Question
Can you get life insurance after you've been diagnosed with a terminal disease?
My mother-in-law is 64, and has been diagnosed with Hep C. Doctors told her it was "dormant" right now, but she's just convinced that she's going to die. She wants me to help her get a life insurance policy. I've been told that it's impossible to get life insurance after you've been diagnosed with a terminal disease. I need some advise on where to start. Thanks!
5 months ago - 4 answers
Best Answer
Chosen by Asker
Well, yes, you can. Globe Life, and Mutual of Omaha, will both give her a "guaranteed issue" policy, with no medical exams - everyone qualifies. There are a couple of catches, of course. First, the most coverage you can buy is $10,000. Second, it's REALLY REALLY expensive, like maybe $75 a month. Third, you have to live - and pay in - at least two years, before dying, or the policy doesn't have to pay out. That means, she's betting she'll die at least two, but not more than five, years from now. After five years, the policy would have cost her more than she's paying into it. So. She needs to get an estimate from her doctor, how long she has left, and THEN she needs to do some serious estate planning. Keep in mind, debts are NOT inheritable - but assets also aren't inheritable, until all your debts are paid off. If she's looking for, say, $250,000 of coverage, and doesn't want to pay $275,000 up front for it (for tax evasion purposes), then she's not going to be able to buy life insurance. She's not going to get ODDS, now, besides that guaranteed policy.
by mbrcatz
5 months ago
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Other Answers
Um, no, she can't. If she has a terminal disease, it isn't really insurance, she'd have to pay a 100% premium to get insured.
by quizzard123- 5 months ago
The idea behind life insurance is to protect against the unknown - life insurance companies use various formulas to determine premiums (chance of getting cancer, chance of being in a car wreck, age, etc.). Since the disease is terminal, there is no "chance" involved here. About the only way your mother-in-law could get life insurance would be to eliminate a payout from dieing of the Hep C or a related disease. At her age, however, premiums will be in the hundreds of dollars a month for decent coverage.
by Steve D- 5 months ago
You need a guaranteed issue policy. It costs more and has limited amounts of coverage, but they exist. You've got one other option. My grandfather had a bad heart from his childhood on. He joined a crap load of organizations (AAA and such) and took all the life insurance options he could get. They added up to a decent number of coverage he ended up having when he died.
by Scott D- 5 months ago