Life Insurance For Disabled Individuals: Types & Tips

life insurance for disabled

life insurance for disabledChoosing life insurance for the disabled can be challenging, but it’s not impossible. Unfortunately, insurers consider adults with disabilities a risk, and that’s why disabled people can find it harder to get good coverage with decent rates.

If you’re a person with disabilities, there is no need to worry. You can get a life insurance policy, but certain factors will affect which is recommended and available for you. Different insurers will offer you different conditions and rates, so the more you know, the more prepared you’ll be to decide.

Now, let’s find out more about the things that carriers take into consideration when reviewing your application and the most common life insurance types for people with disabilities.

Can You Get Life Insurance While On Disability?

The short and sweet answer is yes! Life insurance is an option for people with disabilities, but the type of policy depends on the disability, the prognosis, and the overall health condition of the person. Different life insurance companies offer different rates, policies, and benefits; that’s why you should do your research before choosing.

Life insurance for people with disabilities is a diverse topic with so many factors to consider. Your disability will not prevent you from getting a life insurance policy, but your choices might be limited if you have another underlying health condition. Also, another thing insurance carriers look into is the life expectancy of a person.

But, whatever your situation is, you can still find a life insurance policy that will offer you certain benefits. Now, let’s check out the most common types you should know about.

Life Insurance Types For Disabled Adults

There are two main types of standard life insurance policies. Whether you’ll be eligible for these insurance types depends on various factors, including the disability, the insurer, whether you work or not, and more.

Term Life Insurance

This type of policy offers coverage for a certain amount of time, for example, 10 or 20 years. It’s a great option because it’s more affordable compared to permanent life insurance, and it gives you the chance to choose how long you’ll be paying the premiums.

If you live longer than the length of the term insurance, the insurance carrier won’t have to cover your death benefit.

Permanent Life Insurance

As the name suggests, this is a policy that lasts your entire life. As long as you’re paying the policy, your beneficiaries will get the benefits from the insurance. The most common type of permanent insurance is whole life insurance.

With this policy, the insurer will pay a death benefit, plus it also includes a cash value section.

If the standard term and permanent life policies are not an option for you, you should take a look at the other alternatives below.

Guaranteed Issue Life Insurance

Life Insurance Types For Disabled AdultsAlso known as guaranteed acceptance, this insurance type is a good alternative for everyone who doesn’t qualify for a better type. In other words, it’s a guaranteed whole life insurance that the carrier has to issue no matter your health condition.

The guaranteed acceptance does not require a medical exam, and you can’t be turned down. If this sounds too good to be true, you also need to know about the downsides. Guaranteed issue life insurance is more expensive, and the coverage is low (often ranging between $5,000 and $50,000).

Finally, most insurers don’t pay out a death benefit to your beneficiaries if you pass away within two years after getting the insurance.

Impaired-Risk Life Insurance

This is another life insurance for disabled individuals who don’t qualify for other policies. It’s an excellent option for people whose disabilities make them high risk and lower their life duration.

Burial Insurance

Burial insurance is a whole life insurance policy that will help your beneficiaries cover the expenses for a burial, funeral, and other expenses after death. Most insurance companies don’t require a medical exam, but you might need to fill out a questionnaire on your health.

If you decide to purchase burial insurance, make sure to choose whether you prefer your beneficiaries to receive immediate or delayed benefits.

If you compare the benefits, you’ll get to the amount you’ll pay for this insurance, and it will probably sound expensive. But, it’s definitely something you should think about if you have a severe disability and don’t want to burden your family with burial costs.

Survivorship Policy

Survivorship policy, also known as second to die insurance, is a joint policy that insures two people. It’s most commonly chosen by parents who want to help their kids out financially if they pass away. A majority of carriers don’t pay out a death benefit when one of the insurers dies but it will pay out a claim only when both of the insured people pass away.

Group Life Insurance

This employer-offered insurance is meant for working individuals. Many employers have group insurance for their employees that is affordable and accessible to everyone. In this case, the insurance company will probably not require any personal information, meaning you will still get basic coverage if you have disabilities.

Service-Disabled Veterans Life Insurance

Veterans who have a service-related disability can apply to get life insurance through the U.S. Department of Veteran Affairs. There are specific rules for this insurance type, including that the veteran should be in good general health and apply within two years of when the disability was recognized. It must also be a service-related disability, the veteran should not have a dishonorable discharge, and there are more rules.

How To Get Life Insurance If You’re Disabled

These tips will help you learn how to best approach the situation and get the best fees and best insurance type for you.

Talk To A Professional

Contact a life insurance agent to guide you through the process and advise you which insurer and type of policy to choose to get the best coverage.

Be Honest

Always be honest when filling out your application. No good will come from lying about your current health condition, bad habits, or any other questions in the form.

Look After Your Health

If you’re planning on applying for life insurance, you should take care of your health. These are just a part of the things that can help you qualify for a good life insurance policy:

  • Start by quitting all of your bad habits, including smoking and alcohol
  • Regulate your blood pressure and cholesterol
  • Get your medication as prescribed and keep all the underlying medical conditions under control
  • Eat healthy, and try to lose weight if you’re overweight
  • Get physically active if possible


Does Life Insurance Affect Social Security Disability Benefits?

The Social Security Administration will not prevent you from buying life insurance for disabled adults; however, this insurance can affect your SSI. It’s best to contact a professional before purchasing life insurance so they can let you know how it can interfere with your SSI.

The money you might receive through this insurance policy can make changes in the benefits from the Social Security Income. Term life insurance is the policy that will not affect your SSI because it does not include a cash value component.


Can you get life insurance while on disability? Yes, people with disabilities can get life insurance, but the type will vary on the disability, prognosis, condition, and more.

The two standard types of life insurance for disabled individuals are term and permanent. If you don’t qualify for these two policies, you can look into guaranteed life insurance, burial insurance, impaired-risk insurance, survivorship policy, group life insurance, and veteran insurance.

Talking to a professional life insurance agent will help you find the best quotes, the best policy, and an insurance company. Don’t forget to take care of your health and be honest while filling out your application form because insurance companies will look into your health condition.

  • Individuals with disabilities can and should consider getting life insurance. There is a life insurance policy for everyone; it’s best if you talk to a life insurance agent who’s more familiar with the rates, types, and what’s best for your case.
  • Don’t be discouraged if you don’t qualify for a term or permanent life insurance. You can still consider burial insurance, impaired-risk insurance, guaranteed life insurance, veteran insurance, group life insurance, and survivorship insurance.
  • To get a better chance of qualifying for the life insurance you want, maintain a healthy weight, a healthy diet, get your medication as prescribed, regulate your blood pressure and cholesterol, and practice physical activity if possible.

Do you have any first-hand experiences with life insurance for the disabled? Let us know your thoughts in the comments section below.