Asthma is one of the most prevalent chronic conditions in Canada, affecting over 3 million individuals. As a result, life insurance for Asthma may be necessary to protect your loved ones. The good news is coverage is attainable, albeit potentially at higher premiums. This definitive guide examines how asthma impacts your life insurance options.
Understanding Asthma in the Canadian Context
Asthma is a chronic lung disease characterized by inflammation and narrowing of the bronchial tubes, making breathing difficult. It cannot be cured but can be controlled with proper management.
Some key statistics on asthma in Canada:
- Over 3.8 million Canadians have asthma, making it the 3rd most common chronic disease
- Approximately 317 Canadians are diagnosed with asthma daily
- Asthma is ranked as the leading cause of hospital admission in children
- 250 Canadians die from asthma annually, meaning 4-5 families lose a loved one weekly
With asthma being so widespread, many Canadians with the condition seek life insurance to protect their families. The following sections examine how asthma affects eligibility and premiums.
Why is Life Insurance for Asthma Patients Important ?
There are several reasons securing life insurance is vital if you have asthma:
Protect Loved Ones
While fatalities are relatively rare, asthma still carries increased mortality risks versus the general population. Life insurance ensures your family is financially protected if the worst occurs.
Pay Outstanding Debts
Life insurance provides funds to pay off debts that would otherwise fall on your grieving loved ones, from mortgages to car loans to credit cards.
Cover Final Expenses
Funeral and burial costs easily exceed $10,000. Life insurance eliminates the financial stress of covering these imminent end-of-life expenses.
Replace Lost Income
Your income plays a crucial role in supporting household expenses. Life insurance enables your surviving family members to sustain their lifestyle after losing your earnings.
Build an Inheritance
The payout from a life insurance policy can provide an inheritance to pass on to children or grandchildren and secure their financial future.
Life insurance remains essential for asthma patients to guarantee their family’s financial safety despite increased premiums.
Is Asthma Considered a Pre-Existing Condition?
Yes, life insurance companies consider asthma a pre-existing condition. When applying for a new policy, you must disclose your asthma history, which insurers will incorporate into their underwriting assessment.
As a pre-existing illness associated with increased mortality risk, asthma renders applicants at higher risk. Thus, life insurers will require additional medical evidence and evaluate the severity and stability of asthma before approving coverage.
Factors That Influence Your Asthma Risk Assessment
When applying for life insurance, carriers will ask detailed questions about your asthma. Underwriters want to gauge the current level of control and your risk profile. Below are some common asthma questions to expect:
Diagnosis & History
- Age at initial diagnosis
- Number of years since diagnosis
- Circumstances prompting initial diagnosis (e.g. respiratory infection)
Severity & Frequency
- Usual asthma symptom severity (mild, moderate, severe)
- The average number of acute attacks yearly
- Timing of attacks – day, night, triggered by allergens, exercise
- History of asthma-related ER visits or hospital admissions
Medications & Treatment
- Names of maintenance and rescue medications used
- Adherence to medication regimen
- Any side effects experienced
- Use of supplemental oxygen
Lifestyle Limitations
- Restrictions to physical activities
- Time missed from work/school due to asthma
- Development of related health issues like sinusitis
Other Risk Factors
- Smoking history
- Frequency of doctor visits for asthma
- Other medical conditions
- Latest results of breathing tests
Providing complete and accurate responses allows underwriters to classify your asthma as mild, moderate or severe and make the proper risk assessment. Additional medical tests like pulmonary function are sometimes required, too.
How Asthma Severity Impacts Your Premiums
Depending on the severity, asthma can increase premiums or cause difficulty getting approved. Some general observations:
- Mild intermittent asthma often results in standard rates, especially for non-smokers diagnosed later in life
- Moderate persistent asthma typically warrants ratings of +50% to +200% standard premium
- Severe asthma may be declinedDecline or limited to guaranteed issue coverage of $25K or less
Insurers have specific rating grids that align asthma profiles with premium markups. For example:
Insurer A
Asthma Severity | Rating |
---|---|
Mild | Standard |
Moderate | +150% to +250% |
Severe | +250% to Decline |
Insurer B
Asthma Severity | Rating |
---|---|
Mild, Non-smoker | Possible Standard |
Moderate | +50%+ |
Severe | +50% to Decline |
As shown, an applicant with moderate asthma could pay 50-250% higher premiums than standard rates.
