Life Insurance with Dementia and Alzheimer’s Disease
Talk to one of our experienced advisors, today!
11 minute read
Originally published: July 6, 2022
Updated: August 3, 2023
Life Insurance with Dementia and Alzheimer’s Disease
Talk to one of our experienced advisors today!
11 Minute read
Originally published: July 6, 2022
Updated: August 3, 2023
Being diagnosed with Alzheimer’s and other forms of dementia is tremendously upsetting and devastating, and planning for the future with life insurance can be difficult. When coping with the discomfort and condition of this sickness, looking for a guaranteed issue life insurance policy will make everyone feel a little bit more prepared.
Oftentimes, navigating your Alzheimer’s or dementia diagnosis can seem confusing. Our clients are typically under the impression that they do not qualify for life insurance. A common question we receive is “Can I get life insurance if I have Alzheimer’s or dementia?”
Yes, you can get life insurance even if you have been diagnosed with Alzheimer’s or dementia. At Protect Your Wealth, we are here for you to help you navigate your options and choose a policy that suits your needs.
In this article…
Dementia and Alzheimer’s Overview
Over 747,000 Canadians are living with Alzheimer’s or another form of dementia. Alzheimer’s disease is the most common type of dementia, which is an umbrella term for disorders in which the brain no longer functions normally.
Dementia vs. Alzheimer’s Disease: What is the Difference?
Although both conditions are similar, there are slight differences.
What is Dementia?
Dementia refers to a set of symptoms associated with a decline in memory, reasoning, or other cognitive abilities. There are many different types of dementia, and many different conditions can cause it. Mixed dementia is a condition in which brain changes from multiple types of dementia occur at the same time. Alzheimer’s disease is the leading cause of dementia, accounting for 60-80% of all dementia cases.
Dementia is not a normal part of the aging process. It is caused by brain cell damage that impairs a patient’s ability to communicate, affecting thinking, behavior, and feelings.
What is Alzheimer’s Disease?
Alzheimer’s disease is a degenerative brain disease caused by complex brain changes caused by cell damage. It causes dementia symptoms that worsen over time. Because Alzheimer’s typically affects the part of the brain associated with learning first, the most common early symptom is difficulty remembering new information.
As Alzheimer’s disease progresses, symptoms such as disorientation, confusion, and behavioral changes become more severe. Speaking, swallowing, and walking eventually become difficult.
Though increasing age is the greatest known risk factor for Alzheimer’s, the disease is not a normal part of aging. And, while the majority of Alzheimer’s patients are 65 and older, approximately 200,000 Americans under the age of 65 have the disease.
Symptoms of Dementia and Alzheimer’s
Memory loss that interferes with daily life could be a sign of Alzheimer’s or another dementia. Alzheimer’s disease is a brain disease that causes a gradual loss of memory, thinking, and reasoning abilities. The most common signs of dementia and Alzheimer’s are as follow:
- Memory Loss: Difficulty remembering recent events, names, or faces. As the condition progresses, long-term memory can also be affected.
- Impaired Problem-Solving: Difficulty handling complex tasks, such as managing finances or following instructions.
- Confusion and Disorientation: People with dementia or Alzheimer’s may become disoriented in time and space, not recognizing familiar places or getting lost easily.
- Impaired Judgement: Poor decision-making abilities and difficulty making appropriate choices.
- Difficulty with Language: Trouble finding the right words, understanding conversations, or expressing oneself clearly.
- Personality and Mood Changes: A person may experience shifts in mood, becoming anxious, irritable, or depressed.
- Withdrawal from Social Activities: People with dementia or Alzheimer’s may withdraw from social interactions and hobbies they previously enjoyed.
- Repetitive Behaviours: Engaging in the same action or asking the same question repeatedly.
- Misplacing Items: Putting things in unusual places and then being unable to find them.
- Decline in Self-Care: Neglecting personal hygiene or forgetting to eat.
