Can you have term life insurance while collecting ssi?

UPDATED: Jul 1, 2015

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Asked July 1, 2015

2 Answers

The answer is somewhat nuanced. Obviously, term life insurance is best obtained while a person is at their optimal health. That said, it is important to know that there is no federal regulation that would prevent a person on SSI from purchasing term life insurance. Nor is there a government agency that would place restrictions on term life insurance.

This means the decision as to the term life insurance obtained will rest with underwriting. A person age 50 and older may be able to benefit from a group term life insurance benefit from affiliation with a membership based organization. In the event a person seeks to obtain an individual term life policy, underwriting will look closely at the reasons why the person is on SSI. If the insurer decides to issue the person a policy, there may be an elimination period on the preexisting condition and the resulting premium may be rated. However, the short answer to the question is yes, a person can obtain term life insurance while on SSI.

Answered July 6, 2015 by Anonymous

It's important to understand that Supplemental Security Income (SSI) has no bearing on your ability to obtain life insurance. While it's true that many people collect SSI for a disability that can drive up life insurance rates, term life insurance is often very affordable, so even someone with a fixed SSI income and poor health can afford at least a basic term life insurance policy.

Many people believe that life insurance only makes sense for high earners, but everyone has funeral expenses. So long as you have a family that would be responsible for your burial should you pass, life insurance remains a good idea. Before choosing the amount of insurance you need, make sure you have considered burial expenses and the welfare of those who depend on your income to get by.

Why Term Life Insurance?

Term life insurance is the most affordable type of life insurance. Unlike whole life, it does not carry a cash value. You simply pay the monthly, quarterly or annual premium during the term of the policy (usually 25 or 30 years) and as long as you continue to pay the premium, you will continue to carry life insurance until the term ends.

Expect a physical to be required if you want an affordable policy. Most life insurance requires this. Policies that don't require a health exam often carry a hefty premium. Only consider a policy that does not require a physical if you are otherwise unable to obtain life insurance because of a health condition.

Some policies offer options to renew, regardless of your health status, at the end of the term. Although the policy will be more expensive because you have gotten older, the ability to secure insurance without a physical (and despite health problems) may be attractive when you compare rates to buy a new policy.

Having term life insurance will not affect your SSI benefits in any way, nor will collecting SSI affect your ability to buy life insurance. As long as you can afford the premium, you can carry this important insurance coverage.

Answered July 2, 2015 by Anonymous

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