Life Insurance with Multiple Sclerosis

A multiple sclerosis diagnosis doesn’t automatically disqualify you from getting life insurance.

In most cases you can get life insurance coverage to secure your family’s financial future, though you will likely receive higher rates than someone who doesn’t have a pre-existing condition.

Even if your condition is so severe to put standard life insurance out of your reach, there are still ways to get coverage. 

In this post, we will discuss how multiple sclerosis affects insurability and premium rates, and the best options for life insurance for people with MS. Let's dive in.

Key Takeaways

• You can get life insurance with multiple sclerosis but you will likely pay more than average for coverage
• The phase of multiple sclerosis you are in and its severity affects your insurability 
• If you have received an MS diagnosis, you must be truthful about it on your application or you risk invalidating the life insurance contract in the future

What is multiple sclerosis?

Multiple sclerosis (MS) is a life-long illness that impacts the central nervous system. In MS, the immune system attacks the insulating layer wrapped around each nerve cells. This disrupts the flow of information within the brain and between the brain and other parts of the body. The disruption of signals to and from the brain causes unpredictable symptoms like tingling, memory problems, numbness, pain, blindness, paralysis, and/or fatigue.

Symptoms of multiple sclerosis may vary widely from one patient to another, depending on the location and severity of nerve fiber damage. While there is no cure for it yet, treatments can help manage symptoms and slow down progression.

There are four types of multiple sclerosis. 

1. Clinically Isolated Syndrome: This refers to the first onset of potential MS. Common symptoms include tingling or numbness in toes and feet, muscle weakness, and bladder or bowel problems. 
2. Relapsing-Remitting Multiple Sclerosis: This is the most common type of MS, characterized by symptom flare-ups (relapses) followed by periods of partial or full recovery (remissions). 
3. Secondary Progressive Multiple Sclerosis: In this stage, your disability gets steadily worse without relapses or remissions. 
4. Primary Progressive Multiple Sclerosis: Brain and nerve function worsen without relapses or remissions. About 10-15% of people with MS have this type.

How does it impact life insurance?

Generally, when you apply for life insurance with a pre-existing health condition, there are three possible outcomes. 

Depending on whether you have progressive or relapsing-remitting MS and its severity, the insurer may: 

1. Approve your application with a ‘surcharge’ – Your monthly premium rate could be anywhere between 25% and 200% higher than the premium rate for someone who doesn’t have MS. 
2. Ask for further information – The insurer may ask for a physician’s statement to get a clearer picture of your medical history, how well you are managing MS, and its prognosis. 
3. Turn down the application – The insurance company may reject your application for life insurance if it thinks you are too risky. This may happen if you have progressive MS with continuous or worsening symptoms, or if you need help with basic care like feeding, dressing, bathing, and toileting.

Key factors considered for eligibility

The best Canadian Insurance companies will take into account the type of MS you have, its severity, and your overall health to evaluate your insurability. 

Multiple Sclerosis factors that impact life insurance are: 

1. Age at diagnosis: Recently-diagnosed MS patients are likely to be rated better by life insurance companies than those who have had the condition for many years. 
2. Symptoms: The severe the symptoms and the more frequent the relapses, the harder it is to get coverage. 
3. Treatment: Your current state of disability and response to the prescribed treatments also affect your insurability. The better your response, the less risky you are to insure. 
4. Which MS phase you are in: If you are in the primary progressive MS phase, you may not qualify for standard life insurance.

Types of life insurance for multiple sclerosis

What are the best life insurance policy types if you have multiple sclerosis? 

This is a fairly common question, but it has no one-size-fits-all answer. Every family is unique, as are their life insurance needs. So, no one particular life insurance product is the best option for everyone. 

Generally, people with MS have the same life insurance options as someone without a pre-existing condition. That means they can buy any type of standard (read: medically underwritten) life insurance plan. 

Standard life insurance coverage comes in two flavors: term life and permanent life. 

Term Life

Term life is a life insurance product that has an end date. It provides coverage that for a certain number of years, like 10 or 20 years, or until the insured reaches a specific age, like age 65. The beneficiary is eligible for a payout only within this period. Once the policy term expires, the coverage lapses unless you have renewed it or converted to a permanent life plan. 

Term life insurance, owing to its coverage-for-limited-time feature, is more affordable than permanent life insurance. Because of this, it is a good fit for most people. 

You may want to consider term life insurance if: 

• You are single and want life insurance to cover your student loan or other debts
• You are married and your spouse relies on your income
• You have young children and want to safeguard your family’s financial future 
• You have a mortgage and want life insurance to cover it

Permanent Life Insurance 

Permanent life insurance has no expiry date. The coverage lasts until you pass or surrender the policy. In other words, a permanent life plan gives you peace of mind that comes with knowing your beneficiary will eventually receive the insurance payout. However, lifetime insurance protection is not the only unique feature of permanent life; it also includes a savings element. 

Part of your premium payment goes toward building cash value, which accrues interest or investment gains. The cash value grows tax deferred, so you won’t have to worry about paying taxes on interest or investment gains until you access the funds. The cash value is an asset in itself, much like, say, a bank balance or car. You can access it at any time and use the money for any purpose. 

