Life Insurance for People With Chronic Illness

• People with chronic illnesses may qualify for life insurance if their condition is well-managed.
• Chronic illnesses may increase your life insurance premiums and limit your coverage options as many insurers consider this as an added risk – but coverage is available.
• No medical exam policies, like simplified issue or guaranteed issue, can provide access if traditional coverage isn’t available.

Yes. You may still qualify for life insurance even if you have a chronic illness. The application process usually involves extra review, and insurance companies will look closely at your diagnosis, how it’s managed, and the condition of your overall health.

If you’re not eligible for traditional policies, options like simplified issue or guaranteed issue life insurance don’t require a medical exam. These can provide coverage, but typically at higher premiums and with lower benefit amounts.

For the purposes of qualifying for life insurance, a chronic illness is a long-term health condition that requires ongoing care and management. Because these illnesses aren’t resolved quickly, insurers usually treat them as added risk, which can affect eligibility, premiums, and policy options.

Common conditions insurers may classify as chronic include:

• Cardiovascular issues such as heart disease, high blood pressure, or high cholesterol
• Diabetes (Type 1 or Type 2)
• Respiratory conditions like asthma or chronic obstructive pulmonary disease (COPD)
• Kidney or liver disorders that need regular treatment
• Neurological conditions such as multiple sclerosis or Parkinson’s disease
• Autoimmune diseases like lupus or rheumatoid arthritis
• A history of cancer (such as lymphoma, melanoma, or leukemia)

Each insurer has its own underwriting guidelines, so what one company considers a chronic illness another may not.

Read: Life insurance for people living with HIV

Life insurance can be especially valuable for people living with chronic conditions who want to protect their family’s financial future. Even if you’re managing ongoing treatment or regular checkups, coverage may still be available and can provide peace of mind.

Reasons to consider a policy include:

• Creating a financial safety net for loved ones
• Covering debts, medical costs, or estate expenses that could fall to heirs
• Paying off mortgages or other long-term loans
• Leaving a legacy or additional support for your family

Finding the right policy with a chronic illness can be a challenge, but you have options. If you manage your condition well and maintain a healthy lifestyle, you may still qualify for meaningful coverage.

Common options may include:

• Term life insurance: Term policies offer affordable coverage for a set period, though approval depends on how well your illness is controlled.
• Whole life insurance: This kind of policy offers lifelong protection and cash value growth, but premiums are higher and medical underwriting is required. It might be an option for mild chronic conditions (like Type 1 diabetes that is well-managed), but may not be attainable if your condition is more serious (like a history of cancer.)
• Universal life insurance: This is another permanent option that provides flexible premiums and benefits. It’s often available to people with manageable conditions, but eligibility varies from company to company.
• Simplified issue life insurance: This type of policy was created to help people with health conditions qualify for coverage. No medical exam is required, applicants just answer a few health questions. Premiums are higher, and coverage is limited.
• Guaranteed issue life insurance: This is the easiest kind of insurance to qualify for, as approval is guaranteed within certain age ranges. There are no health questions to answer, and no medical exam. This option is most accessible but comes with lower benefits and higher costs.

Read: What is a Life Insurance Premium and How Does it Work?

A chronic illness can affect the type of policy you qualify for, the premium you pay, and the flexibility of your coverage. Insurers look at the severity of your condition, how well it’s managed, and your overall health.

• Mild, well-managed conditions (like controlled diabetes or asthma) may still qualify for traditional policies such as term or whole life, often at a higher premium.
• More serious conditions (such as COPD, cancer, or advanced heart disease) may make you ineligible for traditional policies.
• No medical exam options like guaranteed issue or simplified issue policies are often available when traditional coverage isn’t, but these usually cost more and provide limited benefits.

What Happens if My Chronic Illness Improves After I Buy Coverage?

Even if your health improves, your policy terms generally stay the same. Premiums are locked in when the policy is issued, and insurers don’t reduce them mid-policy. Chronic conditions are, by definition, lifelong, so while symptoms may be managed, the diagnosis itself doesn’t go away.

Read: Advantages of Life Insurance

Some life insurance policies offer optional riders that let you access part of your death benefit while you’re still alive if you later develop a chronic illness that limits daily activities. These are called accelerated benefit riders (ABRs).

It’s important to know that ABRs are typically only available if you develop a chronic illness after the policy is issued. If you already have a chronic condition at the time of application, you generally won’t qualify for a policy that includes this rider. Availability also depends on the insurer and policy type.

Most insurers define “limits daily activities” by looking at activities of daily living (ADLs). These are basic tasks like bathing, dressing, eating, moving in or out of a bed or chair, toileting, and continence. If you’re unable to perform two or more ADLs without help, you may qualify to access the rider, meaning you’d receive part of your death benefit early. This reduces the eventual death benefit paid to your family.

ABRs can offer valuable financial assistance – helping with medical bills, long-term care, or living expenses.

How Do They Help?

• Early access to benefits: Allows use of part of the death benefit while living if an illness diagnosed after issue limits daily activities.
• Helps cover medical costs: Can offset expenses for ongoing treatment, medications, or specialized care.
• Supports daily living needs: Provides funds for essentials like housing, food, or caregiver help.
• Eases family burden: Reduces financial stress on loved ones during your illness.