A diagnosis of dementia can be life-changing, but our aging population means more people are living with dementia. If you or a loved one has recently been diagnosed, you may be wondering what this means for your convenience, including your insurance. Our guide helps you understand where you are.
What is dementia?
Dementia is usually associated with memory loss, but it is more than that. Dementia can affect every aspect of your personality, including speech and behaviour. There are many symptoms, including:
- Memory loss
- Inability to think clearly and quickly
- Difficulty speaking or finding the right word
- Problems understanding what people say or what they read
- Changed mood
- Challenges with movement or performing daily tasks
These symptoms can make social situations difficult for a person with dementia. Their personality can change, which can be upsetting for them and their loved ones. However, it is important to remember that dementia cannot be cured, but it can be managed with appropriate care, especially if it is diagnosed at an early stage.
If you or someone close to you has dementia, the NHS has lots of information online, including local support groups.
Are there different types of dementia?
There are different types of dementia. The most common types are Alzheimer’s disease and vascular dementia, which usually occurs after a stroke. Although they are different conditions, the symptoms are similar.
Dementia with Lewy bodies is another, less common type. Dementia can also be associated with Parkinson’s or Huntington’s disease.
Dementia and insurance
A dementia diagnosis can affect your ability to get insurance and how much your premiums will cost. Here are some of the most common types of insurance and how dementia affects them.
Health insurance
Health insurance provides access to private medical care for acute conditions. The treatment your policy pays for depends on your coverage. Most policies cover inpatient treatment, day care and cancer treatment. You can add optional extras to get more comprehensive coverage.
Does health insurance cover dementia?
Unfortunately, health insurance does not cover dementia treatmentalthough it may cover the costs of tests and consultations leading to a diagnosis. Each policy excludes some types of treatment. Some are standard exclusions, while others are based on your medical history.
Chronic conditions
Dementia treatment is excluded from health insurance because it is a chronic condition. Health insurance only covers conditions that will respond to treatment. Because doctors can only treat and not cure dementia, it is automatically excluded from coverage. However, you may be able to seek a diagnosis privately if you have outpatient insurance and it is not considered a pre-existing condition.
Pre-existing medical conditions
Depending on how your plan is underwritten, health insurance may exclude any condition for which you were treated or sought medical advice during the five years before you had the policy. If you have seen your doctor for confusion or memory loss, this may affect the coverage your insurance company offers.
What conditions can cause similar symptoms?
Memory loss does not automatically mean you have dementia. Other illnesses or stressful life events, such as bereavement or moving, can cause similar symptoms.
Hearing or vision loss can cause confusion or movement problems as people have difficulty following a conversation or reading easily. Other conditions, including urinary infections, thyroid problems or a brain cyst, also have symptoms that mimic dementia, so getting the right diagnosis is vital.
Maybe you could get a diagnosis privately
If your health insurance has outpatient coverage, this can help you get a diagnosis quickly. Outpatient cover can fund appointments with a consultant neurologist, tests and scans to confirm whether you have dementia.
Depending on the diagnosis, your health insurance may cover your treatment, for example, if it can be treated with surgery. If you have been diagnosed with dementia or another chronic condition, you will have a confirmed diagnosis to take to your GP so they can arrange NHS care for you.
Life insurance
Whole life cover pays a lump sum to your loved ones when you die. There are some exclusions on life insurance policies, but they usually relate to the cause of death. For example, if you commit suicide, your policy will not pay out.
People can live with dementia for many years, which means it’s hard to think of it as a terminal illness. But it causes changes in the brain and can affect the immune system, so infections like pneumonia become more common.
If you already have dementia, you probably won’t be able to get new whole life insurance. However, if you already have cover and you die due to dementia or a related illness, your policy will pay out.
Could a family history of dementia affect my ability to get life insurance?
When you apply for a life insurance policy, your provider will ask for details about your family’s medical history. However, according to the Alzheimer’s Society, most types of dementia are not hereditary, so they shouldn’t limit your ability to get insurance or increase your premiums.
