Life Insurance premium increase with OSA?

So I was diagnosed with OSA with an AHI of 18 this summer. I was about to try and get my life insurance premium down by reapplying before year end but just realized my new OSA diagnosis could actually drive the premium even higher!?? Even though I don't have high blood pressure or any medical issues that could be associated with OSA am I screwed now that I have OSA detailed in my medical records?? I am only 1 year in on a 10 year renewal I made last year so I'm wondering if I should just keep quiet and not even let them know? Thanks for your input.

Nope. I have OSA and have had it (and CPAP) for many years. It doesn't affect your insurance ESPECIALLY if it's being treated. At least that's been my experience. Doesn't affect life insurance, health insurance, auto insurance.... none of them.

Being diagnosed with OSA does affect your life insurance.
My financial advisor tried to find term life insurance for me and had a really hard time finding one.
When he did manage to find insurance it turned out to be very very expensive.

I think both of you are correct. It won't affect any existing life insurance that you may have (unless you try and lower the premium by reproving your insurability), but if you try and get new coverage, it will affect you. I'm not sure you can't get insurance, but you will have to pay more for it (what they call being "rated").

John

Perrybucsdad wrote:I think both of you are correct. It won't affect any existing life insurance that you may have (unless you try and lower the premium by reproving your insurability), but if you try and get new coverage, it will affect you. I'm not sure you can't get insurance, but you will have to pay more for it (what they call being "rated").

John

I'm an agent, and here is what I've learned about sleep apnea and life insurance over the years.

FIrst, regarding underwriting and life insurance...it is underwritten at the beginning, and even if you try to get it lowered, as far as I know, they cannot increase your premium (unless you had SA prior to getting the policy and you didn't tell them about it). The sleep apnea however, may cause them to not lower the premium.

So unless you have a policy that requires re-underwriting at some point, they cannot raise the premium. For anyone who has term insurance and sleep apnea, when the term period expires and you try to get a new term, then they will re-underwrite and sleep apnea WILL be a factor at that point. If you have term insurance now, and if you intend on keeping your life insurance until the day you die, convert the term into a permanent policy, such as a whole life or universal life. Do it now rather than later, the startup premium is always better when you're younger and always higher as you get older.

I've successfully gotten clients a life policy who have sleep apnea so yes, you can get it, but you are not likely going to get their best rates. I recently asked one of our underwriters what the current underwriting guidelines are for sleep apnea and here is the response:

If the Sleep Apnea is controlled using a CPAP or Bi-PAP machine and the person is faithfully using the machine each night – We would offer at standard, not preferred. If not, it could be rated depending on the severity of the disease. Would probably never be Preferred.

"Rated" means they will issue a policy, but will charge an additional premium for the higher mortality among people with the disease.

I sold insurance ..... most companies will have an increased (rated) premium , and some will not insure you on new applications.. If you have a convertible term policy consider converting to permanent insurance. The company must not consider your health when you convert. You should have the same classification you had when you took out your original policy. Permanent insurance is considerably more expensive than term,. but at this point it may be a good option. Regarding your current policy...if you are in year 1 you should have 9 more years at your current premium...you have no reason or obligation to tell the company.

I remember an older thread on the topic, I can't find it now. Someone said they just didn't declare the fact that they had sleep apnea.
I'm not sure what the implications of that would be. Does the insurance get to your medical records? Also if a claim was made would the payout be the original insured amount less what the past payments should have been? Or would the policy be total void?

I have high cholesterol and was working to get it lower to get the preferred rate when i was diagnosed with OSA. I'm not sure if I would even get the standard rate with both those conditions.

I take the life insurance offered by my employer with no medical and that provides for upto 3 times my salary and 100k to cover the wife.

Uncle_Bob wrote:I remember an older thread on the topic, I can't find it now. Someone said they just didn't declare the fact that they had sleep apnea.
I'm not sure what the implications of that would be. Does the insurance get to your medical records? Also if a claim was made would the payout be the original insured amount less what the past payments should have been? Or would the policy be total void?

I have high cholesterol and was working to get it lower to get the preferred rate when i was diagnosed with OSA. I'm not sure if I would even get the standard rate with both those conditions.

I take the life insurance offered by my employer with no medical and that provides for upto 3 times my salary and 100k to cover the wife.

