Life Insurance with Autism

A clinical diagnosis of autism doesn’t automatically mean life insurance companies will Decline your application. In many cases, autistic children (and adults) can qualify for traditional life insurance. However, your life insurance options depend largely on the specifics of the condition.

The life insurance cost for individuals with autism can vary significantly based on the severity of the condition and other factors. High-functioning autistic individuals may pay standard rates, while those with more severe challenges might face higher premiums or different types of policies altogether.

Here’s what you need to know about life insurance with autism.

Key Takeaways:

• Life insurance is available to children and adults with autism
• As a parent of an autistic child, you can take out a life insurance policy on yourself and then add a Child rider
• If you want proceeds of your life insurance to pay for your autistic child’s care after your death, creating a special needs trust can be the way forward

Understanding Autism and Life Insurance

What is Autism Spectrum Disorder (ASD)?

Autism Spectrum Disorder (ASD) is a neurological and developmental condition that affects how individuals communicate, interact socially, and behave. It is characterized by challenges in verbal and nonverbal communication, social interactions, and repetitive behaviors. As a spectrum disorder, ASD impacts individuals differently, with varying degrees of severity and a wide range of symptoms. This means that while some people with autism may require significant support in their daily lives, others may live independently and have successful careers.

How Autism Affects Life Insurance Eligibility

Autism can influence life insurance eligibility in several ways. Insurance companies often view individuals with autism as higher risk due to the potential for associated health conditions such as epilepsy, anxiety, and depression. These comorbidities can affect the underwriting process and the premium rates offered. However, many life insurance companies do provide coverage to individuals with autism, and the eligibility criteria can vary significantly based on the severity of the condition and the individual’s overall health.

For instance, those with mild autism who manage their condition well and have no significant health issues may qualify for traditional life insurance policies, such as term life or whole life insurance. On the other hand, individuals with more severe autism or additional health complications might find their options limited to simplified issue or guaranteed issue life insurance, which have more lenient underwriting requirements but often come with higher premiums and lower coverage amounts.

Is Life Insurance Possible with Autism?

Yes, children and adults with autism can get life insurance. Insurance companies weigh multiple factors when determining the eligibility and premium rate of someone with autism. These include: 

• Where are they placed on the Autism spectrum
• How does autism impact day-to-day activities
• Whether they have other pre-existing illnesses or diseases
• What kind of medications they are taking

The insurer may also check the applicant’s medical records. If the applicant is an adult, they may have to undergo a medical exam. Based on this information, the insurance company will determine the applicant’s risk profile and assign a health classification. 

Autistic individuals who are approved for traditional life insurance typically receive a Standard or Table rating. A Standard health classification means you will pay the same rate as the average person of your age and gender. Being table-rated, on the other hand, means higher-than-average premiums. 

How much more you’ll pay depends on the severity of your condition. Table ratings in life insurance typically range from 1 to 16 (or A to P). With each increment, your premium rate increases by a set percentage. 

A higher-functioning autistic child or adult may qualify for life insurance with a Standard or Table rating. However, if the condition is severe, the application could be declined.   

Available Types of Life Insurance with Autism Spectrum Disorder

Children and adults who have autism can get life insurance. However, your life insurance options depend on the severity of your condition, medical history, and other personal factors, such as age.

When applying for life insurance with autism, it is crucial to choose a reliable life insurance company. Transparency and disclosure are essential, as providers gather information from applicants and may validate it through medical databases. Failing to provide accurate information can have significant consequences.

Children aged 8 and over may qualify for Children’s life insurance if their autism is mild. As a general rule, Canadian insurance companies don’t write a life insurance policy for an autistic child till age 8.

Adults with autism may qualify for standard life insurance — such as term life, whole life, and universal life insurance — provided their symptoms are mild. If their autism is severe, no medical life insurance is likely to be their only option for securing coverage. These policies have less stringent underwriting guidelines than traditional policies, which are fully medically underwritten.

Life Insurance Options for Children Diagnosed With Autism

Autistic children may qualify for Child life insurance. It is a permanent life insurance policy for children under the age of 18 or 17 and protects families against the unexpected costs of a child’s funeral. 

