Ben Nguyen 
Multiple sclerosis (MS) is an unpredictable, chronic disease of the central nervous system. Among Canadians aged 20 and above, approximately 290 individuals per 100,000 are believed to be living with Multiple Sclerosis (MS). Notably, this condition disproportionately affects women, with females accounting for roughly 70% of MS cases in Canada ( Source)
MS can significantly impact one’s life expectancy and ability to qualify for life insurance coverage.
While multiple sclerosis presents challenges for obtaining life insurance with pre-existing conditions, options are still available to secure your family’s protection. This guide examines the landscape of life insurance for Canadians with multiple sclerosis.
What is Multiple Sclerosis and Prognosis?
Multiple sclerosis involves the immune system attacking and damaging the myelin sheath, which protects nerve fibres. This leads to disrupted neurological signalling and a wide array of symptoms.
Common effects of Multiple Sclerosis include:
- Fatigue
- Sensory disruptions
- Mobility impairments
- Bladder/bowel dysfunction
- Vision loss
- Cognitive difficulties
The disease course of MS varies significantly between patients. However, MS typically reduces average life expectancy by 5 to 10 years.
There are four main types of MS:
Relapsing-Remitting MS
- 85% of cases
- Clearly defined flare-ups followed by remission periods
- Mild to moderate long-term impact on life expectancy
Primary Progressive MS
- 10-15% of cases
- Slow but steady worsening over time
- More significant impact on life expectancy
Secondary Progressive MS
- Follows after relapsing-remitting MS
- Neurological function deteriorates more rapidly
- Increased impact on lifespan
Progressive Relapsing MS
- Relapses still occur amid steady progression
- Greatest life expectancy reduction
MS is challenging for insurers to underwrite, given fluctuating periods of remission and unpredictable timing/severity of future relapses.given fluctuating periods of remission and unpredictable timing/severity of future relapses.
Why Does Life Insurance with Multiple Sclerosis Matter?
There are several crucial reasons why having life insurance with multiple sclerosis in place is so valuable for those diagnosed.
Replaces Lost Income
One of the top concerns with MS is that complications from the disease may eventually force you to stop working and lose your income. This can happen earlier than planned retirement for many patients.
Life insurance provides a lump sum payout that your dependents can utilize to replace that lost income. The funds can help cover daily expenses, mortgage payments, and other recurring costs that your paycheck previously covered.
Life insurance gives you confidence that your family will remain financially secure if MS cuts your career short.
Covers Massive Medical Expenses
Managing multiple sclerosis requires extensive medical treatment and equipment that quickly becomes very expensive. Costs like medications, mobility aids, home healthcare, out-of-pocket expenses, and more increase quickly.
For example, the average lifetime treatment cost per MS patient is estimated at over $4 million. Even with insurance coverage, substantial out-of-pocket costs typically remain.
Life insurance provides your family with a lump sum to help cover these exorbitant healthcare costs if you pass away. It helps ensure MS does not leave them in financial ruin.
Provides for Dependents
If you are the primary breadwinner for children, a spouse, or aging parents, your loved ones likely depend heavily on your income and financial support. That reliance does not suddenly disappear if you pass away prematurely due to complications from MS.
The payout from life insurance allows your dependents to maintain their standard of living even after you are gone. The funds can be utilized for necessities like food, housing, transportation, and education.
Knowing your dependents are cared for through life insurance brings tremendous peace of mind.
Settles Final Expenses
In addition to ongoing living expenses, the final costs that arise after one’s passing can also be substantial. These final expenses include debts like mortgages or loans, funeral and burial costs, taxes, legal fees, and more.
Experts estimate the average final expenses per person total $15,000 or more. Life insurance provides an immediate pool of funds to settle these final bills and expenses without leaving your family struggling to obtain the money.
Leaves an Inheritance or Charitable Gift
Even after covering lost income, healthcare costs, dependents’ needs, and final bills, life insurance can have funds remaining to become part of your legacy.