Two most common types of permanent life insurance plans are whole life and universal life. Both combine a death benefit with a savings element, but they accumulate cash value differently. Whole life is more expensive than universal life, but offers more guarantees, making it a suitable option for someone with a low risk appetite. 

Despite the high price tag, permanent life insurance can be a smart choice in unique circumstances such as:

• You are a high-net-worth individual and have already exhausted tradition savings vehicles, like your RRSP
• You have a dependent who needs lifelong care
• You are a business owner and want life insurance to take a business loan or ensure a smooth transition after your death
• You want life insurance to leave a financial legacy
• You have a large, complex estate

Life insurance options if you are denied coverage

If your multiple sclerosis is severe, your application for life insurance can be declined. You still may have options available to you, however. 

Final expense insurance

Also referred as funeral or burial insurance, final expense insurance is a small permanent life insurance policy. It doesn’t involve much medical underwriting, meaning you can get coverage despite poor health. The death benefit, however, is rather limited. These policies are designed to help cover end-of-life expenses, not for replacing the deceased’s income or leaving behind a financial legacy. 

There are two types of finance expense insurance: 

1. Simplified issue life insurance: You won’t have to undergo a medical exam, but must answer a few simple health questions as part of the screening process. Based on your answers, the insurer will decide whether or not to write you a policy and what premium rate to charge. 
2. Guaranteed issue life insurance: It involves neither a medical exam nor a health questionnaire. As long as you are within a certain age group, you will get approved. Premiums are higher than simplified issue plans. 

Graded death benefit life insurance

If you are unable to get a standard life insurance policy due to the progression of the disease, you may still qualify for a policy with a graded death benefit. These policies offer lenient eligibility criteria but, on the downside, they pay a limited death benefit during the first few years (like 25% in the first year, 50% in the second year, and 75% in the third year). The death benefit increases gradually till it reaches the full amount mentioned in the life insurance contract. 

Group life insurance

People with multiple sclerosis who do not meet the eligibility requirements for standard life insurance may still be able to get coverage through work. Many Canadian employers offer their employees access to group life insurance, often as a free employee benefit. These policies involve little medical underwriting, though the death benefit is typically maxed out at 1-2 times your salary. 

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Life insurance costs for different types of multiple sclerosis

The cost of life insurance for people with MS can vary significantly depending on disease progression and a host of other factors, like age, when the disease was diagnosed, and the severity and frequency of symptoms. Generally speaking, people with MS who are approved for standard life insurance tend to receive table rating.

As such, they may have to pay anywhere between 25% and 250% more than the standard rate. 

Why is it important to disclose your multiple sclerosis?

If you have multiple sclerosis and are applying for life insurance, you must disclose it on the life insurance application. Not doing so will be a breach of trust and you run the risk of invalidating your life insurance contract in the future. 

All life insurance policies come with a contestability clause, which remains in force for the first two or three years. During this time, the insurer can contest a claim and reject it if it finds out that the insured lied or withheld key information on the application. In other words, if you do not disclose MS — or any other pre-existing condition, for that matter — it’s possible your beneficiary might not receive any insurance payout upon your passing. 

Conclusion

Multiple sclerosis is a chronic condition that impacts the central nervous system. In most instances, you can get life insurance with multiple sclerosis, but you will likely receive sub-standard rates. Even If you do not qualify for standard life insurance due to severe MS, you still have options.

Speak to a Dundas Life expert today to find out what are your best life insurance options.

FAQs

Can I get life insurance if I have MS?

Unless your condition is advanced or severe, you can get life insurance with multiple sclerosis. At the time of applying, you will have to answer questions related your health, personal medical history, family medical history, smoking status, and body mass index (BMI). 

If you declare you have multiple sclerosis, you will likely get approved but will have to pay extra for coverage. How much more? That depends on the progression of the disease, current age, when the illness was diagnosed, and other factors. If you also have other pre-existing conditions and they are severe, you may not qualify for standard life insurance.

You could still get coverage, but your options would be limited to simplified issue life insurance, guaranteed issue life insurance, and group life insurance. All of them are more expensive than standard plans and typically have smaller death benefits. 

What life insurance options do I have if I have been denied?

You may have the following options for life insurance if you are unable to qualify for a standard policy due to severe MS. 

• Final expense insurance
• Simplified issue life insurance
• Life insurance with a graded death benefit
• Guaranteed issue life insurance
• Group life insurance

How can I improve my chances of getting life insurance with multiple sclerosis? 

Following up on your doctor on a regular basis, maintaining a healthy diet, and keeping your blood pressure under check can improve your chances of obtaining life insurance coverage with MS. 

Does life insurance cover Multiple sclerosis?

Yes, life insurance typically covers multiple sclerosis, unless stated otherwise. If the policy was purchased before you developed MS, the diagnosis will have no impact on your coverage. Your policy premiums will not change, and your beneficiary will receive the full benefit amount upon your death. 

Does life insurance pay out if you get Multiple sclerosis?

Yes, it does. If you have a life insurance policy and develop multiple sclerosis, your insurer will issue the promised death benefit to your beneficiary upon your passing.