Note: You cannot purchase term life insurance for minor children in Canada. Only permanent life insurance and child riders are available. 

Children diagnosed with autism may be eligible for Child Life insurance if: 

• They are at least 8 years old
• They have a mild form of autism
• Their condition is well-managed
• The risk of health complications is limited

What Life Insurance Companies Look For: 

1. Is your child in a mainstream classroom? 
2. Is your child able to perform activities of daily living (ADLs) on her own? 
3. Is your child able to communicate and speak conventionally? 
4. Can your child have social interaction? 
5. Is there documented evidence of the child possessing an IQ exceeding 70?

If you have answered “yes” to any of the above questions, your child has a better chance of qualifying for standard life insurance with autism. 

Generally speaking, high-functioning children who are studying in mainstream classrooms and have no other pre-existing health condition can expect to be approved for Child life insurance. Depending on the specifics of their condition, they may receive a Standard or Table health classification (Table 2, Table 3, etc.).

What if a Child is Under 8 or has Severe Autism – Can She Get Life Insurance?

In a word, yes. But she will not qualify for Child Life insurance.

Insurance companies decline applications for autistic children who are not yet 8 years old, even if their condition is mild.

In other words, if your child is aged 4 and you apply for coverage, your application will be turned down, and you’ll be asked to reapply after your child turns 8. However, waiting a little longer, say until the child is 9 or 10 years old, may actually work in your favor.

Autism is a complicated condition to underwrite since there are many variables. If your child’s condition is mild, waiting a couple of years longer than the cut-off age may provide insurers with extra reassurance that your child is safe to insure.

Disability insurance can also be an important consideration, as it acts as income replacement when someone is unable to work due to unforeseen disabilities. Government assistance can play a crucial role for families affected by autism.

But it’s possible to take out a guaranteed issue of life insurance on children aged under 8. Not all Canadian insurance companies offer life insurance to children, but some do. An independent insurance broker can help you submit applications with providers who are known to write guaranteed-issue policies for children.

Alternatively, you can buy a life insurance policy for yourself and add a child rider.  A child rider is an optional add-on that allows you to buy life insurance coverage for your children. It offers additional financial protection to ensure you can prioritize your family without the burden of covering unexpected funeral costs if the unthinkable happens.

A child rider covers all your minor children. Typically, a child rider costs around $50 a year and provides $10,000 in coverage for each of your children. Your children don’t have to undergo a medical exam for coverage, though you may have to take one yourself at the time of applying. Some insurers do require you to fill out a medical questionnaire for your children, but others don’t. So, applying with the right provider is the key.

Once your child reaches the age of majority, you may have the option to convert it into a stand-alone permanent life policy without providing proof of insurability.

The following table sums up the life insurance options available for children diagnosed with autism.

Stand-Alone Policy for a Child with Autism vs. Child Rider – Which is a Better Option?

Both Child Life Insurance and Child Riders have their pros and cons. Knowing about them can help you pick the insurance product that’s right for your family. 

Child Life Insurance with Autism 

Pros: 

• Provides more coverage than a child rider
• Guarantees insurability (Your child will have coverage even if her autism worsens or she develops any other serious health condition later in life) 
• Locks in a low premium rate (Life insurance premiums go up as we age)

Cons: 

• Not available for children with autism who are under 8 years of age or who have severe autism
• Higher premiums because of the autism diagnosis

Child Rider

Pros

• Some insurers do not ask medical questions about your children, which means guaranteed approval.
• Cost-effective (Typically, you pay about $5 per month on top of your regular premium rate for $10,000 of coverage per child)
• Some insurance companies offer the option to convert the rider to permanent life insurance when the child turns 18 without any medical underwriting.

Cons

• Not all insurance companies offer the rider without the medical questionnaire, so you must pick a provider carefully. 
• The conversion option is not always available 
• The death benefit amount is usually not more than $10,000

The bottom line: Child Life Insurance provides more comprehensive coverage, but there’s a cut-off age for autistic children, and premiums can be expensive. Not all autistic children who apply for coverage are approved. Child Rider provides limited coverage, but there’s no cut-off age. With the right provider, you can get coverage even if your child’s autism is severe. 

