Life Insurance And Stroke: What You Need To Know

Life insurance is designed to pay out on the policyholder's death, but some policies will pay out early if the policyholder is diagnosed with a terminal illness and has less than 12 months to live. Strokes can be terminal, and some can lead to comas or death. Therefore, depending on the severity of the stroke, a life insurance policy may pay out under the terminal illness clause. If the stroke is less severe, the policy will not pay out while the policyholder is still alive. However, death by stroke would be covered at any time, provided the policy is still active.

Life insurance rates after a stroke

Type of Stroke

There are two main types of strokes: full strokes and mini-strokes or transient ischemic attacks (TIAs). A full stroke occurs when there is a blockage or bleeding in the brain, resulting in permanent brain damage. On the other hand, a mini-stroke is temporary and does not cause any permanent damage. The type of stroke you have had will impact your insurance rates, with full strokes typically resulting in higher premiums.

Severity of the Stroke

The severity of the stroke will also affect your insurance rates. Insurers often classify strokes based on their severity, with minor strokes or TIAs having less impact on premiums than major strokes. If you have had a severe stroke, you may be offered a "table-rated" policy, which means your rates will be higher than standard policies.

Time Since the Stroke

The time that has passed since your stroke also matters when applying for life insurance. The longer it has been since your stroke, the better rates you are likely to receive. Most insurers will offer their best rates five years after your last stroke, as it demonstrates stable recovery and reduced risk of another stroke. If you apply for insurance within six months to a year of a stroke, you may be declined for traditional life insurance but may qualify for a "guaranteed issue" policy.

Other Factors

Other factors that may affect your life insurance rates after a stroke include your age, family history, and any underlying health conditions. If you are younger when you have a stroke, insurers may view this as a sign of other potential health issues. Additionally, a family history of strokes or certain health conditions, such as hypertension, diabetes, or coronary artery disease, can also impact your rates.

Recommendations

It is recommended to be honest and upfront about your health condition when applying for life insurance after a stroke. Working with an independent insurance agent or broker can help you navigate the process and find the best policy for your situation. Some recommended insurance providers for individuals who have had a stroke include Prudential, Protective, Corebridge Financial, Legal & General America, and Mutual of Omaha.

Getting life insurance after a mini-stroke

A mini-stroke is a temporary problem with the brain that causes the same symptoms as a full stroke. However, unlike a full stroke, a mini-stroke does not cause permanent damage. This makes it easier to get insurance coverage if you have had a mini-stroke.

Understand the impact of a mini-stroke on insurance eligibility:

A mini-stroke, also known as a Transient Ischemic Attack (TIA), has the same symptoms as a full stroke but doesn't result in any permanent neurological damage. Since a full stroke causes brain damage, the underwriting process is easier if you've only had a TIA. However, both conditions increase the likelihood of future stroke problems, so they are considered high-risk by insurance companies.

Be prepared for underwriting questions:

When applying for life insurance after a mini-stroke, be prepared to answer questions about your health and the mini-stroke. These questions may include:

• The date of your mini-stroke
• The type of medical examinations and tests you underwent after the mini-stroke
• The symptoms you experienced
• Any lasting effects or residual impacts from the mini-stroke
• Any other medical conditions that may increase the risk of another stroke
• Medications you are currently taking due to the mini-stroke

Work on improving your health:

Before providing you with life insurance coverage, insurance companies will require you to take a medical exam. Improving your overall health can positively impact the results of this exam and potentially lower your premiums. Consider making healthy lifestyle changes, such as regular exercise, improving your diet, and quitting smoking.

Seek expert advice:

Navigating the life insurance landscape after a mini-stroke can be complex due to varying standards and underwriting processes across different insurance companies. Consider seeking expert advice from independent insurance agents or brokers who specialise in high-risk cases and have experience working with stroke survivors. They can guide you through the application process, help you compare policies and rates from multiple insurers, and maximise your chances of approval.

Consider a guaranteed issue policy:

If you are declined by standard insurance companies, you may still be able to obtain life insurance through a guaranteed issue policy. This type of policy does not depend on your health status, but it typically comes with a lower death benefit and higher premiums.

Guaranteed issue life insurance

While guaranteed issue life insurance is always accompanied by a waiting period, typically of two or three years, it is an attractive option for those who are unable to qualify for other types of life insurance due to serious health conditions. During this waiting period, if the insured dies, the beneficiaries will not receive the policy's death benefit. Instead, the insurance company will repay the beneficiaries the insurance premiums plus interest, usually at a rate of 10%.

