Facts About Life Insurance for Alzheimer’s Patients 2024
Written by Daniel Ray, Life Insurance Expert |
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Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you are looking for a Life Insurance for Patients with Alzheimer’s, this article is for you!
Do you have Alzheimer’s? Do you know someone with Alzheimer’s? If so, there are important steps to take now before it is too late. I’m sure that everyone has seen the commercials for Life Insurance for people with Alzheimer’s and their caregivers.
But what does this really mean and why should we care about getting life insurance? What happens if the person who takes care of your loved one develops dementia or passes away and can no longer provide in-home care? This blog post will answer these questions and more!
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Can Someone with Alzheimers Get Life Insurance
If you are asking this question then you have already been diagnosed with Alzheimer’s, have a family member, or you have someone very dear to you that has. Above all, it is important to know that if you are a person with Alzheimer’s disease that you have life insurance options.
In fact, people with Alzheimer’s disease are not able to get traditional life insurance. For instance, Alzheimer’s disease is a progressive disease that life insurance companies deem as a high-risk health impairment.
Overall, if you have any history of Alzheimer’s disease in your family then it is a great idea to have a policy in place. Furthermore, make sure that the policy you choose has some sort of living benefit in case you have an early diagnosis.
This will give you access to health care costs if needed.
Best Life Insurance for Alzheimers
Now that we have come to the conclusion as to what impact having Alzheimer’s does when getting life insurance then let’s talk about the best available.
Are there any life insurance policies for Alzheimers patients?
Above all, having a guaranteed death benefit when that day comes is the most important. We have a few insurance carriers that will offer great options for life insurance with someone with Alzheimer’s. In fact, they will not ask any health questions.
These types of policies are guaranteed to issue burial insurance policies. In addition, they will have a 2-year waiting period. However, if you were to pass away by accident the first two years then the policy would payout 100% of the death benefit.
But, if you were to pass away from an illness then all premiums paid plus 10% would be refunded to the beneficiary. Some of these policies do come with features and riders. These policies are the best available life insurance for Alzheimer’s or dementia.
Final Expense Insurance with Alzheimer’s Disease
How to qualify for life insurance when suffering from Alzheimer’s?
Looking back above we have come to the conclusion of what is available for Alzheimer’s patients when it comes to life insurance availability. In fact, we know that we can get a burial and/or final expense policy regardless of when you were diagnosed.
Here are some of the rates for guaranteed issue policies for life insurance for the ages of 75 to 80 years of age. The minimum is $1000 in coverage and the maximum is $40,000.
This example is for a male and female for $20,000.
| Age | Gender | Coverage | Rate | Gender | Coverage | Rate |
|---|---|---|---|---|---|---|
| 75 | Male | $20,000 | $278.12 | Female | $20,000 | $215.42 |
| 76 | Male | $20,000 | $324.87 | Female | $20,000 | $246.58 |
| 77 | Male | $20,000 | $369.78 | Female | $20,000 | $275.92 |
| 78 | Male | $20,000 | $412.87 | Female | $20,000 | $303.42 |
| 79 | Male | $20,000 | $454.11 | Female | $20,000 | $329.08 |
| 80 | Male | $20,000 | $493.71 | Female | $20,000 | $351.82 |
| 81 | Male | $20,000 | $553.79 | Female | $20,000 | $392.76 |
| 82 | Male | $20,000 | $569.87 | Female | $20,000 | $402.46 |
| 83 | Male | $20,000 | $631.29 | Female | $20,000 | $415.92 |
| 84 | Male | $20,000 | $661.90 | Female | $20,000 | $426.51 |
| 85 | Male | $20,000 | $692.70 | Female | $20,000 | $437.18 |
Let’s now focus on what added features you may have available to you. But, here is a great question:
Does life insurance cover Alzheimer’s disease care?
The answer is yes if you have the right policy. You see some of these guaranteed acceptance policies come with nursing home confinement riders in addition to critical, chronic, and terminal illness riders.
