Types of Life Insurance Policies
People often think that they have to be the picture of health to qualify for a life insurance policy. But there's good news! Health conditions are taken into consideration, but they are generally not automatic disqualifiers. There are also some life insurance policies that allow you to completely forgo the medical exam and long health questionnaire. That means, if you qualify, you could spend your morning sipping coffee at home, instead of waiting to take your medical exam.
If you have a pre-existing medical condition, you might have questions about how it will impact your ability to get life insurance. We're here to help you find answers — and assure you that you may have more options than you think.
In short, yes, it may be possible to secure life insurance with a pre-existing medical condition. For some health conditions, a simple disclosure may be all that is required of you. However, for many illnesses or physical conditions, you may need to go through additional medical screenings. This might include an EKG test (a test commonly used to monitor the heart and detect problems), cancer testing or a review of your prescription drug records.
In addition to increased medical screening, you should also be prepared for the possibility that you may have to pay a higher premium for your life insurance policy.
There are several factors, including your health, that are used to determine how much you pay for your life insurance policy (or your "premium rate").
All of those factors can be grouped underneath these key variables:
When you apply for certain types of life insurance, such as term life insurance or whole life insurance, you are typically required to complete a medical exam and a health questionnaire. The results help give life insurance providers insight into your current health status, your health history, and your family's health history, among other things. All of this information is used to assess your risk of passing away prematurely. As a result, the lower your risk, the lower your premiums may be.
Below is a partial list of health conditions that could affect the rate you'll pay for life insurance. However, some health conditions are more common than others. Here's a look at five common health conditions and how a life insurance provider might handle them.
It's important to remember that even if you're unfortunately denied for a certain type of life insurance policy, there may be other options still available. At AIG Direct, we offer Guaranteed Issue Whole Life Insurance, as well as Accidental Death and Dismemberment Insurance. Both provide your family with much needed financial assistance if you were to pass away unexpectedly and neither require a medical exam.
Guaranteed Issue Whole Life Insurance is attractive for those ages 50 to 85, who want to help ensure their loved ones won't have to shoulder the financial responsibility of medical bills, credit card debt, or funeral costs. As long as you meet the age requirement, you can't be turned down for health reasons. It's permanent coverage, which means that it can last up to a lifetime. Your rates are also locked in for life, even as you age or your health status changes. Coverage is subject to receipt of payment and verification of identity as required by law and is effective upon receipt of policy.
Learn more about Guaranteed Issue Whole Life Insurance
Another option is Accidental Death and Dismemberment (AD&D) Insurance, which is there to protect you and your family should you get seriously injured or killed in an accident. It's designed for people who are 18 to 80 years old and want guaranteed accidental death insurance, regardless of their health or occupation. So whether you fly planes or teach people how to safely jump out of them, you can't be denied coverage, as long as you meet the age requirements.
It's important to note that AD&D Insurance isn't a life insurance policy. But it can offer some degree of protection for people who might otherwise have none, due to health issues. It's also a more affordable option than a term or whole life policy, typically with a faster approval time.
Learn more about Accidental Death Insurance
If you have a pre-existing medical condition, one of the most important things you can do is be upfront and honest with your agent — and do your research. You might find a valuable option for life insurance, without ever having to put on one of those hospital gowns that never quite closes in the back.
1. https://www.cdc.gov/dhdsp/data_statistics/ fact_sheets/fs_bloodpressure.htm