Life Insurance Options For People With Crohn's Disease

Crohn's disease is a chronic inflammatory bowel disease that affects an estimated 780,000 Americans. It is a pre-existing condition that can lead to serious health problems and has no cure. So, can you get life insurance if you have Crohn's disease? The simple answer is yes, but it's not quite that straightforward. Life insurance companies will want to know more about your medical condition and how well you are managing it. This is because your health directly impacts your life insurance eligibility and potential costs.

How does having Crohn's disease affect life insurance premiums?

Crohn's disease is a type of inflammatory bowel disease that affects an estimated 780,000 Americans. While the condition is not an automatic disqualifier for life insurance, it can significantly impact the premiums. The severity of Crohn's disease, the frequency of flare-ups, and the type of medication taken are crucial factors in determining the insurance rates. Here's how Crohn's disease affects life insurance premiums in more detail:

Impact on Premiums:

People with Crohn's disease typically have to pay higher premiums for life insurance due to the condition's impact on their health and the associated risks. The increase in premiums is often referred to as a "medical rating." The exact amount of the increase varies depending on the insurance company's underwriting criteria. It is recommended to consult an independent life insurance specialist familiar with Crohn's disease to find the most suitable policy.

Underwriting Factors:

When assessing life insurance applications for individuals with Crohn's disease, underwriters consider several factors:

• Date of Diagnosis: The time since diagnosis plays a role in evaluating the stability of the condition.
• Medication: The type and amount of medication being taken to manage Crohn's disease is an important consideration.
• Severity: The severity of the condition, including the frequency and intensity of flare-ups, is a key factor in determining the risk and, consequently, the premium.
• Surgery: Underwriters will ask about any surgeries the applicant has undergone or is awaiting due to Crohn's disease.
• Affected Area: The extent and location of the affected bowel region are considered in the assessment.

Application Process:

The application process for life insurance with Crohn's disease may take longer than a standard application. Insurance companies may request additional information from the applicant's doctor, especially if there have been changes in medication or multiple surgeries. The applicant's permission is required before contacting the doctor, and the insurance company covers the associated costs.

Policy Options:

There are various types of life insurance policies available, such as level term life insurance, decreasing term life insurance, whole of life insurance, and over-50 life insurance. The choice of policy depends on the individual's needs, budget, and personal circumstances. It is recommended to consult a specialist to find the most suitable policy options.

Managing Costs:

If the quoted premium exceeds one's budget, it is possible to reduce the level of cover to match the budget. This allows individuals to adjust the amount of life insurance they are applying for without having to reapply. An independent insurance specialist can guide individuals through this process and provide advice on the fairness of the decision.

What are the best life insurance options for people with Crohn's disease?

Yes, you can buy life insurance if you have Crohn's disease, but it may be more expensive than for those without the condition. The best type of life insurance policy for you depends on your financial and coverage needs. If you qualify for a traditional life insurance policy, you can choose between term life and whole life insurance.

Term Life Insurance

Term life insurance covers a set term, typically between 10 and 30 years, and is the most affordable way to protect your income and provide your family with a financial safety net in the event of your death. It's easy to manage and doesn't come with many rules or tax restrictions.

Whole Life Insurance

Whole life insurance has no expiration date and includes a cash value that earns interest in addition to the death benefit payout, making it significantly more expensive than term life insurance. It can be a good option for high-net-worth individuals looking to use life insurance to diversify their investment portfolio, or those with long-term financial obligations or coverage needs, such as dependents who require lifelong care.

Life Insurance Companies for People with Crohn's Disease

• Corebridge Financial (formerly AIG Life & Retirement)
• Transamerica
• Legal & General America (which also does business as Banner Life and William Penn)

These companies may offer you standard rates, depending on your symptoms and treatment.

What is the process of buying life insurance if you have Crohn's disease?

The process of buying life insurance if you have Crohn's disease may be similar to that of a standard application, but it can take a little longer and you will likely need to answer additional questions about your condition.

Firstly, you should speak to an independent life insurance specialist who has experience in helping people with Crohn's disease get life cover. They will be able to advise on the best insurance company for your specific needs, as each company has a different set of underwriting criteria and the premium may vary depending on the company assessing your application.

You will then need to fill out a health questionnaire as part of the application process, also known as underwriting. On this form, you will need to disclose your Crohn's disease and list any medications you are taking. You will also likely need to take a medical exam, which is common for all life insurance applicants. The insurance company may also request an attending physician statement (APS) from your doctor to get a full picture of your health.