What are the Life Insurance Options for Adults with Autism?

Adults who have mild autism may be eligible for life insurance, such as term life and whole life insurance. If your autism is severe or you have a high risk of health complications, your options will be limited to simplified issues and guaranteed issue life insurance. 

Here’s a brief description of each type of life insurance available to adults with autism: 

Term Life Insurance

Term life insurance with autism provides coverage for a specific period, called the policy term. The most popular policy terms are 10, 20, and 30 years. Your policy pays out if you pass during the policy term. Once the policy term expires, coverage terminates automatically. However, you can usually renew the policy without new underwriting before the expiry date. Term life insurance is up to 10 times more affordable than whole life insurance. 

Adults with autism may be eligible for term life insurance if: 

• Their autism is mild or moderate and is well-managed
• They were diagnosed more than a year ago
• They are gainfully employed
• They are in reasonably good health and don’t have any serious pre-existing conditions like epilepsy.
• They don’t have a history of alcohol or drug abuse or self-harm

Whole Life Insurance with autism

With whole life insurance, you get insurance coverage for your entire life. These policies also accumulate cash value, which you can access through withdrawals or policy loans while you’re still alive. Since there is no expiry date, your beneficiary eventually receives a death benefit. 

Adults with autism may be eligible for whole life insurance if: 

• Their autism is mild or moderate and is well-managed
• They were diagnosed more than a year ago
• They are gainfully employed
• They are in reasonably good health and don’t have any serious pre-existing conditions like epilepsy.
• They don’t have a history of alcohol or drug abuse or self-harm

Simplified Issue Life Insurance with autism

Simplified issue plans don’t require a medical exam, only a few simple health questions. Simplified issue is offered as both term and whole life insurance. Because there is no medical exam involved, you can get coverage in days. The policy premiums, however, are higher than that of traditional plans. 

You may consider applying for a simplified issue policy if you can’t qualify for traditional life insurance because of your autism. 

Guaranteed Issue Life Insurance with autism

Allows you to skip both the medical exam and health questionnaire. As there are no health qualifications, the insurer cannot turn down your application as long as you are in the right age bracket. Most providers offer this type of coverage to adults between the ages of 40 and 80. 

Guaranteed issues should be your last option. Apply for it only if you cannot get traditional and simplified issue life insurance. It’s costlier than other types of life insurance, and the death benefit is often capped at $25,000. 

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What is Covered Under Life Insurance with Autism?

Life insurance policies for individuals with autism generally offer the same benefits as regular life insurance policies. This includes a death benefit, which provides financial support to beneficiaries in the event of the policyholder’s death, covering funeral expenses, outstanding debts, and other financial obligations. However, some policies may include additional features or riders tailored to the specific needs of individuals with autism, such as coverage for therapy or treatment costs.

In addition to traditional life insurance policies, there are specialized life insurance options available for individuals with autism. Guaranteed issue life insurance and simplified issue life insurance are two such options. These policies typically have more lenient underwriting requirements, making them more accessible to individuals who may not qualify for regular life insurance due to their autism.

It’s important to note that life insurance policies for individuals with autism may have different premium rates, coverage limits, and exclusions compared to traditional policies. Therefore, it’s crucial to carefully review the policy terms and conditions to ensure it meets your specific needs and circumstances. Working with an experienced insurance broker or agent, like Dundas Life, who understands the autism spectrum can be particularly beneficial. They can help navigate the application process and find the most suitable life insurance policy that aligns with your needs and budget.

In conclusion, life insurance coverage for people with autism is available, and there are various options to choose from. By understanding the specifics of autism and life insurance eligibility, individuals with autism can make informed decisions about their life insurance needs and find a policy that provides them with the necessary protection and peace of mind.

What Information About my Autism will I have to Disclose on my Application? 

