Life Insurance and Lupus

Life insurance can help provide financial resources in the event of your passing. But with lupus, it can be more difficulty to come by. What are your options?

Life insurance companies pay the family or dependents of the deceased a sum of money on the person’s death. This money can help give the bereaved the financial breathing room that they need to grieve and recover from the loss of a loved one. It can also afford:

• funeral costs
• debts
• basic everyday needs

Because people with lupus can have a lot of medical bills and a higher risk of fatal injuries and emergencies, life insurance is a way to take care of their family – just in case. However, those same increased health risks can make life insurance companies reluctant to approve policies. 

There are 3 types of life insurance:

1. Term
   • These plans offer guaranteed level premiums (amount paid monthly) for a given term of 10, 20, or 30 years
   • Can be valuable if you have a young child and you want to ensure they can afford college, etc.
2. Permanent – whole life
   • Permanent plans are designed to be in effect the entire life, even from childhood.
   • Whole life policies offer premiums that do not rise over time.
   • These policies build cash value that you can borrow against
3. Permanent – universal
   • Designed for the entire life, but with more flexibility
   • You can adjust the size of premiums, benefits, and accumulation based on what’s in the contract

How do I get life insurance?

Many life insurance companies are willing to consider people with lupus. Unfortunately, Lupus Warriors with additional complications are likely to encounter difficulty being approved for a policy. 

It can be particularly challenging to receive a policy if you have organ damage to the:

• heart
• lungs 
• central nervous system
• kidneys

The best advice is to get a life insurance plan sooner – before organ damage occurs – rather than later. Keeping yourself in good health – through exercise, diet, avoiding tobacco use, and taking your medications regularly – can help make it more likely that you will be approved for life insurance.

What life insurance options are available?

Some companies offer specific life insurance plans for people with lupus. Or, they will offer their usual plan at a higher rate or with a lower payout. In some cases, if a person with lupus dies from natural causes, the payout will be delayed or spread out over the course of several years. Accidents pay out normally to the family. If you are particularly healthy, or your lupus is in remission, you may be able to get the standard plans.

Using a rate calculator or an independent agent can help you find the best life insurance for you.

Life insurance questions to consider

1. I get life insurance through work. Do I need a personal plan?
   • Group policies offered to employers are a way to receive life insurance without a medical exam. But, they often provide a smaller cash payout.
   • If you change jobs, you may not be able to take your coverage with you
2. Will my premiums change over time?
   • Depends on the type of plan. Whole life plans have guaranteed premiums as long as the policy does not lapse. Term plans have a fixed premium for a given period, but often require an increase after that time.
3. How are benefits paid?
   • The structure can be adjusted based on your family and goals. They can be paid as either one lump-sum payout or issues in monthly installments. There is even an option to pay the benefits into a retirement account (IRA).