Above all, assistance programs like Alzheimer’s care programs and dementia care programs are expensive. For instance, some of these GI policies will give you access to coverage of up to 50% of the face amount to assist with care.
This will come into play if 2 of the 6 ADL’s are not able to be performed.
How To Pay For Alzheimer’s Care with Life Insurance
Again, being diagnosed with Alzheimer’s is extremely tough for the family as well as the patient. It is a very scary experience for all involved.
If you had a parent recently diagnosed and you need to inquire about life insurance for your parents feel free to reach out to us.
Now to get back on topic, it is very important to always have a life insurance policy in place. In addition, to have a long-term care policy, especially f you have any form of cognitive history in your family.
If you have a living benefits life insurance policy then using life insurance to pay for Alzheimer’s care will be available. This can help plan ahead for any respite care expenses.
Cost of Alzheimer’s
Above all, Alzheimer’s disease cost’s about $340,000. This is average for the health needs after diagnosis when they finally pass away. You can imagine how financially devastating this can be if you are not properly covered.
What is the average cost of a memory care facility?
These types of facilities can cost about $6000 a month. This would provide around-the-clock supervised care.
Medicare covers some of the inpatient hospital care. In addition, Medicare Part D will cover any prescription drugs. Overall, Medicare will also pay up to 100 days in a skilled home care environment but this is under limited circumstances.
FAQs
If an individual already has a life insurance policy in place before the diagnosis, the coverage typically continues as long as premiums are paid.
For existing life insurance policies, premiums do not change due to a diagnosis like Alzheimer’s if the policy is already in force. However, new policies post-diagnosis are either very expensive or not available.
Options are limited, but some potential avenues include group life insurance through an employer or organizations, or guaranteed issue life insurance, which doesn’t require a medical exam but has higher premiums and lower benefits.
Guaranteed issue life insurance is a type of policy that does not require medical underwriting. It’s an option for those who cannot get standard life insurance due to health issues but comes with higher premiums and limited benefits.
Specific life insurance policies for Alzheimer’s patients are rare. Most options available are general policies designed for those with serious health conditions.
Existing policies might have riders like accelerated death benefits, which could be beneficial in case of a terminal illness or requiring long-term care.
If a policyholder with Alzheimer’s becomes incapacitated, a legal guardian or power of attorney may manage the policy on their behalf.
It depends on individual circumstances. If the patient has dependents or significant debts, maintaining existing life insurance may be beneficial.
Families should consider long-term care options, healthcare directives, and estate planning. Consultation with financial and legal experts specializing in eldercare is advisable.
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Conclusion
There are many different types of life insurance policies, but some companies offer an Alzheimer’s policy for people who want to protect their families against the financial effects that come with taking care of a loved one. If you have questions about what type is best for your and your family’s needs, contact us today! We can help you find a plan that will work well for everyone involved. Contact our experts at Pinna today to get more information on this unique type of coverage.
1 Comment
Gayle Lynne Richards
My best friend was diagnosed with Alzheimer's about 2 years ago. He has no family that will accept him and have never visited nor asked how how he is doing.. I've had to take over all of his care including cleaning up his house which was was a hoarders mess. The house had to be sold to pay for as much assisted living as it would stretch. I have had to sell his things to make it go farther as well as get him set up for medicaid and work, with several agencies to get everything done that needed to be done. I have not asked for a single penny from anyone or anywhere for my time or energy. I'm 72 and in decent health but this task is getting harder and harder to manage. First, I searched for an assisted living community but the time came but they had to tell me that they do not take care of Alzheimer's patients. Then I had to find another place which turned out to be an adult family home after interviewing more than 20 homes, I found one that I and Norm are happy with. He does not resist anything I have said, done or recommended…thankfully. BTW, I am his POA including for heathcare. I have no idea how much burial expenses are but he has no money and I live on Social Security. I am looking for something that will cover final costs when that time comes. Norm is 78 and still able to communicate with me. What are my options that would put some money in my pocket too?
Email: bl**********@gm***.com
Text: 206 790 2252.
Gayle Richards
Auburn, WA.