestyle details. This is to help the insurance company evaluate your risk of death and determine the cost of the policy. Here is a comprehensive list of what you should expect to disclose when applying for life insurance:

Personal Information

• Basic details such as your name, address, occupation, and employer.
• Lifestyle habits, including smoking, drinking, exercise routines, and other hobbies.
• Information about your immediate family members, including their health histories.
• Financial details, including your annual income, net worth, and assets.
• Any criminal convictions or driving violations, particularly those related to driving under the influence.

Medical History

• Any medical conditions, surgeries, or prescription medications you have or have had in the past.
• The date of your last medical check-up or visit to a physician.
• Details of any illnesses or injuries you have experienced in the recent past, typically within the last five years.
• Information about your primary physician and the physician you last consulted.

Sleep Apnea Specific Details

If you have been diagnosed with sleep apnea, you will need to provide additional information related to your condition:

• The date of your sleep apnea diagnosis and the type of sleep apnea you have (obstructive, central, or complex).
• The severity of your sleep apnea symptoms, including the Apnea-Hypopnea Index (AHI) and oxygen saturation levels from your sleep study results.
• Your treatment history, including the use of devices such as a CPAP machine or mouth guard.
• Any other risk factors, such as smoking or other health concerns, that may impact your sleep apnea.

It is crucial to be transparent and provide accurate information during the application process. Misrepresenting or omitting information could lead to a denial of coverage or an increase in premiums.

What are the best life insurance companies for people with sleep apnea?

Having sleep apnea doesn't disqualify you from buying life insurance. However, the severity of your condition, your treatment plan, and other factors like your height-to-weight ratio, will impact the cost of your premiums. Here are some of the best life insurance companies for people with sleep apnea:

Best for mild sleep apnea: Transamerica

Transamerica is one of the oldest and largest life insurance companies, with over 12 million active accounts. It offers affordable rates for almost every age group, and you may not even need a medical exam if you fall under a certain age or coverage amount. Transamerica is a great choice for people with well-controlled sleep apnea and an average height-to-weight ratio, as they offer lower-than-average rates.

Best for moderate sleep apnea: Legal & General America

Legal & General America, also known as Banner Life and William Penn, offers some of the longest term lengths of up to 40 years, along with competitive life insurance rates, even for those with a history of medical conditions. Depending on the severity of your condition, a medical exam may be required, but you're still likely to qualify for coverage with this top-rated insurer.

Best for severe sleep apnea: Pacific Life

If you have severe sleep apnea, many insurers may refuse to offer you coverage. However, Pacific Life is more likely to approve you and offer lower rates than other insurers. They have some of the lowest rates for term life insurance across age brackets and are very favourable towards those with sleep apnea, especially if you're compliant with your CPAP machine use.

Cheapest life insurance for sleep apnea: Pacific Life

Pacific Life offers some of the lowest rates for people with sleep apnea, regardless of the severity of your condition or your height-to-weight ratio. If you've taken a sleep study and are using a CPAP machine, your chances of being approved for term or whole life insurance are higher with Pacific Life than with other insurers.

Other recommended companies:

• American General: Very favourable towards applicants with sleep apnea who comply with treatment recommendations.
• The Annuity Expert: An independent insurance agency specialising in finding the best solutions and rates for those with sleep apnea.

What are the different types of life insurance available?

There are several types of life insurance available, each with its own unique features and benefits. Here are the most common types:

• Term life insurance is a simple and low-cost policy that provides coverage for a specific term, typically 10, 20, or 30 years. It is designed to replace your income in the event of your death and is usually the most affordable option. However, if you outlive the policy term, your beneficiaries will not receive a payout.
• Whole life insurance is a permanent policy that provides coverage for your entire life, as long as you keep up with the premiums. It includes a savings component, allowing your money to grow over time. Whole life insurance is generally more expensive than term life insurance but offers guaranteed coverage and a stable rate of return.
• Universal life insurance is another type of permanent policy that offers flexibility. It allows you to adjust your premiums and death benefit over time and has a cash value component that grows based on market interest rates. The death benefit and cash value growth are not guaranteed.
• Variable life insurance is a riskier type of permanent policy where the cash value is tied to investment accounts. It offers the potential for higher returns but also carries higher fees and risks. The cash value can change daily based on market performance, requiring active management.
• Final expense life insurance, also known as burial insurance, is a type of whole life insurance with a smaller death benefit designed to cover funeral costs and other end-of-life expenses. It is more accessible to older individuals or those with health issues.

In addition to these main types, there are also alternative options such as group life insurance, mortgage life insurance, credit life insurance, accidental death and dismemberment insurance, and joint life insurance. The best type of life insurance depends on your individual needs, budget, and financial goals.

How can you improve your chances of getting life insurance with sleep apnea?

Having sleep apnea doesn't disqualify you from getting life insurance, but it can make it more expensive. If you have mild or moderate sleep apnea and are undergoing treatment, you will likely receive standard rates. However, if your sleep apnea is severe or untreated, you may face higher premiums or even have your application denied.

• Seek treatment: If you have mild or moderate sleep apnea and are undergoing consistent treatment, you are more likely to receive standard rates. Treatment options include using devices such as a CPAP machine to improve your breathing overnight, tongue-retaining devices, and surgical options.
• Choose the right insurer: Different insurance companies have different underwriting guidelines and rates for applicants with sleep apnea. Some companies, such as Transamerica, Legal & General America, and Pacific Life, are known for offering competitive rates to individuals with sleep apnea.
• Improve your overall health: Other health issues, such as high blood pressure or obesity, can further increase your premiums. Improving your overall health and addressing any co-occurring medical conditions can help reduce the complications of sleep apnea and improve your chances of getting approved for coverage.
• Compare rates: Shop around and get quotes from multiple insurance companies to find the best rates and coverage options for your situation.
• Consider term life insurance: Term life insurance is typically more affordable than whole life insurance and may be a good option if you're looking for lower premiums.
• Work with an independent insurance agent: An independent agent can guide you through the underwriting process and help you find the best policy for your needs and budget.
• Provide detailed medical information: When applying for life insurance, be prepared to provide comprehensive information about your sleep apnea diagnosis, treatment, and any other relevant medical history. This includes details such as the type of sleep apnea, severity, treatment methods, and any co-occurring medical conditions.
• Cease tobacco use: Tobacco use can complicate your sleep apnea and increase your risk profile. Quitting tobacco can improve your overall health and potentially lower your premiums.
• Don't give up: If one insurer denies your application, don't assume that you will be disqualified by all others. Each company has different underwriting guidelines, and your chances of approval may vary.

Frequently asked questions