There are also other useful articles about life insurance with pre-existing conditions such as:
- Life Insurance with Autism Spectrum Disorder
- Life Insurance with Parkinson’s Disease
- Life Insurance with Huntington’s Disease
What Types of Life Insurance for Asthma Can You Get?
Both term and permanent life policies are available to asthma patients, with some key considerations:
Fully Underwritten Insurance for Asthma
- Requires medical exam & assessment
- Preferred, standard, or rated premiums
- Up to $5M+ coverage
- The best option for milder asthma
Simplified Issue Insurance for Asthma
- No exam, short health questionnaire
- Higher premiums than underwritten
- Up to $500K coverage
Guaranteed Issue Insurance for Asthma
- No underwriting required
- Approval is guaranteed, but limited benefits
- Max coverage of $25K to $50K
Term life insurance is most budget-friendly for those with asthma. Permanent life premiums can be cost-prohibitive when rated.
Pros and Cons of Life Insurance for Asthma
Pros of Life Insurance for Asthma
- Your loved ones will be protected if you pass away prematurely
- Can still obtain adequate coverage despite higher rates
- Underwritten policies available for milder cases
- Non-medical policies guarantee approval
- Premiums remain affordable relative to the payout value
- Many top insurers will underwrite asthma patients
Cons of Life Insurance for Asthma
- Rates increased 150-250%+ in some cases
- Coverage limits may apply for more severe asthma
- Requires disclosing private medical details
- Insurers will access doctors’ records and test results
- Permanent life insurance premiums can be cost-prohibitive
- The application process takes more time and effort
The profound financial protection far outweighs the inconvenience of higher rates for most asthma sufferers.
How to Buy Life Insurance for Asthma Patients
If you have asthma and need life insurance, follow this process:
1. Evaluate your asthma severity
Gauge whether you have mild, moderate, or severe asthma based on symptoms, limitations, medications, etc. This will give you an idea of what to expect with underwriting.
2. Research brokers and insurers
Find brokers and insurers with expertise in handling asthma cases so you get optimal coverage. Ask about their asthma approval rates.
3. Complete applications fully and accurately
Disclose your entire asthma history and provide medical evidence, such as lung function test results, if required. Insurers will verify your records. Any omissions or discrepancies could nullify your policy later.
4. Be open to excluding certain benefits
You may need to exclude waiver of premium or critical illness riders that insurers deem too risky with asthma. This compromise can improve eligibility.
5. Consider a non-medical policy
If your asthma is moderate-to-severe, non-medical insurance guarantees approval without any health questions or exams. This limits insurer risk.
6. Appeal any initial declines
If multiple insurers decline your application, reassess your situation after 6-12 months of optimal asthma control and appeal for reassessment. Improved health could lead to approval.
Where to Buy Life Insurance for Asthma Patients
Leading national insurers, such as Manulife insurance, Canada Life insurance, Sun Life, and RBC insurance, offer competitive rates for asthmatics. Leman Insurance and Foresters are also asthma-friendly.
Rather than singling out one provider, partnering with an independent broker that can access policies from 30+ carriers is highly recommended. This lets you find the optimal insurer and policy for your asthma situation.
Brokers will submit your application to multiple companies, negotiate on your behalf, and increase the likelihood of approval at a reasonable rate. Check references to ensure your broker has asthma-specific expertise.
Securing Better Rates Through Asthma Control
The more well-controlled your asthma is, the better premiums you can expect from insurers. Below are tips to get the best underwriting terms:
- Rigorously follow your maintenance medication regimen
- Use rescue inhalers appropriately to control acute attacks
- Have regular doctor visits to monitor lung function
- Avoid triggers like smoke, allergens, cold weather
- Maintain a healthy weight and get exercise
- Quit smoking – this is viewed very negatively
Documenting your disciplined asthma management demonstrates lower mortality risk to underwriters. This can mean standard or lightly-rated coverage, where severe cases pay significantly more.
Shopping Policies and Appeals If Declined
Given that insurers use varying rating systems, it pays to compare quotes from multiple providers if your initial application is rated highly or declined.
