Purchasing life insurance is one of the best ways to give the people you love financial security. Having that safety net in place can be all the more important if you’ve been diagnosed with a health condition. And yet, the medical condition you’re experiencing can make it harder to qualify for a policy. It can feel like a catch-22.
Fortunately, it’s possible to get life insurance with pre-existing conditions if you know where to turn. While some insurers may require you to pay higher premiums or deny your application altogether, others specialize in working with people who have health challenges. By understanding your options, you can find the right solution for you and your family.
The Underwriting Process for Life Insurance
When you apply through a traditional life insurer, the company evaluates your health status to help determine whether it will offer you a policy, how much coverage it will provide, and how much it will charge you. This process, known as medical underwriting, typically involves gathering information about your medical history—including past illnesses and medications—and asking about lifestyle factors, such as smoking, that may affect your health. The company may also require a medical exam and bloodwork to determine your current health status.
By analyzing these factors, the insurer can assess how much risk you represent. Simply put, the sicker you are, the more quickly the company may have to pay out a life insurance claim.
If you have a pre-existing medical condition, medical underwriting can make it challenging, and more expensive, to find coverage. For example, companies may flag your application if you’ve been recently diagnosed with any of the following:
- High blood pressure
- High cholesterol
- Obesity
- Asthma
- Diabetes
- Epilepsy
- HIV
- Cancer
- Depression
If you’re in good health overall and your condition is well managed, you may have an easier time getting approved with competitive premiums. While it doesn’t guarantee you’ll qualify for coverage, showing you regularly visit the doctor and consistently take prescribed medication can help.
Guaranteed Acceptance Life Insurance
Coverage options starting at $9.95 a month!
Guaranteed acceptance life insurance without medical exams, health questions, or rate increases.
How Guaranteed Acceptance Life Insurance Works
Trying to obtain coverage with a traditional insurer can be daunting if you have an existing health issue. Depending on your age, guaranteed acceptance life insurance (also known as guaranteed issue life insurance) may be the answer.
As the name implies, your approval is guaranteed as long as you’re within the required age range for the insurer, typically between 50 and 85. You don’t have to answer questions about your health history or take a medical exam to get a policy.
Typically, guaranteed acceptance policies are smaller whole life policies that help your family pay final expenses and other outstanding bills when you pass away. As long as you pay the required premiums, your family can feel confident those important funds will be there for them in their time of need. A guaranteed acceptance policy can be a good fit if you have trouble qualifying for life insurance because of health issues but still want to leave something behind for your loved ones.
Other Options If You Have Pre-Existing Conditions
Guaranteed acceptance life insurance can be a solution if a traditional life insurance policy isn’t an option. Depending on your coverage needs, you can also supplement your policy with these other strategies to protect your family.
Group Life Insurance
Employers often offer a life insurance benefit at little or no cost to workers, which is a great way to help protect family members who depend on your income. Standard policies don’t require a medical exam, which means coverage is accessible even if you have health issues.
Most employers offer a flat benefit amount or a multiple of your salary—one to two times your annual pay is common. While that modest payout can help your family manage funeral costs and other bills, it may not be enough for long-term income replacement. You may have the option to purchase additional coverage through your employer, but you typically have to pay out of pocket. Plus, you may be required to undergo medical underwriting to obtain supplemental insurance, depending on your benefits program.
Group coverage is also typically only active when you’re working for the sponsoring employer. If you leave the company for any reason, you usually lose those benefits. Unless you receive life insurance with your new employer, you may have to explore options on the individual market.
Savings or Brokerage Accounts
If you’re unable to qualify for a life insurance policy that meets your full financial needs, you can boost your protection by self-insuring at the same time. That means you save and invest regularly into separate accounts where your spouse or children are the beneficiaries.
Keep in mind that you may need to build a substantial amount of assets to help your family pay down debt and replace your income when you pass away. If something should happen to you within the first few years of starting to grow your “insurance” fund, your loved ones may not have the financial protection they need. So, it’s generally better to purchase as much insurance as you can and use your own assets to supplement those benefits.
You may want to consult with an investment advisor before building a portfolio on your own—especially if you’re using that money as a safety net for your family.
Getting Life Insurance with No Medical Exam
Having a health issue doesn’t mean you have to forgo life insurance that your family may need. Understanding your options can help you build a contingency plan that can give you and the people you love peace of mind. If you have any questions about how to get life insurance with pre-existing conditions, don’t hesitate to reach out to a Colonial Penn representative.
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Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
