Life Insurance for Sleep Apnea:
A Guide to underwriting Sleep Apnea for life insurance.
Apnea is defined as the cessation of breathing. It is estimated that more than 12 million Americans have sleep apnea.
The diagnosis of Sleep Apnea is based on a sleep study (polysomnogram) that evaluates:
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Respiratory Patterns
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Chest Muscle Activity
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Oxygenation
There are 3 types of sleep apnea that occur during sleep. Obstructive, Central, and Mixed.
Obstructive Sleep Apnea
Obstructive Sleep Apnea is the most common type. Sleep Apnea can be caused by a complete obstruction of the airway (obstructive sleep apnea) or by a partial obstruction (Obstructive Hypopnea). The obstruction occurs when the muscles in the upper part of the airway relax to the point where the airway will collapse.
Central Sleep Apnea
Central Sleep Apnea is caused by problems with how the brain controls breathing. Central Sleep Apnea is not very common. It typically occurs with individuals that have a lower brain stem injury or illness.
From a life insurance standpoint, life insurance companies will decline underwriting this type of sleep apnea.
Mixed Sleep Apnea
Mixed Sleep Apnea is a combination of Obstructive Sleep Apnea and Central Sleep Apnea.
From a life insurance underwriting standpoint, life insurance companies will decline underwriting this type of sleep apnea.
Life Insurance Underwriting for Sleep Apnea
The focus of our underwriting material is based on Obstructive Sleep Apnea. There are a number of life insurance companies available that will do a good job underwriting you based on your sleep apnea.
The best case scenario for most people who have sleep apnea is a "standard" rate. Sometimes a company will do better than this, but it is rare.
What Life Insurance Companies Look for When Underwriting Obstructive Sleep Apnea:
The Basics:
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Age at time of diagnosis?
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How is Sleep Apnea being treated? Observation, CPAP machine, Weight Loss, Surgery, other?
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Are you taking any medications?
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What is your height & weight?
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What is your blood pressure?
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Do you suffer from depression?
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Do you smoke?
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Have you had any other health problems?
The Specifics:
In order to get the most favorable rates, life insurance companies will want to review a copy of the sleep studies performed that diagnosed your sleep apnea. If you can get us a copy, we can shop it out to numerous companies for offers.
Please note that if your medical records indicate that you should have a sleep study performed and that has not occurred, many companies will postpone you until that study is completed.
Underwriters want to know:
The Apnea Index - AI. The Apnea Index is a commonly used measure of the severity of the apnea during a sleep study. The apnea index is calculated by dividing the total number of apneic events by the number of hours of sleep. The higher the number, the more you will be charged for insurance.
Oxygen Saturation. Oxygen saturation is measured by a skin sensor. Normal levels are greater than 90%. Levels less than 90% for a prolonged period of time typically indicate sleep apnea.
Chest Activity - The sleep study measures heart rate and patterns while sleeping.
What to Expect from Life Insurance Underwriting:
Keep in mind that not all life insurance companies will be competitive with underwriting sleep apnea. We know which companies tend to be the most aggressive based on your specific circumstances.
Life insurance underwriters want to know what your Apnea Index is and what your Oxygen Saturation Levels are. In addition, it is critical that you are in compliance with your doctor's orders. Any medical factors that you can control such as your weight, smoking, alcohol consumption, etc.. will affect your rates. If your records indicate that you have taken the steps to improve these areas, this will help you from a life insurance underwriting standpoint.
How the Apnea Index Typically Affects Your Rate
Apnea Index of:
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0-10 - typically no additional cost
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11-20 - 50% increase over standard rate.
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21-30 - 100% increase over standard.
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31-40 - 150% increase over standard.
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Above 40 - decline.
This assumes Oxygenation Levels in 90% range. Typically for every 10% decrease in oxygenation levels, companies will add 25% to the cost.
Mild, Moderate & Severe Sleep Apnea:
Your doctor may have referred to your sleep apnea as mild sleep apnea, moderate sleep apnea, or severe sleep apnea. Here are some possible ratings for your sleep apnea:
Mild Sleep Apnea - Doesn't require treatment. Most likely scenario is a "standard" rate, with slight possibility of "preferred rate".
Moderate Sleep Apnea - Requires use of CPAP machine. If you are compliant with doctor orders, most likely scenario is "standard" to standard plus a 50% rate increase. If you are not compliant with doctors orders, most likely scenario is 50% increase over standard rate to possible decline.
Severe Sleep Apnea - Requires use of CPAP machine. Most likely scenario if compliant is a 100% increase over the "standard" rates. If not compliant, most likely you will be declined.
Keep in mind that these are just sample guidelines as every case is different. We take the time to learn your medical history. We then shop your information out to multiple companies in order to obtain the best possible rates for you.
There is never any pressure or obligation with our service. We'll give you the information you need in order to make an informed decision about your life insurance.
How to Get the Best Rates For Life Insurance:
The best way is to call us to discuss. We'll ask you a series of questions related to your health. Based on those answers, we will contact a number of companies for underwriting feedback. It typically takes a few days to hear back from all companies. At that time we will provide you with accurate quotes.
