The short answer is yes, you can secure a life insurance policy after a stroke. Strokes are becoming increasingly common in Canada, with strokes routinely clocking in among the top five leading causes of death annually. At the time we updated this article in May of 2022, unfortunately strokes are now the third leading cause of death in Canada.
These severe forms of cardiovascular disease affect the arteries leading to and within the brain. The effects of a stroke can range from minor rehabilitation to death, with many stroke survivors experiencing debilitating lifelong consequences.
Even though your insurance options will be more pricey than prior to a stroke, there are options. Let's discuss that now.
What Is A Stroke?
The simplest way to understand what a stroke is, is when blood flow becomes restricted to any part of the brain. This starves the brain cells of critical oxygen and nutrients needed to function normally. This causes the brain cells to die. As the brain controls all of the major motor skills in your body, when those cells are not present, the damage can be deadly or permanent.
Why Is It Difficult to Get Life Insurance After A Stroke?
A stroke occurs when the blood flow to the brain is cut off, leaving the brain cells deprived of oxygen. When this happens, the brain cells begin to die.
This causes the abilities controlled by the affected area to the brain to be lost, with common side effects of stroke including memory loss, loss of muscle control, and difficulty speaking.
Because a stroke is a severe condition that impacts multiple parts of the body, it can cause a lot of complications and may require a great deal of rehabilitation. Additionally, many strokes are caused by other health problems, such as hypertension or diabetes.
As a result, life insurance companies consider stroke survivors to be high-risk. This means they’re more likely to have more serious health problems down the line, or to die earlier, than a fully healthy person of a similar age.
When someone is considered high-risk, the insurance company may look for reasons to deny their application, offer limited options for life insurance coverage, or charge higher rates than they would for a person who is considered low-risk.
While finding life insurance after a stroke isn’t impossible, it is likely to be more complicated and is going to cost you more than if you hadn’t had a stroke.
Life Insurance Underwriting After A Stroke
When you apply for life insurance, you have to go through the underwriting process before you are issued a policy.
During the underwriting policy, the life insurance company combs through your medical history, family history, and lifestyle to determine just how much of a risk you will be to insure. This process is used to figure out what type of life insurance you will be offered and at what rates.
Here are some common things life insurance companies look for during the underwriting process if you’ve experienced a stroke:
Things Insurers Look for in Determining Life Insurance Policies After A Stroke
Some common questions you can expect from a life insurance company about your stroke include:
- When did you experience your stroke or strokes?
- Did you have an actual stroke or was it a Transient Ischemic Attack (TIA)?
- What tests did you undergo following your stroke?
- What symptoms did you experience when you had your stroke?
- Have you experienced any lasting neurological issues or other residual effects from your stroke?
- Are you currently experiencing any other health issues that may result in another stroke, such as hypertension, high cholesterol, diabetes, or coronary artery disease?
- What medications are you currently taking?
These questions help the insurance company determine what level of risk they will accept by offering you a life insurance policy, which will then decide whether you qualify for a policy and how much you will be charged for that policy.
If a life insurance company asks you these or any other questions related to your stroke or overall health, it is important that you be truthful with your responses. Any omitted information can lead to the company denying you coverage or dramatically increasing your rates.
How A Stroke Can Impact Life Insurance Rates
When applying for life insurance following a stroke, one of the most important things your insurance company will want to determine is whether you experienced a full stroke or a mini-stroke, known as a TIA.
A TIA presents all the same symptoms as a full stroke, but there is no lasting neurological damage. This means that someone who experienced a TIA is going to seem less risky to insure than someone who experienced a full stroke.
There are different ratings assigned to life insurance applicants, and your stroke or TIA can impact whether or not you qualify for certain ratings and how much you will pay for each type:
Preferred Plus
This is the highest possible rating a life insurance carrier can offer. If you’ve had a stroke or a mini-stroke, it is highly unlikely you will qualify for this rate class.
Preferred
In some cases, someone who has experienced a TIA may qualify for a preferred rating if you are in otherwise perfect health or if, after a review of medical records, the TIA was found to be misdiagnosed.
Standard
For applicants who have experienced a stroke, standard rating is probably the best rating for which they will qualify. However, in order to qualify for standard rating, most people will have to apply at least six years following their stroke and there cannot be any additional health issues present.
