It can be difficult to find affordable life insurance for people with pre-existing medical conditions. Life insurance policies for high-risk individuals are often more costly and have fewer benefits than life insurance products that are available to people with no pre-existing conditions. There are affordable life insurance options available for those with pre-existing medical conditions, despite the difficulty of being a high-risk candidate for life insurance.
What is a pre-existing condition and how can it be treated?
Pre-existing conditions are medical conditions that have been identified before you start insurance coverage. Pre-existing conditions are not covered by insurance companies. However, life insurance carriers have no such laws. Pre-existing conditions like asthma, diabetes, heart disease, and cancer can have an adverse effect on the premium rate and benefits offered to potential policyholders.
Pre-existing conditions may take many forms, with varying degrees of severity. This list isn’t exhaustive. However, these are all pre-existing conditions.
- AIDS/HIV
- Dementia
- Epilepsy
- High blood pressure
- High levels of cholesterol
- Mental health disorders (depression and anxiety, among others)
- Obesity
- Pregnancy
Pre-existing conditions are basically any medical condition that you have had treatment for in the past. Insurance carriers perceive a person’s risk as higher if they have more pre-existing medical conditions.
What does my pre-existing condition impact on my life insurance rates?
When it comes to determining your life insurance premium rate or coverage options, pre-existing conditions could have a negative effect. To determine your risk of being covered by insurance companies, they use a tiered approach. The following four categories are common for policyholders:
- Super Preferred (or Prreferred Plus)
- Prefer
- Standard (or regular)
- Substandard
Pre-existing conditions that are more severe will result in higher premiums or coverage denial. Your premium rate will increase if you are more likely to have pre-existing conditions. Some pre-existing conditions may be considered more risky than others. Insurance companies will evaluate each case according to the following criteria in order to determine the severity of your condition:
- Gravity of medical condition
- No matter if the issue is still relevant.
- The first time the diagnosis was made
- Lifestyle factors that can increase risk include habitual drinking and smoking.
What type of life insurance is available for those with pre-existing conditions?
Life insurance companies have the power to increase or deny coverage for pre-existing conditions. However, policies are still available to high-risk candidates. These are some of the options for life insurance that are available to those who have pre-existing conditions.
Life insurance with guaranteed issue
If you have a pre-existing medical condition, a guaranteed life insurance plan may be an option. It is open to everyone. You can be denied for any reason, as there is no medical exam. Your coverage is permanent, so you will not be denied for any reason. Your coverage will continue as long as you make your premium payments.
Term life insurance
Term insurance can be a cost-effective option as it is offered for a limited time, typically between 10 and 30. Low rates can be locked in for policyholders, and they can still qualify for coverage even if they have pre-existing medical conditions. Many term life insurance companies will approve coverage for you even if your health conditions are under control. It is important to note that premium rates for pre-existing conditions will be more expensive than those without them.
Group life insurance
You may be eligible to get group insurance through your workplace. Because coverage is often basic and costs are shared among many people, these policies can be more affordable for a small group. Employees are often offered group life insurance as part of their benefits package. Some policies may also cover pre-existing conditions if the policyholder adds their spouse or children. The coverage amount is usually limited to one-third of an annual income. This may not be in line with your financial goals. It’s a smart decision to make use of the plans available, as they are often more affordable than the coverage options offered by the traditional marketplace.
You need to be aware of certain things when purchasing life insurance for a pre-existing condition
It can be daunting to buy a policy for life insurance if you have a pre-existing condition. However, it does not have to be difficult. You can save money by understanding how your pre-existing condition may affect the cost of your coverage before you shop.
Start earlier in your life
Life insurance is more expensive the older you are. Because your insurance carrier may need to pay the death benefit specified in your plan, this is because it’s more likely. You can avoid paying higher rates by applying for life insurance in your 20s and 30s before you reach retirement. You can lock in a low rate for many years by applying now.
Health improvements
Although it may seem difficult, improving your health can have many benefits. Health improvements will not only lower your monthly premium but also give you a better quality of life.
Your insurer may offer you a share of improvements
You should inform your insurance company if you have life insurance that has rates that fluctuate based on your age, health, and other factors. Insurance companies may adjust your premium if they find that your health has significantly improved or been removed. To qualify for lower rates, you may need to undergo a medical screening. Talk to your agent about your options and how you can remove pre-existing conditions from your profile.
Do not hide your condition
If you are shopping for life insurance, the worst thing that you can do is lie about your pre-existing condition. Before granting coverage, insurance companies will always check your medical history. Even if your agent doesn’t know about your condition, they will in the course of their investigation. To avoid getting denied coverage, lying about your pre-existing conditions will only cause more damage than good.
What should I do if my life insurance is denied?
Individuals may have pre-existing life-threatening conditions that are not easily treatable. If someone has not received treatment for addiction, they may be denied insurance coverage. An independent broker is the best way to find the right plan for you if you have been denied coverage by multiple insurance companies. These brokers have connections to many insurance companies and will likely have some tips and tricks to help find you coverage.
You may also be eligible to submit your application again for coverage after waiting a certain amount of time. If you have been denied coverage in the past and can prove that your condition has improved, some insurance companies will consider you. If you are diagnosed with Hepatitis C, denied coverage, but receive treatment for the condition over a period of one year, and are considered to be cured, you may resubmit your application.
Questions frequently asked
Which is the best life-insurance company?
Your individual needs will determine which life insurance company is best for you. Some people may require more comprehensive coverage than others, depending on their personal circumstances. Our Best Life Insurance Companies list will help you find the best life insurance company.
What amount of life insurance do you need?
Individuals should consider their spending habits when deciding on life insurance. Calculate funeral expenses, medical bills and post-mortem tax obligations for your surviving beneficiaries in order to maintain their standard of living over many years. Calculate these costs for children if you have more than one child. If you are unsure, speak with your agent to determine the best coverage for your needs.
What happens if I conceal my pre-existing condition from the world?
Your pre-existing conditions will be discovered by your insurance company. Sometimes, an insurance agent may contact you to discuss their findings and adjust your insurance plan or application based on your medical history. Some insurance companies may see this dishonesty as a reason to deny coverage. Honesty is the best policy when it comes to disclosing your medical history to an insurance agent.