Slight nuances in how questions are answered can also impact outcomes, so working with a broker is key to positioning your case favourably.
If multiple insurers declined, determine if any correctable risk factors like quitting smoking could shift the underwriting judgment and warrant an appeal or reapplication down the road. Demonstrating asthma improvement can lead to approval.
Partnering With LifeBuzz to Get Life Insurance for Asthma
If you have asthma and want to get insured, the experienced brokers at LifeBuzz can guide you through the process. We will:
- Thoroughly assess your asthma severity
- Submit your application to 30+ top insurers
- Advocate to secure the best possible rate for you
- Recommend the optimal policy type and benefits
- Adjust your application if initially declined
Protecting your family’s financial future is possible, even with asthma. Get a free quote from Life Buzz today to review custom coverage options.
FAQs About Life Insurance for Asthma
What are the requirements for life insurance for asthma sufferers in Canada?
Insurers require details on diagnosis date, symptoms, hospitalizations, medications, lung function, activity limits, smoking history, and other medical conditions to assess overall risk and set rates.
Is it difficult to find life insurance for asthma patients with other health issues?
Yes, concurrent conditions like COPD, heart disease, and mental illness can compound the risk associated with asthma and make coverage more challenging to secure.
How does mild intermittent asthma affect eligibility for life insurance for asthma sufferers?
Mild, occasional asthma often has little impact on premiums. Moderate persistent asthma sees higher ratings while severe cases can lead to difficulty finding affordable life insurance for asthma.
What medical tests do life insurers require when applying for life insurance for asthma?
Pulmonary function test results showing lung capacity are commonly required. Bloodwork indicating no anemia is also assessed. Some require exercise tolerance tests as well.
Can I adjust my application if declined when applying for life insurance for asthma?
Yes, improving asthma control and appealing after 6-12 months can potentially lead to approval for life insurance for asthma sufferers after an initial decline.
Do I need to take a medical exam to get life insurance for asthma patients?
Yes, in most cases a current medical exam will be required when applying for life insurance for asthma sufferers to fully evaluate your insurability risk.
How can I get more affordable life insurance for asthma as a smoker?
Quitting smoking for 12+ months can dramatically improve premiums. After quitting, find a broker who can access the best rates for life insurance for asthma sufferers.
What is the maximum coverage I may qualify for with severe life insurance for asthma?
With severe, uncontrolled asthma, some insurers may decline, while others will limit coverage to guaranteed issue policies capped at around $25,000. Proper management can expand options.
Do premiums decrease over time if asthma improves when getting life insurance for asthma?
Yes, demonstrating improved lung function through medical exams at renewal periods can lead to reduced ratings and lower premiums for asthma life insurance.
What tips help secure the best rate when shopping for life insurance for asthma?
Rigorously adhering to your medications, avoiding triggers, maintaining fitness, partnering with an experienced broker, comparing quotes, and applying with multiple insurers help minimize premiums.
What questions will be asked on the application for life insurance for asthma sufferers?
Insurers will request details on diagnosis date, symptoms, hospitalizations, medications, activity limits, smoking, lung function results, and other medical conditions to fully assess overall risk.
How does smoking impact eligibility and premiums when applying for life insurance for asthma?
Smokers face much higher premiums and difficulty qualifying for underwritten policies. Quitting for 12+ months dramatically improves outcomes when applying for life insurance for asthma sufferers.
What medical evidence is required when applying for life insurance for asthma patients?
Insurers will require current lung function test results, bloodwork, and a medical exam in most cases. Some also request exercise tolerance tests when applying for life insurance for asthma sufferers.
Are certain types of life insurance better suited for policyholders with life insurance for asthma?
Yes, term life policies tend to be more budget-friendly than permanent life insurance when shopping for life insurance for asthma sufferers.
How much additional cost should be expected for life insurance for asthma sufferers versus standard rates?
Moderate persistent asthma typically sees premium markups of +50% to +200% compared to standard rates. Severe asthma can make affordable life insurance for asthma difficult to obtain.
What medical details are required for underwriting life insurance for asthma applicants?
Details on the date of diagnosis, symptoms, hospitalizations, medications, activity limits, smoking, lung function, concurrent conditions, and doctor records are required to underwrite policies for life insurance for asthma sufferers.
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