Life Insurance for the Terminally Ill (Discounts & Rates)

Terminally ill patients might wonder if they can purchase life insurance. There aren’t many life insurance options for terminally ill patients but coverage is available. Knowing the policies and rates will help you determine if you can enjoy the benefits of life insurance after being diagnosed with a terminal illness. Discovering more about life insurance for the terminally ill will allow you to determine if you can obtain coverage.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 21, 2021

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The Highlights

  • Terminally ill patients only qualify for guaranteed issue life insurance
  • An existing policy will pay out early if you have an accelerated death benefits rider
  • Life insurance for the terminally ill requires a doctor’s diagnosis

Life insurance companies determine coverage based on risk. Terminally ill patients are at high risk so they might wonder if they can obtain coverage. The best insurance companies offer life insurance for the terminally ill.

For those interested in life insurance rates for the terminally ill, enter your ZIP code to find the best life insurance quotes in your area.

What are the rates for life insurance for the terminally ill?

While terminally ill patients are limited in their life insurance options, there are policies available. The following charts show a $25,000 guaranteed issue life policy based on gender and age.

Average Annual Life Insurance for the Terminally Ill Rates by Age: Male $25,000 Guaranteed Issue Life Policy
Age at PurchaseAverage Annual Life Insurance Rates
40$119.58
50$108.85
60$158.35
70$246.58
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The following chart shows the same information for females.

Average Annual Life Insurance for the Terminally Ill Rates by Age: Female $25,000 Guaranteed Issue Life Policy
Age at PurchaseAverage Annual Life Insurance Rates
40$96.67
50$84.79
60$126.27
70$187.46
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As you can see, rates generally get higher as the patient gets older and female rates are lower than male rates.

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What are the policy options for life insurance for the terminally ill?

A life insurance company for the terminally ill determines eligibility and rates based on risk so terminally ill patients are limited in their options.

Most providers only offer guaranteed issue life insurance and final expense insurance to those with a limited time to live.

Guaranteed issue life insurance is a policy designed for high-risk customers. Many policies require health questions and a medical exam.

A terminally ill patient wouldn’t do well with these and a guaranteed issue life policy allows customers to avoid them.

It’s important to know that most guaranteed issue life insurance policies feature a graded benefit. This means that the death benefit won’t pay until a specific amount of time has passed.

Another option is final expense or burial insurance. This limited coverage option allows a person to set up funding for their funeral and burial costs, taking the burden off of family members.

Similar to guaranteed issue life insurance, no medical exam is required.

How much life insurance for the terminally ill can be bought?

Since life insurance companies determine eligibility based on risk, terminally ill patients are limited in their options.

In addition to limiting their policy options, most patients can only buy life insurance for the terminally ill up to $25,000.

Stacking policies is a way of obtaining more affordable life insurance for the terminally ill. This is a process in which multiple policies are added together to create a larger policy.

Can an existing policy pay out life insurance for the terminally ill?

A life insurance guide will help you determine if you need a policy.

One of the benefits of life insurance for a terminally ill patient is the ability to use a policy to help pay medical bills. This is a possibility if you already have life insurance.

The accelerated benefits rider is one of the living benefits and is often automatically included with permanent life policies. This allows you to access a portion of your policy before death if you are terminally ill.

Those looking to protect loved ones might also add a family benefit life insurance plan. This addition to a policy allows a beneficiary to receive regular income through installments.

The Insurance Information Institute says that this beneficiary can be a person, charity, or your estate.

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How do I receive life insurance for the terminally ill?

Once you’ve found a life insurance company, you can start the application process. The typical life insurance company will ask a few basic personal questions. Common life insurance for the terminally ill questions include:

  • Full name
  • Date of birth
  • Address
  • Social security number
  • Beneficiary

The only policies available for terminally ill patients usually feature guaranteed acceptance. The policy will become active once you make your first payment.

Life Insurance for the Terminally Ill: The Bottom Line

Terminally ill patients are limited in their life insurance options. Most life insurance providers only offer guaranteed issue life or final expense insurance.

Understanding these options will allow you to determine if you should purchase life insurance for the terminally ill.

To find life insurance quotes for the terminally ill, enter your ZIP code to discover the best life insurance rates in your area.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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