Risk factors for Developing Alzheimer’s
Even though we still don’t know why some people get Alzheimer’s disease and others don’t, research has helped us identify the risk factors for the condition. Below are some of the most common risk factors associated with Alzheimer’s.
Age: Alzheimer’s disease is more likely to develop in people who are older. The risk of Alzheimer’s doubles every five years beyond the age of 65. Early-onset Alzheimer’s on the other hand, affects those under the age of 65. Around 5% of persons with Alzheimer’s have the illness develop while they are in their 40s or 50s, according to current estimates. Younger Alzheimer’s is frequently misdiagnosed.
Family History: You are more likely to get Alzheimer’s if your parent or sibling has it, than if you don’t have a first-degree family who has the illness. Although genetics, environmental circumstances, and lifestyle choices could all be contributing factors, scientists still do not fully understand what causes Alzheimer’s to run in families.
Genetics: Several gene variations that raise the risk of acquiring Alzheimer’s disease have been identified by researchers. The APOE-e4 gene is the most commonly connected risk gene with Alzheimer’s; it is thought to play a role in up to one-quarter of Alzheimer’s cases.
Moderate Cognitive Impairment (MCI): Changes in thinking capacity are among the symptoms of MCI, although they do not interfere with daily life and are not as severe as those caused by Alzheimer’s or other progressive dementias. MCI, especially MCI with memory impairments, increases the chance of acquiring Alzheimer’s and other dementias. MCI, on the other hand, does not always advance. It can revert or remain steady in some circumstances.
It’s important to remember that while some risk factors cannot be changed, such as age and genetics, addressing modifiable risk factors can help reduce the overall risk of developing dementia. Maintaining a healthy lifestyle, including regular exercise, a balanced diet, mental stimulation, and social engagement, can be beneficial in promoting brain health.
Life Insurance with Dementia and Alzheimer’s
Life insurance can be a valuable asset for anyone, especially someone suffering from Alzheimer’s disease or other forms of dementia. Long-term health care and nursing care costs can quickly deplete a family’s savings and cause financial hardship. Life insurance can help secure your wealth for your heirs after your death, or it can be used to pay for medical and care costs if you have a life-threatening illness, such as Alzheimer’s.
We know that Alzheimer’s disease and other forms of dementia are extremely tough to deal with, whether it affects you or your loved ones. Unfortunately, the majority of Alzheimer’s patients result in death, while life duration can be extended with therapy. If you or a loved one has Alzheimer’s disease, you’re undoubtedly considering end-of-life care, which includes acquiring a life insurance policy if you don’t already have one.
Although possible, if you have Alzheimer’s or another kind of dementia, it might be difficult to obtain life insurance. Please keep in mind that you will not be eligible for a standard term or permanent life insurance policy if you have already been diagnosed with dementia.
Can you get life insurance with Dementia or Alzheimer’s?
Yes, you can still be eligible for life insurance if you have dementia and Alzheimer’s. Guaranteed issue life insurance is one possibility. Because the policy does not demand a medical checkup or ask any health-related questions, people with dementia and other serious diseases such as autoimmune diseases or even cancer are eligible. These policies are normally permanent, which means they will last the rest of your life. However, the rates are typically higher with lower coverage amounts than for other types of life insurance.
If you buy guaranteed issue life insurance, keep in mind that it may have a graded period, which is a time period at the start of your policy when you are not eligible for the full coverage amount. If you die during that period, which is normally the first two to three years after purchasing the insurance, your family or beneficiaries will typically receive simply the premiums you’ve paid so far, and possibly a little extra. Following that, you are usually eligible for the whole sum.
What Types of Coverage are Available for Dementia Patients?
In general, traditional fully underwritten term or permanent life insurance policies with Alzheimer’s will be nearly impossible to obtain. However, regardless of your health, you can obtain a guaranteed issue life insurance policy.
