Coping with dementia can be distressing for you and your loved ones. Your dementia diagnosis may lead to concerns about finances, and understandably so. Care for an Alzheimer’s patient can cost an average of $5,000 per month, including medications and assisted living costs.
Life insurance can help alleviate some of the financial stress that your dementia may have caused. The benefits of life insurance are countless. A few benefits include lifelong coverage and benefits, financial security for your loved ones, the means for dependents to pay off your debts, as well as tax advantages.
You may have heard how difficult it can be to qualify for life insurance with a pre-existing health condition like dementia, but don’t get discouraged. Though getting coverage tends to be faster and less expensive for the young and healthy, it is still possible for older adults and those with dementia to get life insurance coverage. However, life insurance rates will rise up to 9% with each year you age, so the best time to apply for coverage is now.
Other factors that may influence your ability to qualify for life insurance coverage are the age of onset for your dementia, your family history, how your condition is progressing, and the extent to which you require assistance in your daily activities. Most dementia is progressive, meaning that the symptoms get increasingly worse over time, so the more your health declines, the fewer coverage options will be available to you.
Whole and Term Life Insurance
Whole life insurance is a permanent type of life insurance policy that lasts the rest of your life and accrues interest on your premiums. Your beneficiaries also receive a non-taxable payout upon your death, provided you maintain your regular payments. This payout amount is dependent on the amount of coverage you purchase in your policy.
Because the premiums on whole life insurance are fixed, you never have to worry about an unexpected increase in cost. You also don’t need to worry about your life insurance expiring and leaving you without coverage, since whole life insurance lasts until the death of the policyholder.
Like whole life insurance, term life insurance provides tailored coverage for your unique situation and does not require a medical exam. The main difference is that term life insurance has an expiration date, at which point the benefits and death payout no longer apply. As a result, term life insurance tends to have lower premiums.
Unfortunately, having dementia will make it difficult to qualify for traditional life insurance like a whole or term policy. The reason for this is that individuals must be of sound mind when entering into a legal contract such as an insurance policy, and with dementia patients, there’s no way of proving that this is the case, especially since there is no known cure for dementia.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a type of life insurance policy that accepts everyone regardless of health status. Because no medical records or interviews are required to obtain coverage, this is a good option for someone with dementia. However, these policies tend to be more expensive and include a graded death benefit, or a waiting period, of three years. After the waiting period is over, the policy will become effective and your beneficiaries will be eligible for the benefits.
Supplemental Coverage
You also have the option to purchase supplemental policies, called riders, to address specific concerns that may not be covered by a general policy. An accelerated death benefit insurance rider can help those with a serious health condition cover end-of-life costs such as hospice care and medical expenses. These policies grant you and your family early access to your benefits so you can use the funds when you need them most.
Talk to an Expert at Americo Senior Life
Managing the confusion and mental decline of dementia is stressful, but knowing that you have a life insurance policy that will take care of you and your beneficiaries throughout your life and after your death can help relieve some of the anxiety you feel.
Have questions about the types of life insurance policies or how life insurance policies work? Americo Senior Life offers assistance walking through the process of qualifying for life insurance and assessing your options. We offer a variety of affordable plans for seniors that are easily customizable to you and your needs. Speak with a representative today or use our online application process to get started.