Life Insurance With COPD

Chronic Obstructive Pulmonary Disease (COPD) is a serious health condition affecting millions of people worldwide. Unfortunately, this condition can make it more difficult to obtain life insurance coverage. However, there are options available for those with COPD who want to get life insurance protection.

This article is designed to help educate those living with COPD about obtaining life insurance coverage. You’ll also find helpful tips and resources to make obtaining life insurance coverage easier. With this knowledge, you can take steps toward securing the financial protection you need while living with COPD.

Life Insurance Options With COPD

Individuals with chronic obstructive pulmonary disease (COPD) do have access to simplified issue life insurance.

On the term life insurance side, of the 11 carriers we surveyed, every single one of them would immediately decline an applicant who currently has COPD. As we’ll discuss in more detail below, if your last COPD treatment is far enough in the past (5+ years), you will have the ability to get no-exam term life insurane with select carriers.

As you might expect, underwriting for no-exam whole life insurance (also known as burial insurance or final expense insurance) is considerably more lenient than for term life policies. While it is by no means easy to get immediate coverage and/or preferred rates with COPD, there are certain carriers, such as Transamerica and others, who will offer this type of coverage to those with current COPD.

In particular, carriers will be looking to see how far in the past your last COPD treatment was, and if you’re currently being treated, the number and manner in which you take your COPD medications (e.g., via a nebulizer).

Guaranteed issue life insurance is another option if you would like to forgo answering health questions. Because the insurance company lacks visibility into your health, your rates will be higher than traditional life insurance. Also, you will have a two-year waiting period before you qualify for a payout equal to your full coverage amount.

How Common is COPD in the United States?

The prevalence of Chronic Obstructive Pulmonary Disease (COPD) in the United States is alarming. According to the American Lung Association, more than 12.5 million Americans have been diagnosed with COPD; however, due to the often ‘silent’ nature of the disease, it is believed that millions more may be living with undiagnosed COPD. COPD can affect anyone regardless of age and gender, and approximately 15% of all deaths from respiratory disease in America are attributed to COPD.

Sadly, many people do not even recognize they suffer from COPD until it has advanced significantly or required hospitalization for an acute exacerbation. This means individuals may live for years without knowing they have a serious and life-threatening condition. As such, the burden of COPD on individuals, families, and society is immense, with healthcare costs in the US currently estimated to exceed $50 billion annually.

Why Life Insurance Companies Care About COPD?

Life insurance companies are primarily concerned with the mortality risk associated with COPD. Those who suffer from this condition are at greater risk of premature death due to complications such as respiratory and heart failure, associated cardiovascular or cerebrovascular disease, lung cancer, and respiratory infections. COPD is also one of the most common diseases in people with HIV. Life insurance rates for HIV also take a hit as it increases mortality risk.

Furthermore, treatment for COPD is not always successful in slowing down the progression of the disease, which increases the risk of premature death even further. For these reasons, life insurance companies often view those living with COPD as high-risk clients who may require higher premiums or have difficulty obtaining coverage altogether.

The severity of the applicant’s symptoms and lung function tests will be considered when determining eligibility for a life insurance policy. Insurance providers may also look for evidence that the individual is taking steps to slow down the progression of their COPD and reduce any future mortality risk.

Common Questions Asked by Carriers

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Term Life Insurance When You have COPD

Term life insurance is a type of insurance that provides financial coverage for a fixed period of time, usually in the event of death. It offers protection to beneficiaries and helps them financially if the policyholder passes away during the term of their policy.

Term Life Insurance Application Questions About COPD

Individuals who have been diagnosed with Chronic Obstructive Pulmonary Disease (COPD) would be declined for simplified issue term life insurance.

While in the table above, we show only two companies’ underwriting criteria, based on our survey of 11 no-exam term life insurance companies, we can say confidently that the outcomes shown above are representative of the industry as whole.

In other words, you can expect all no-exam term life insurance companies to decline individuals with current COPD.

Final Expense Life Insurance when you have COPD

Final Expense life insurance is a type of policy designed to provide funds for final expenses such as funeral costs, medical bills, and other debts. It can help provide financial security for both the insured and their family in the event of death.

Final Expense Application Questions: COPD

Chronic obstructive pulmonary disease (COPD) is a permanent condition.  But, if you’re properly managing it, your odds of finding life insurance are great. 

With well-managed COPD, you may qualify for level terms — meaning there’s no waiting period on your policy. And, even if your COPD is more severe, you can still find modified options that keep coverage affordable. 

Even in the most severe cases, guaranteed issue policies make it possible to have life insurance with COPD. But, let’s review all of your options so you can make the right choice. 

What is COPD?

COPD involves chronic inflammation in the airways, making it harder to breathe. Oftentimes, COPD involves more than one lung condition. For instance, emphysema and chronic bronchitis often contribute to COPD symptoms. 

