Life Insurance with Parkinson's Disease

While Parkinson’s disease is a serious neurodegenerative disorder, it does not automatically disqualify you from getting life insurance. 

People who are in the early stages or mid-stage of Parkinson’s usually have multiple options to choose from, depending on their age and overall health. However, the cost will be higher than for someone who has no health conditions. Even in the advanced stages of Parkinson's, you may still have options.

If you or a loved one has been diagnosed with Parkinson’s, here’s what to know about life insurance with Parkinson’s disease.

Key Takeaways: 

• Getting life insurance coverage with Parkinson’s disease is possible, but premiums will be higher
• You can buy traditionally underwritten term or whole life policy if your Parkinson’s is in stage 1, 2, or 3
• Those with more advanced progression (stage 4 and 5) are not eligible for medically underwritten life insurance. No medical life insurance may be an option.

What is Parkinson’s disease? 

Parkinson’s disease is a progressive neurological disorder. Unfortunately, there’s no cure for it, but medications may considerably improve your symptoms. While Parkinson’s disease itself isn’t fatal, related complications can shorten life expectancy by a few years. Its main symptoms include:

• Uncontrolled tremors or shaking
• Slow movement
• Balance issues
• Stiff muscles

Generally, the severity of Parkinson’s disease is classified using the Hoehn and Yahr rating scale, which has five stages.

• Stage 1: Symptoms affect only one side of the body 
• Stage 2: Symptoms affect both sides of the body, though there are postural issues
• Stage 3: In addition to the symptoms of stage 2, there’s loss of balance and slower movements
• Stage 4: In most cases, stage four patients are unable to walk without an assisted device, like a walker
• Stage 5: This is the final stage of Parkinson’s, marked by severe posture issues in the back, neck, and hips

What do life insurance companies consider when you apply with Parkinson's disease?

Canadian life insurance companies will take many facts about your condition into consideration to determine if they can offer you life insurance and at what premiums. These include:

• The stage of your Parkinson’s 
• Age of diagnosis
• Your current age
• The type of Parkinson’s disease you have

In addition, insurance companies may look into your family medical record and ask for an attending physician statement (APS). 

Best life insurance for Parkinson’s disease

With stage 1, 2, or 3 Parkinson’s, you may qualify for fully underwritten term life, whole life, or universal life insurance at higher premiums. However, life insurance options for those with more advanced progressions or other complications are likely to be limited to guaranteed issue and group life insurance. 

1. Term Life Insurance

A term life insurance policy covers you for a specific period of time. You can pick the length of time you want, whether it is one year or 30 years. While your policy is running, it will pay the death benefit to your family if something happens to you. Once the policy term expires, the coverage ends, unless you renew it.

Most insurers give the policyholders the option to renew coverage without new medical underwriting, meaning any recent health changes won’t impact your renewal premium rate. 

Given that the coverage is temporary, term life insurance is a good option for people who want to cover large debts, like a mortgage, or want to protect their family until their children start earning. Term life insurance is much cheaper than permanent life insurance and hence is a cost-effective way to secure the financial future of your dependents. 

2. Whole life insurance

Whole life insurance is the most common type of permanent life insurance. It guarantees your dependents get a payout when you pass, no matter when your death takes place. Along with lifetime coverage, whole life plans accumulate cash value on a fixed rate set each year by the insurer. 

Think of cash value as a liquid asset, which you can access at any time while you are living. Keep in mind your beneficiaries typically only get the death benefit; any unused cash value at the time of your passing is pocketed by the insurer. 

Whole life insurance is 10 to 15 times costlier than term life insurance, but for some people, it might be worth the cost. You may want to consider it if you are a high-net-worth individual and want to combine permanent life insurance coverage with tax-advantaged investment growth. It can also make sense for someone who has a lifelong dependent. Small business owners or people with a large, complex estate may also find whole life insurance more beneficial. 

3. Universal life insurance

Like whole life, universal life insurance combines lifetime insurance protection with cash value. However, in its case, the cash value grows at a varied rate, depending on the performance of investment sub-accounts picked by you. Many universal life plans give the policyholder the flexibility to adjust their premium payments. You may want to choose universal life insurance over whole life if you want this flexibility or a say in how your cash value is invested.

4. Guaranteed issue life insurance

Guaranteed issue life insurance is a small permanent life insurance policy with no health qualifications. It is designed to help your family cover your end-of-life expenses, not act as a financial safety net for them. Guaranteed issue life insurance comes with a waiting period, usually two or three years. If you pass away within the policy’s waiting period, the insurer will not pay the death benefit, though it will return the policy’s premiums plus interest.  

5. Group life insurance 

Group life insurance is offered by an employer to its workers, often for free or at lower premium rates than individual policies. The only downside is that the death benefit is typically capped at one or two times your annual salary, which may not be enough if you have young children and a mortgage. 