The only potential exceptions are where there is a family history of Huntington’s disease, frontotemporal dementia or a known prion disease. They can be genetic. The ABI’s code of practice states that an insurer cannot require you to undergo genetic testing as a condition of insurance. However, if you have been tested for Huntingdon’s disease and want life insurance that pays out more than £500,000, I can ask for your results.
Income protection insurance
Income protection insurance pays a monthly income of between 50% and 70% of your usual salary when you are unable to work due to illness or injury. The policy will pay until you return to work or retire, whichever comes first.
If you already have income insurance and are subsequently diagnosed with dementia, your insurance will continue for as long as you can pay the premiums. However, it is unlikely that you will be able to take out a new policy if you are already diagnosed with dementia.
Will income protection cover my salary if I have to take early retirement due to dementia?
If dementia affects your ability to work, your policy will continue to pay until you reach your chosen retirement age or your chosen maximum claim length.
As with many types of insurance, it pays to look for the right coverage well in advance of retirement. Many providers do not accept new income protection applicants over the age of 60, but others will accept you until you are 70.
Critical illness insurance
Critical illness cover pays a lump sum if you are diagnosed with a serious illness. You can use the money however you want, from paying bills to financing home improvements or care if your condition causes permanent disability. You can buy critical illness cover as a single policy or add it to your whole life cover.
Critical illness cover is only paid once and then your cover ends.
Does critical illness insurance cover dementia?
That. Most insurers classify dementia as a critical illness. If you have a critical illness cover offer and want to make sure it covers dementia, it’s important to check the fine print.
If you already have dementia when you apply for critical illness insurance, your claim is likely to be refused.
Dementia and later life insurance
The UK population is ageing, which means that diseases usually associated with later life, such as dementia and Alzheimer’s disease, are becoming more prevalent. Families and the social care system are under increasing pressure due to the increasing demand for care, whether at home or in a care facility. Insurers are beginning to look for ways to support people with the effects of dementia and old age.
How does dementia and later life cover work?
Vitality has introduced late life and dementia cover in conjunction with their critical illness cover (their version of a critical illness policy). When the critical illness period ends, their later life cover automatically kicks in, paying a lump sum to beneficiaries diagnosed with conditions including dementia, Parkinson’s or stroke. Unusually, the policy can pay out more than once if your condition worsens. The amount of cover the policy offers is linked to the cover remaining on your critical illness policy.
Although dementia cover is currently only available with other policies, we think this is a step in the right direction.
Can you get travel insurance with a diagnosis of dementia?
Getting travel insurance can be a challenge if you have any pre-existing conditions. However, few specialist providers offer coverage to people with dementia. Insurance can give you peace of mind knowing you’ll be covered if dementia means you have to cancel your holiday or need medical care while you’re away.
If you have an existing policy and have been diagnosed with dementia, you must inform your insurer and check that you are still covered. It can be tempting to wait until your policy is renewed to update your insurer. However, if your dementia results in a policy claim while you are away, your insurer may refuse your claim. It could also affect your ability to get coverage in the future.
Having dementia can mean you pay more for your insurance or have fewer choices of providers. Talking to a specialist broker can help you find the right policy.
Possible travel insurance restrictions
When you have dementia, getting travel insurance can be more difficult, but not impossible. You may find that your provider places additional conditions on your policy because of your diagnosis.
When you apply for coverage, your insurer will likely ask for details about your diagnosis and the medications you take. The information you provide helps them assess the risk you will require so they can decide whether to offer coverage and what your premiums will be.
Some insurers will only offer a single trip policy and not multiple trips. There may also be restrictions on the length of the trip and the age limit for those who can apply.
Get in touch
Dementia can affect your ability to find suitable coverage, but talking to a specialist broker can help you understand your options. MyTribe guides provide information to help you learn more about insurance and understand ways to find the right coverage for your needs.
Contact us for a comparative quote and we’ll put you in touch with a regulated broker for tailored advice.
Waiver: This information is general and what is best for you will depend on your personal circumstances. Talk to a financial advisor or do your own research before making a decision.
