Q&A: Where can I get life insurance for a person with a mental disability?

Question by Lyn93: Where can I get life insurance for a person with a mental disability?
I need to get life Insurance for my husband (42 yrs. old) who has a mental disability called Paranoid Schizophrania. We had life insurance for him before, but when he got sick, and had to leave his job, we ran into hard times. I was the only source of income at the time, and it was only enough for the basic necessities in life. I couldn’t keep the payments on his insurance. We waited months to hear something from Social Security Disability, and by that time I had lost his insurance.
When we started getting a little more income from his disability, and applied at different Insurance Companies for Insurance for him , they turn him down. They considered people with mental disabilities a risk. The Insurance Companies didn’t say this in so many words, but when you answered their health questions truthfully, and get denied. It’s not hard to figure out. We ended up getting him burial insurance, but we both are bothered that he can’t leave much to me and our daughter. I do have a policy.

Best answer:

Answer by Kay3535
Many states have programs which make insurance available to people with mental or physical disabilities. Check with local mental health services to see if they know of any in your state.

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2 Responses to “Q&A: Where can I get life insurance for a person with a mental disability?”

  1. Still reading says:

    The purpose of life insurance is to protect the dependents of the insured by replacing income he/she was generating, or the services the person was performing. That’s why insurance is limited by the individual’s earnings or by the economic value of the individual to his/her dependents.

    Granted, you can get policies which have other benefits, such as whole life insurance, and you can get minimal policies for individuals with no earnings. But, your husband’s specific mental disease does place him at greater risk, and a statistically shorter lifespan. And, you and your daughter are not financially dependent on him. Both of those factors are involved in the denials you’ve received. Life insurance isn’t supposed to be a windfall when the insured dies; it’s designed to leave you whole, not better off than with him alive. Insurance companies will never voluntarily make an individual death financially attractive to his/her heirs.

    There are low dollar policies available to everybody to ensure that an individual’s death doesn’t destroy his heirs financially, and the previous reply suggests a way to find those.

  2. aaron p says:

    Depending on his level of control with the illness, I could see offers starting at standard rates (with the right company). The problem is not his illness, it the SSI. If he is taking money from SSI, he is an automatic decline with all the companies I can think of. The reason is that if he is bad enough to get SSI, he does not have a strong enough control for a favorable offer. Work with a financial planner to make sure you are saving enough.