Life Insurance For Autistic Kids: What You Need To Know

Getting life insurance for an autistic child can be challenging, but it is not impossible. The process and options available depend on the child's situation, including the severity of their autism and their overall health. Many life insurance companies decline children with autism, especially those under eight years old, as they are yet to understand the child's prognosis. However, some companies offer guaranteed acceptance policies for children who cannot get traditional coverage. The type of life insurance available depends on the severity of the child's autism and other underwriting factors. For instance, children with low to mild autism may be eligible for a fully underwritten plan, while those with moderate to severe autism may only qualify for guaranteed issue whole life insurance.

Life insurance options for autistic children

Overview

It is possible to get life insurance for your child with autism, but it can be challenging. The options available depend on the child's age, the severity of their autism, and their ability to function independently. Here are some things to keep in mind when exploring life insurance options for your autistic child:

Age of the Child

Many life insurance companies have a minimum application age for children with autism, which is usually around 8 years old. This is because insurers want to assess the child's prognosis and future development before offering coverage. Some companies may even recommend waiting until the child is 10 years old to apply for the best chances of approval.

Severity of Autism and Functioning Level

The severity of your child's autism and their ability to perform activities of daily living (ADLs) independently will impact their insurability. Children with mild to moderate autism who can perform ADLs independently and attend school or work are more likely to be approved for life insurance. Those with severe autism and limited independence may have fewer options.

Type of Life Insurance

There are different types of life insurance policies available, and the right option for your autistic child will depend on their age, severity of autism, and other factors. Here are some common types of life insurance policies to consider:

• Fully Underwritten Life Insurance: This option is typically available for children with low to mild autism who are high-functioning. It includes various types of policies such as whole life, index universal, and term life insurance.
• Guaranteed-Issue Whole Life Insurance: This type of policy is suitable for children with moderate to severe autism. It comes with a 2-year waiting period, after which the death benefit is paid in full. This option may be more expensive and have lower coverage limits.
• Life Insurance with a Child Rider: Instead of insuring your child directly, you can purchase life insurance on yourself and add a child rider to cover your child. This option does not require medical information about the child and can provide coverage up to a certain dollar amount.

Cost of Life Insurance for Autistic Children

The cost of life insurance for autistic children varies depending on the severity of their condition and the type of policy chosen. For example, a $50,000 whole life insurance policy for a 1-year-old boy with mild autism may cost around $30 per month. In contrast, a $25,000 guaranteed-issue whole life insurance policy for a 5-year-old boy with moderate to severe autism may cost around $95 per month.

Impact on Medicaid and Other Benefits

If your child receives government assistance, such as Medicaid or Supplemental Security Income (SSI), be mindful that owning a life insurance policy with cash value could negatively impact their eligibility for these benefits. Consult with a special needs attorney to understand the legal and financial considerations and explore options such as setting up a special needs trust.

Life insurance options for autistic adults

The options available for autistic adults seeking life insurance will depend on the severity of their condition and their overall health. Here are some of the options available:

Fully Underwritten Life Insurance

Autistic adults with low to mild autism who are high-functioning are eligible for fully underwritten life insurance plans. This includes whole life, index universal, and term life insurance. These individuals typically do not require a medical exam for underwriting and are classified at a standard rate up to table 2 or table 4.

Guaranteed-Issue Whole Life Insurance

For those with moderate to severe autism, guaranteed-issue whole life insurance is available. This option typically has a two-year waiting period, after which the death benefit is paid out in full. During the waiting period, if the insured passes away, the premiums paid will be returned with interest.

Simplified Issue Life Insurance

Autistic adults who are unable to obtain regular coverage may consider simplified issue life insurance. This type of insurance does not require a medical exam but instead involves answering health-related questions. It may be more expensive than traditional life insurance policies.

Guaranteed Issue Life Insurance

As a last resort, autistic adults can also consider guaranteed issue life insurance, which is available to anyone on the autism spectrum. However, this option tends to be the most expensive form of life insurance and often has a two-year waiting period for death by natural causes.

Term Life Insurance

Autistic adults with mild to moderate autism who are managing their condition well can qualify for traditional term life insurance. This type of coverage lasts for a specific period, such as 10, 20, or 30 years, and typically does not require a medical exam.

Whole Life Insurance

Autistic adults can also qualify for whole or permanent life insurance, which lasts for the entire life of the insured rather than a set number of years. Similar to term life insurance, adults with mild to moderate autism who are managing their condition well can qualify for this type of coverage.

It is important to note that the availability of these options may vary based on location and specific circumstances. Additionally, the cost of life insurance for autistic adults will depend on the type of policy they qualify for, with traditional policies offering standard premiums and no-medical policies tending to be more expensive.

