Life Insurance and Alzheimer’s
Can You Get Life Insurance with Alzheimer’s disease?
Does Life Insurance Cover Dementia and Alzheimer’s?
Does Alzheimer’s Affect Life Insurance Rates, and How?
What Life Insurance Types Can You Get with Alzheimer’s?
What is the Best Life Insurance for Alzheimer’s?
Alzheimer’s disease is a neurodegenerative disorder that affects the brain and is the most common cause of dementia. It is characterized by a gradual decline in memory, thinking, behaviour, and social skills. People with Alzheimer’s experience difficulties in daily life due to the progressive impairment of cognitive abilities.
The exact cause of Alzheimer’s is not fully understood, but it is believed to involve the abnormal buildup of proteins, particularly amyloid, in and around brain cells, leading to the formation of plaques. While Alzheimer’s most commonly affects older adults, it can also occur in individuals as young as their 30s or 40s, known as early-onset Alzheimer’s disease.
According to a recent report by the Alzheimer Society of Canada, more than half a million people in the country are living with dementia, including Alzheimer’s disease. Sadly, it is projected that by 2030, almost one million individuals in Canada will be affected, indicating a significant increase in the number of people living with this condition. About 60% of those affected are women. The same study states that more than 50 percent of Canadians are concerned about being affected by Alzheimer’s disease.
Developing Alzheimer’s affects the ability to live independently or to work. Additional strain may be placed on families due to the caretaking needs of a family member with Alzheimer’s. Let’s learn how life insurance can help.
In many cases life insurance for Alzheimer’s patients is available but these options are very limited as insurers see Alzheimer’s as a very high risk.
Therefore, getting life insurance for Alzheimer’s patients (or other forms of dementia) can be challenging.
Each insurance company has its own underwriting guidelines and may assess risks differently. When applying for life insurance with Alzheimer’s, insurance companies might consider the following factors:
If an individual has a life insurance policy in force when Alzheimer’s is diagnosed and the life insured passes away, yes, the benefit will pay out (providing the applicant did not have Alzheimer’s when applying and failed to disclose it on the application).
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An active diagnosis of Alzheimer’s when applying for life insurance means disqualification from medically underwritten life insurance and from simplified issue life insurance. The available option is guaranteed issue life insurance. However, this form comes with a high premium, low coverage, and a waiting period before payout. | Expert tip from Mathieu Leblanc “I can confirm that for fully underwritten policies, if there is an established Alzheimer’s diagnosis, it is a decline. There is one condition called MCI (Mild Cognitive Impairment) that is sometimes insurable with a rating. There is a long list of criteria that needs to be met and it, otherwise, has to be a very favorable case for an offer to be made. Most important is that there is a documented history of very slow to no progression over a period of years (on a physical, mental, and radiological level) and the client is fully independent. Usually, they are in their 70s already. I can remember a handful of MCI cases that have gotten approved, but they are very, very rare.” |
An active diagnosis of Alzheimer’s when applying for life insurance means disqualification from medically underwritten life insurance and from simplified issue life insurance. The available option is guaranteed issue life insurance. However, this form comes with a high premium, low coverage, and a waiting period before payout.
“I can confirm that for fully underwritten policies, if there is an established Alzheimer’s diagnosis, it is a decline. There is one condition called MCI (Mild Cognitive Impairment) that is sometimes insurable with a rating. There is a long list of criteria that needs to be met and it, otherwise, has to be a very favorable case for an offer to be made.
Most important is that there is a documented history of very slow to no progression over a period of years (on a physical, mental, and radiological level) and the client is fully independent. Usually, they are in their 70s already. I can remember a handful of MCI cases that have gotten approved, but they are very, very rare.”
The chart below illustrates the available option.
| Insurance Type | Medical Exam | Detailed Medical Questionnaire | Short Questionnaire | Coverage Limits | Important to Know |
| 1. Traditional, Medically Underwritten Life Insurance with PREFERRED RATES | Yes | Yes | No | $5,000,000+ | Is not available |
| 2. Traditional, Medically Underwritten Life Insurance with STANDARD RATES | Yes | Yes | No | $5,000,000+ | Is not available |
| 3. Traditional, Medically Underwritten Life Insurance WITHOUT A MEDICAL EXAM | No | Yes | No | $5,000,000+ | Is not available |
| 4. Traditional, Medically Underwritten RATED Life Insurance | Yes | Yes | No | $5,000,000+ | Is not available |
| 5. Simplified Issue Life Insurance | No | No | Yes | $1,000,000 | Is not available |
| 6. Guaranteed Issue Life Insurance | No | No | No | $25,000 | Yes, you can always qualify for this product. However, guaranteed issue insurance does not pay claims in the first two years should the applicant pass away. |
The only option for someone with Alzheimer’s is guaranteed issue life insurance. Both Assumption Life and Canada Life offer guaranteed issue, along with some others. Working with a broker who will contact several insurers on your behalf and who will explain the process and policy to you is highly advised. Our brokers are happy to help. Complete the quote request to get started.
