Asthma is a widespread condition and it is unfortunate that the registered cases of asthma are on the rise. What makes the matters worse is that more and more children are diagnosed with this illness. Many people have concerns about the cost of insurance due to this condition. At One Stop Life Insurance, we are here to tell you that securing life insurance for children with asthma is not only possible but also could be very affordable. In this article, we will cover what are the types of asthma and how the life insurance rates could be affected. We will also go over what the companies are looking for and what are your options.
If you have any questions or you would like us to review your personal situation you can reach us several ways. You can fill out the instant quote form, call us or send us an e-mail.
Types of asthma and how they affect your life insurance premiums
There are many triggers of asthma. In a large number of cases, the symptoms can start as early as 2-6 years old. In this age group, the complications are due to exposure to allergens such as dust mites, tobacco smoke, and viral respiratory infections.
The insurance companies use charts to determine the severity of the condition. This helps them determine the rate for life insurance.
♦ Companies will treat a well-controlled seasonal asthma most favorably. In this case, you may expect your child to receive the most favorable rating.
♦ If your child has occasional attacks and moderate controlled asthma, you may expect them to be rated standard.
♦ However, if your child has a more serious case of asthma, takes steroids or recently has been hospitalized, the policy may be rated or even declined.
It is important to keep in mind that even if your child has not controlled asthma, you have options. Do not hesitate to reach out to us and let us assess your personal situation.
Questions companies will ask when reviewing life insurance application for a child with asthma
- The date your child was diagnosed with the condition;
- What type of asthma was he or she diagnosed with;
- Is there a trigger for the asthma attracts;
- You would need to describe the frequency of the attacks also the number of attacks per year;
- Has your child been hospitalized due to the condition? If yes, please be ready to provide details;
- List of the medications that were prescribed. You would need to provide the names, dosage and when were they prescribed.
Options for life insurance for children with asthma
When researching life insurance for children with asthma, you basically have 2 options:
* Purchase a stand-alone policy
* Add a rider to a parent’s life insurance policy
Purchasing a stand-alone life insurance policy on your child has its benefits and negatives. On one hand, having an individual policy will give you the peace of mind that your child is covered. The coverage amount can be much higher.
For example, you can purchase a $100,000 permanent insurance on a 6-year-old girl for around $25 per month.
You can review our most common life insurance questions answered article for more information on permanent insurance and other helpful information.
Cons to purchasing a stand-alone life insurance for children with asthma
On the other hand, the policy is subject to underwriting. This means that the life insurance underwriters will review your child’s medical history. If he or she has a more severe case of asthma, the application may be rated or denied.
The other option available is to add a child rider to your policy. By doing this, you don’t have to worry whether your child will qualify for a policy or not. You can expect to secure a low coverage limit for relatively low premium. Another advantage is that you can have multiple children covered under the same rider.
For example, typically a child rider cost about $5 per year per $1000 in coverage. If you would like to add $10,000 in coverage, you are looking at $5×10 or $50 per year in total cost. This is the total cost, regardless of the number of children you have in your household.
Cons to adding a rider onto a parent’s life insurance policy
The disadvantage of this option is that you can’t have higher coverage amount and not every company will allow you to convert the option into a stand-alone policy.
There are many options to secure a life insurance. However, when working with a child with a pre-exciting condition, it is important to select the right company. At One Stop Life Insurance, we are here to assess your situation and help you secure the best policy for you and your family. You can give us a call or send us an e-mail with any questions you might have.