Life Insurance with Lung Disease in Canada

Respiratory illness can make securing life insurance more difficult and costly for Canadians. However, with proper guidance on navigating the underwriting process, those with lung disease can obtain affordable coverage tailored to their health circumstances.

This comprehensive guide leverages insights from veteran Canadian insurance advisors to help patients optimize their qualification odds when applying for life insurance with lung disease.

Understanding Lung Disease and Its Prevalence in Canada

Lung disease is a disorder affecting the lungs and respiratory system, causing breathing issues. The top categories per the Canadian Lung Association are:

Airway Diseases

Airway diseases like asthma, COPD, and bronchitis cause airway inflammation and obstruction. Over 2 million Canadians have airway lung disease.

Lung Tissue Diseases

These diseases cause lung tissue scarring, limiting oxygen intake. Around 500,000 Canadians are affected.

Lung Circulation Diseases

Conditions affecting blood vessels and arteries in the lungs disrupt oxygenation. Almost 400,000 Canadians have some form of lung circulation disease.

Below are prevalence statistics on major lung diseases in Canada:

• Asthma: Over 2.7 million cases
• COPD: Over 700,000 cases
• Pulmonary Fibrosis: Around 20,000 cases
• Lung Cancer: Roughly 28,000 new cases annually

With over 3 million Canadians impacted, understanding how lung conditions affect life insurance is critical.

How Canadian Insurers Assess Lung Disease Risk

Insurers use underwriting to evaluate applicants and determine eligibility/premiums. Those with lung disease undergo detailed underwriting so the risks can be analyzed.

Critical factors assessed include:

• Specific diagnosis
• Severity and symptoms
• Response to treatment
• Oxygen therapy needs
• Additional medical conditions
• Duration since diagnosis
• Tobacco use history
• Projected life expectancy

Insurers also collect extensive medical records, test results, and doctor statements to verify lung health status. Specialized “pulmonary function tests” may also be required.

These details allow underwriters to assign a risk class from standard to very high risk. Better lung health equals better rates and eligibility odds.

Impact on Canadian Life Insurance with Lung Disease

While underwriting is personalized, here is an overview of how major lung diseases commonly affect life insurance in Canada based on advisor experiences:

Asthma

• Well-controlled, mild: Possible standard rates
• Moderate with some attacks: Potential rating increase
• Severe and uncontrolled: Major rating difficulties or decline
• Steroid use: Significant rating challenges

COPD

• Early stage and well-controlled: May get standard rating
• Moderate with frequent symptoms: Higher premiums likely
• Severe with exacerbations: Could be rated or denied
• Low lung function and oxygen use: Hard to obtain coverage

Pulmonary Fibrosis

• Diagnosed recently but stable: Could see standard rates
• Rapid progression in a short time: Rating obstacles likely
• Oxygen therapy required: Difficult to insure affordably

Lung Cancer

• In active treatment: Typically uninsurable
• In remission <5 years: Guaranteed issue policies only
• In remission 5+ years: Possible to qualify for coverage

Other Respiratory Diseases

• Cystic fibrosis and bronchiectasis often lead to ratings or denials. Severe pneumonia is also commonly rated.

Experienced advisors can help maximize eligibility by conveying health circumstances accurately.

Cost of Life Insurance with Lung Disease for Canadians

Respiratory conditions substantially increase life insurance premiums in Canada. Typical increases:

Steroid use for asthma or oxygen therapy for COPD often drives increases toward the upper end. Even mild cases may see a 25%+ bump.

Policy Options for Life Insurance with Lung Disease in Canada

For those without severely impaired lung function, these are available:

Term Life Insurance For Lung Disease Patient

Term life provides affordable pure death benefit protection for 10-30 years. It works for milder controlled lung diseases.

Whole Life Insurance For Lung Disease Patient

Whole Life has lifetime coverage, cash value growth, and premium guarantees. The stability helps those with lung issues.

For moderate to advanced lung disease, no exam life insurance is an excellent option:

Simplified Issue Life Insurance For Lung Disease Patient

A simplified issue only requires answering health questions, not tests. Coverage up to $500,000 is accessible.

Guaranteed Issue Life Insurance For Lung Disease Patient

The guaranteed issue has no health questions or exams. It offers essential coverage when rated/declined elsewhere.

While costing more than conventional policies, these no-exam options provide vital coverage access to lung patients.

Why Life Insurance with Lung Disease is Crucial for Canadians

Beyond the usual benefits, life insurance with lung disease takes on added significance:

• Replace lost income: Many lung diseases preclude working eventually. Life insurance enables income replacement.
• Cover household costs: Lost wages from lung disease are replaced by paying mortgage, utilities, etc.
• Pay medical bills: Oxygen, drugs, and therapies for lung disease are hugely expensive. Proceeds help cover costs.
• Pay funeral costs: Life insurance enables honouring loved ones without added financial burden.
• Facilitate wealth transfer: Proceeds can pay estate taxes to transfer wealth smoothly.
• Support dependents: Funds can be utilized to support dependents, pay for education, etc.
• Pay off debts: Debts don’t fall to next of kin.

