Millions of Americans have pre-existing health conditions that put them at greater risk of illness or death, and which can make it more difficult to secure a life insurance policy.
Life insurance is less expensive the younger and healthier you are and gets pricier depending on a number of factors, such as your health, tobacco use, age, weight, family health history, and more.
Health factors that can affect your premium include the following pre-existing conditions:
- Cancer
- Heart disease
- Diabetes
- High blood pressure
- High cholesterol
- Obesity
- Sleep apnea
- Anxiety or depression
- Gastroesophageal reflux disease.
Fortunately, there are options available for people with pre-existing health conditions, and you can still find life insurance that meets your needs, including:
Guaranteed issue life insurance — This type of policy does not require a medical exam and requires you to answer only a few questions about your health and medical history.
However, these policies typically have lower death benefits and higher premiums compared to other types of life insurance, so they may not be the best option for everyone.
Also, guaranteed issue life coverage amounts available are usually very low, often between $10,000 and $25,000. Because of this, such insurance is often purchased to cover final expenses, such as a funeral, medical bills and small debts.
One important note: Guaranteed life insurance carriers commonly use graded death benefits to protect themselves from purchases by severely ill people.
If you pass away within the first two or three years of the policy for any reason other than an accident, your beneficiary could receive only a refund of the premiums you paid, plus interest. Interest amounts paid vary by company, but can be in the range of 10% to 30%.
Simplified issue life insurance — This type of policy requires a medical questionnaire, but no medical exam. The questionnaire will ask about your pre-existing health conditions and other medical history, but the insurer will not ask for medical records or test results.
This coverage is designed for people who have age or health issues that may make it more difficult to get fully underwritten life insurance, or who prefer a simpler way to apply for insurance.
Terms range from 10 to 30 years and death benefits on these types of policies are usually higher, but the maximum amounts usually decrease the older an applicant is.
Fully underwritten term or whole life policy — These policies have the highest death benefits and lowest premiums, but if you have a serious medical condition, you may not qualify. Insurers will still accept people with pre-existing conditions, but you’ll have to undergo a medical exam and a complete review of your medical history, including your pre-existing health conditions.
While you may not be rejected for coverage, you could be charged more due to your health.
Tips
- Don’t lie: If an insurance company finds out you lied on your policy, they can revoke it. They will have access to your medical records, so it’s best to be honest. There are many available policies to cover a range of ages, risk categories and pre-existing conditions.
- Buy insurance early: Purchasing your policy earlier in life can help you avoid the pre-existing condition conundrum. Also, the earlier you buy and healthier you are when you purchase a policy, the lower the premiums will be. If you wait until your health deteriorates, you’ll pay more.
- Time your application: If you plan to quit smoking or undergo treatment for a health issue, you may want to wait until after you’ve stopped smoking for a period of time or after your condition improves. Waiting may help you secure better coverage.
- Take care of your health: If you are having health problems, the best thing you can do is start taking care of yourself by eating right, exercising and addressing bad habits like smoking and excessive drinking. Also get regular checkups to keep tabs on your health.
If you are able to improve your health, you can qualify for better and less expensive coverage.