The remaining amounts can be utilized to leave an inheritance gift for heirs, donate to a cause important to you, fund future education expenses for children/grandkids, finance a memorial site, or support any other legacy plans you may have.
Life insurance allows you to do some meaningful good with the remainder.
Gives Peace of Mind
Finally, having life insurance to handle these crucial needs if your health falters can give you enormous peace of mind.
You gain confidence knowing that your family’s financial security is protected even as your MS may progress. This reassurance is incredibly valuable during such a challenging diagnosis.
- Knowing your assets will be passed on correctly, expenses will be covered, and dependents will be provided for is a priceless comfort as you battle the unpredictable impacts of MS.
Multiple Sclerosis Often Leads to Declines in Ratings for Traditional Life Insurance
For healthy applicants, traditional medically underwritten life insurance places individuals in standard or preferred risk classes based on life expectancy.
However, the complexity of underwriting MS frequently leads to substandard ratings or declines:
- Ratings – premiums increased by 25% – 300%+
- Declines – no policy offered at any price
Exactly how an insurer treats MS depends on factors like:
- Type of MS
- Time since diagnosis
- Severity of symptoms
- Response to treatment
- Frequency of relapses
- Presence of complications
In some cases, a tentative MS diagnosis may still qualify for coverage. Overall, though, traditional policies are challenging to secure.
What Insurers Look for When Evaluating Applicants of Life Insurance with Multiple Sclerosis
To decide on approval and ratings, insurers dig deep into an applicant’s health history and prognosis. Key MS data underwriters analyze include:
Date of Diagnosis
- More years since diagnosis means more data to assess the disease course
- Diagnosis <2 years ago considered higher risk
Type of MS
- Progressive forms are at higher risk than relapsing-remitting
Severity of Symptoms
- Mild symptoms better than loss of mobility/independence
Relapse Frequency
- Fewer relapses preferred
Response to Treatment
- DMTs’ slowing progression is positive
Presence of Complications
- Cognitive changes, infections, and pain worsen the outlook
Co-Morbid Conditions
- Additional health issues compound mortality risk
Functional Ability
- Maintaining professional/daily activities is ideal
Presenting your MS favourably can help improve your chances of approval.
Available Policy Types of Life Insurance with Multiple Sclerosis for Canadians
There are several different types of individual life insurance policies that may be available options depending on the severity of your MS condition.
Rated Traditional Insurance for Multiple Sclerosis patient
Rated traditional life insurance involves full medical underwriting where your health details are evaluated to place you in a risk class. This policy type is ideal for mild to moderate cases of MS that are well-controlled.
Key Details:
- Requires full medical underwriting
- Typically qualifies applicants with milder MS
- Premiums increased 150-300%+ above standard rates
- Policies can provide up to $5 million in coverage
- Level death benefit that does not decrease
For applicants who still qualify for traditionally underwritten coverage, rated policies provide the most benefits like highest death payouts, cash value accumulation, and conversion flexibility.
Simplified Issue Life Insurance for Multiple Sclerosis patient
With simplified issue life insurance in Canada, the underwriting process is streamlined through a health questionnaire without the need for a medical exam for Multiple Sclerosis patient.
Key Details:
- No medical exam is required
- Must answer health questions
- Usually limited to a maximum $1 million death benefit
- Often an affordable option for mild to moderate MS cases
- Premiums are usually less expensive than guaranteed issue options
For MS patients who may not qualify for full underwriting, simplified issue can offer an easier path to gain meaningful life insurance coverage.
Guaranteed Issue Life Insurance for Multiple Sclerosis patient
Guaranteed issue life insurance in Canada approves applicants regardless of health or age but does come with more limited benefits for Multiple Sclerosis patient .
