Life Insurance for Crohn's Disease

A Crohn’s disease diagnosis doesn’t automatically disqualify you from obtaining Crohn's disease life insurance. Still, it can add a few additional steps to your application process and lead to higher premiums.

If you are living with Crohn’s disease, insurance companies will ask you for full details about your condition and your medications. The longer your condition has been stable, the better your chances of securing life insurance coverage at a relatively affordable price. Let's dive into this in more detail.

Key Takeaways: 

• You can get life insurance Crohn's Disease coverage
• You will likely receive a Standard or Table rating
• If you were diagnosed within two years, have severe symptoms, or recently underwent surgery, an insurer can turn down your application
• Every insurance carrier underwrites differently, so shop around for the best rate

What is Crohn’s disease? 

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Crohn’s disease is a type of inflammatory bowel disease. Inflammatory bowel disease is an autoimmune disorder that causes inflammation in the digestive tract. The first signs of inflammatory bowel disease  can appear after exposure to something that irritates the intestines. Females with Inflammatory Bowel Disease may live 6.6 to 8.1 years less, and males may live 5.0 to 6.1 years less than individuals without it. Crohn’s disease is chronic and can cause severe abdominal pain, weight loss, diarrhea, fatigue, and blood in the stool.

There is no known cure, but medication can help manage it. People living with Crohn’s disease tend to go through periods of flare-ups with remission from time to time. The flare-up and remission periods (during which there’s no inflammation) could last from weeks to months.  

Is Crohn’s disease covered by life insurance? 

Yes, people with Crohn’s disease can buy life insurance. Someone with a stable condition for over two years can qualify for Standard health classification. If your condition is mild or moderate, you’ll likely pay up to 200% above the Standard rate.

Individuals with Crohn's disease can still arrange life insurance through specialist insurers, even if they require tailored policies due to their medical condition.

If your Crohn’s disease is severe or you have had surgery recently, insurers may ask you to wait until your condition stabilizes.

If your application has been turned down, you can opt for no-medical life insurance. It is much easier to qualify for than standard life insurance.

Life Insurance Underwriting for People With Crohn’s Disease

Apart from the usual physical exam and health questionnaire, the insurer may request an attending physician statement (APS). It can help them better understand your disease history. In addition, the insurance company will likely ask you some questions regarding your condition, such as:

• When were you diagnosed with Crohn’s disease?
• When was the last flare-up?
• Are you able to work?
• Have you had a fistula removal, small and large bowel resection, ostomy surgery, or any other type of surgery? If so, how much time has passed since the surgery?
• What types of medicines are you currently taking to manage Crohn’s disease?

The severity of Crohn's disease can influence whether a term life insurance policy is a suitable option, as factors like potential surgeries and chronic inflammation are considered when determining eligibility.

Standard underwriting can take four to six weeks but expect an additional delay if you are asked for an attending physician statement.

Best Life Insurance Policy If You Have Crohn’s Disease

If you have Crohn’s disease, you may still qualify for a range of life insurance products, depending on the severity of your condition. Some options may be more attainable or suitable for you than others. Guaranteed issue insurance coverage is an option for individuals with serious health issues, such as Crohn's disease, who may not qualify for traditional insurance.

Your main options for fully underwritten life insurance policy are level-term, decreasing-term, whole, and universal life insurance.

Level-term life insurance

Term life insurance provides coverage for a set period. It is very popular because it is one of the most affordable life insurance.

Individuals with Crohn's disease may face challenges in securing affordable health insurance due to the risks associated with the condition.

When applying, you can choose the policy term that works best for you from the various options the insurer offers. Most common policy terms are 10, 20, and 30 years, though some providers offer term life insurance lasting up to 40 years. When the policy’s original term expires, you may have the option to renew the plan for the original term without having to provide evidence of insurability.

Term life insurance involves medical underwriting — the process insurance companies use to determine the risk they will take by selling you a policy. Therefore, you must fully disclose your Crohn’s disease and other health issues at the time of application.

Level-term life insurance plans have a fixed death benefit and monthly premium. However, if you choose to renew the plan, you will pay a higher rate, as life insurance premiums increase as we age.