If you have COPD, you may experience shortness of breath, wheezing, fatigue, and persistent cough. Severe or poorly managed COPD can even make exercising difficult. Fortunately, treatment strategies have been developed to help.

Managing COPD may mean: 

• Lifestyle changes, like losing weight and quitting smoking 
• Medications to reduce inflammation and relax the airways 
• Efforts to improve lung function, like physical exercise and breathing techniques 
• Oxygen therapy to compensate for impaired lung function 
• Surgical interventions, including lung transplants 

Unfortunately, COPD is progressive in nature, meaning it will worsen as time passes. But, proper management can help slow its progression and reduce symptoms.

Closely following a COPD treatment plan will improve your quality of life and help you find an affordable life insurance policy. 

Getting Coverage with COPD: What To Expect

It’s entirely possible to get life insurance with COPD, even if it’s severe. However, insurers will look to your current treatment plan and overall health when assessing their risk. 

In most cases, COPD is caused by long-term exposure to irritants — like cigarette smoke. If you have a history of smoking, that will automatically increase your life insurance premiums. If you are still smoking, you may have difficulty finding coverage. 

Regardless of what caused your COPD, the underwriting process is straightforward for simplified issue policies. Life insurance companies will base your rates on information, like: 

• When were you first diagnosed with COPD? 
• Are you adhering to your doctor’s recommended plan? 
• Do you use a nebulizer or take any inhaled medications? 
• Are you using tobacco or have you in the past? 
• Are you making positive lifestyle choices? 

With a simplified issue policy, you won’t need to take any medical exam or tests to get coverage. 

Can I Get Term Life Insurance with COPD?

When you sign up for term life, you can choose an expiration date between 5 and 40 years. If you outlive your policy, your coverage simply goes away. 

Because there’s a chance your policy simply expires, term life is more affordable than whole life. This gives you the option to buy a substantially larger policy for a fraction of the price compared to whole life. 

If COPD has significantly affected your life expectancy, buying term life might be a wise move. However, each company has its own underwriting guidelines when it comes to insuring someone with COPD.  

How Term Life Insurance Companies Underwrite for COPD

Certain medications like inhaled corticosteroids can be an effective way to manage your COPD. But, taking those medications can lead to an automatic decline from some life insurance companies. 

This is because some companies use factors like steroid medications as a quick way to assess the severity of your condition. The good news is, there are companies that don’t — more on that below.

But, tobacco use is one factor you’ll have a harder time getting around. If you are using tobacco and you have COPD, many companies will deny term life coverage. Even if you did not have COPD, tobacco use would affect your options. 

If you’re in relatively good health and managing your condition well, term life may still be an option for you. 

The Best and Worst Companies for Term Life Insurance with COPD

Many companies will outright deny term life insurance coverage to someone for having COPD. These include American Amicable, Americo, and Mutual of Omaha.

Foresters will deny coverage if you are a tobacco user. They also deny coverage if you’re using certain medications, like inhaled corticosteroids. 

Some companies restrict eligibility based on whether or not you’re actively receiving treatment. For instance, Prosperity will deny your term life application if you have been treated for COPD in the last 5 years. 

The good news? You can still get a simplified issue whole life policy with COPD. Keep reading to see if this option is right for you. 

Can I Get Whole Life Insurance with COPD?

Whole life insurance is a type of permanent policy. That means coverage will last for the rest of your lifetime unless you cancel. 

While more expensive, whole life allows you to lock in peace of mind.  Your premiums won’t go up and your coverage will never decrease, even as you age. 

Getting whole life insurance with COPD is possible. Especially if you break it down into the different types of whole life insurance available. For instance, while you might not qualify for simplified issue whole life, anyone can qualify for guaranteed issue whole life.

As with term life insurance, your whole life premiums will depend on your current health status. Let’s look at the underwriting process so you can see how your COPD diagnosis may impact your options. 

How Whole Life Insurance Companies Underwrite for COPD

Due to its progressive nature, it’s hard for someone with COPD to qualify for level benefits on whole life. However, some companies offer “graded” benefits. 

Graded benefits means that your death benefit starts out limited, usually for the first 1-3 years. This waiting period helps the insurance company manage their risk. If you outlive that period, you’ll have full coverage for the remainder of your lifetime. 

As you shop around your whole life, make sure you know the general rules of different companies to ensure you get the best options. 

The Best and Worst Companies for Whole Life Insurance with COPD

A handful of companies will outright deny whole life coverage, no matter the severity of your COPD. This includes Americo and Sons of Norway. However, there are still excellent options.

Aetna, AIG, and American Home Life all offer level whole life coverage as long as you meet certain criteria. For instance, Aetna will offer you a policy as long you do not use tobacco or certain medications. 

No matter what medications you take, many companies still offer graded policies. Great Western, Liberty Bankers, Mutual of Omaha, Prosperity, and Transamerica all fit that category.

Here’s your best option. Foresters offer level premiums with no waiting period. That makes them a great candidate.