Do Terminally Ill Veterans Qualify for Life Insurance?

Do Terminally Ill Veterans Qualify for Life Insurance?

There is nothing more compelling than a doctor diagnosing you with a terminal illness to have you purchase life insurance for veterans. As your mind gets taken over by the thought of your family without you, you start analyzing ways to secure their financial future after you’re gone.

No matter whether the veteran is totally disabled or terminally ill, life insurance is always a good idea. It can provide financial support, protect their interests, and help their family after they’re gone.

Here’s how to know if you qualify for life insurance with a terminal illness and where you can apply for it.

Life Insurance for Terminally Ill Veterans

It’s never too late to consider terminal illness life insurance. While there are many companies that do not provide insurance options to someone with a terminal illness, there are companies and organizations out there that offer insurance options and additional benefits to terminally ill veterans.

The five things you need to know while getting life insurance as a terminally ill patient are below.

  • While you can’t purchase traditional life insurance as a terminally ill veteran, you may be eligible for guaranteed issue life insurance.
  • The policy will cover end-of-life expenses.
  • There will be no medical exam.
  • No one will ask you questions related to your health.
  • The policy may be issued instantly.

These are the three easy steps to get life insurance coverage as a terminally ill patient. 

1. Application Submission

Get in touch with an independent agent and compare different quotes to ensure that you apply for the most benefits.

You can also get a quote from companies like the following, which will be discussed in further detail below.

  • AIG Guaranteed Issue Whole Life Insurance
  • Great Western Final Expense Insurance
  • Mutual of Omaha Guaranteed Issue Life Insurance
  • Gerber Guaranteed Issue Life Insurance

2. Understand the Policy

Before you purchase a policy, take some time to fully understand the policy. Consider premium payments, how much life insurance you need, death benefits, beneficiary details, and carrier information prior to making your decision.

3. First Payment

The policy will become active once you make the first payment. Make sure to keep the policy declaration in a safe place that your beneficiary is aware of.

The Role of Insurability in Life Insurance for Veterans

Factually speaking, insurability refers to one’s ability to obtain insurance coverage. Different insurance companies have different ways of evaluating insurability.

If a person has low insurability, that means that their risk of death is higher. As a result, insurance companies have a higher chance of paying the claim to the beneficiaries.

If you are suffering from a terminal illness, it is likely that you have low insurability. Age, gender, lifestyle, weight, and other factors can also affect your insurability.

Having low insurability can affect your eligibility for insurance and the rates for coverage.

Proof of Insurability

Insurance providers require Evidence of Insurability (EOI) from applicants in order to issue certain types of insurance. Generally, this document includes a basic questionnaire to ensure the overall health of the applicant.

For some companies, EOI might be a simple questionnaire or a detailed survey, while others require a physical examinations by a medical practitioner.

How to Get Coverage Regardless of Your Health

Rest assured that it is possible to qualify for life insurance, even if you are a terminally ill veteran. There are several companies that do not require any medical examination for you to be eligible.

Here are some policies you can qualify for, even with a terminal illness.

Group Life Insurance

According to a 2017 study by the Life Insurance Marketing and Research Association, more Americans are covered by group life insurance than personal life insurance.

But, what is group life insurance?

In simple terms, group life insurance is an employer-sponsored life insurance option available to the employees of their company.

Although coverage amounts are typically lower, you don’t have to undergo a medical examination to qualify for the policy. This can be reassuring, especially if you suffer from a terminal illness.

The insurance is usually free (or highly discounted) and comes with guaranteed coverage ranging from $25,000 to a multiple of your annual salary.

Pros of Group Life Insurance

Here are some reasons getting group life insurance might be a good option.

  • These insurance policies are usually easier to get. There is hardly any paperwork and the cost is relatively low.
  • Most group life insurances are free of cost.
  • There is no health checkup. So, qualifying for the policy is somewhat easier.

Cons of Group Life Insurance

While group life insurance comes with benefits like lower cost and no health checkups, there might be the following disadvantages as well.