The insurance company's medical underwriters will then assess the additional risk that you pose as an applicant with Crohn's disease. They will consider the following:

• Date of diagnosis
• Date of the last major attack
• Medication type and amount
• Severity of the disease
• Whether you have had or are awaiting surgery
• Extent of the disease (how much of the bowel is affected and which part)
• Any complications

If your Crohn's disease is well-controlled and you have all the relevant details, this may be enough for the insurance company. However, they may also write to your doctor, especially if your medication has changed or you have had multiple surgeries.

Once underwriting is complete, you will receive a final offer from the insurer, which can take up to a couple of weeks. You do not have to accept the final premium and can shop around for a better rate. Remember that life insurance policies do not have exclusions, so the final premium will cover death in any event, including anything related to Crohn's disease.

What happens if your life insurance application is declined?

If your life insurance application is declined, it's important to remember that you still have options. Here are some steps you can take:

• Understand the reason for the decline: Contact the insurance company or your agent to find out why your application was denied. This will help you determine the next steps and whether there is any incorrect or missing information that you can address.
• Appeal the decision: If the denial is based on incorrect or insufficient information, you have the right to appeal. Provide up-to-date medical information from your doctor or clarify any non-medical reasons, such as an old driving offense or outdated financial records.
• Consider alternative options: Depending on the reason for the denial, you may want to explore other types of life insurance products, such as simplified issue life insurance, guaranteed issue life insurance, or mortgage life insurance. These options may have higher premiums or lower payouts, but they can provide coverage if traditional policies are not available to you.
• Work with an independent agent or broker: An independent agent or broker can guide you in making healthy lifestyle changes, suggest different insurers that may be more accommodating of your circumstances, and help you navigate the application process.
• Improve your risk profile: If your application is postponed or denied due to health or lifestyle factors, use this as an opportunity to make positive changes. This could include improving your diet, exercising regularly, quitting smoking, or addressing any other areas of concern.
• Reapply after a waiting period: After making the necessary improvements, you may want to reapply for life insurance after a waiting period. This will give you time to demonstrate concrete examples of change, such as improved health markers or a better driving record.
• Explore group life insurance: Check if your employer offers group life insurance, which usually doesn't require a medical exam. While it may not provide the desired level of coverage, it can serve as a temporary solution until you can obtain your own policy.

What are the best life insurance companies for people with Crohn's disease?

Yes, it is possible to get life insurance if you have Crohn's disease, but it may be more expensive than for those without the condition. The best life insurance company for you will depend on your specific circumstances, including the severity of your condition, your age, and your medical history. Here are some companies that may offer competitive rates for people with Crohn's disease:

• Corebridge Financial (formerly AIG Life & Retirement): Offers competitive pricing and flexible term periods for its Select-a-Term product. May provide Standard rates for people with Crohn's disease.
• Legal & General America (also known as Banner Life and William Penn): Offers some of the longest term lengths of up to 40 years and competitive rates, even for those with medical conditions. They have more flexible guidelines for people with digestive diseases.
• Transamerica: One of the oldest and largest life insurance companies, offering affordable rates for most ages. They also have a no-medical-exam option available for certain applicants.
• Lincoln Financial: Offers a diverse range of life insurance policies, including competitive no-medical and high-net-worth options. They are a good choice for those with existing health conditions and marijuana users.
• Pacific Life: Provides some of the lowest rates for term life insurance across different age groups. They have favorable underwriting for many health conditions.
• Protective: Offers affordable and comprehensive life insurance options, with competitive rates for all ages and health classifications. They are a good option for people with mental health conditions and certain types of cancer.
• AIG (American General): Offers guaranteed acceptance with no medical questions asked. However, there is a two-year waiting period.
• Ameritas: Age will be a factor in the application process, and more severe cases will result in higher ratings. If your condition is stable for a year or more, insurability should not be an issue.
• American National (ANICO): Offers table ratings between A-D for those who are symptom-free for two years and are over the age of 35.

It is recommended to work with an independent broker or agent who can help you navigate the different options and find the best insurance company for your specific health profile and needs. They can guide you towards insurance providers that are known for their comprehensive health assessments and are currently the most accommodating to those with Crohn's disease.

Frequently asked questions