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The Life Insurance Blog

Helping millions of Americans become educated
in making decisions about their life insurance needs


Pre-Existing Health Conditions and Life Insurance

Oct 15, 2016 12:38:00 PM

Life insuranceLife insurance is an important financial protection that most people should have in place. Too many people believe certain life factors might preclude them from purchasing a life insurance policy. Among these are age, lifestyle habits, and pre-existing health conditions. While you may face some challenges with coverage in a few cases, you'll still be able to get life insurance with a pre-existing health condition if you stay organized and follow these tips.

Pre-Existing Medical Conditions

The number of people with pre-existing medical conditions became more visible with the passage of the Affordable Care Act. In 2011, the government determined that nearly half of all Americans under retirement age had some sort of pre-existing condition that was locking them out of the healthcare system. If you are one of these people and are now getting the treatment you need, it can only help your situation. Even if you've been receiving treatment, you'll want to be honest about your health status.

If you have a pre-existing medical condition, don't try to hide it or lie about it to an agent or insurance company. If you lie and the truth comes out later, your coverage will likely be cancelled and any claims denied. Your best course of action is to have as much detailed information as possible on hand about your condition. Gather dates of diagnosis, major treatments, tests, or surgeries, recent lab results, and a list of medications. This information will be helpful in documenting your condition and getting you the best life insurance quotes.

Research Insurance Policy Options

Even if you have a pre-existing health condition, you will have a lot of life insurance policy choices. Each insurer has different underwriting requirements for a policy, so your particular condition will result in different life insurance quotes from a variety of companies. You'll want to get quotes from several companies to compare rates, but you also need to consider your various coverage options.

Depending on the nature of your health condition, you may either be able to obtain a fully underwritten (term) policy or will need to look at alternatives. If your condition is serious enough, you may not qualify for either a term policy or any riders that would protect you in case of disability. However, you would still be able to purchase a graded benefit life insurance policy, which doesn't ask for a health exam but at a higher cost. A last resort would be a guaranteed acceptance life insurance policy, with a higher cost and limited payout structure.
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Tips to Get the Best Life Insurance Rates

There are several strategies to get better life insurance rates, even when you have a medical condition. If you are quoted higher than average rates, it may not be just that you have a pre-existing condition, but more that the condition isn't under control. For example, rates are more favorable to people who have their high blood pressure or diabetes under control with medication and lifestyle changes than for those who don't.

You will get the best life insurance rates when you consent to a medical exam. This is because it gives the insurer a better idea of your current health. In the event that the medical exam doesn't go well, you can always opt for a no-exam life insurance policy, understanding that your rates will be higher.

Life insurance is an important coverage, and particularly so if you have health issues. Even with a pre-existing health condition, you can obtain a life insurance policy. Contact us to begin a needs assessment or to request a quote now.