”Give thanks for the healthy kids in your life and give to those who are not”
These words come to my mind, every time I look at St. Jude Children Research Hospital calendar. When I was going through, I couldn’t help but noticed that nearly half of the children photographed had some form of leukemia. Therefore, we wanted to let parents know that life insurance for children with leukemia is possible. In this post, we will go over basic information and outline all of your options.
If you would like us to take a closer look at your personal situation and go over your options, please do not hesitate to reach out to us. You can fill out the instant quote form, send us an e-mail or give us a call. Your information is kept confidential and never sold to a third party.
What is Leukemia and how common it is in children
We want to start off with optimistic news:
Even though that leukemia is no doubt a serious disease, there is a positive trend.
From 2006 to 2012, the five-year relative survival rates overall were
- Acute myeloid leukemia (AML) – 66.8 percent for children and adolescents younger than 15 years
- Acute lymphoblastic leukemia (ALL) – 92.3 percent for children and adolescents younger than 15 years, and 94.1 percent for children younger than 5 years.
The childhood ALL five-year survival rates have improved significantly over the past five decades
Leukemia is cancer of the blood cells and therefore it’s also known as blood cancer. It is not uncommon for many people with slow-growing types of leukemia to not experience any symptoms of the disease. On the other hand, the more rapidly growing types of leukemia may cause symptoms such as fatigue, weight loss, frequent infections, and easy bleeding or bruising.
Despite the positive trend in survival rates, leukemia remains is the second leading cause of cancer death among children.
Available options for life insurance for children with leukemia
There are 3 available options to secure life insurance for children with leukemia. Below we will go over each one of them.
1. Individual policy
An individual life insurance on your child means that they will have that coverage locked for life. As long as the premiums are paid, they can’t find themselves without some form of coverage. There are some pros and cons to this option that we would like to discuss with you:
Pros – it is an individual policy that is set and done. You’ve locked their age and guaranteed them coverage. Down the line, you are able to transfer to them the ownership of the policy. Individual policies on children are permanent and chances are they will build some cash value. Granted, if you opt for a lower coverage, the cash value may not be much.
Cons– this option also has some negatives. The biggest one of them is there will be underwriting. In other words, life insurance companies will need detailed medical information on the child’s condition. Be prepared to answer questions such as:
- What was the date of diagnosis
- The specific type of leukemia and stage
- How was it treated
- Current blood count readings and the platelet count
- A list of the prescribed medication and dosage
Companies may ask you for a copy of the medical records.
With that being said, it is possible for the application to be denied. Typically, life insurance companies will wait several years after the last sign of the disease. So, please keep that in mind.
This leads us to our second option…
2. Child rider on parent’s life insurance policy
A child rider is the second option that we will go over. When looking into life insurance for children with leukemia or any other pre-existing condition, a rider may be the only option available.
What is a child rider:
Basically, a rider is an additional feature added onto the parent’s policy. It provides life insurance coverage for all of the insured’s children (biological or adopted), living in the household. Typically, life insurance prices are based on the coverage units. A unit is a $1,000 of coverage.
For example, 5 units of coverage will mean 5x $1,000 or $5,000 of life insurance coverage for each child in the household.
This option also has pros and cons:
Pros – there are companies that will NOT underwrite the children on the rider. In other words, your child will be automatically insured. No questions asked!
Another benefit is the fact that 1 rider covers multiple children. In other words, if you have 3 children covered under the rider, you will be paying the same price as 1. This alone makes this option very attractive as it provides coverage on a budget.
Lastly, many companies will allow your child to convert the rider into an individual policy without underwriting.
Cons – Even though there may be no underwriting on the kids, there will be on the parent. If the parents can’t qualify for a life insurance policy, this option is not available.
Not every carrier offers no underwriting riders on the kids and not every carrier will allow you convert into an individual policy down the line. This is it is ESSENTIAL to work with an experienced independent agent, who knows the companies’ underwriting guidelines and can find the one that is the best for you.
And our final third option…
3. Apply for family coverage though work
Now, we understand that this may not always be available. However, life insurance coverage though work is usually the cheapest way to supplement your life insurance coverage.
Pros – typically, there is no underwriting and the premiums are low. Sometimes, life insurance through work may be the only option for some people
Cons – not every company offers life insurance. Another thing to watch out for is what the actual policy is. Please take the time to review it and/or discuss it with your human resource department. You want to ensure that you know what it covers and if there are any exclusions. The biggest negative of this option is the fact that if you happen to change companies, you might not be able to keep the life insurance policy. Again, this varies from company to company and it is a good idea to take a closer look prior to signing up for coverage.
We hope that this post gave you a basic idea of your options when considering life insurance for children with leukemia. If you would like us to take a closer look at your situation and provide you with a no obligation quote, fill out the quote form on this page. You can also e-mail us at firstname.lastname@example.org or give us a call at 855-795-LIFE (5433).