When you apply for life insurance with autism, the insurer will ask you specific questions about your Autism, including: 

• When were you diagnosed with Autism? If you were diagnosed in adulthood, the insurer may request an attending physician statement (APS). It is a summary of your health condition from the point of view of the doctor who is treating you. 
• How severe is your Autism? Adults with milder autism are more likely to be approved for traditional life insurance than those with severe symptoms. 
• How are you managing your condition? Insurers will rate autistic adults who are living an independent life more favorably than those who are unable to function normally. 
• Do you have epilepsy? Autism spectrum disorder and epilepsy frequently occur together. Your chances of approval may be higher if you don’t have epilepsy. 

Regardless of the severity of your symptoms, you must answer all the questions truthfully. Lying on a life insurance application or withholding key information from the insurance carriers is a type of fraud. If you’re caught lying, your policy may be canceled, and you may even have difficulty getting coverage elsewhere. 

How Does Autism Affect My Current Life Insurance Policy?

Even though autism spectrum disorder begins in early childhood, it’s not uncommon for many people to be diagnosed with it in adulthood. These people may have less severe symptoms and developed coping mechanisms to hide the signs and symptoms of their condition, even from themselves. 

If you find out you have autism after taking out a policy, nothing will change. Your premium rate and coverage amount will remain the same for the length of your policy. 

Best Canadian Life Insurance Companies for People with Autism

Each top insurance company has a different set of guidelines they follow to evaluate an applicant. Therefore, some insurers may be more lenient toward people with autism than others. Here’s a list of Canadian insurance companies that are known to offer life insurance to autistic people. 

Note: This list is not exhaustive. Getting quotes from as many providers as possible or working with an experienced insurance broker may improve your chances of getting the desired coverage at an affordable price. 

How to Apply for Life Insurance if You or Your Child Has Autism?

The process of applying for life insurance is the same, whether you have autism or not. However, people with autism can potentially benefit more from working with an experienced, independent broker. An agent with insider knowledge about which providers are likely to offer applicants with autism a comprehensive policy may tip the odds of securing the desired coverage in your favor. 

Do caregivers of autistic individuals need life insurance?

Life insurance can help you leave behind funds to pay for your child’s care after you’re gone. So, as a caregiver of an autistic child or adult, getting life insurance could be a sound financial decision. 

However, naming your autistic child as the beneficiary of your policy might not be a good idea. For starters, life insurance proceeds cannot be paid to a minor. Also, transferring assets to an autistic adult child may affect her ability to qualify for federal and provincial benefits. Even if that’s not the case, an autistic child may not be able to handle a large inheritance. 

For these reasons, if you are counting on your policy’s sum assured to pay for your child’s care and well-being, consider setting up a special-needs trust. It is a trust created for those with disabilities and provides aid in managing assets for that individual’s benefits while maintaining their eligibility for public assistance benefits. 

Conclusion 

It’s possible to buy life insurance for a child with autism. Autistic adults with low support needs can qualify for traditional life insurance as well. Life insurance options are available even for children and adults with severe autism. 

Your best chance of securing desired coverage is by working with an independent life insurance broker. At Dundas Life, we work with multiple life insurance companies, some of which may rate applicants with autism more favorably than others. Reach out today and we will shop around your case to these companies so that you can get the coverage your family needs.

Frequently Asked Questions (FAQs)

Can I buy life insurance for my autistic child? 

Yes, you can. If your child is above 8 and has a mild form of autism, she may qualify for Child Life Insurance. Otherwise, you can take out a guaranteed issue life insurance policy or purchase a traditional policy for yourself and add her as a rider. 

What is no medical life insurance? 

No-medical life insurance plans let you forgo the life insurance medical exam, which is required by traditional policies. Simplified issue and guaranteed issue life insurance are the two most popular no-medical options. 

Can I name my autistic child as the main beneficiary of my policy? 

Yes, you can. However, doing so may not be in your best interest if your child is a minor or is receiving government aid.  Consider setting up a special-needs trust for your child and designating it as the primary beneficiary. The trust will manage the policy proceeds (and other assets you put into it) for the benefit of your child.