Asthma And Life Insurance: Preferred Rating Possible?

Asthma is a common health issue, affecting over 25 million Americans. It is a pre-existing condition that can impact the cost of life insurance, as insurers view asthmatics as higher-risk clients. However, it is still possible to qualify for life insurance with asthma, and the severity of one's condition will determine the type of coverage they are eligible for. For instance, those with mild asthma may be able to secure a preferred rating, while those with more severe asthma may be offered a substandard or rated policy with higher premiums. Ultimately, each insurance company has its own underwriting guidelines, so it is beneficial to work with an experienced agent to find the best policy and rates.

How does asthma severity affect life insurance eligibility and premiums?

Asthma severity can impact your life insurance eligibility and premiums in several ways. Firstly, insurers classify asthma severity as mild, moderate, or severe. Mild asthma is characterised by infrequent symptoms, such as seasonal or exercise-induced asthma, while moderate asthma involves daily and nighttime symptoms. Severe asthma is defined by continuous symptoms and frequent attacks that require hospitalisation.

The impact of asthma severity on life insurance eligibility and premiums:

• Mild asthma: Individuals with mild asthma can typically secure life insurance at standard or preferred rates. Exercise-induced asthma may even result in a preferred best rate class. Mild asthma is generally viewed favourably by insurers, and it is possible to obtain preferred ratings if symptoms are infrequent and mild.
• Moderate asthma: Life insurance is readily available for individuals with moderate asthma, with underwriting outcomes typically falling within the "standard" to "standard plus" rate classes. While insurance is accessible, premiums may be higher compared to those with mild asthma.
• Severe asthma: Obtaining life insurance coverage for severe asthma can be challenging but is not impossible. Most underwriting offers will include a table rating, resulting in a higher price for the policy. Individuals with severe asthma may also face higher premiums or even declination of coverage if they are smokers.

It's important to note that each life insurance company has its own underwriting guidelines, and the impact of asthma severity on premiums can vary between insurers. Working with an experienced insurance agent or broker who can compare policies and rates from multiple insurers is crucial to finding the best coverage for your specific circumstances.

What are the best life insurance companies for individuals with asthma?

It is possible to obtain life insurance coverage for individuals with asthma. However, the type of coverage and the premium costs may vary depending on the severity of the condition, age, and other factors. The best life insurance companies for individuals with asthma are those that offer competitive rates and understand the specific needs of asthmatics. Here are some recommended companies and key considerations:

Recommended Companies:

• Quotacy: They have relationships with many top life insurance companies and can shop around for the best coverage based on your unique situation. Their agents are experienced in handling asthma cases and can guide you through the process.
• Abrams Insurance Solutions: This company works with over 70 top-rated life insurance companies, allowing them to find the most favourable rates for asthmatics. They have experience with underwriting asthma and can navigate the application process effectively.
• Genworth, American General, and Principal: These companies are specifically mentioned as being competitive with asthma applicants and offering favourable rates.
• Banner, Mutual of Omaha, and American General: These companies are often recommended as starting points for individuals with asthma, but the best option depends on various factors like age and health.
• Prudential and Protective Life: These companies are suggested if you are open to completing a medical exam as part of the application process.
• Guaranteed Issue Life Insurance: If you have severe asthma, this type of policy doesn't factor in health information. However, coverage amounts are generally lower than traditional policies.

Key Considerations:

• Severity of Asthma: The frequency and intensity of asthma attacks, hospitalizations, and medication requirements will impact your insurance rating and premium costs. Mild and well-controlled asthma may qualify for preferred or standard rates, while severe asthma may result in higher premiums or a substandard rating.
• Independent Agents: Working with independent insurance agents or brokers can be advantageous as they are not tied to a single company and can shop the market for the most favourable rates based on your specific needs.
• Comparison Shopping: Comparing quotes from multiple companies is essential to finding the best coverage and rates. Each insurance company has its own underwriting guidelines, so rates can vary significantly between them.
• Full Disclosure: Be honest and upfront about your asthma diagnosis, medications, and any related health complications. Omitting or withholding information could lead to issues during the underwriting process or even a decline of coverage.

