Does Sleep Apnea Affect Life Insurance Rates?

Sleep Apnea and Life Insurance Rates

Depending on the individual, sleep apnea can be characterized as mild, moderate, or severe. With any severity, the key to getting good life insurance rates is the management of the condition.

If you have mild or moderate sleep apnea and you undergo effective treatment, such as using a CPAP device, and have no other risk factors, many insurance carriers would consider offering you the best classification rating in the life insurance industry. This rating is typically called Preferred Plus or Preferred Best, depending on the insurance carrier.

If you have severe sleep apnea, no other risk factors, and are managing it effectively, you could be considered anywhere from Preferred to Standard.

When applying for life insurance, you will need to undergo a medical exam and may have your medical records pulled.

If your medical records show that you have been advised by a doctor to perform a sleep study test, but have not done so, some life insurance companies will not even consider you for coverage until you do. These sleep study tests, which your health insurance will most likely cover, reveals brain wave activity, respiratory patterns, chest muscle activity and oxygenation.

When the life insurance underwriters find out that you have been diagnosed with sleep apnea, but you are non-compliant (for example, a doctor prescribed you a CPAP device but you do not use it) your life insurance costs will reflect this. Your life insurance premiums could double or even triple in price because of the risk you take by not managing your condition properly.

What Do the Underwriters Look For?

There are some important risk factors that must be considered when underwriting someone suspected of having, or diagnosed with, sleep apnea. Many carriers consider the impact of the health and lifestyle factors in the table below when underwriting these individuals: