Top Life Insurance Company That Accepts People on Social Security in 2022
Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance.
Not only does he strive to provide you with the …
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Written by
Jeffrey Manola
Founder & Licensed Agent
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 insur…
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Reviewed by
Leslie Kasperowicz
Farmers CSR for 4 Years
UPDATED: Dec 10, 2021
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Facts You Should Know
Policies and rates depend on the type of benefits you receive
Life insurance companies will ask questions about your social security benefits
It’s better to apply for life insurance while you’re still working
Life insurance quotes are available for people receiving social security benefits. However, eligibility and rates depend on why you qualify for social security.
Knowing about life insurance companies that accept people on social security will help you find the best coverage. We’ll explain what you need to know below.
Before learning about life insurance companies that accept people on social security, enter your ZIP code to get free life insurance quotes in your area.
Why do you need coverage from life insurance companies that accept people on social security?
The Social Security Administration (SSA) provides benefits to people that have reached 65 years of age or have a disability that limits their ability to work full-time. The purpose of social security is to provide the necessary income for those unable to work as they once did.
That might lead to the question, “Does social security offer life insurance?” Technically, social security is a form of life insurance. However, some people might desire more coverage.
When comparing social security vs. life insurance, you’ll find that the social security options are limited. However, healthy applicants can obtain much more life insurance, ensuring that their loved ones will be covered when they’re no longer around.
There are no known life insurance companies that don’t accept people on social security, but some might decline you due to age or health.
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How are life insurance rates determined for people on social security?
The two primary ways in which people receive social security are age and disability. When you apply for life insurance, your eligibility and rates will largely depend on why you’re receiving benefits.
Companies place all applicants into rating classes when rates. Riskier applicants will see higher rates. The classification of life insurance applicants includes:
Preferred plus
Preferred
Standard plus
Standard
Standard smoker
Substandard
The rates for healthy people receiving social security are generally high simply because of their age. Health conditions can also increase rates, and older people are more likely to have health problems as they age.
Eligibility and rates become more complicated when you receive social security due to an injury or illness. For example, if you’re not working, the company will want to know if your inability to work comes from a life-threatening medical condition.
If you receive disability benefits, life insurance companies will place you into one of two categories based on the severity of your condition.
Applicants with severe pre-existing conditions will find it difficult to get traditional coverage and will see higher rates. In most cases, companies classify these people as standard or lower. As a result, they won’t be eligible for traditional coverage, forcing them to look at alternative options.
The second category is people that have a non-life-threatening condition that has kept them from full-time work. For example, they might have a loss of sight, hearing, or a muscular-skeletal condition that limits their ability to move or perform specific tasks.
Applicants in the second category can usually get traditional life insurance, but they must prove that they don’t have a more serious underlying medical condition.
What policies are available from life insurance companies that accept people on social security?
As previously mentioned, life insurance quotes for people on social security depend on eligibility. People unable to work due to an injury or illness may have a severe condition that could shorten their life expectancy.
If you receive social security income due to retirement, you can usually qualify for traditional insurance, which includes:
The amount of coverage you qualify for depends on your health and age. Traditional coverage requires a medical exam and a more in-depth look into your lifestyle.
Applicants receiving disability might not qualify for traditional coverage, depending on their condition. Fortunately, there are other options available. These options include:
Guaranteed issue life insurance
Simplified issue life insurance
Final expense insurance
Applicants looking for guaranteed-issue life insurance can get coverage without a medical exam, and the company won’t ask any health questions. These plans are for those that don’t qualify for traditional coverage, so acceptance is guaranteed.
Simplified-issue life insurance also doesn’t require a medical exam for acceptance. However, the company will ask some medical questions during the application process. These questions differ depending on the company.
Final expense insurance provides the least amount of coverage, paying for funeral and burial expenses. It won’t provide any income for your loved ones after you’re gone but will cover final costs, taking the financial burden away.
Due to the lack of medical information, rates are higher, and the maximum coverage is lower. The maximum value of guaranteed and simplified issue policies ranges from $26,000 to $40,000. Final expense insurance typically ranges from $5,000 to $50,000.
What questions will a life insurance company ask of people on social security?
When you apply for life insurance while receiving social security benefits, companies will ask specific questions. Their goal is to determine your life expectancy and how your coverage might change over time.
The five questions you can expect from any life insurance company include:
When did you first qualify for SSI or SSDI?
Why have you been eligible for SSI or SSDI?
Do you have any pre-existing medical conditions?
Do you anticipate a time when you won’t qualify for your disability benefits?
Do you currently work at all?
The answers to these questions will tell the company if you have any long-term medical conditions and whether they could shorten your lifespan. Preparing for these questions before your interview with a company will ready you for the application process.
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How does life insurance affect social security benefits?
Whether or not your life insurance policy will affect your benefits depends on the type of policy you purchase. Understanding how and why these policies affect your social security will help you find the best fit for your needs.
Per the Insurance Information Institute the two primary types of life insurance are term life and permanent life insurance. Permanent life plans come with a cash value, but term life plans don’t. This cash value determines if life insurance will affect your social security benefits.
The Social Security Administration considers a cash value as income. Therefore, it has an impact on the social security benefits for which you are eligible. This is because you’ll still receive the cash value if you cancel your policy.
Term life plans don’t come with a cash value. As a result, you won’t have any earned income from the policy. For this reason, term life plans won’t affect your social security benefits in any way.
A common question from those with social security is, “Does life insurance affect social security survivor benefits?” Similar to living benefits, only permanent plans will impact your social security survivor benefits.
If you’re looking to leave money to your loved ones, a term life policy will allow you to leave both an SSI and life insurance inheritance.
Life Insurance Companies That Accept People on Social Security: The Bottom Line
If you receive social security, you might wonder if you can get life insurance. You can get life insurance with social security, but eligibility and rates depend on why you’re getting social security benefits.
Learning about life insurance companies that accept people on social security will help you get the best coverage.
Now that you know about life insurance companies that accept people on social security enter your ZIP code to find free life insurance rates in your area.
