Life Insurance for People with Health Issues
Saturday, October 12, 2019, 6:00 AM | Leave Comment
It’s well known that life insurance companies prefer to sell policies to younger, healthier customer.
In the past, it was quite common for life insurance companies to flat out deny people with pre-existing conditions like obesity, heart disease, diabetes, hypertension, cancer, and even depression.
Luckily, however, as advances in medicine have improved health outcomes for many conditions, insurance companies have gotten more lenient. Health conditions are no longer automatic disqualifiers.
Depending on the severity of the pre-existing medical condition, a straightforward disclosure may be all that is required of you during the application process.
For other chronic conditions, you may have to go through additional screenings or have to supply past medical records.
You won’t know until you apply and speak to an agent, but don’t assume you will automatically be turned down.
If a company does require more extensive medical screening then they may also require a higher premium should you be approved. This is one of many reasons it’s always worth checking all of your options before deciding on a final choice.
The premium is the amount you have to pay each month in exchange for the coverage. Premium amounts do not solely hinge on an applicant’s healthfulness, but also on other risk factors such as occupation, age, gender, prescription medications, amount of time the policy covers, and of course the total coverage amount.
Given all of these elements, it is worth finding an amount you are willing to pay before beginning the hunt for life insurance. If you are denied for a policy or if that policy is simply too much to afford, you still may qualify for another type of life insurance policy.
For those deemed high risk, the easiest type of insurance to obtain is called guaranteed issue life insurance. Similar to any other policy, guaranteed issue life insurance still pays beneficiaries upon the death of the insured.
Like the name says, acceptance is guaranteed. As long as a person can afford the monthly premium, they will not be denied.
Generally, this type of policy has higher monthly payments with a lower payout in the end, but it can still be a great option for those who cannot qualify for other policy choices. Likewise, some people who decide to get life insurance later in life use this type of policy for the simplicity of it, even if they do qualify for other types.
Another type of insurance open to people who are still working, but may have underlying health issues, is called group life insurance. This type of insurance is offered through your employer so if they don’t offer it, you unfortunately cannot purchase this type of insurance.
For those who have employers that do offer group life insurance, these policies generally come with lower payouts than other policies but are generally given without a health screening and can sometimes even be wrapped into your employee benefits, meaning you will only have to pay a minimal amount or not at all. If this type of insurance is free through your employer, there is no reason not to accept it. Also, this type of policy only lasts as long as you stay employed with that specific employer.
Regardless of insurance type, sure the underwriter at the company you choose is aware of your circumstances and is willing to take the time to work with you. There is no one-size-fits-all approach and the person you are working with should understand this.
Life insurance is a great way to put your mind at ease, but remember, no matter what your health status is, it’s always best to be up front about it. Concealing health conditions could put your health insurance coverage at risk and affect the amount that goes to your beneficiaries.
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Max Gottlieb is the content manager Senior Planning. Senior Planning is a free service dedicated to helping seniors find housing and care options.