Those with lung problems have an amplified need for life insurance to maintain family finances.

Pros and Cons of Getting Life Insurance with Lung Disease

Pros of Getting Life Insurance with Lung Disease

• Get necessary protection even if declined elsewhere
  • Because of the extra health risk, those with lung conditions may get denied by some insurers
  • But coverage options still exist, like simplified issue and guaranteed issue policies
• Peace of mind knowing family will be financially secure
  • Income replacement and financial stability for dependents
  • Avoid burdening family with unpaid debts or expenses
• Lock in insurability early before health worsens
  • As lung disease progresses, getting affordable coverage becomes more difficult
  • Acting while still relatively healthy maximize underwriting outcomes
• Tax advantages and benefits of life insurance
  • Income tax-free death benefit
  • Potential borrowing against cash value on permanent policies
  • Policy passed to beneficiaries without probate delays

Cons of Getting Life Insurance with Lung Disease

• Potentially higher premiums than healthy applicants
  • Any respiratory condition will mean an increased risk class and higher base rates
  • The severity of the lung problems correlates with the rating bump
  • No exam policies that guarantee approval are more costly
• Possibly lower coverage amounts or shorter terms
  • Insurers may limit term lengths or caps for higher-risk cases
  • No exam policies max out at lower coverage levels
• More difficult and lengthy application process
  • Extensive details on medical history and doctors’ records are required
  • Insurers will investigate cases more thoroughly, leading to longer underwriting
• Need to reapply and get reapproved at renewal
  • Unlike healthy clients, lung disease cases often undergo re-underwriting at term renewal
  • This includes another round of medical questions and a review

How to Purchase Life Insurance with Lung Disease

• Disclose medical history and condition fully upfront
  • Omitting details will lead to the denial of the claim later
  • Share all doctor diagnoses, hospital visits, symptoms
• Provide detailed records of diagnoses, treatments
  • Submit test results, specialist referrals, prescriptions
  • 5-10 years of records are ideal
• Compare quotes from top-rated Canadian carriers
  • Rates for lung disease vary significantly between insurers
  • Independent brokers can efficiently shop the market
• Use an independent broker to save time and find the best rate
  • Independent brokers can access policies from dozens of carriers
  • Captive brokers can only offer products from one company
• Consider no exam policies like a simplified issue
  • These policies base approval only on the questionnaire
  • Ideal for higher-risk cases or if needing immediate coverage

Where to Buy Life Insurance with Lung Disease

• Independent insurance brokers
  • Access to products across many life insurance companies in Canada
  • Can compare quotes and place with the best insurer for your needs
• Direct carriers like Sunlife, Manulife, Canada Life
  • Deal with just one insurer but may offer specialty programs
• Banks and financial institutions
  • Often resell products from the major insurers
  • May have integrated packages with banking services
• Online insurance marketplaces
  • Companies like PolicyMe allow you to compare quotes
  • But will have limited partner carriers
• Avoid brokers representing just one company
  • Restricts options and unable to access the full market

Best Practices for Canadians Seeking Life Insurance with Lung Disease

Canadians with lung disease can readily get life insurance using these best practices:

• Compare quotes from 5+ insurers – Rates vary widely for lung cases.
• Work with an independent broker – They simplify and compare multiple carriers.
• Ask about longer terms – Beyond ten years, premiums often improve.
• Maintain diligent medical records – Documentation is imperative.
• Improve health if possible – Losing weight, nutrition, etc., offset risk.
• Avoid tobacco – This worsens mortality with lung disease substantially.
• Apply early – Pre-existing conditions see higher denial rates. Get coverage before your health worsens.
• Consider no exam policies – These provide essential last-resort coverage if denied or rated highly elsewhere.

Canadians with significant lung problems can obtain life insurance with proper guidance and diligence.

In addition, here are some other helpful articles about obtaining life insurance with pre-existing conditions :

• Life Insurance with Alzheimer’s or Dementia
• Life Insurance with Heart Disease
• Life Insurance with Autism Spectrum Disorder
• Life Insurance with Cardiomyopathy 

Conclusion: Lung Disease Should Not Prevent Life Insurance

Over 3 million Canadians have lung disease, but respiratory illness need not prevent anyone from obtaining coverage. Even those with advanced COPD, pulmonary fibrosis, and past lung cancer have viable options. Working with a top-tier advisor simplifies the process and helps secure the best rates your health profile permits.

With proper guidance, diligence, and a well-documented application, affordable life insurance is attainable for Canadians with lung problems. Let lung disease not stop you from protecting your loved ones.

As Canada’s top life insurance news source, Life buzz has helped thousands of higher-risk individuals like you secure life insurance with lung disease.

Our advisors will compare quotes from Canada’s leading insurers to match you with the best rates. You are not obligated to buy.

Frequently Asked Questions (FAQs) about life insurance with lung disease

Article Sources:

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1. Life Insurance With a Lung Condition – https://www.dundaslife.com/
2. Life Insurance with a Lung Condition – https://protectyourwealth.ca/