  • The coverage is usually tied to your job. If you quit or lose your job, you will no longer be eligible for that coverage.
  • You will have limited choices.
  • The coverage amounts will be relatively low.
Related:Best Life Insurance Companies for Veterans

Guaranteed Issue Life Insurance

Sometimes referred to as “no-questions-asked life insurance,” guaranteed issue life insurance is a whole life insurance policy that requires no medical health checkup and stops the insurance provider from asking any questions related to your health.

But, what’s the catch?

Well, most guaranteed issue life insurance comes with a waiting period, ranging from two to three years.

Dying right after getting insurance will unfortunately result in your beneficiaries not receiving the death benefit. However, this is not a scam. Without the waiting period, everyone would apply for this policy on their deathbed.

So, this waiting period is a way to secure the company’s interest. However, if you die during the waiting period, your family will get the premium you’ve already paid.

The policy pays a death benefit ranging from $1,000 to $25,000. The coverage provided is not much compared to other life insurance options, but it is enough to cover your funeral and final expenses.

Guaranteed issue terminal illness life insurance costs a little more than a policy that would require a medical examination. For example, a guaranteed issue life insurance with a coverage of $25,000 could cost $919 per year.

Is a Guaranteed Issue Policy Right for You?

Getting guaranteed issue life insurance might be a good choice if:

  • You are terminally ill with a life expectancy of less than two years.
  • You are undergoing dialysis.
  • You recently had an organ/tissue transplant.
  • You have HIV.
  • You have Alzeihmer’s or dementia.
  • You live in a nursing home.
  • You have cancer.
  • You are in a wheelchair due to a severe disability.

Top Guaranteed Issue Life Insurance Companies for Terminally Ill Veterans

If you are considering guaranteed issue life insurance, you might want to compare quotes from top-rated companies to qualify for the most benefits.

Here are some top-rated companies that offer guaranteed issue life insurance.

AAA (American Automobile Association) Life Insurance Co.

Founded in 1969, AAA offers whole life, term life, and guaranteed issue life insurance to eligible applicants. The company also offers special discounts to existing AAA members.

At this insurance provider, you may apply for guaranteed issue whole life insurance with coverage of up to $25,000. Applicants aged between 45-85 can qualify automatically, and the waiting period is usually the first two years.

AIG (American International Group)

If you suffer from a pre-existing health issue, like a terminal illness, AIG might be a good option. The company offers high coverage amounts and does not require a medical examination for all policies.

However, AIG does not provide online quotes and is known for its poor customer service. They also offer guaranteed issue whole life insurance with coverage up to $25,000 for people aged between 50-80.

Gerber Life Insurance

Gerber Life Insurance offers term, whole, accidental, and guaranteed issue whole life insurance options for people of all ages. The company does not require a medical examination for guaranteed issue policies and also offers additional discounts if you sign up for automatic payments.

If you are between 50-80, you can get a guaranteed issue life insurance with coverage of up to $25,000. However, for people living in South Dakota, the maximum coverage is $15,000.

Mutual of Omaha Guaranteed Issue Life Insurance

Mutual of Omaha offers above-average life insurance policies and the ability to convert term life insurance to whole life insurance.

The company offers maximum coverage of $25,000 to people aged between 45-85 for guaranteed issue term life insurance.

New York Life

New York Life is a life insurance provider that offers a variety of products, including guaranteed issue whole life insurance to eligible applicants.

While the company does not offer online quotes, they do provide accelerated death benefits, including disability coverage and living benefits.

Choosing Life Insurance as a Vet With Terminal Illness

If you are a terminally ill veteran, getting life insurance might be a good idea, since it would help your family cover the final expenses after you pass away.

There are several companies that do not require a medical examination. Additionally, you can even qualify for guaranteed issue life insurance and get coverage of up to $25,000. This may not seem like a lot, but it’s enough to help your family cover your funeral and other final expenses.

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