Cost of life insurance with Parkinson’s disease

How much you pay for life insurance if you have Parkinson’s disease depends largely on the severity of your condition and whether you have other complications or not. 

Parkinson’s has five distinct stages, and the sooner you apply after your diagnosis, the lower your premiums will be. Once the condition progresses to stage 4 and 5, a new traditional policy is no longer possible. But that doesn’t mean you cannot get any coverage at all. You can still qualify for a guaranteed issue life insurance, which allows you to leave a small amount of tax-free cash for your loved ones. 

Whenever someone applies for life insurance, the underwriters assign them a health class or rating based on their risk profile. The higher the risk, the lower the health rating and the higher the premium rate. 

People with Parkinson’s disease who are approved for standard coverage receive a table rating. Table ratings typically range from 1-10 or A-J. An “A” or “1” table rating means you will pay the Standard rate plus 25%. For each level down the table, 25% is added to the Standard rate. 

The chart below gives a fair idea of what insurers are likely to offer you based on the severity of your Parkinson’s. 

What if I am denied insurance coverage due to Parkinson’s disease? 

If you have been denied standard life insurance coverage because of your condition, don’t worry. Options are still available. The first thing you should do is speak with an independent broker who has previously worked with clients with Parkinson’s. 

When it comes to underwriting, every life insurer follows a different set of guidelines. It is quite possible that another provider may treat your condition differently and be willing to write you a policy with a premium load. 

An experienced broker, like Dundas Life, will have insider knowledge about which companies are more likely to accept your application. Working with us increases your chances of securing the coverage you need and deserve. Click the button below to get a quote.

Of course, if you just can’t get term life or whole life coverage, there’s always guaranteed issue life insurance. Guaranteed issue plans do not have medical requirements, so you can buy coverage despite serious health concerns. While a guaranteed issue policy has a smaller death benefit, something is better than nothing. 

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Conclusion

Parkinson’s disease can make life insurance more expensive or limit your options for coverage. But it does not necessarily disqualify you from getting insured. When it comes to buying life insurance with Parkinson’s, the severity of your condition is the most important factor.

While people in stage 1, 2, or 3 of Parkinson’s can qualify for traditionally underwritten policies, those in the latter stages of the disease can get only guaranteed issue life insurance. 

If you are worried about how Parkinson’s disease will affect your insurability, let our team at Dundas Life help you. We will shop your case with the best life insurance companies in Canada to ensure you receive the most comprehensive coverage. Schedule a free call with us today.

FAQs

Will my life insurance cover costs related to my Parkinson's disease?

No, it will not. The purpose of life insurance is to mitigate the financial impact your death has on your loved ones. It’s not designed to help you cover medical costs related to an illness such as Parkinson’s disease. 

Is Parkinson’s disease a pre-existing condition?

Yes, Parkinson’s disease is a pre-existing condition. A pre-existing condition like Parkinson’s could affect your eligibility for life insurance and premium rate. Depending on the stage of Parkinson’s you are in at the time of applying and your overall health, the insurer may approve you with a higher premium rate or deny your application for a standard life insurance policy. 

Does the stage of Parkinson's disease at the time of application impact the acceptance of a life insurance policy?

Parkinson’s disease is a chronic, progressive neurological condition. Which means it doesn’t go away and gets worse with time. As such, the stage of Parkinson’s disease you are in at the time of applying has a big impact on your insurability. 

The more advanced the stage, the higher the level of risk your condition presents to the insurer. To compensate for the added risk, the insurer will approve your application with a ‘loading’ on the price. That is, your rates could be between 25% and 250% higher than someone who doesn’t have Parkinson’s. If your condition is in the advanced stages (stage 4 or stage 5), the insurer may even refuse to write you a standard life insurance policy.

Can my insurance be cancelled if my Parkinson's disease gets worse?

No, your insurer cannot back out of the insurance contract using a worsening Parkinson’s as the excuse. Once coverage starts, the terms of the contract remain the same throughout, regardless of any changes to the insured’s health. 

If I already have life insurance and then get diagnosed with Parkinson's disease, will my rates increase?

No, they will not. Term life policies and all whole life plans have level premiums. That means the monthly premium amount remains the same throughout the duration of the policy. Once you purchase a policy, the insurer cannot bump up the premium rate because of any changes to your health. 

Does life insurance cover Parkinson’s disease? 

Yes, it does. Your existing life insurance plan automatically covers all illnesses and diseases that you are diagnosed with during the policy term, unless specified otherwise in the policy document. So if you receive a Parkinson’s diagnosis after the start of your coverage and later pass away, the insurer will pay the death benefit, provided your policy was in force at the time of your death.