You should consider buying level-term life insurance if:

• You are looking for an affordable way to set up a financial safety net for your family for a specific period
• You want coverage during the period of life when you have more financial responsibilities, such as a mortgage to repay or young children to support
• You want a policy that’s easy to understand and manage

Decreasing term life insurance

Decreasing term life insurance works the same way as level term. You get coverage for a specific period, pay the same monthly premium during a policy term, and must disclose your medical history. The only difference is that the death benefit is reduced yearly, according to a predetermined schedule. 

Decreasing term life insurance can be an option if you want to buy coverage specifically to cover certain liabilities. For instance, if you have a mortgage or business loan, it can help your family repay your debts after you’re gone. 

Whole life insurance

Whole life insurance sets you up with life coverage and builds cash value, which you can withdraw partially or fully or use as collateral to take out a loan.  

Your beneficiary receives the sum assured upon your death, and you can use the cash value during your lifetime. Most people use their policy’s cash value to meet a financial emergency, fund a big purchase, or supplement retirement income. 

Premiums for whole life insurance remain constant as long as the policy remains in force and the cash value grows at a set rate. Compared to term life insurance, whole life insurance is significantly costlier. For someone living with Crohn’s disease, it could be even more expensive if a table rating is assigned due to health complications. 

Whole life insurance is a good choice for someone who wants a policy that provides life coverage and doubles as a cash asset. 

Universal Life Insurance

Like whole life, universal life insurance offers permanent life insurance coverage with a cash value component. However, it is more flexible than whole life. You can raise or lower premium payments within certain limits as your circumstances change and the cash value doesn’t grow at a predetermined rate.  Consider it if you need coverage for your entire life, but want a policy that is not as expensive as whole life. 

What Happens If I Am Denied Coverage?

If you are scheduled for surgery for Crohn’s disease or have recently had an operation, insurers will ask you to wait at least 6 months. If your condition is severe or if you have additional medical issues, your application can be turned down. 

Keep in mind that every insurance provider has its own underwriting criteria. So, one insurer may decline your application while another may approve it with a premium loading. 

Working with an experienced independent broker may increase your chances of securing traditional life insurance coverage if your symptoms are severe. Your broker may help you apply with life insurance companies with more flexible guidelines for people with autoimmune disorders. 

Even if multiple insurers refuse to write you a traditional policy, you still have the following options: 

Simplified Issue Life Insurance

Simplified issue policies are more lenient in their underwriting process, requiring a health questionnaire but not a physical exam. Give it a try if you are not eligible for traditional plans. Keep in mind that simplified issue life insurance is more expensive and has lower death benefits. 

Many of these plans also have two to three years of waiting. If you die due to a natural cause during the waiting period, the insurer may pay only part of the death benefit or may not pay it at all. In the latter case, the premiums plus interest will be refunded to your beneficiary. 

Guaranteed Issue Life Insurance

If you don’t qualify for the simplified issue, as a last resort, you could apply for guaranteed issue life insurance. These policies do not require a medical exam or a health-related questionnaire for qualification. Almost everyone who applies is approved if they fall within a specific age range. The age limit for most insurers is between 50 and 80. 

The sum assured, however, rarely exceeds $25,000, and the premiums are the priciest of all types of life insurance. In addition, almost all guaranteed issue plans have a waiting period, usually two to three years. All the same, having some coverage is better than having none at all. 

How does Crohn’s disease affect life insurance rates?

When you apply for coverage, life insurers will consider a host of other factors besides the severity of your Crohn’s disease — e.g., your age, gender, family medical history, etc. — to set your health classification. Your health classification eventually determines how much premium you’ll pay. 

Here are some general guidelines to give you an idea of how insurance companies are likely to assess applicants with Crohn’s disease. 

• Preferred Plus: This is the best rating you can get and comes with the lowest premium rates. Typically, insurance companies don’t offer this rating to someone with a serious autoimmune disorder such as Crohn’s disease. 
• Preferred: If you have Crohn’s disease, you will likely not qualify for the Preferred health classification, which has slightly higher premium rates than Preferred Plus.  
• Standard:  A Standard health classification means you have an average life expectancy. This is the best rating that people living with Crohn’s disease get. You may be approved with a Standard rating if your health condition has been stable for the last two to three years (no bowel obstruction, not more than 10% weight loss, no surgery or hospitalization, no steroids). You may also get this health classification if more than six months have passed since your surgery and your condition is stable. The standard rating is the baseline, so insurance premium rates decrease with each classification above it, and they go up with each table rating below it. 
• Table Rating: Life insurance carriers use table ratings to price life insurance for high-risk applicants. Table ratings vary between insurers but usually range from 1 to 16 or A to P. With each drop in the table rating, the premium rate increases by 25% of the standard rate. For instance, if you are assigned a Table 1 (or Table A) rating, you’ll pay the standard rate plus 25%. With a Table 2 (or Table B) rating, your premium will be 50% above the standard rate, and so on. If you haven’t had a flare-up in one or two years, you would likely be approved with a premium loading of up to 150%. If less than two years have passed since your diagnosis, your premium could be up to 200% above the standard rate. The pricing for severe Crohn’s disease cases typically starts at 300%. 
• Declines: Insurers may decline your application if your Crohn’s disease is severe (e.g., less than six months since the last flare-up). You will also be turned down if you apply immediately after surgery. 