Guaranteed Issue Life Insurance
Guaranteed issue insurance is intended for people with major health problems or who are older and do not qualify for regular or simplified insurance. These plans don’t ask any questions and don’t demand any medical exams. Many insurers will also offer a 24-month deferral term for guaranteed life acceptance insurance. Because it is also a sort of permanent life insurance, guaranteed issue insurance coverage normally has a maximum of $50,000, with some insurers covering less, and has high premiums.
Guaranteed issue policies are often short-term, low-cost policies with minimal death payments designed to cover funeral expenses. Some guaranteed issue plans have more coverage, but they can get rather pricey. Guaranteed issue policies have extremely minimal underwriting. The life insurance company will issue the policy and will not deny it as long as the insured person meets some very simple standards. These are often effective for elderly persons who have previously paid off their debts and are no longer supporting their families, as is the situation for the majority of Alzheimer’s patients.
Frequently Asked Questions (FAQs) about Life Insurance with Dementia and Alzheimer’s
Alzheimer’s disease is often diagnosed in the last decade or two of life. When life insurance firms evaluate potential customers, they consider how likely they are to die. They do this to calculate the financial risk that they will have to take on while insuring you, because if your beneficiaries submit a claim, they will have to pay out thousands of dollars. If you have a risky lifestyle or a medical condition, life insurance companies may either charge you substantially higher rates to compensate for the financial risk they are taking, or they will reject you coverage entirely. Because a substantial proportion of Alzheimer’s disease patients die, most life insurance companies will refuse you coverage if you have it.
However, you do have some options. Contact an advisor today to discuss a plan that suits your needs!
The cost of life insurance might vary greatly depending on your age and health status at the time of purchasing. The level of coverage you purchase will also affect the price you pay, so compare policies before deciding on one.
There are numerous things you should do to prepare for end-of-life expenses, regardless of your age or condition. Generally, it is important to buy life insurance when you are younger. You would be healthy and can acquire coverage at a lower cost. Although it may not seem important at the time, you will thank yourself afterwards.
If a loved one already has Alzheimer’s, acquire them a guaranteed issue life insurance policy and then focus on budgeting future expenses. Aside from funeral fees, you may need to pay off medical bills or pay off other debts.
If you are diagnosed with a significant health condition, such as Alzheimer’s, you should contact your life insurance company and inquire about accelerated living benefits, often known as viatical settlements. Essentially, you are selling your life insurance policy back to the firm or a third-party broker for a percentage of the face value of the policy, but not the entire face value, and you receive the benefits prior to your death.
You can utilize the settlement money to cover your immediate expenses. Keep in mind that if you pay out your life insurance policy, the policy is no longer available to your heirs after your death.
A person suffering from Alzheimer’s disease might apply for a coverage that involves traditional underwriting. An insurance policy can be issued, but it will almost definitely be issued with a substandard rating. This will make it more expensive, but it will most likely be less expensive than a guaranteed issue policy. If the disease has not advanced enough and the insured individual is still young enough, it may be worthwhile to exhaust this option before considering alternative possibilities.
The amount of life insurance you require is determined by how much money your family will require after your death (for burial expenses, legal fees, debts, mortgage amounts, and so on) and how much money your spouse or heirs will require after your death to maintain their quality of living. Consider your current resources, such as savings accounts, investment assets, real estate, and other assets.
The amount of life insurance you require might be confusing, so talking with a skilled, independent insurance specialist is highly recommended.
An individual’s cognitive and physical abilities can be permanently impaired by dementia or Alzheimer’s disease. There may be an increase in premiums if you seek insurance after a diagnosis. Life insurance policies that don’t require medical examinations, called guaranteed issue policies, are more expensive than standard policies.
Finding the right life insurance plan for you
Whether you have Alzheimer’s disease or other forms of dementia or are at risk, there’s a life insurance product or package for your situation. A life insurance specialist can help you create the best plan and package for your needs
At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Brampton, Calgary, and Richmond.
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