Key Details:
- No medical questions or exams are required
- Guaranteed approval for any MS case
- Typically maximum $25,000 death benefit
- Permanent life insurance with level premiums
- More expensive premiums than simplified issue
For MS patients declined for other policy types, guaranteed issue ensures you can get at least some basic coverage.
Group Life Insurance for Multiple Sclerosis patient
Group life insurance is offered through employers, associations, affinity groups, etc. Limited medical underwriting makes securing coverage more feasible.
Key Details:
- Offered through employer or membership groups
- Limited health questions or simplified underwriting
- Death benefits often up to $1 million
- Premiums are deducted directly from the paycheck
- Coverage ends if you leave the employer or group
Group insurance can provide another option for MS patients to gain meaningful life insurance protection.
Understanding the nuances of these policies allows you to secure optimized coverage that is aligned with your budget and condition.
Critical Illness Insurance Provides Added Value
MS patients should also consider critical illness insurance, which pays out a tax-free lump sum upon diagnosis of a covered condition – including MS.
This money can help cover:
- Loss of income
- Home healthcare costs
- Mobility equipment purchases
- Medications
- Experimental treatments
Payout amounts usually range from $25,000 up to $2 million. Having critical illness insurance alongside life insurance ensures complete financial protection.
Comparing Insurers for Life Insurance with Multiple Sclerosis in Canada
Not all life insurance companies in Canada treat MS the same. Below are sample underwriting guidelines from top insurers:
| Company | Mild/Moderate MS | Severe MS |
|---|---|---|
| Sun Life | Possible Rating | Decline |
| RBC Insurance | Rating 150-300% | Decline |
| Canada Life | Standard to Rated | Decline |
| BMO Insurance | Standard to Rated | Ratings Over 300% |
This highlights the value of an experienced broker who can access multiple carriers to find you the best option.
Top insurers for Multiple Sclerosis patients in Canada include:
A Broker can provide quotes across these companies to uncover your best value.
How Much Does Life Insurance with Multiple Sclerosis Cost?
Life insurance premiums for someone with MS can vary greatly depending on the severity of your condition and the type of policy you purchase.
Below are some illustrative monthly premiums to give you a sense of potential costs for a 40-year-old with MS seeking $500,000 in coverage:
| Policy Type | Sample Monthly Premium |
|---|---|
| Rated Traditional | $160 |
| Simplified Issue | $112 |
| Guaranteed Issue | $345 |
This shows the significant differences in cost between a rated traditional policy, simplified issue policy, and guaranteed issue policy.
Some key things that impact your premiums:
- Type of Policy – No medical and guaranteed issue policies will be more expensive than rated traditional policies you medically qualify for.
- Severity of MS – More severe cases are rated higher and cost more. Mild MS can possibly get standard rates.
- Age – Older applicants have higher premiums. Buying early when younger saves substantially.
- Death Benefit Amount – The higher the death benefit, the higher the monthly premium.
- Term Length – Longer terms (e.g. 20 years) have lower premiums than short terms (10 years).
- Tobacco Use – Smokers pay significantly higher premiums than non-smokers.
- Medical Advancements – New treatments could improve outlook and reduce rates over time.
As shown above, while guaranteed issue policies provide a coverage option for all cases of MS, they come at a steep premium cost. Securing coverage through a rated traditional policy typically offers much better value if you qualify medically.
Discussing your specific situation with an experienced broker allows you to get quotes tailored to your age, health, and desired death benefit amount. This is the best way to understand potential costs and find the optimal balance of rate and coverage.
Other helpful resources cover obtaining life insurance policies with pre-existing conditions including:
- Life Insurance with Diabetics
- Life Insurance with Parkinson’s Disease
- Life Insurance with Epilepsy
- Life Insurance with Cancer
- Life Insurance with Alzheimer’s or Dementia
- Life Insurance with Colon Cancer
Tips for Securing Affordable Life Insurance with Multiple Sclerosis
Beyond choosing the right policy type, other tips for lowering premiums include:
- Meeting with multiple brokers to access more carriers
- Comparing quotes across insurers
- Opting for longer policy terms to lock in rates
- Selecting lower death benefit amounts
- Purchasing at younger ages before progression
- Bundling policies with spouses for discounts
- Maintaining excellent health and function
Having an expert life insurance broker on your side makes finding the most affordable option much easier.