Substandard (Table Rated)
Most stroke survivors who apply at least a year following their stroke and who do not present with any lasting damage will likely be offered a substandard rating. Those who had a TIA may be able to get a substandard rating six months or more following their TIA.
Declined
If you apply for life insurance within six months of a TIA or a year after a full stroke, you can expect to be declined for certain types of life insurance. You may be able to secure “guaranteed issue” whole life insurance, however.
What If I’m Declined for Life Insurance After A Stroke?
If you are declined for life insurance due to not enough time passing between your stroke and your application, you may be able to purchase a guaranteed issue insurance policy.
This type of policy is a whole life policy that’s issued without regard to your health. There are no health questions on the application and no medical exam required by the underwriter.
When choosing these policies, there are some drawbacks, including:
- Lower death benefits: Many insurers that offer guaranteed issue policies cap death benefits at much lower levels than traditional policies, often $25,000 to $30,000 depending on the applicant’s age.
- Waiting period: These policies have a waiting period of two to three years when the company will not pay the full death benefit if you die from natural causes. However, most companies will pay a benefit during this period equal to the total premiums you’ve paid, with many adding 5 to 10 percent to that amount.
- Higher rates: Because the insurer is willing to accept your health as an unknown risk, you are likely to pay much higher premiums than with a traditional policy.
Choosing the Best Life Insurance Policy After A Stroke
Although having a stroke may limit your options when it comes to choosing a life insurance policy, there are still some ways you can find the best policy at a better rate.
Here are some guidelines for finding the best life insurance policy after a stroke:
Type of Policy
While your stroke may limit the type of policy you’re able to qualify for, if given the option, many people find that term life insurance policies are more affordable than whole life policies.
If you’re able to qualify for a term life insurance policy and you want life insurance to help your spouse pay off your home or put your children through college, a term life insurance policy may be the most affordable option for you. In many cases, you can even convert a term life insurance policy into a whole life insurance policy at the end of the term without additional underwriting, meaning any later complications from your stroke won’t be considered in the policy conversion.
A whole life policy, on the other hand, may be beneficial for those wishing to provide an inheritance to their family members.
Overall, whole life policies will cost you more money, especially after having a stroke, but adjusting the amount of coverage you purchase can help offset the increase in premiums due to your stroke.
Level of Underwriting
There are two levels of underwriting when purchasing life insurance: fully underwritten and no medical exam policies.
When you opt for a fully underwritten policy, you are likely to have to submit to a medical exam prior to the insurer making a decision on your coverage. This is especially likely given your prior history of stroke. The findings from this medical exam, if you discover you have unknown underlying health conditions, could pose problems for your qualifying for coverage.
Choosing a no medical exam life insurance policy means that you won’t have to undergo a medical exam, but you will have to truthfully fill out an extensive health questionnaire.
Although you will be spared any additional health issues causing you problems during underwriting, these types of policies tend to have much lower coverage limits than others - $500,000 for term policies and $50,000 for whole life policies.
Amount of Coverage
How much coverage you choose to purchase is going to be determined by a variety of factors, including:
- Ages of children
- Your salary
- Any financial obligations you have, such as child support
- Whether you have a mortgage or other debt that will need to be paid
Adjusting how much coverage you purchase may mean you’re able to reduce the overall price of your life insurance policy, making it more affordable for you long-term.
What If I Have A Stroke After Buying Life Insurance?
Once you have purchased a life insurance policy and that policy has been issued, your insurer cannot change your rates or cancel your policy if you have a stroke.
If you already have life insurance, there are a few situations where a new stroke could prove problematic:
- You have a term life insurance policy and want to continue coverage: If you already have a term life insurance policy and want to purchase a new term policy once your coverage ends, even through the same company, you will have to undergo the underwriting process again. This may cause the insurer to reject your application or charge you a higher price for coverage.
- You have group life insurance coverage through an employer and you leave that job: When you leave your job, you may be given the opportunity to convert that group life insurance policy or to port your coverage to another insurer. Converting or porting your policy does not subject you to any further medical review, but doing this can prove far more expensive than applying for life insurance coverage.
- You want to increase the coverage on your policy: Increasing your coverage could subject you to additional underwriting. If this happens, your stroke could cause your premiums to increase.
Conclusion
Qualifying for life insurance after a stroke can be a frustrating process. Knowing what to expect when you begin, and being prepared for any bumps along the way, can make all the difference in helping you get a favorable outcome.
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