What are the typical rates for asthma life insurance?

The rates for asthma life insurance depend on the severity of the condition. Mild and infrequent asthma symptoms can result in preferred ratings, while more severe and frequent asthma cases will lead to higher premiums. The frequency of attacks, the impact on the individual, and the medication required to control symptoms are all factors that influence the insurance rates.

For individuals with mild asthma, the condition may have little to no effect on policy rates. In some cases, individuals with mild asthma can even qualify for "Preferred Plus" rates, which is the best health class available. However, if asthma is more severe and requires frequent hospitalizations or the use of oral steroids, individuals may be classified as high-risk applicants and offered a "substandard" or "rated" policy with higher premiums.

The table below provides an example of how insurance companies may classify asthma severity and the corresponding rates:

| Description and Therapy | Potential Health Class |

|---|---|

| Inhalers, steroid inhalers, no injections or nebulizer, one continuous oral medication | Preferred to Preferred Plus |

| Inhalers, injections up to 4x/year, nebulizer use up to 4x/year, no hospitalizations | Standard to Standard Plus |

| Inhalers, injections up to 5x/year, nebulizer up to 5x/year, no hospitalizations in the past 6 months | Table 2 |

| Recent hospitalizations, injections or nebulizer use 6+ times per year | Table 5 or Table E |

It is important to note that each insurance company has its own underwriting guidelines, and the rates may vary. The above table provides a general idea of the potential rates based on asthma severity.

To obtain the most accurate rates for your specific situation, it is recommended to work with an experienced insurance agent or broker who can help navigate the different companies' guidelines and find the best policy for your needs.

What are the outcomes and deciding factors for asthma patients?

The outcomes and deciding factors for asthma patients depend on the severity of their condition, their age, lifestyle factors, and their overall health.

Severity of Asthma

The severity of an individual's asthma is a key factor in determining the outcome of their life insurance application. Mild and infrequent symptoms can lead to preferred ratings, while more severe and frequent asthma attacks may result in higher premiums or even a decline of coverage. The frequency and duration of attacks, the impact on the individual's life, and the type and amount of medication needed to control symptoms are all considered when assessing severity.

Age

Age plays a role in determining life insurance rates, with older applicants generally facing higher premiums.

Lifestyle Factors

Lifestyle factors, such as smoking habits, can also impact life insurance rates for asthma patients. Smoking can significantly increase premiums, especially for those with moderate to severe asthma.

Overall Health

The overall health of the applicant is also taken into account. The presence of other health conditions, such as heart disease, cancer, mental health issues, or obesity, can affect the outcome of the application and the premiums.

Other Factors

Other factors that may be considered include the date of diagnosis, current symptoms, any hospitalizations or emergency room visits due to asthma, and any limitations on activities caused by asthma.

What are the application questions for life insurance with asthma?

When applying for life insurance, you will be asked to provide basic information such as your name, address, occupation, and employer. You will also be asked about your lifestyle habits (e.g. smoking, drinking, exercise), health history, and financial information. If you have asthma, you can expect to answer additional questions to assess the severity of your condition. Here are some of the application questions for life insurance with asthma:

• Date of first diagnosis: The insurer will want to know when you were initially diagnosed with asthma.
• Type of asthma: They may ask if you have been diagnosed with a specific type of asthma, such as asthma-COPD overlap, exercise-induced bronchoconstriction, or occupational asthma.
• Triggers: Whether the asthma attacks are caused by allergies, climate, temperature, medication, chemical exposure, emotional stress, or other triggers.
• Severity: This includes the frequency and duration of attacks, as well as any hospitalizations or intubations.
• Treatment: The medications you are taking to manage your asthma and whether you have been compliant with the prescribed treatment.
• Hospitalizations: Details of any hospitalizations or emergency room visits related to your asthma.
• Doctor visits: How often you see your doctor for asthma and if you are following the recommended treatment plan.
• Lifestyle factors: Your smoking habits and other lifestyle factors that could potentially worsen your asthma.

Remember that each life insurance company has its own underwriting guidelines, so the specific questions may vary. It is important to be honest and provide accurate information when applying for life insurance with asthma.

Frequently asked questions