Options If Declined for Traditional Life Insurance with Multiple Sclerosis
The good news is guaranteed issue life insurance is available even if declined for medically underwritten policies.
While the guaranteed issue maxes out at $25,000 in coverage, this still leaves a legacy and helps cover final expenses. It’s an option if you get turned down elsewhere.
Pros and Cons of Life Insurance with Multiple Sclerosis
Pros of Life Insurance with Multiple Sclerosis:
- Protects family’s financial future
- Replaces lost income
- Covers large medical bills
- Allows you to leave a legacy
- Peace of mind knowing family will be okay
- Tax-advantaged way to distribute wealth
Cons of Life Insurance with Multiple Sclerosis:
- It can be expensive if rated or declined
- Requires planning when health is declining
- Need to stay current on premium payments
- Payout won’t begin until after you pass
- The application process can be burdensome
Overall, the financial security life insurance offers far outweighs the negatives.
How to Buy Life Insurance with Multiple Sclerosis
Follow these steps to purchase life insurance as an MS patient:
- Consult brokers – Speak with several brokers and provide your MS details. They will explore your options.
- Compare quotes – Review quotes across different policies and insurers for the best rate. Consider discounts for a longer term or lower death benefit.
- Submit applications – With your broker, submit applications to the insurer(s) offering the best deal. Ensure applications are error-free.
- Undergo underwriting – For medically underwritten policies, you’ll need to provide medical records and possibly exams/labs.
- Consider an appeal – If your application gets declined or has a high rating, consider having your broker appeal the decision.
- Review the policy carefully – Upon approval, read your policy documents thoroughly to ensure you understand all provisions.
- Pay premiums on time – Set up automatic withdrawals so you never miss payments. Failing to pay could jeopardize your policy.
Following these steps with the help of an expert broker gives you the greatest chance of success in obtaining coverage.
Why Work with an Independent Broker When Buy Life Insurance with Multiple Sclerosis?
When seeking life insurance with MS, working with an independent broker that represents multiple insurers is highly advantageous.
Key broker benefits include:
- Access to the top life insurance companies in Canada
- Ability to shop the market for your best option
- Assistance applying to improve underwriting outcome
- Expertise in high-risk impairments like MS
- Advocacy services for claims disputes
- Ongoing policy management and reviews
Good brokers have established relationships with underwriters and advocate for you. Their access and expertise provide a major value.
Conclusion: Canadian Patients Can Get Life Insurance with Multiple Sclerosis
The unpredictability of multiple sclerosis makes qualifying for affordable life insurance in Canada more challenging. However, viable options do exist through no medical and rated traditional policies.
Working with an experienced, independent broker gives you the best chance of securing necessary coverage at reasonable rates.
Through their access to the top life insurers and expertise in high-risk cases, brokers can guide you to the optimal solution for your budget and needs. Don’t hesitate to get quotes from multiple brokers to find the right fit.
With available options like simplified issues, guaranteed issues, and rated traditional insurance, Canadians living with MS can obtain the life insurance protection they need – despite declines elsewhere.
Frequently Asked Questions (FAQs)
How does the claim process work for life insurance with cardiomyopathy?
The beneficiary initiates a claim by contacting the insurer, providing a death certificate, and completing claim forms. The insurer reviews records to confirm coverage eligibility based on disclosures made during underwriting and ensures premiums were paid. With cardiomyopathy cases, insurers may request additional medical records from physicians and coroner reports to assess the claim.
What documents do you need to file a life insurance with cardiomyopathy claim?
