Applying for life insurance can be a bit trickier if you're applying with a disability or pre-existing medical condition. But that doesn't mean you're 100% likely to be denied cover. Many people with disabilities are able to get life insurance, but that largely depends on the circumstances.
In this guide, we’ll look at how having a disability might affect your options, what insurers typically ask, and what options may be available to you.
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Can I get life insurance if I'm disabled?
You can sometimes still get life insurance if you're disabled, however, the process for applying may be different from usual.
Disability in itself can refer to both physical and mental conditions, and insurers will usually assess your individual circumstances to determine the level of risk involved.
Life insurance tends to be available for disability types such as:
Neurological conditions
Musculoskeletal disorders
Cognitive impairments
Hearing or visual impairments
In certain cases, an insurance company could deny you cover if you are deemed high risk. This is when the insurer has determined that the likelihood of a payout is significantly higher based on your health condition.
However, not all situations are viewed the same. Even if one provider declines you, others may still be open to offering cover, potentially with a higher premium or some exclusions in place.
Will I need life insurance if I'm disabled?
It's estimated that there are 16 million disabled people in the UK[1], many of whom could benefit from having a life insurance policy.
Life insurance can provide a financial safety net for your loved ones should anything happen to you. This could be especially important if you have dependents who rely on your income or care.
Having life insurance in place can cover various expenses. For example, it could help cover your funeral costs rather than leaving the burden to your family. It could also be used to pay off any outstanding debts, such as a mortgage or personal loans, so your loved ones are not left with them instead.
While life insurance isn't mandatory, it can be beneficial for providing peace of mind and financial security for your loved ones.
How will my disability impact life insurance?
Having a disability can impact life insurance in more ways than one.
Starting with the application process, you will need to disclose your disability along with any other conditions you have. It's imperative to be honest about your health, otherwise, you could run the risk of your policy being voided later on or a claim being denied.
The insurer will use this information to assess your level of risk, which can influence whether they offer you cover, and if so, how much you’ll pay in premiums. It may be the case that your disability has little or no effect on the terms of the policy, particularly if it’s well-managed and doesn’t significantly impact your life expectancy.
However, if your condition is progressive or has led to other complications (such as regular hospital stays), you may face higher premiums or find that certain causes of death are excluded from the policy.
Is life insurance more expensive with a disability?
Generally speaking, life insurance premiums are typically more expensive for those with health conditions, including disabilities. This is because, in the eyes of the insurer, you may be more likely to pose a higher risk, meaning the chance of a claim being made is perceived to be greater.
The cost of your premiums may vary depending on factors like the type of disability, its severity, and your overall health and lifestyle habits.
However, not all disabilities will result in higher premiums. A minor disability could mean that your premiums remain similar to those without disabilities. Insurers often evaluate the specifics of each case, including how well your disability is managed and its impact on your day-to-day life.
You may also face higher premiums if you have any additional health conditions, such as heart problems. Or if your family medical history indicates a higher likelihood of developing certain illnesses. Lifestyle choices like smoking can also influence your premium costs.
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What types of cover are available?
There are various types of life insurance policies to choose from. Two of the main options are term life insurance and life assurance (also known as whole life insurance).
Term life insurance typically covers you for a set number of years (often between 5-50 years). The policy pays out so long as you die within the term you agreed upon. If you survive the policy term, no payout will be made.
It offers three levels of cover:
1. Level term – the payout stays the same throughout the policy.
2. Decreasing term – the payout reduces over time, often used alongside a repayment mortgage.
3. Increasing term – the payout amount rises over time to keep up with inflation.
Life assurance (also known as whole life insurance) provides cover for the rest of your life. It guarantees a payout whenever you die, as long as you keep paying the premiums. Because of this lifelong cover, it usually comes at a higher cost than term insurance.
If you're disabled, you might find it harder to get accepted for some of these policies, particularly if your condition is considered high risk. In that case, guaranteed acceptance life insurance could be a suitable alternative.
This type of cover is usually available without medical questions, although the payout tends to be smaller and there’s often a waiting period before full cover is active.
Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.
Can I Be Refused Life Insurance if I'm disabled?
Legally, insurance companies can refuse to insure you if they determine you are high-risk. They also have the right to apply exclusions or conditions to any policy they offer you. However, they have a duty to inform you of the reasons for a denial or why they're charging you more.
Does life insurance pay out for disability?
Life insurance does not cover disability, it only covers you in the event of death.
If you're looking for protection in case you become seriously ill or disabled, there are other types of cover that may be more suitable:
Critical illness cover can pay out a lump sum if you’re diagnosed with a serious condition or become permanently disabled due to illness or injury. This money could help you manage day-to-day expenses, treatment costs, or even adapt your home if needed.
Income protection insurance can pay you a monthly benefit if you’re unable to work due to illness or injury, including disabilities caused by accidents or medical conditions.
If you’d like to understand more about how these policies work, you can speak with one of our trained advisers who can talk you through your options.
Will my disability affect a life insurance payout?
Your disability won’t affect a life insurance payout, as long as you were honest about your health when you applied.
Life insurance is designed to pay out when you pass away, regardless of whether or not you have a disability. However, if your death is linked to a condition you didn’t disclose during the application process, the insurer could withhold payment or reduce the payout.
That’s why it’s important to be upfront about your health and any disabilities you have when taking out cover. As long as everything is declared and your policy is active, your loved ones should receive the full benefit amount when you pass away.
At Cavendish Online, we help you find the right cover for your needs, including options if you’re living with a disability or pre-existing condition. Get a quote online or talk to an adviser today.