The underwriting process for autistic people

• Whether the child attends a mainstream classroom
• The child's ability to perform activities of daily living (ADLs) independently, such as eating, using the bathroom, and dressing
• The need for assistive devices like an iPad
• The child's communication skills and ability to speak in a traditional manner
• The child's social interaction skills and ability to carry on conversations
• The child's IQ, with a higher IQ generally being preferred
• Neuropsychological reports and other medical records

For autistic adults, underwriters will also consider the following factors:

• The severity of autism, with mild autism and high functioning individuals having more insurance options
• Ability to perform ADLs independently
• Employment status and type of employment
• Other health conditions or comorbidities, such as type 2 diabetes
• Prescription drug history
• Medical history, including any previous moderate to severe injuries
• Neuropsychological evaluations, including IQ tests

Based on these factors, underwriters will determine whether to approve the life insurance application and set the applicable rates, coverage amounts, and conditions. It's important to note that not all carriers will insure autistic individuals, and the availability of life insurance options depends on the specific circumstances of each case.

How to buy life insurance for an autistic child

Understanding the underwriting process

The first step in buying life insurance for an autistic child is understanding the underwriting process. Underwriting is when the insurance company assesses your application and determines whether to approve it and what rates to offer. This process can be more complicated for children with autism, as the company will want to understand the child's prognosis and how their condition might affect their life expectancy.

Finding the right insurance company

Not all insurance companies will insure children with autism, and those that do may have different requirements and rates. It's important to shop around and compare options from multiple companies to find the best coverage for your child. Working with an independent agent or broker who has experience with special needs cases can be helpful. They will know which companies are more likely to insure your child and can guide you through the process.

Timing your application

In general, insurance companies prefer to insure children with autism who are eight years or older. This is because, by this age, medical professionals have a better understanding of the child's prognosis and how their condition might impact their life expectancy. If your child is younger than eight and has been declined for coverage, you may want to wait and apply again when they are older.

Providing the necessary information

When applying for life insurance for your autistic child, be prepared to provide detailed information about their condition, including their diagnosis, age of diagnosis, any treatments or medications, and how their autism impacts their daily life. The insurance company may also request medical records and, in some cases, a medical exam. It's important to be honest and provide accurate information to ensure your child gets the coverage they need.

Understanding the available policy options

There are typically two types of life insurance policies available for children with autism: whole life insurance and guaranteed issue whole life insurance. Whole life insurance offers coverage for the child's entire life and often includes a cash value component. Guaranteed issue whole life insurance is an option for children with more severe autism who may not qualify for traditional coverage. It usually comes with a two-year waiting period and may have lower coverage amounts.

Considering alternative options

If you're unable to obtain life insurance for your autistic child directly, there are alternative options to consider. One option is to purchase life insurance on yourself and add a child rider. A child rider is an add-on to your policy that covers your child and can later be converted into a standalone permanent life insurance policy. This option doesn't require any medical information about your child, making it a good choice for children with autism.

Understanding the cost

The cost of life insurance for an autistic child will depend on the type of policy, the child's age, the severity of their condition, and other factors. Whole life insurance policies will typically be more expensive than guaranteed issue policies. You can expect to pay higher rates if your child has more severe autism or if they have other health conditions. Getting quotes from multiple companies can help you find the most affordable option.

How to get life insurance approved for autism

It is possible to get life insurance approved for someone with autism, although it can be a challenging process. The options available depend on the severity of the condition and the age of the applicant. Here are some key steps and considerations to help with the process:

Understanding Underwriting

Underwriting is the process by which insurance companies assess the risk of insuring an individual. When it comes to autism, carriers will consider the severity of the condition, the ability to perform activities of daily living (ADLs), employment status, and the presence of other health conditions. It is important to understand these factors before applying for insurance.

Age of the Applicant

The age of the applicant plays a significant role in the availability of life insurance options. For children with autism, most carriers will decline applications until the child reaches the age of 8, as this is when carriers have a better understanding of the child's condition and future prognosis. Some sources recommend waiting until the child is 10 years old to increase the chances of approval. For adults with autism, a broader range of options may be available.

Type of Insurance

The type of life insurance available will depend on the specific circumstances of the applicant. For children with autism, guaranteed issue whole life insurance is often the only option, especially if they have moderate to severe autism. For adults with mild to moderate autism that is well-managed, regular life insurance may be an option. This includes term life insurance, whole life insurance, simplified issue life insurance, and guaranteed issue life insurance.

Application Process

When applying for life insurance with autism, insurance companies will ask detailed questions about the condition and overall health. It is important to provide as much information as possible, as incomplete applications may be rejected. Questions may include the age of diagnosis, severity of the condition, ability to perform daily activities, employment status, and any other health conditions or medications.

Additional Factors

Other factors that can influence insurance rates include age, occupation, family medical history, tobacco and alcohol use, and physical health. Understanding these factors can help manage expectations and increase the chances of a successful application.

Seeking Professional Help

Given the complexity of the process, it is advisable to seek professional help when applying for life insurance with autism. Independent agents or brokers can provide valuable guidance on which carriers and policies are most suitable for the applicant's specific circumstances. They can also assist in optimizing the timing of the application and selecting the most favorable carrier.

Frequently asked questions