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BLOG 09/04/2020

Life insurance for people with Alzheimer’s or dementia

An Alzheimer’s diagnosis can be devastating, both emotionally and financially. More than 5 million people are currently living with Alzheimer’s, and Alzheimer’s care, including nursing homes and assisted living, costs about $5,000 per month on average

Life insurance for Alzheimer’s patients can help ease those financial burdens during a tough time. If you, a parent or another loved one is facing any of the forms of dementia or Alzheimer’s, here’s what to know about life insurance with dementia or Alzheimer’s.

Can you get life insurance with Alzheimer’s?

Life insurance is one of those things you have to buy before you need it. It is always smart to get covered sooner rather than later. If your family has a history of dementia or Alzheimer’s, you should make sure to lock in protection while you can. If you’ve already been diagnosed with dementia, you won’t qualify for a traditional term or permanent life insurance policy. 

One option is guaranteed issue life insurance. The policy doesn’t require a medical exam or ask any health questions, so even people with dementia and other serious conditions can get covered. These policies are typically permanent coverage, so they will last your whole life. However, the rates are usually higher and coverage is lower than other types of life insurance.

Does life insurance pay out for dementia?

A life insurance company will pay out for any covered cause, including forms of dementia and Alzheimer’s disease. Your family can use the payout however they wish, to pay for final expenses, funeral costs, medical bills and more. 

If you purchase guaranteed issue life insurance, keep in mind that it might come with a graded period, which refers to a period of time at the beginning of your policy when you are not eligible for the full coverage amount. If you die during that time, usually the first two to three years after you purchase the policy, your family will typically only receive the premiums and perhaps a little bit extra. After that, you are typically eligible for the full amount.

In some cases, you might also want to add life insurance riders to your policy. Life insurance riders are extra optional features you can add to your life insurance policy to customize it to your needs and the needs of both your final expenses and your family. 

There are a few riders that might be helpful if you are facing dementia, including terminal illness riders and living benefit riders. Terminal illness riders give you and your loved ones extra financial protection if you are diagnosed with a terminal illness, while living benefit riders can help you and your family get through tough financial times by paying out some or all of the death benefit before you die.

Do you still have questions or want some more info about life insurance? We’re here to help. eFinancial works with over 20 life insurance companies to help you find the right coverage for you and your family. Get a quote or give one of our agents a call today.

 

At eFinancial, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed and updated regularly to ensure the information is as relevant as possible.