Life Insurance for Individuals with Down Syndrome
Even if your loved one has down syndrome, you can still get a great life insurance policy.
11 minute read
Originally published: February 10, 2023
Life Insurance for Individuals with Down Syndrome
Even if your loved one has down syndrome, you can still get a great life insurance policy.
11 minute read
Originally published: February 10, 2023
Have you looked into life insurance for a family member with Down syndrome? Or perhaps you applied just to be turned down? Life insurance is an important consideration for anyone, but it can be especially challenging for individuals with Down syndrome. This is because many insurance companies consider Down syndrome a pre-existing condition and may deny coverage or charge higher premiums. However, it is still possible for individuals with Down syndrome to obtain life insurance coverage.
When it comes to life insurance for individuals with Down syndrome, our clients worry since it is more difficult for them to qualify for coverage compared to those without the condition. Insurers may consider factors such as the individual’s age, overall health, and the severity of their Down syndrome when determining eligibility and rates. A common question we get from our clients’ is “Can someone with Down syndrome get life insurance?”
Yes, it’s still possible for individuals with Down syndrome to obtain life insurance. Some insurance providers may offer coverage with higher premiums or exclusions, while others may require a medical examination or additional documentation.
In this article:
- Down Syndrome Overview
- What Are the Life Insurance Options That Are Available for Individuals With Down Syndrome?
- What Are the Key Factors To Consider When Researching Life Insurance Options for Individuals With Down Syndrome?
- Life Insurance Options
- Frequently Asked Questions (FAQs) about Life Insurance with Down Syndrome
Overview
Down syndrome, also known as Trisomy 21, is a genetic disorder caused by the presence of an extra copy of chromosome 21. This extra genetic material leads to a variety of physical and cognitive characteristics, including intellectual disability, delayed development, and distinct physical features such as a flattened facial profile and upward slanting eyes. Down syndrome is the most common chromosomal disorder and occurs in people of all races. People with Down syndrome have the potential to lead fulfilling lives with proper support and education.
Types of Down Syndrome
There are three types of Down syndrome:
- Trisomy 21: This is the most common type of Down syndrome and occurs when there is an extra copy of the 21st chromosome in every cell of the body. This extra genetic material leads to the physical and cognitive characteristics associated with Down syndrome.
- Mosaicism: This type of Down syndrome occurs when there is a mixture of cells, some with the typical 46 chromosomes and others with 47. This is a rare form of Down syndrome, but the symptoms and characteristics can vary depending on the proportion of cells that contain the extra chromosome.
- Translocation: This type of Down syndrome occurs when a portion of chromosome 21 breaks off and attaches to another chromosome, rather than having an extra copy in every cell. This form of Down syndrome is also relatively rare, but can still lead to the physical and cognitive characteristics associated with Down syndrome.
What Are the Life Insurance Options That Are Available for Individuals With Down Syndrome?
Not all individuals with Down syndrome have the same symptoms or level of severity. Some people with Down syndrome have a more severe form of the disorder, while others have a milder form. Therefore, when considering life insurance options for individuals with Down syndrome, you have to take into account the specific severity of the condition.
For individuals with a more severe form of Down syndrome, guaranteed issue or simplified issue life insurance policies may be the best option. These policies do not require a medical exam and may provide coverage even for those with pre-existing conditions. However, it’s worth noting that the coverage for these policies may be lower than for a traditional life insurance policy and may result in higher premiums.
For those with a milder form of Down syndrome, traditional life insurance policies may be an option. Some insurance companies may consider the overall health of the applicant and offer coverage at standard rates. Term life insurance is also an option, as it is typically less expensive than whole life policies, and it is renewable after the initial term.
Keep in mind that the availability of coverage and the cost of premiums can vary widely between insurance companies, so it’s essential to shop around and compare policies.
Consulting with a life insurance agent who specializes in coverage for individuals with pre-existing conditions can also be helpful.
What Are the Key Factors To Consider When Researching Life Insurance Options for Individuals With Down Syndrome?
When obtaining life insurance, you have to take into account any future needs for the insured, whether it’s a child or adult. For instance, if the insured is eligible to receive Social Security benefits, certain policies that build cash value can pose an issue for qualification. To ensure compliance with requirements, it’s best to consult with an attorney.
Factors to consider when researching life insurance options for individuals and/or children with Down Syndrome include:
- The individuals age and current health status
- The type of coverage desired (term or permanent)
- The cost of premiums and potential exclusions
- The insurance company’s rating and reputation
- The policy’s duration and how it may change as the child ages
- Any additional riders or options that may be beneficial for a child with Down Syndrome.
Life Insurance Options
Obtaining life insurance with Down syndrome as a pre-existing condition is possible. The insurer will examine medical records to evaluate the severity of the condition and the applicant’s overall health. This will determine the applicant’s insurability and the insurer will assign a risk group. The lower the risk group, the lower the premium. However, people with Down syndrome are considered higher-risk, and may have to pay higher premiums. The underwriting process will also consider potential medical conditions that some people with Down syndrome may face, such as blood illnesses. Additionally, some people with Down syndrome may not be able to enter into an insurance contract due to cognitive limitations. Therefore, some insurance companies may refuse to insure applicants with Down syndrome, but some guaranteed issue life insurance options are available. It is also worth noting that some insurance companies have a “pre-existing condition” category that may result in higher premiums, this may include adults with Down syndrome whose condition is mild enough that it does not have a significant impact on their day-to-day life.