The guaranteed issue life insurance policy is designed for individuals with serious health conditions, such as:

• Terminal illness with a life expectancy of less than two years
• History of organ or tissue transplant
• Dialysis
• Alzheimer's or dementia
• Residence in a nursing home or hospice care
• Cancer (excluding basal cell or squamous cell skin cancer)
• AIDS or HIV
• Chronic illness that requires the use of a wheelchair

The typical age range to qualify for guaranteed issue life insurance is 40 to 85 years old, with some insurers offering policies to those outside this range but with fewer options. The policy provides a cash death benefit ranging from $2,000 to $40,000, depending on the insurer.

When applying for guaranteed issue life insurance, it is recommended to work with an independent agent or agency to navigate the complex insurance shopping process and find the best policy and carrier suited to your unique circumstances.

Critical illness cover

When taking out critical illness cover, it is important to carefully review the terms and conditions of the policy. Different insurers may have varying definitions of what constitutes a "critical illness", and there may be specific exclusions or waiting periods. For example, some policies may only pay out if the stroke results in permanent neurological damage or if it is expected to be terminal. Understanding the details of your policy will help ensure you have the correct cover for your needs.

The cost of critical illness cover will depend on various factors, including your age, health status, and the level of cover required. In general, the younger and healthier you are, the lower your premiums will be. It is worth noting that critical illness cover is not the same as health insurance, which covers the cost of medical treatment but does not provide a lump sum payout.

In conclusion, critical illness cover can provide valuable financial protection if you suffer a stroke or other serious illness. By investing in this type of insurance, you can gain peace of mind knowing that you will have the necessary funds to focus on your recovery without worrying about your finances.

Life insurance application process after a stroke

If you have suffered a stroke, you may be concerned about your eligibility for life insurance and the application process. Here is a detailed guide to help you navigate the process and secure the coverage you need.

Understanding Your Options

Firstly, it is important to understand that having a stroke does not disqualify you from obtaining life insurance. While it may be challenging to get affordable coverage, it is not impossible. Your options will depend on the recency and severity of your stroke, as well as your overall health condition.

Choosing the Right Policy

When selecting a life insurance policy after a stroke, consider the following:

• Type of Stroke: The type of stroke you experienced, such as a full stroke or a mini-stroke (TIA), will impact your eligibility and rates. Mini-strokes typically have less impact on premiums since they do not result in permanent neurological damage.
• Time Since Stroke: The recency of your stroke is crucial. Most companies require a waiting period of at least six months to one year after a stroke before offering coverage. The longer you can demonstrate stable health and recovery, the better rates you will qualify for.
• Health Status: Your overall health status and any existing conditions, such as hypertension, high cholesterol, diabetes, or heart disease, will be considered. These factors can contribute to the likelihood of another stroke and will impact your premiums.
• Treatment and Medication: The treatments you underwent and any medications you are currently taking will be assessed. Consistent follow-ups and adherence to prescribed medications can work in your favour.

The Application Process

When applying for life insurance after a stroke, here are the steps you can expect:

• Gather Information: Before initiating the application process, ensure you have detailed information about your stroke, including the date, type, tests conducted, symptoms experienced, and any lasting effects.
• Contact an Agent: Engage the services of an independent insurance agent who understands high-risk conditions like stroke. They will guide you through the process and help you find the best options.
• Complete the Application: Work closely with your agent to provide comprehensive answers to all questions on the application form. Be transparent and disclose all relevant information about your stroke and recovery. Omitting details could lead to higher rates or even a decline.
• Medical Examination: As part of the underwriting process, you will undergo a medical examination. This typically includes a physical exam and may involve providing additional medical records or undergoing further tests.
• Underwriting and Approval: The insurance company will evaluate your application, medical history, and examination results. They will determine your eligibility, health classification, and corresponding rates. This process can take several weeks.
• Receive Offer and Sign Policy: Once the underwriting process is complete, you will receive an official offer from the insurance company. Review the terms and conditions carefully before accepting the offer and signing the policy.

Alternative Options

If you are unable to obtain traditional life insurance, there are alternative options available:

• Guaranteed Issue Life Insurance: This type of policy does not depend on your health status and offers near-certain approval. However, it usually comes with a lower death benefit and higher premiums.
• Simplified Issue Life Insurance: This is a type of whole life insurance that does not require a medical exam but does require a medical questionnaire. It is only available to individuals aged 45 and above, and your application can be denied due to your health history.
• Group Life Insurance: If you are unable to qualify for individual life insurance, consider group life insurance provided by your employer or an organisation you are affiliated with. This option typically guarantees coverage but may be lost if you leave your job.

Remember, every stroke survivor's journey is unique, and it is essential to consult with experts to find the most suitable policy for your specific needs and circumstances. Start by gathering quotes from multiple insurers and seeking guidance from independent agents who can advocate for your best interests.

Frequently asked questions