Can You Get Life Insurance With Dementia?

Over half a million people in England have a formal diagnosis of dementia^[1], which naturally raises questions about life insurance. In most cases, taking out a policy after a dementia diagnosis can be difficult.

This guide looks at whether you can still take out life insurance with dementia and the types of cover available.

Is dementia covered by life insurance?

Standard life insurance policies do not pay out if someone is diagnosed with dementia.

Instead, it pays out if you pass away during the policy term.

However, if someone with dementia passes away while their policy is still active, it would usually pay out as normal.

Some policies include critical illness cover, but dementia is not always included as a standard condition. It's typically limited to more severe or specific diagnoses, and often only at advanced stages.

What happens if you apply for life insurance with dementia?

If dementia has already been diagnosed, most insurers will not be able to offer basic life insurance. This is because applications are based on current health and future risk. Dementia is considered a progressive condition.

In practice, this often means:

• The application is declined

• Cover is only offered with significant exclusions

While having limited cover can seem advantageous, it may not be suitable in reality.

This is not a reflection on the individual, but simply how risk-based underwriting works.

Are there any life insurance options for people with dementia?

While standard policies are unlikely to be available, there are still a couple of potential routes depending on circumstances.

Some over 50s life insurance plans may still be available, as they are typically offered on a guaranteed acceptance basis. This means there are no medical questions, and acceptance is not based on health.

These plans can provide a small lump sum payout that may help with things like funeral costs, outstanding bills or debts, or to leave a modest gift for your family.

One thing to note is that these policies are usually limited in cover amount and may include a waiting period before a claim can be made.

What if dementia is in the early stages?

If dementia is in the very early stages, or if symptoms are mild and have yet to have an effect on daily life, there may be rare cases where insurers are willing to assess an application.

In these situations, insurers may ask for:

• A GP report or medical records

• Details of diagnosis and treatment

• Information about daily functioning and overall health

Even then, coverage is not guaranteed, and where it is offered, it may come with higher premiums or restrictions. If you have a family member with dementia, it’s worth applying with guidance.

What if you already have a policy before diagnosis?

If you already had life insurance in place before being diagnosed with dementia, your policy will not be impacted. This is because of the underwriting that adheres to the terms agreed upon at the time the policy was taken out.

As long as the policy remains active and you continue to pay premiums:

• Cover usually stays in place

• The policy terms do not change

• A valid claim would still be paid, provided conditions are met

This is one of the key reasons why getting cover earlier in life can be beneficial. It could prevent future health changes from impacting your existing policy.

If you’re a family member and are unsure whether your loved one has cover, please see our guide on finding a lost policy.

Why is dementia treated differently by insurers?

Life insurance is designed around assessing future risk at the point of application. Dementia happens to be a condition that can progress over time and may affect life expectancy.

Because of this, insurance providers tend to review with caution, especially where a diagnosis has already been made.

Are there any alternatives if life insurance isn’t available?

If regular life insurance is not an option, some people may still consider:

• Over 50s life insurance for simplified cover with no medical questions, though typically lower payout amounts

• Existing policies to maintain any cover already in place, as it is often the most valuable protection.

• Financial planning support to help protect assets or existing cover

Can you get life insurance with dementia if you were previously healthy?

If a policy was taken out before any symptoms or diagnosis, it will normally continue as long as it is maintained. The insurer will not usually reassess health once the policy has started.

Eligibility is based on your health at the time you apply, not changes that happen afterwards.

Does a family history of dementia affect life insurance?

If there's a history of dementia in your family, it does not automatically mean you'll be impacted. Depending on your own health, you may not need to pay more for premiums or be declined cover.

However, insurers may ask about your family's medical history during the application if close relatives have been diagnosed.

A family history alone is usually treated differently from having a diagnosis yourself. Insurers will typically look at your own health, age, lifestyle, and medical records when assessing risk.

If you're concerned about dementia running in your family, it's often worth arranging cover sooner rather than later while you remain in good health.

Dementia support and further help

A dementia diagnosis can be challenging not only for the person affected but also for their family and carers. If you or a loved one has recently been diagnosed, the following organisations can provide information, guidance, and support:

• Dementia UK: Specialist support from Admiral Nurses for families affected by dementia.

• Alzheimer's Society: Information on dementia, care support, and local services.

• NHS Dementia Services: Guidance on symptoms, diagnosis, treatment, and support available through the NHS.

• Age UK: Advice on care, benefits, and financial planning later in life.

Need help finding life insurance?

If you're looking for life insurance and have concerns about dementia, family medical history, or other health conditions, speaking to an adviser can help you understand what options may be available.

At Cavendish Online, we compare life insurance quotes from across the market and can help you explore suitable cover based on your circumstances. Whether you're looking for standard life insurance, over 50s cover, or guidance on existing policies, our team can help you find the right protection for your needs.

_{[1] https://www.england.nhs.uk/mental-health/dementia/}