Will your life insurance policy cover Alzheimer's disease?
Most life insurers in Australia will provide you with a benefit should you suffer from Alzheimer's disease. However, conditions surrounding when a benefit will be paid can vary from insurer to insurer. Keep reading to find out more about how life and trauma insurance can provide financial protection for you and your family from Alzheimer's disease.
Is Alzheimer's disease covered by life insurance in Australia?
Alzheimer's disease is the second leading cause of death in Australia, according to ABS statistics. Three in every ten people over the age of 85 and one in ten people over 65 have dementia. Alzheimer's disease can be hereditary. In Australia, Alzheimer’s disease is covered in the following way:
- Australian trauma insurance policies provide coverage for Alzheimer's disease. Trauma insurance, or also known as critical illness cover, provides protection for individuals who are affected by Alzheimer's disease and other serious medical events.
- Financial assistance for your dependents. You can provide your loved ones with support by taking out trauma insurance, which can help them with daily living expenses and paying off outstanding debts.
What Australian insurers provide trauma insurance for Alzheimer's disease?
Most Australian life insurance companies will include Alzheimer’s disease as a recognised condition under their trauma insurance policy. However, definitions for a claimable event can vary.
|Provider||Product details||How to apply|
|Insured receives unequivocal diagnosis of dementia with mini-mental state examination score of 24 or less.||Learn more|
|Condition must be confirmed by an approved neurologist or geriatrician. Insured must have significant cognitive impairment to a mini-mental state examination score of 20 or less.||Learn more|
|Alzheimer’s confirmed as irreversible failure of the brains function resulting in significant cognitive impairment.||Learn more|
|Unequivocal diagnosis of Alzheimer’s disease with a mini-mental state score of 24 or less.||Learn more|
|Clinical diagnosis of dementia as confirmed by a consultant neurologist with a Mini-Mental state examination score of 24 or less. Diagnosis must remain permanent and is irreversible. Any dementia related to drugs, alcohol or AIDs is excluded.||Learn more|
|Unequivocal diagnosis of Alzheimer’s disease that results in permanent failure of brain function with significant cognitive impairment and deterioration of the policy owners Mini-Mental state examination score to 24 or less.||Learn more|
|Irreversible failure of brain function resulting in significant cognitive impairment. Significant cognitive impairment is recognised as deterioration of intellectual activity to the point continual supervision is required.||Learn more|
What will an insurer require for a trauma insurance benefit to be paid for Alzheimer’s disease?
As with any claim for a trauma policy, the insurer will require written verification from a certified medical professional in order for the policyholder to be eligible for a claim. This confirmation will usually be from a consultant neurologist or geriatrician confirming significant cognitive impairment.
What is significant cognitive impairment?
Significant cognitive impairment is recognised as deterioration of the policy owners mini-mental state examination scores to 20 or less.
What types of questions will I be asked when I apply?
- Have you shown symptoms or consulted with a medical professional about Alzheimer's disease?
- Have you been diagnosed with dementia or Alzheimer's symptoms?
- Do you have a family history of Alzheimer's disease? What family member had Alzheimer’s and what were the ages of onset and death?
Is Alzheimer’s disease covered by total permanent disability (TPD) insurance?
There are a number of Australian insurers that will recognise Alzheimer’s disease as an event that can be claimed under a TPD policy. Similar to trauma cover, insurers will list different crisis events that will qualify for a TPD benefit if suffered by the insured. Cover for these events is usually available as an additional option. As an example, BT will pay a benefit equal to the insured monthly benefit for total disablement or severe disability benefit for a period of six months from the date the crisis event occurred. The benefit will continue to be paid until the benefit has been paid for six months or the policy expires. If at the end of this six month period the insured person is suffering total permanent disability or severe disability due to the crisis event they have suffered, the insured is entitled to receive the total disability benefit.