How to get life insurance with pre-existing conditions
It’s no secret that the younger and healthier you are, the less expensive your life insurance quote will likely be. Thus, a pre-existing medical condition may have negative effects on your coverage options. Even if a medical problem doesn’t automatically prevent you from purchasing life insurance, it can lead to fewer choices and higher premiums.
What is a pre-existing condition?
A pre-existing condition is a medical condition for which you were diagnosed or treated before applying for life insurance.
Each insurer has its own underwriting process, which means that some are more favorable on certain terms than others. In general, you will raise a red flag if you have one or more of the following pre-existing conditions:
Gastroesophageal reflux disease, or GERD.
How pre-existing conditions affect life insurance
Insurers typically group applicants into rate categories based on their health condition, such as standard, preferred, or super preferred. The name given to each category may vary between insurers, but the goal is the same: to categorize the risk of insuring yourself according to your health.
Most people qualify for super favorite life insurance quote, according to data collected by Quotacy, a life insurance broker. But if you have a serious medical condition, you can only benefit from standard rates. Why? Depending on the situation, a pre-existing health problem can lead to premature or unexpected death, increasing the risk for the insurer. As a result, the cost of the policy is higher. If the risk is too high, the insurer may deny coverage altogether.
The good news is that medical advancements have improved outcomes for many patients and, in turn, led to better rates. If you are in remission or your chronic condition is well managed, you may be able to get standard or even preferred rates.
Best life insurance options for pre-existing conditions
Don’t assume that you will be denied life insurance simply because of a chronic medical condition. Insurers may offer a higher premium, but coverage is still available. Here are some coverage options for applicants with pre-existing conditions.
Tailor-made life insurance contracts
Some insurers offer unique policies that cater to applicants with specific health concerns. For example:
The life of the guardian offers a whole life insurance product for people living with HIV.
Prudential offers coverage to HIV positive applicants on a case-by-case basis.
John hancockThe Aspire ™ with Vitality policy is specially designed for people with diabetes.
Loyalty life offers life insurance solutions for applicants with cancer. The type, stage and prognosis of treatment may affect your eligibility for coverage.
Guaranteed Issue Life Insurance
These policies guarantee acceptance as long as you are in a certain age range. You don’t have to take an exam or answer questions about your health to be eligible. As a result, you often pay a lot more for less coverage. For example, a 50-year-old woman who purchases guaranteed-issue whole life insurance might expect to pay $ 673 per year for $ 25,000 of coverage, compared to $ 364 per year for a 20-year term policy with 250,000. $ of coverage. Many guaranteed issue life insurance plans cap death benefits at around $ 25,000. Typically, this type of life insurance has a phased benefit, which means the insurer won’t pay if you die within a few years of purchasing the policy.
Group life insurance through work
Many people, including those with health problems, can buy group life insurance by their employers. Coverage is usually limited to once or twice your annual salary, but you won’t have to pass a health exam to qualify. Keep in mind that you could lose coverage if you quit your job.
Accidental death and dismemberment insurance
If you are not eligible for a term or permanent life insurance policy, you may want to consider accidental death and dismemberment insurance. The death benefit is only paid in the event of accidental death, which means that your medical history is not used to determine eligibility. However, if your pre-existing condition contributed in any way to the accident, your beneficiaries may not receive payment.
Tips for getting life insurance with a pre-existing condition
Be careful when you apply. An insurer will likely deny your claim if you submit a claim soon after being diagnosed with cancer or a heart attack, but you can always reapply, especially if your medical history shows that your treatment has been effective.
Take advantage of the improvements in your health. If you are accepted but pay a high rate, you can request a new medical exam (and a lower premium) once your condition is under control.
Focus on the things you can control. The first step in finding affordable life insurance with a pre-existing condition is taking care of yourself. If you have any medications, take them. If you can exercise, do it. Eat responsibly and try to reduce your weight. If you lead a healthy lifestyle outside of your condition, your premiums may take that into account.
Find the right agent. It is important that you look for an independent agent who works with an impaired risk specialist. An impaired risk specialist is a broker who will know which insurance companies are most likely to offer a good rate for your particular condition. This could save you a lot of denied requests.
What to do if you have been denied life insurance
Even if you’ve been turned down for life insurance or can’t find affordable premiums for the coverage you want, don’t give up.
One option is to invest the money you would have paid in premiums yourself. If your goal is to help your beneficiaries cover final expenses, a well-managed investment account can help you achieve that. You can also consider waiting and reapplying for life insurance at a later date, once your health has improved.
The worst strategy is to hide your condition from your insurer. Life insurance companies use many methods to identify fraud. Misrepresenting your state of health on your request could lead the insurer to dismiss a life insurance claim, compromising the benefit for your beneficiaries. If the insurer discovers fraudulent information, it usually records the incident in the Medical Information Bureau’s database, which is shared with other insurers. This could affect your chances of purchasing coverage from another company.