Life Insurance Options For People Living With Copd

It is possible to obtain life insurance if you have Chronic Obstructive Pulmonary Disease (COPD), but it may be challenging and expensive. The severity of your COPD and other health factors will determine the terms of your policy and the premiums you will pay. If you have severe COPD, you may only be able to obtain a guaranteed issue policy, which does not factor in your health but comes with higher premiums and a lower death benefit. To improve your chances of getting affordable life insurance, it is recommended that you work with an independent agent, be honest and accurate on your application, and take steps to manage your COPD.

Guaranteed issue life insurance

However, guaranteed issue life insurance policies typically offer much lower coverage amounts than traditional life insurance policies. This is because they have lower eligibility requirements, which means insurers generally view applicants as higher risk.

If you have COPD, you can still get life insurance, especially if your condition is well-managed. If you have severe COPD, you may struggle to qualify for a traditional policy, but you can apply for a guaranteed issue policy, which does not factor in your health.

If you have COPD and are considering guaranteed issue life insurance, it is recommended that you work with an independent agent to find the best policy for your needs.

Whole life insurance

If you have chronic obstructive pulmonary disease (COPD), you can still get life insurance, especially if your condition is well-managed. However, the type of life insurance policy you qualify for depends on several factors, including the severity of your COPD, your overall health, and your prognosis.

• Cost: Whole life insurance is generally five to 15 times more expensive than traditional term life insurance policies. The cost will depend on various factors, including the severity of your COPD, your overall health, and your prognosis.
• Availability: Whole life insurance is usually available for people with mild to moderate COPD. If you have severe or extreme COPD, you may find it challenging to obtain coverage through traditional methods and may need to explore alternative options like guaranteed issue life insurance.
• Underwriting: The underwriting process for whole life insurance will involve answering questions about your COPD, including the date of diagnosis, symptoms, treatment, and any hospitalizations related to your condition. Be prepared to provide detailed information about your pulmonary function tests, chest x-rays, and medications.
• Accelerated Death Benefit: Since COPD is a progressive condition, you may consider adding an accelerated death benefit (ADB) rider to your policy. This allows you to access your death benefit while you're still alive if you meet certain health-related conditions, such as qualifying terminal or serious illnesses.
• Waiver of Premium Disability Rider: Another rider to consider is the waiver of premium disability rider, which allows you to stop making life insurance payments if you experience a qualifying disability, such as COPD preventing you from working and paying premiums.
• Independent Agents: Working with an independent life insurance agent is recommended, as they represent multiple high-risk insurance companies and can help you find the best rates and coverage options for your specific situation.

Term life insurance

If you have Chronic Obstructive Pulmonary Disease (COPD), you can still get term life insurance, especially if your condition is mild or well-managed. However, it may be challenging to secure an affordable policy, and the specific terms of your coverage will depend on several factors related to your health.

When applying for term life insurance with COPD, the insurance company will consider various factors to determine your eligibility and premium rates. These factors include:

• The severity of your COPD: Mild COPD with minimal symptoms may qualify for standard approval at regular rates. More severe cases may still be eligible but will likely incur higher premiums.
• Medications and treatment: The types of medication and treatment you require for your COPD will impact your rates. Life insurance carriers often view prescription medications as red flags, indicating a more severe condition.
• Prognosis: The expected progression of your COPD will also be assessed. This includes the BODE Index, which predicts the likelihood of surviving four years after a COPD diagnosis.
• Tobacco use: Smoking will significantly impact your rates, as it is the greatest cause of COPD and is considered a high-risk factor.
• Overall health: Underwriters will also consider your general health and any other coinciding medical conditions.
• Lifestyle habits: Your diet, exercise routine, and alcohol consumption may be taken into account.

It is important to note that guaranteed issue life insurance policies are available if you cannot qualify for traditional term life insurance due to severe COPD. These policies do not factor in your health, but they are significantly more expensive and provide lower death benefits. Additionally, they may have a waiting period before the full death benefit is payable and typically have a lower maximum benefit amount.

Final expense insurance

There are two types of final expense insurance:

• Simplified issue whole life insurance: This type of insurance doesn't require a medical exam, instead relying on a medical questionnaire. There are fewer medical requirements for simplified issue life insurance than traditional policies.
• Guaranteed issue life insurance: This is a type of whole life insurance that offers near-certain approval as it doesn't ask detailed medical questions. Premiums are higher than traditional or simplified issue life insurance. In most cases, you have to be over 45 to apply.

If you have COPD, you can get a guaranteed acceptance final expense policy, but it will be more expensive and provide a lower death benefit. If you are healthy enough, you should try to get an immediate level death benefit, where your beneficiaries get 100% of the death benefit. If you are not healthy enough for this, you can get a graded or modified policy, where your beneficiaries get a percentage of the death benefit in the first two years.

No-medical-exam life insurance

There are a few types of no-medical-exam life insurance policies:

• Simplified issue life insurance: This is the most common type of no-exam life insurance. It usually involves completing a short health questionnaire and can provide immediate coverage. While it is more expensive than a typical policy, it offers longer coverage than a short-term policy.
• Guaranteed issue life insurance: This type of policy does not consider your health at all and can be a good option if you have been rejected by other life insurers due to health issues. However, it has limited coverage and is significantly more expensive.
• Employer-sponsored life insurance: If you have access to a group life insurance plan through your employer, it often doesn't require a medical exam and can be highly affordable or even free. The coverage is typically set at a percentage of your salary or 1-2 times your salary. However, these policies may only be active while you are employed at the company, and the coverage amounts may be limited.

It's important to note that no-medical-exam life insurance may cost more than traditional policies because insurers take on additional risk by not knowing your health status. There may also be a cap on the coverage amount, and you will likely still need to answer health questions or provide medical records.

Frequently asked questions