Typical documents include a completed claim form, certified death certificate specifying the cause of death, beneficiary identification, policy paperwork, medical records releases, and any other evidence the insurer requests to validate the claim.
Can a life insurance company deny a claim due to cardiomyopathy after you are approved for coverage with cardiomyopathy?
Insurers cannot deny an otherwise valid claim solely due to cardiomyopathy if it was disclosed and rated during underwriting. However, they will conduct due diligence to validate that the medical history was properly presented. Undisclosed conditions could potentially lead to denial.
How long does it take to process a life insurance with cardiomyopathy claim?
Claims typically take 2-6 weeks to process after submitting all paperwork. Cardiomyopathy claims may take longer, up to 3 months, as insurers gather records to confirm medical history was properly disclosed.
Can a life insurance company request an autopsy for a claim involving life insurance with cardiomyopathy?
Most policies allow insurers to request an autopsy to confirm the cause of death. This may occur with cardiomyopathy to ensure it was accurately rated for risk. Families can usually decline a requested autopsy.
Do you still get life insurance payouts with cardiomyopathy if death occurs within two years?
Contestability clauses allow insurers to dispute a claim within the first 1-2 years if material medical history is undisclosed. If cardiomyopathy was revealed and rated, the clause should not impact receiving payouts.
How does insurance determine if cardiomyopathy caused death for life insurance with cardiomyopathy claim purposes?
Insurers utilize death certificates, coroner reports, medical files, and autopsy results, if applicable, to confirm the role of cardiomyopathy in causing death versus other potential factors.
Can a life insurance company re-rate or increase premiums for life insurance with cardiomyopathy after approving a policy?
No, once underwritten and issued, the policy cannot be re-rated or premiums increased by the insurer unless explicitly stated at the time of approval, such as in cases of temporary substandard ratings.
What documents do insurance companies review for a contested life insurance with cardiomyopathy claim?
When legally contesting a claim, insurers will gather physician records, test results, hospital files, coroner/autopsy data, insurance application details, and statements from friends and family regarding the policyholder's health history and disclosure.
How does an insurer determine if cardiomyopathy pre-exists for life insurance purposes with cardiomyopathy claims?
Medical records are reviewed to pinpoint diagnosis dates, onset of related symptoms, test results that could have detected cardiomyopathy prior to insurance application and the policyholder's comprehension of their health status when applying.
Can you appeal a denied life insurance with cardiomyopathy claim?
Yes, beneficiaries can appeal a denied claim by submitting evidence contradicting the denial rationale and requesting a formal review. Most insurers have an internal appeals process before requiring legal action.
Do life insurance with cardiomyopathy contestability clauses apply to cardiomyopathy?
If the cardiomyopathy is undisclosed at the time of application and death occurs within the contestability period (1-2 years), the insurer can legally dispute the payout. If disclosed properly, contestability clauses should not impact a cardiomyopathy claim.
How can you avoid issues with life insurance with cardiomyopathy claims?
Provide complete medical history during underwriting, maintain follow-up cardiac care, adhere to doctor's advice, notify the insurer of any material health changes, and confirm beneficiaries understand the policy.
What causes the most problems for life insurance with cardiomyopathy claims?
Non-disclosure of the condition when applying, not seeking ongoing follow-up treatment, failing to take prescribed medications, engaging in prohibited activities, or lapses in premium payments leading to policy termination.
Does having life insurance with cardiomyopathy impact your eligibility for contestability clauses?
No, having life insurance that was properly underwritten for cardiomyopathy does not impact eligibility for contestability clauses. The clauses only apply if a material medical history, such as cardiomyopathy, is undisclosed upon application.
Article Sources:
To fully appreciate our rigorous adherence to veracity, transparency, and editorial independence, consider reviewing our Editorial Policy at Lifebuzz.ca. It is this dedication that positions us as the ultimate dependable life insurance news outlet in Canada.
