Can I get Life insurance if I am Terminally Ill?
While it would be rather difficult to secure life insurance if you had just been diagnosed with a terminal illness, for those who already own life insurance, terminally ill diagnoses don’t mark the end for insurance policies and the coverage you deserve.
In fact, with life insurance, terminally ill people are sometimes able to access some of the money from their death benefit, before they die, which can be used toward the payment of treatments and care. What they would likely need in place before receiving a terminally ill diagnosis, however, is a living benefits rider.
With their life insurance, terminally ill people could opt to add a living benefits rider to their policy and, in most instances, this would be at no additional cost. As previously mentioned, some companies may require that such a rider have been added before the diagnosis was made, while others may allow for the rider to be added when the client presents them with information regarding their recent diagnosis. This depends on your insurance provider.
With this type of rider, a terminally ill person could access anywhere from 25% to the entirety of their insurance proceeds. This money would go to the insurance policy holder and not their beneficiary, however, any remaining money would still be given as a death benefit following the death of the owner of the policy. With life insurance, terminally ill people can access the financial support they need to get through a difficult time, while still providing their loved ones with coverage if any money remains.
Learn more about a living benefits rider and how it might be something you want to consider adding to your current or future insurance policy. Contact a licensed insurance agent to get your questions answered.
