Can a Person With a Physical Disability Buy Life Insurance?
Anyone can purchase life insurance, regardless of the presence of physical disabilities. No rule or legislation exists that would prohibit a disabled person from applying for a policy. The challenge for someone with a physical disability lies in actually qualifying for coverage based on an insurance company's underwriting standards. No rule or legislation exists requiring insurance carriers to provide coverage or otherwise approve applications from individuals who do not meet their established minimum criteria.
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The Underwriting Process
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When you apply for life insurance, the company evaluates you and your situation to determine if sufficient potential for profit exists. This process of investigation is called underwriting and involves the analysis of multiple facets of your life. Insurance companies create a risk profile using the data compiled during underwriting, and the final results of the profile determine your insurability and subsequent premiums. Your physical disability will be considered, evaluated and added to your profile, enhancing the collective sum of your characteristics.
Paramedical Exams
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A brief medical examination called a paramedical exam provides the insurance company with substantially more accurate and relevant information about your health and medical status. Paramedical exams include physical measurements, blood tests and urinalysis. Depending on the type of your physical disability, the results of a paramedical exam may be unaffected and appear perfectly normal.
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What Concerns Carriers
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The simple fact that you have a physical disability is of little concern to a life insurance carrier. Many people with disabilities live long and healthy lives, and the mere presence of a disability does not necessarily imply an increased risk of death. During the underwriting stage, the life insurance company would ask several questions pertaining to your disability to form a more accurate profile and determine if your physical limitation posed additional risk as compared to a non-disabled peer. The origin of your disability, and whether it presents a statistically significant increase in the likelihood of your injury or death, concerns insurance carriers.
Severity of the Disability
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Every life insurance company defines disability differently, and in many cases those definitions also do not match the ones used by state and federal government. Being a relatively subjective term, a disability as classified by the state and/or federal government may differ with insurance carriers. Your physical status may qualify you for certain benefits from the government, while a life insurance company may not be at all concerned about that same issue. However, if your disability is severe enough to hinder, impede or restrict your physical movements in such a way as to make basic daily activities dangerous, insurance underwriters may hesitate to offer you coverage.
In the Event of a Decline
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After completing a life insurance company's underwriting process, if you receive notice that you have been declined coverage, carefully review the carrier's letter of explanation. Locate the company's justification for your declination, then schedule an appointment with your family physician to review the accuracy of their explanation. Ask your physician if he agrees with underwriters, and if you indeed suffer from symptoms of an ailment that may shorten your natural lifespan. In the event that your physician disagrees with the underwriters' evaluation, you may appeal the denial with your physician's own written explanation and analysis. Although life insurance application declines are occasionally reversed through the appeals process, such occurrences are rare. Some form of guaranteed issue policy is the only remaining option if traditional life insurance underwriting results in declination, as guaranteed issue products do not typically require medical exams and lab tests.
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