Have you been turned down for a life insurance policy?
Don’t know what to do?
Pre-existing Health Conditions and Life Insurance
Yes, it can be a challenge if you have been coping with a pre-existing health condition like heart disease, high blood pressure, cancer, diabetes and any other form of health condition.
You might have already applied for a life insurance policy and the company turned you down flat. There are many people who are in the same boat as you.
Everyone has a need for life insurance, but people who have a pre-existing health condition can face an uphill battle when it comes to buying life insurance.
What can you do? I have some tips and advice that I think will help some of you, and I’ll start with the basics when it comes to comes to life insurance and how it works for people who have a pre-existing health condition
How Life Insurance Companies Rate People with a Pre-existing Condition
Believe it or no there are over 80 different variables which can be considered in the underwriting process when it comes to rating a person for a life insurance policy.
Life insurance is based on the probability of risk. How risky is it to insure a person. Even if you are a higher risk, you may still be eligible for a policy. But, it will cost more for a policy.
Some pre-existing conditions may not be insurable under a standard policy by any company. Other conditions may require a waiting period such as being cancer free for a certain period before they will consider an application. That’s the bad news.
The good news is that not all insurers rate people with pre-existing conditions the same. Some companies are definitely more lenient than other companies. So, the first thing to keep in mind is that even if one company turned you down, another company might approve your application.
And, if you still aren’t eligible for a policy at all, there is another option known as Guaranteed Life Insurance which I’ll explain about later on.
In a nutshell, the most important factors which a prospective insurer wants to know include the following:
- When were you first diagnosed with the condition
- How serious is the condition
- What treatment you received
- How well you responded to treatment
- What is the prognosis
Basically, what the insurance company wants to know is whether your condition is one of the following situations:
- Is the pre-existing condition stable?
- Is the pre-existing condition improving?
- Is the pre-existing condition getting worst?
The insurance companies will rate you according to the medical records they request and receive from your doctors/hospital. They will also base their decision on your medical exam which you might have to take and from their review of the R/x database and MIB or Medical Information Bureau.
If your condition is stable or improving then your odds of being approved for a policy increases. If the condition is getting worst then it is very likely you will not be eligible for a standard policy and will have to go with a Guaranteed Life Insurance policy.
Not All Pre-Existing Conditions Are Treated the Same
This is another thing you have t keep in mind. For example, you might think that since you have been diagnosed with cancer, then you’ll be out of luck.
No, just because you have cancer, heart disease or diabetes doesn’t necessarily mean your pre-existing condition will be all lumped into the same category. Some conditions have a very high rate of being treated successfully such as some types of skin cancer. However, lung cancer may be a bit more of a problem.
How Do I Find Life Insurance with a Pre-existing Condition?
First, don’t waste your time using instant online sites which claim to be ready to sell you a policy right now. It won’t work as you are going to undergo a more detailed health investigation by the company.
Since not all insurers are the same, the first thing you should do is to always talk to an independent life insurance agent who specializes in health related issues such as me. Independent agents have access to dozens of different insurers and I know which ones are going to be more lenient than others.
This not only applies to how you will be rated but how much you will be charged for a premium. The other issue is that I can discuss your specific health concerns on a one-to-one basis and can provide you with the advice and options you need to know about and consider before you make an informed decision.
What if I Have A Life Threatening Pre-existing Condition?
It is possible you may not qualify for a regular life insurance policy at all. But, you still have one option left open and that is for a Guaranteed Acceptance life insurance policy. In most cases you will not have to either answer any medical questions or even have to take a medical exam. You are basically immediately approved.
The drawback is that these policies have much a lower coverage which mostly won’t be higher than a $25,000 policy. They are more expensive but still affordable.
There is usually a 2 year waiting period called a ‘Graded Death Benefit’ attached to these policies where the insurer won’t pay the death benefits if you die in the first 2 years of the life of the policy. Your beneficiary would only receive the premiums (and possibly some interest) you paid up until the time of your death.
Where Can I Find a Life Insurance Policy for a Pre-existing Condition?
You always want to talk to an independent agent like myself. We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates. If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 877 – 966 – 9383.