Group life insurance
If you have mild signs of Down syndrome and work full-time (30 or more hours per week), you may be eligible for group life insurance through your employer. Many companies provide group life insurance as a benefit to their employees. Most group life insurance policies are term policies, which provide death benefits only if the insured passes away during the policy’s coverage period.
It is important to note that group life insurance plans are only available to individuals who have the legal capacity to understand the documentation they are signing. Individuals who are unable to read or sign legal documents are not eligible for group life insurance.
Guaranteed Issue Life Insurance
Another option for life insurance is guaranteed issue life insurance. These policies do not require medical exams and do not have an expiration date, unlike term policies. The application process is typically simple, requiring only the completion of paperwork. However, the death benefit is typically smaller, usually $25,000 or less, and the premiums are generally higher than traditional underwritten insurance.
Frequently Asked Questions (FAQs) about Life Insurance with Down Syndrome
Who would look after your child if something happened to you? Many parents ask themselves the same question while determining whether to purchase life insurance for their children with Down syndrome. By purchasing life insurance as their guardian, you can ensure that your child will be financially secure if something happens to you. Consider naming a trust as the beneficiary of your child’s life insurance policy. When you die, your child’s special needs trust will take care of them, and you can specify how the death benefit will be spent to assure their continuous care.
If you would like to learn more about life insurance for children, we wrote a detailed blog that you can check out!
Yes, it is possible to purchase life insurance for a family member with Down Syndrome. The insurer will evaluate the severity of the condition and the child’s overall health to determine their insurability and assign a risk group. The lower the risk group, the lower the premium. However, people with Down Syndrome are considered higher-risk and may have to pay higher premiums.
The best type of life insurance for an individual with Down Syndrome depends on their specific needs and financial situation. Whole life insurance is a good option as it provides coverage for the entire life of the policy and builds cash value. Guaranteed issue policies may also be appropriate for individuals with Down Syndrome, as they do not require medical exams and have no expiration date. However, the death benefit is typically smaller, usually $25,000 or less, and the premiums are generally higher than traditional underwritten insurance.
Some insurance companies may refuse to insure applicants with Down Syndrome. However, guaranteed issue life insurance options are available. It is also worth noting that some insurance companies have a pre-existing condition category that may result in higher premiums, this may include adults with Down Syndrome whose condition is mild enough that it does not have a significant impact on their day-to-day life.
If you have mild signs of Down Syndrome and work full-time (30 or more hours per week), you may be eligible for group life insurance through your employer. Most group life insurance policies are term policies, which provide death benefits only if the insured passes away during the policy’s coverage period. However, group life insurance plans are only available to individuals who have the legal capacity to understand the documentation they are signing. Individuals who are unable to read or sign legal documents are not eligible for group life insurance.
There may be some restrictions on coverage for people with Down Syndrome, as some insurance companies may refuse to insure applicants with the condition. Additionally, some individuals with Down Syndrome may not be able to enter into an insurance contract due to cognitive limitations.
Obtaining traditional underwritten life insurance for individuals with low to mild cases of Down Syndrome can be challenging, but it is possible. The individual must possess the cognitive ability to understand and agree to the terms of a life insurance contract, have the ability to independently answer health questions, and meet other qualifications such as having a healthy BMI and being free from other illnesses. Additionally, a phone interview with an underwriter may be required.
While the process can be tricky, it is possible for individuals with Down Syndrome to obtain underwritten life insurance. We have helped families in similar situations successfully secure coverage.
Life insurance coverage for children is crucial. Setting up a policy for them offers many benefits, including peace of mind for future complications and protection against unexpected expenses. Securing coverage for the future is important for your children’s protection. Unfortunately, children with Down syndrome may face further complications. Having life insurance coverage in place now can provide peace of mind for their future, as many children with Down syndrome grow up, marry, and have children of their own. Having life insurance can help ensure that it is one less thing for them to worry about.
Final expenses is another important reason for having life insurance for your child. While it is a difficult topic, death can occur in children regardless of if the child has Down syndrome or not. Having a backup plan in place can alleviate financial stress for parents in the event of their child’s death, allowing them to grieve without worrying about funeral costs.
It is possible to purchase life insurance for a family member with Down Syndrome, and it can be more cost-effective to start the process while they are still a child. This is an efficient way to insure someone with more severe forms of Down Syndrome, as they will pay lower premiums while being protected from an early age. However, keep in mind that if your child with Down Syndrome frequently experiences other medical conditions, rates may be higher.
Consider investing in a whole life insurance policy to ensure coverage after the term expires. The insurance company will verify the information provided in the application and may require additional evidence. After the application is reviewed, the child may be approved for the requested policy amount, approved for a smaller policy amount, or denied coverage. If the policy is approved, the beneficiary must be a parent or legal guardian.
Finding the right life insurance policy for you and your loved one
Obtaining life insurance for a loved one living with Down syndrome is a wise choice as it offers financial security for you and your loved ones in the event of your passing. However, the process of purchasing life insurance with a pre-existing condition can be daunting. 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 Windsor, Delta, and Airdrie.
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