If someone has OSA but did not tell the company, they consider it misrespresentation, possibly even fraud. Most state laws allow a company to contest a claim if death occurs within 2 years of the date of the policy. So, let's say someone lies about their OSA and doesn't tell the company they have OSA. They get the policy, and then die during the first 2 years of the policy. The company can go back and do an investigation, and if they find that you had knowledge of the OSA, then they can choose to rerate the policy or most likely, totally deny the claim.

But 2 years is the max that they are allowed to do that in most states, after 2 years the policy become incontestible. The purpose is to give the insurance company a chance to defend itself against people who lie to get insurance.

Uncle_Bob wrote:

I have high cholesterol and was working to get it lower to get the preferred rate when i was diagnosed with OSA.

Same with me. My cholesterol was high when I had to reapply because my previous 10 year policy expired. This was pre OSA diagnosis. Cholesterol is now back to normal and I was going to reapply to get lower rate but started wondering if OSA would now ding me. Oh well. Sounds like I shouldn't bother and stick with what I have for next 9 years. I better work on making more money between now and then since I'm assuming my premium will be through the roof with OSA and older age!

soundersfootballclub wrote:

Uncle_Bob wrote:
Sounds like I shouldn't bother and stick with what I have for next 9 years. I better work on making more money between now and then since I'm assuming my premium will be through the roof with OSA and older age!

Or convert it into a permanent policy now, lock in a lifetime premium, and then you don't have to worry about OSA and older age. Conversions generally don't require evidence of insurability (or health requirements), it's just a matter of paperwork and premium.

Insurance is a profitable business--Very profitable.
The people who can most afford it--least need it.
If you can't get or increase your life insurance,
the next best thing is to get out of debt and save enough for your final expenses.
Oh, wait! That's always a good idea.

ameriken wrote:

soundersfootballclub wrote:

Uncle_Bob wrote:
Sounds like I shouldn't bother and stick with what I have for next 9 years. I better work on making more money between now and then since I'm assuming my premium will be through the roof with OSA and older age!

Or convert it into a permanent policy now, lock in a lifetime premium, and then you don't have to worry about OSA and older age. Conversions generally don't require evidence of insurability (or health requirements), it's just a matter of paperwork and premium.

Sounds like something I should look into. Thanks for the advice!

Some hypothetical questions --

1. Person stongly suspects he/she has obstructive sleep apnea. Does not consult a doctor. The person simply acquires (without a prescription) a CPAP machine. Uses it, feels better, continues using it. No doctor has ever diagnosed the person as having OSA.

2. Same person...same strong personal suspicion of having OSA. Does not consult a doctor about sleep apnea, but does ask a doctor for a prescription for "CPAP." No physical exam, no sleep study; no asking the doctor, "Do you think I might have OSA?" Simply a request for a CPAP Rx. If the doctor asks "why?" the person answers, "To try to stop snoring." Doctor writes the prescription with no further questions. Nothing about "sleep apnea" is written in the person's medical record or on the prescription. Person uses the prescription to buy a CPAP machine, uses it, feels better, continues using it.

3. Same person...same strong personal suspicion of having OSA. Has acquired and uses a CPAP machine without a Rx (scenario 1 above.) There has never been a diagnosis by any doctor of "sleep apnea." After several years of feeling better while using CPAP every night, person will be undergoing a medical procedure that will involve sedation or anesthesia -- for something else, not for "sleep apnea." Person fills out the usual pre-operative forms and marks "sleep apnea" or mentions "having sleep apnea." The person has chosen to mark that on the pre-operative form for safety's sake. The person has never received a formal diagnosis from a doctor of having "sleep apnea" and has never had any type of screening test for sleep apnea. Has never even had a doctor mention in passing, "You might have sleep apnea." Person marks "sleep apnea" on the pre-op form based purely on his/her own suspicions of having it, and based on his/her own subjective feeling of "I feel better using CPAP than I did before I began using it."

Is the person in any of the scenarios above obligated to checkmark (or add) "sleep apnea" as a previous condition if he/she applies later for either life insurance or health insurance?

You're obligated to be honest with everyone, especially when entering a legal contract or agreement. I always thought in a civilized society that people should be honest and open with each other. Better to tell the truth and explain it as you did above and let the company decide if they have anything to be concenred about and whether or not they can do business with you.

To turn it around, if an airline was hiring a pilot who would ultimately be flying you, your family and children, and the airline had the same health questions, how would you want those three people to answer?