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Disability Benefits and Crohn’s Disease

Crohn’s disease can significantly impact your daily life and ability to work. If you’re unable to work due to your condition, you may be eligible for disability benefits. Here are some options to consider:

1. Short-term Disability Insurance: This type of insurance provides income replacement for a short period, usually up to 12-24 months. It can help cover your expenses while you manage your condition and recover.
2. Long-term Disability Insurance: This type of insurance provides income replacement for an extended period, usually until age 65 or retirement. It offers long-term financial support if your Crohn’s disease prevents you from working for an extended time.
3. Social Security Disability Insurance (SSDI): If you’re unable to work due to your Crohn’s disease, you may be eligible for SSDI benefits. This government program provides financial assistance to individuals with disabilities.
4. Private Disability Insurance: You can purchase private disability insurance to supplement your income if you’re unable to work due to your condition. This option can provide additional financial security and peace of mind.

Getting Life Insurance Quotes with Crohn’s Disease

Getting life insurance quotes with Crohn’s disease can be challenging, but it’s not impossible. Here are some tips to help you get the best quotes:

1. Work with a Licensed Insurance Broker: A licensed insurance broker, like Dundas Life, can help you navigate the process and find the best insurance companies for your needs. Brokers have access to multiple insurers and can provide personalized advice based on your unique situation.
2. Provide Detailed Information: When applying for life insurance, provide detailed information about your Crohn’s disease diagnosis, treatment, and overall health. The more information you provide, the more accurate your life insurance quotes will be.
3. Consider Guaranteed Issue Insurance: Guaranteed issue insurance may be an option if you’re unable to get traditional coverage. These policies do not require a medical exam or health-related questionnaire, making them easier to obtain.
4. Compare Quotes: Compare quotes from multiple insurance companies to find the best option for your needs. Each insurer has its own underwriting criteria, so shopping around can help you find the most affordable life insurance.
5. Consider Alternative Coverage: Consider alternative coverage options such as critical illness insurance or disability insurance if you’re unable to get traditional life insurance. These policies can provide additional financial protection tailored to your specific needs.

Conclusion 

You can qualify for life insurance with Crohn’s disease, depending on the severity of your condition. However, you will likely receive Standard or substandard health classification. Those with severe symptoms or who recently had surgery will not qualify for medically underwritten policies, but they can get no medical life insurance.  

Each life insurance company assesses risk differently, so some may offer you better life insurance rates than others. One advantage of working with Dundas Life is that we are an independent broker, which basically means we work with multiple insurance carriers. The more quotes you compare, the better your chances of securing the best price.

We have worked with many clients with a history of Crohn’s disease in the past. We can help you, too. Get a free quote today and take the first step toward setting up a financial safety net for your loved ones.  

Frequently Asked Questions

What happens if my Crohn's Disease worsens after I've obtained life insurance?

Insurance companies cannot cancel your policy or increase your premium rate during the policy term if your health deteriorates post-purchase. However, if you have bought a term life policy and opt to renew it when it expires, the insurer may ask you to take a new medical exam and increase your premium if your health worsens. 

What should I do if my application for life insurance is turned down? 

If you don’t qualify for standard life insurance plans, consider a simplified issue or guaranteed issue life insurance. Both have much more lenient underwriting guidelines than medically underwritten plans so that you can get approval even with severe symptoms. 

If I have a colostomy bag, then will it disqualify me from life insurance?

Living with a colostomy bag doesn’t automatically disqualify you from life insurance. If more than six months have passed since you had surgery, you will likely qualify for standard life insurance. However, your premiums may be higher than someone without a colostomy bag.