Can You Buy Life Insurance for Disabled Adults?

The Americans with Disabilities Act1(ADA) stipulates that people with disabilities cannot be denied certain services. However, since disabilities can affect life expectancy and overall health, life insurance companies may choose to consider your disability when determining the offer and premium prices.

Different life insurance companies have alternate systems for evaluating your level of risk. In the case of individual life insurance, the evaluation is undertaken on an individual basis with the aim of determining how your disability may impact your overall health and life expectancy.

As is the case with all other applications, life insurance companies will take into account other important factors, including your lifestyle, income and health history.

Some disability types don’t affect life expectancy meaning that premiums will not be necessarily higher. For disabilities that do affect life expectancy,  one option is to look up life insurance policies specifically designed for people “high risk” people with disabilities. You can also explore SBLI’s Life Insurance options to find out which one fits your needs.

Policies for People With High-Risk Disabilities

Generally speaking, in the life insurance context, people with “high risk” disabilities are those who are more likely to die due to a particular disability than people without the disability. The criteria, however, varies from life insurance company to life insurance company.

Generally speaking, there are three types of policies2 for people with high-risk disabilities:

  • Guaranteed-issue whole life insurance does not require a medical exam, which means it is more expensive and has a death benefit cap.
  • Impaired risk life insurance is intended for people with high-risk disabilities that affect their life expectancy. Usually, it is considered by people who have been denied all other insurance types.
  • Group life insurance is a policy provided by the employer that is not individually underwritten and doesn’t take into consideration an individual applicant’s personal information, including medical records and disabilities.

Life Insurance Criteria for People With Disabilities

As mentioned above, different life insurance companies have different criteria,3 but all of them typically consider the following factors:

  • The severity of the disability
  • The degree to which the disability increases the potential of future health issues
  • Whether the disability affects the person’s life expectancy
  • The degree to which the disability affects the person’s daily routine

If the disability is relatively minor and doesn’t affect the daily routine, the applicant may expect to be offered a standard life insurance policy with insignificantly higher premiums. However, if the disability is significant and life-threatening, premiums will likely be considerably higher.

Life insurance companies can reject the application if the disability decreased the life expectancy of the applicant (e.g., terminal illness).

Disability Doesn’t Spell Automatic Policy Denial

Because people with disabilities may have negative experiences with life insurance companies, it is often thought that getting approved for a life insurance policy is extremely difficult. As explained above, there are programs available to people with disabilities and not all insurance policies need necessarily be highly expensive.

Look for Specific Programs

Some life insurance companies have specific programs aimed at people with certain disabilities and their families. If you are looking for a policy for an individual with autism, Down syndrome or cerebral palsy, for example, you may find out that there are highly specific policies available.

On top of the policy itself, the life insurance companies offering specially designed coverage for disabled people also provide access to information and services that can improve the quality of life for people with disabilities. The agents carrying out these kinds of services are, as a rule, specially trained for this purpose. E.g., they know all the nuances of special needs trusts and government programs and can help the applicant make an informed decision with ease.

In a Nutshell

People with disabilities won’t necessarily experience expensive premiums and limited insurance options. Depending on the severity of the disability, an applicant can actually get multiple offers. As discussed above, there are the following types of coverage to consider:

  • Guaranteed whole life insurance policies
  • Impaired risk life insurance policies
  • Group life insurance policies
  • Specific programs designed for people with certain disabilities

Out of these options, there are various variations to consider, depending on the life insurance company’s specific underwriting criteria. For people with minor disabilities, premiums may not be much higher than for people without any disabilities.

The best solution when looking for life insurance as a disabled adult is to find the right policy for your specific needs.

1ADA.gov, Americans with Disabilities Act, ADA, 2021, accessed 1/18/21
2Policygenius.com, Policy Types, Amanda Shih and Rebecca Shoenthal, 2021,, accessed 1/18/21
3USNews.com, Life Insurance for Those With Disabilities, Maryalene LaPonsie, 2018, accessed 1/18/21

Policy Form B-52, B-54 & B-40 series. 21-4052